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It is looking more and more likely that interest rates will rise next month for the first time in nearly 10 years. When this happens the reaction from most people is usually how will this affect me? If you have a mortgage then the impact will depend on the type of mortgage you hold. If it is a fixed rate mortgage then you will not notice any difference until you come to the end of your fixed rate. However, when you come to renew your mortgage the rate is likely to be higher.

If you are on a tracker mortgage then your monthly payments will increase as these variable mortgages track the Bank of England base rate at a fixed margin above or below it. Given that the likely rise will be 0.25% the increase per month on a typical mortgage will be relatively small. In addition, most mortgages are fixed these days so the initial impact will be low. If the upward trend continues though, as Mark Carney, the Governor of the Bank of England has indicated and interest rates start to begin a gradual trend upwards, the impact will be greater. 

It is better news if you have savings. You are likely to see a greater return on your money as the banks should increase the amount of interest they pay on your savings. Finally, anyone going on a foreign holiday should benefit as an interest rate rise is often linked to an increase in the exchange rate and a stronger pound.  

 

 

Landlords should be aware that the latest part of the Energy Efficiency Regulations 2015 is due to come into force on 1st April 2018. From that date landlords will not be allowed to grant new or renew existing tenancies on any rental property which has a poor energy efficiency rating.

An Energy Performance Certificate has been required for virtually all properties for some time. All properties are given a rating of A (most efficient) to G (least efficient). There has however been no requirement to upgrade any properties that have low efficiency ratings. This will change in April, when Landlords will not be able to rent out any properties which fall into the two least efficient classes of G and F. Improvement works will have to be carried out to these properties to ensure that they have a rating of at least an E.

House prices rose by an average of 4% on an annual basis in September, according to the latest house price index from the Halifax. This is higher than the year on year increase recorded in August (2.6%) and the highest rate since February. On a quarterly basis, house prices in the last three months (July - September) were 1.4% higher than in the previous quarter.This is the fastest price growth since February.

Month on month, the average price rose by 0.8% between August and September. This followed a 1.5% increase in August, making the value of the average UK property now £225,109. The report also stated that the number of house sales in August remained the same but still exceeded 100,000 for the eight month in a row.

CB Estates have further strengthened their team by welcoming a new member of staff. Kelly Sowden joins the team as a very experienced Sales Negotiator, having worked in Estate Agency in Plymouth for 13 years. Kelly specialises in residential sales and is looking forward to the challenge of her new role. If you are considering selling your property, contact Kelly today for your free market appraisal.

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