Read the highlights…

Have interest rates peaked?

I sense that we’re starting to see a greater body of evidence that suggests higher interest rates are working, by dampening economic activity and employment growth. This will eventually result in slower core inflation and wage growth, which is why we think rates have peaked in the UK, US and Europe.

Will the rising price of crude oil throw a spanner in the works by fuelling inflation?

If the oil price were to stay at its current level of around $90 to $100 per barrel, then inflation would fall more slowly than we previously anticipated. However, when it comes to the UK, the drop in utility prices is having the biggest effect on falling inflation, and we continue to believe that it will fall to 5 per cent by the end of the year.

For our outlook to be very different, the price of oil would need to jump to $150 per barrel. And even if that were to happen, inflation could still fall, although central banks would likely keep interest rates at their current peaks for longer than planned.

Do you think that interest rates will stay, as the ubiquitous phrase goes, ‘higher for longer’?

I don’t think this will be the case in the US, because inflation looks likely to fall to its 2 per cent target much earlier than most people expect. On the other hand, the UK has a bigger inflation problem, partly because of stickier domestic inflation driven by a reduction in the supply of labour, which has boosted the rate of wage growth more than in the US. Strikes and big public sector pay deals have exacerbated matters.

So, while we expect the Fed to cut interest rates in the first half of next year, we don’t believe the Bank of England will be in a position to do so until the end of 2024.

When central banks do reduce rates, will it be just a few token cuts?

No, we believe the cuts will be more drastic than many are anticipating. The markets are pricing in rates of between 4 and 5 per cent in the UK at the end of 2025. Our view is that if the UK enters a mild recession, inflation will come down quite significantly. The Bank of England will then be able to declare victory and plan on making bigger cuts to around 3 per cent by the end of 2025.

Where do you think interest rates will settle in the long run?

We don’t envisage returning to a world of almost zero rates, but neither do we think we are going back to the interest rates that preceded the financial crisis. The norm will be somewhere in between. Before the pandemic, we thought that the so-called neutral interest rate in the UK would be about 2.5 per cent. Now, we believe rates will more likely settle at around 3.5 per cent.

Will the housing market weakness continue?

In our view, mortgage rates are going to remain in the region of around 5 to 6 per cent for the best part of another 18 months, which is high compared to the past few years. This cumulative effect will gradually take its toll on the housing market, so further weakness can be expected. Prices have already fallen by around 6 per cent from their peak a year ago, and we suspect they will fall by a similar amount over the next year or so, too.

How will AI affect productivity and employment?

We believe that generative artificial intelligence (AI) is a transformative technology that is going to filter throughout the whole economy and give a significant boost to productivity growth. The UK has had very poor productivity for the past decade, but we believe that AI could change that.

In the past, major technological revolutions have taken place in the industrial and agricultural sectors; this time it could be the turn of the services sector. And the UK has a big services sector where businesses can meaningfully innovate, adapt and adopt AI. Our analysis suggests that the US is going to be the winner from the AI revolution with the UK not far behind.

Naturally, some jobs will be lost to AI, but some will be complemented by it, and many will be created. And if AI boosts productivity, as we believe it will, it will generate a bigger economy and stimulate employment growth.

Weatherbys’ view

Ultimately, long-term changes in share prices have little to do with the caprices of economic sentiment over the short term. They have much more to do with innovation, invention and problem-solving – and AI could yet play a pivotal role.

However, we would caution against trying to pick specific winners. Some companies have done very well from AI-related speculation already, but it is plausible that the creative adopters of this technology will generate the most value in the years to come. And nobody can predict the future – not even the inventors themselves!

Instead, we engineer investment portfolios according to sound philosophical foundations – relying not on past performance or future prophecy, but fallibilism and good explanations.

As ever, we remain at your disposal to solve whatever financial quandaries may be weighing on your mind.

