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Bank of England raises UK interest rates

The Bank of England has raised the interest rate for only the second time in a decade.

The rate has risen by a quarter of a percentage point, from 0.5% to 0.75% - the highest level since March 2009.

While the decision means that the 3.5 million people with variable or tracker mortgages will pay more, the rise will be welcomed by savers.

Mark Carney, the Bank's governor, said there would be further "gradual" and "limited" rate rises to come.

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Lincoln third cheapest city for graduates

Lincoln is the cheapest university city to live in for graduates after Liverpool and Stoke-on-Trent, according to new research.

New figures analysed by Propillo found that Lincoln is the one of the most affordable university cities to live in, with the average rental price at £540 per month.

Taking the average cost of rental accommodation and cost of living into account, Lincoln leaves graduates with around £162.93 of disposable income each month.

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Workers after graduating can only afford to live in 39% of England

One year after graduation, the average graduate salary of £18,244 means the next generation of workers are limited to living in just 39.2% of England when the cost of living and rental prices are taken into account.

Online mortgage advice service, Propillo found out of 352 local authorities in England there are only 138 areas that will leave graduates with a surplus each month – the lowest of which being the Ribble Valley.

After paying rent and the cost of living, graduates living in this part of England will only have £1.10p left to save each month.

The most affordable location to live is Hartlepool in the North East. With an average rental cost of £446 per month and the cost of living being £647 per month, graduates earning £18,244 per annum will have £314.93 per month left as savings- which is £3,779.20 per year.

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'Brexit the bogeyman' NOT to blame for fall in UK house prices

BREXIT is not to blame for falling house prices in the UK, experts have declared amid signs Britain's property market is beginning to slow.

Earlier this week Halifax said UK house prices fell by 0.6 per cent in December and added prices only rose by 2.7 per cent during 2017, with the quarterly growth rate slowing to 1.3 per cent in October to December.

Critics suggested Britain's impending exit from the European Union has contributed to the fall in house prices.

But experts told first-time buyers and limited housing stock is to blame.

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Stamp duty changes for first-time buyers: what you need to know

As part of a raft of measures to boost home-building the Chancellor has announced - as hinted - a cut in stamp duty for those buying a home for the first time.

Stamp duty has been blamed for the sluggishness of the housing market both for the younger and older generations. Experts say the chunky tax bill puts off young buyers and prevents older buyers from downsizing.

Philip Hammond's announcement, that most first-time buyers will pay no stamp duty at all, will be welcomed by many. The Conservatives will hope the policy will win back many of the young voters who abandoned the party and voted for Labour and Jeremy Corbyn in this year's election.

Unveiling the policy, Mr Hammond said that an anticipated "stamp duty holiday" for first-time buyers didn't go far enough and "would do nothing to help those who still have to save for years".

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Era of super-cheap 1pc mortgage deals is over

An era of super-cheap 1 per cent mortgage deals has ended after just 18 months. Following the Bank of England's base rate rise earlier this month lenders have pulled all sub 1 per cent deals from the market, according to finance website

The cheapest-ever mortgages were first introduced in 2016 amid falling interest rates.

In September HSBC and Skipton Building Society both had a 0.99 per cent 2-year base rate tracker but they have now risen to 1.24 per cent, in line with base rate.

And until October Yorkshire Building Society had a two year fixed deal, however it was withdrawn in anticipation of a rate rise.

Now the lowest two year fixed mortgage deal available is at 1.09 per cent from Santander.

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First interest rate rise in 10 years adds to UK mortgage burden

Millions of homeowners face higher mortgage payments after the Bank of England said it could no longer tolerate the inflation level and announced the first increase in interest rates in more than 10 years.

Despite weak growth and mounting uncertainty over the terms of Britain's exit from the EU, Threadneedle Street increased interest rates to 0.5% from 0.25% on Thursday, reversing emergency action taken immediately after the Brexit vote.

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First interest rate rise in 10 years adds to UK mortgage burden

Could Britain become one of those countries where property is so expensive that the only route to home ownership is to take out a mortgage that will never be fully paid off?

The City watchdog, the Financial Conduct Authority, has just taken us a step in that direction. It is consulting about allowing interest-only mortgages (where the capital debt is not reduced) to make a comeback. And it would potentially allow these loans to be advanced to borrowers in later life.

This would help a particular group of borrowers, now mostly in their 60s, who have existing interest-only mortgages and no means of repaying the capital. They could simply continue on the same basis.

But the move could have far greater ramifications. Britain could become more like Sweden, Switzerland or Japan, where rising property prices have resulted in mortgages that are not repaid within one borrower's lifetime. The benefits?

It means more people are able to own a part, if not the whole, of a property - and thus benefit from any increase in its value. The downside, though, is that paying interest on a loan for life is not unlike paying rent.

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Your home may be repossessed if you do not keep up repayments on your mortgage
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