Inflation is currently running at 6.2% - its highest level in almost 30 years. Recent comments from the Chancellor were supposed to ease the economic pressures being felt by the masses, but did little to quell the concerns of millions of cash-strapped households.
Research conducted by UK Property Finance indicated that even before the most recent living-cost increases, 57% of UK households were either struggling financially, or expected to face significant struggles in the near future.
With Bank of England base rates having been increased to 1%, the knock-on effect is being felt by mortgage payers across the country. Figures from Moneyfacts suggest that almost 520 mortgage products disappeared from the market over the course of the past month alone, as banks tighten their restrictions with regard to who they lend to.
Meanwhile, many households are struggling to pay their mortgages and finance agreements, and only anticipate further difficulties over the coming weeks and months.
A Quarter of People Already Struggling Financially
With no let-up in sight, the rest of the year could prove particularly difficult for those who are already struggling to make ends meet. Real wages in the UK are now predicted to be lower by 2026 than they were in 2008, adding up to more financial woes for even more households.
Figures from UK Property Finance suggest that around one in every four people are already experiencing significant financial struggles. Many of which now face the prospect of further cost-of-living increases, and mortgage rates only set to continue climbing over the weeks and months to come.
Wage Stagnation
In a growing economy, wage increases and inflation typically go hand in hand. However, the data published by UK Property Finance suggests that since the start of the pandemic, only 30% of workers have seen their wages increase.
Elsewhere, the remaining 70% have either seen their wages fall or stagnate.
Younger people, in particular, have been hit hard by rising costs, with a full 35% of those aged between 18 and 24 saying that they are already finding it difficult to make ends meet. In addition, 24% of those aged between 18 and 34 have seen their wages fall during the course of the pandemic. Inflation looks set to continue wiping out the salaries of younger people in real terms, as living costs head ever skyward.
Could the Worst Be Yet to Come?
Perhaps most worryingly of all, there is an abundance of evidence to suggest that the worst is still to come. Almost one in three people polled by UK Property Finance said that they expect to experience significant financial difficulties in the near future, as living costs are set to continue increasing indefinitely.
Things could prove particularly problematic when the autumn and winter set in, as it becomes even more difficult for households to heat and power their homes. By which time, millions could already be dealing with further mortgage rate hikes, triggered by seemingly inevitable Bank of England base rate increases.
In particular, you might be unsure about how financing a commercial property investment differs to be regular mortgage.
The lenders consider the key criteria, such as:Your deposit and equity, if availableYour capacity to repay.
This includes all your incomes including the expected rental income from the commercial property.Details and conditions of the commercial property lease.The type of commercial property it is.
Whether it is an office, factory, or a warehouse, together with its location and value’s report.Tips You Should Know Before Applying For a Commercial Property Loan Specialized Commercial Lenders First up, it is important to know that while commercial loans can be less familiar among people, there are a variety of loan options available from a range of specialized commercial lenders.
The mainstream lenders will tend to automatically move the buyers of the commercial property into their commercial lending products.
9 out of 10 times, these specialized lenders are more competitive.
Bridging finance is a short term loan which bridges the finance gap between selling your current property and buying a new one.
Are you looking for bridging loans?
LoansOne provides the bridging finance in Australia at best rate.
Apply through easy online application that takes just a few minutes to complete for the bridging finance up to $5 Million and get funded within just 24 hours.For More Information Visit:- Bridging Finance Australia