Important information
Capital Economics is an independent consultancy firm. Past performance is not a guide to future returns. Please note that the value of investments can go down as well as up, and you may get back less than you originally invested.

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Media coverage has centred on the abolition of ‘Section 21’, which gives landlords the right to evict tenants on a no-fault basis with two months’ notice. However, if you look under the bonnet of the new regime, there are other reasons for landlords to pay attention to the changes. While the abolition of Section 21 makes headlines and is unsettling for landlords, they can still recover possession of the property in specific circumstances, including where they want to sell or if they or their family want to occupy it. So the reality may be more benign than the headlines indicate. That said, other measures, as outlined below, are set to impact residential landlords.

Private Rented Sector Database

Welsh and Scottish private-sector landlords are already required to register on a landlord database, and many English landlords are subject to selective licensing by local authorities. The new proposals will see the registration requirement extended to the rest of the UK. Landlords will be required to register their property on a government property registration portal before letting or marketing a property. Failure to do so will result in fines. Landlords will be allocated registration numbers for properties and these must appear in any advert for the property.

The exact information required to register is not yet known, neither is the extent to which the information will be publicly available – although the government says that it is sensitive to the privacy concerns of landlords. However, the database is expected to include information on property standards to help tenants make more informed decisions, and landlords will almost certainly be required to reveal their identities.

HMRC will undoubtedly be keeping a close eye on the new database. Despite running a campaign since 2013 to bring non-compliant landlords into the tax-paying fold, it is suspected that many private landlords either don’t declare their rental income or, if they do, under-declare it. Compulsory registration on the database should help HMRC clamp down on those landlords that fail to declare their full rental income.

Private Rented Sector Ombudsman

The new legislation will also see the launch of a Private Rented Sector Ombudsman. This will ensure that all tenants will have access to a redress service that is an improvement on the current court system in terms of cost and speed. Like the Private Rented Sector Database, all landlords will be expected to join and, like the Private Rented Sector Database, there will be a fee to do so. On that basis, you might expect landlords to be able to complain to the new Ombudsman about their tenants, but that isn’t the case despite landlords being asked to pay for it.

What happens next?

The Renters (Reform) Bill is only at the second stage of reading in the House of Commons and so the proposals could change between now and the bill becoming law. Nevertheless, the principles seem to have cross-party support and it’s hard to see any of the major elements being dropped. This will mean more administration for private sector landlords and, it seems, additional fees and regulations.

Despite the increasing burdens there remain advantages to holding rented property as part of a diversified asset portfolio. Assuming that landlords want to stay in business, it makes sense to review compliance in preparation for the new regime. Anyone who isn’t tax compliant needs to get up to speed, but otherwise, a review of matters including electrical and gas certificates, EPC status and deposit protection would be a sensible place to start.

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Read the highlights…

Before we turn to the UK, can you set the scene by establishing what’s going on in the US? Have interest rates peaked across the Atlantic?

I don’t think so – rate hikes may well have paused, but not peaked. It feels to me that inflation is still a bit too high for the Fed’s liking, which suggests that it will indeed raise interest rates further, taking the range to around 5.25/5.5 per cent.

Interest rate hikes take time to feed through into the economy, and some of the forward-looking activity indicators suggest that economic growth is slowing. This weakness is perhaps necessary to bring core inflation down – only when we see solid evidence of this will interest rates likely have peaked. My instinct is that the US will enter a relatively mild recession, but not a deep one.

Why is UK inflation still so high by contrast?

There are lots of similarities between what is happening in the US, the eurozone, and the UK. However, the factors driving inflation are more marked in the UK, ­and that is why the Bank of England felt compelled to act last month by raising interest rates to 5 per cent. Inflation just hasn’t come down as far, with UK CPI at 8.7 per cent compared to the eurozone (5.5 per cent) and the US (4.1 per cent).

The UK’s inflation problems can be found in the labour market where wage growth is much stronger – and it is this that is causing domestic inflation pressures to be greater in the UK than elsewhere.

