The high cost of moving up the property ladder is putting many people off the idea of upsizing, the Times reported this weekend.
Recent UK Finance figures revealed a significant increase in the number of people ‘staying put’ and remortgaging to release money from their property, many of whom are using the funds to carry out home improvements including extensions.
Rates are extremely competitive at the moment, and the trend for improving rather than moving is set to continue. Experts warned however that taking equity from the home isn’t without risk, particularly if property prices were to fall.
Elsewhere the Sunday Times looked at school fees, following latest figures that reveal an annual increase of 3.4%, putting the average cost at around £17,000 per year. Most lenders include school fees as a ‘fixed expenditure’ in their affordability calculations and this can have a significant impact on the amount they will be prepared to lend.
The good news is that some lenders have been more flexible recently, and may be able to agree a higher borrowing amount for parents who can prove their children will be leaving private education before the age of 18.
What the papers said about home improvements and school fees