What can the Bank of England do to bring inflation down?

The amount of aggregate supply in the UK economy has declined below the level of demand and it is this that has generated a burst of inflation. Ordinarily, to bring inflation down you just raise supply again by increasing the number of workers or increasing the amount of investment. That would be the painless way out. Inflation would just subside without any economic weakness or higher unemployment.

Unfortunately, it’s really hard to pull those levers quickly. Alternatively, you can bear down on demand by bringing it into line with supply to curb inflation. This requires some economic weakness, which means the Bank of England has to create conditions that are painful for some and painful for the overall economy.

It’s a choice between high inflation or high-interest rates. Like the Bank, I’d suggest a temporary increase in interest rates is the lesser of those two evils.

What is your outlook for interest rates in the UK?

We expect the bank to raise interest rates to 5.25 per cent at its next meeting in August – and they may yet go to 5.5 per cent. Once we get into the autumn, there should be clearer signs that the influence of higher interest rates is starting to come through.

We estimate that about 40 per cent of the increase in interest rates has been felt so far, which means there’s still 60 per cent to come through, and much of that will play out in the housing market as people adapt to higher mortgage rates.

When might interest rates fall?

We believe that interest rates will stay at their peak for a relatively long period. Historically, interest rates usually stay at a peak for just a few months, but this time it could be a year.

If, as we forecast, a recession loosens the labour market, weakens wage growth, and therefore controls core inflation by the end of 2024, maybe going into 2025, the Bank of England will be in a position to cut rates. Once we are in a stable economic environment, interest rates can come back down to 2.5 or 3 per cent.

What is the outlook for the UK housing market?

It is important to illustrate the size of the problem with mortgage rates now over 6 per cent. First-time buyers with a median income purchasing an average house could see their mortgage payments rise from 35 per cent of their monthly income to around 55 per cent.

And if you are already a homeowner with a fixed-rate mortgage expiring, then your monthly mortgage payments might jump by 50 per cent.

These are huge numbers to absorb, and some people are going to be hit hard. This will translate into lower housing activity, lower house prices, and eventually a weaker period of consumer spending in general.

For those jetting off on summer holidays, what are your thoughts on currencies?

Of all the forecasts economists make, currencies are the hardest! That said, the pound is getting an ‘interest rate boost’; it has strengthened against the dollar and euro because interest rates are expected to rise further in the UK.

However, there could well be a flight to safer assets such as the dollar if the US enters a recession. If that does happen, the pound might be caught in the crossfire and I wouldn’t be surprised if it weakened to around $1.15 against the US dollar by the end of the year.

Weatherbys view

We believe it is important to stay abreast of economic affairs, but not to make plans entirely dependent on fallible forecasts.

Ultimately, long-term stock market returns have little to do with the vagaries of short-term economic conditions, or swinging investor sentiment. It’s much more to do with innovation.

Human ingenuity carries on independent of dismal headlines – entrepreneurs create value, literally out of nothing, by solving problems in creative ways. The more universally valuable their solutions, the more value they create.

Helping our clients meet their financial goals and objectives is therefore less about fine-tuning a uniquely complicated portfolio or prophesying stock markets, and more about prudent, personalised advice that maximises efficiency and minimises needless risk.

Don’t hesitate to get in touch should you have a financial quandary we can put to rest.

Important information
Capital Economics is an independent consultancy firm. Past performance is not a guide to future returns. Please note that the value of investments can go down as well as up, and you may get back less than you originally invested.

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UK house prices are forecast to fall by almost 10%, according to the Office for Budgetary Responsibility (OBR). In a way, this is unsurprising, given the backdrop of double-digit inflation and economic malaise.

But hang on a minute. Didn’t global stocks fall last year, for the same reasons? Haven’t bonds already suffered losses in the face of rapidly rising interest rates? Why is property so late to this dismal party?

The Nationwide UK House Price Index shows that average house prices actually increased by almost 3% in 2022! It’s as if real estate, as an investment asset class, has been floating in mid-air, pumping its legs like a cartoon critter in brief defiance of gravity. What’s up?

The price is right

Let’s go back to the basics of what gives assets their value. The answer is a combination of what people think investments are worth – and what they feel.

On the one hand, we might get out our calculators and work out how much income a bond is due to yield until its maturity – or, with an added layer of uncertainty, how much dividend income we might hope to receive from shares in a company. Then, with an eye on interest rates, we could deduce how valuable such assets are today, compared to just sticking the money in a savings account.

(It’s worth pausing to reflect that any mathematical model is doomed to limitations. In this context, it could only work perfectly if every investor sang from the same hymn sheet, which they evidently don’t.)

Treasured possessions

On the other hand, let’s admit that a great many assets have value just because we reckon so. It might be only a handful of people who share the opinion – about family heirlooms, for example. Or, it might be a very significant number of investors who think alike – for instance, gold is highly prized worldwide as a kind of ‘ultimate store of value’, despite not offering its owners anything by means of ongoing recompense.

(Note that although prices are affected by limited supply, scarcity does not automatically confer value. Cryptocurrency enthusiasts and gold fans alike make great fanfare of their finite reserves – but the same could be said of my daughter’s doodles of Disney princesses, yet for some reason they’re not gracing Christie’s.)

To summarise, either an asset provides regular income, in which case you can hazard a (flawed) guess as to what this stream is worth, or it doesn’t, and investors just hope that one day, someone will come along and be willing to pay more for it than they originally did.

Immune to rate rises?

Viewed through this lens, it’s clear that share prices have fallen in the past year partly because most people have pencilled in declining dividends. And, more dramatically, both stocks and supposedly safe bonds have depreciated in value as the mechanical consequence of higher interest rates – in other words, £100 paid in a few years’ time isn’t worth as much as it used to be.

So what about property? Which type of asset is it?
You could argue that it’s part of the ‘income stream’ set. It’s quite common to talk about a property’s yield, after all, in the form of rent.

But in that case, why didn’t real estate prices sink in the first half of last year, when interest rates were aggressively hiked? Shouldn’t they have performed a synchronised dive with stocks and bonds?

Part of your world

The other possibility is that property is more of a sentimental sort of asset. After all, most people live in homes, not investments. The ‘utility’ of a house, to put it in coldly economic terms, is not to be found in its hypothetical yield, but in its location, its condition and a whole lot else that’s impossible to quantify.

That said, we must remember that much of the real estate market isn’t residential but commercial, where more calculating forces apply. On that front, CBRE’s UK Commercial Property index indicated a decline of almost 7% in 2022 up to November, more in step with the losses suffered by broader financial assets.

Furthermore, neither commercial nor residential property purchase decisions are divorced from economic reality. You aren’t likely to upscale if you’ve been laid off, or your wages are stagnating in real terms.

All in all, property prices are subject to both the prevailing economic winds – albeit in their own peculiar way – as well as myriad other idiosyncratic factors. This is why real estate investments are feted for their diversifying… er… properties.

Mismatch

Unfortunately, though, you can’t just buy a ‘Real Estate 100’ tracker fund as you might with the FTSE. Or rather, you can, in the form of a Real Estate Investment Trust (REIT), but this would defeat the purpose, because the trouble is that REITs are publicly listed companies like any other. And, being traded on the stock exchange, they are contaminated by the caprices of equity investors – ultimately resembling nothing so much as a certain stripe of share.

There are other types of real estate fund, as well, including those which are not companies in and of themselves. However, those offering daily liquidity, i.e. the ability to get your money out at a moment’s notice, have been on a downwards trajectory (in terms of assets under management) since the summer of 2016, when several big name funds suspended trading as a great many investors all rushed for the exits simultaneously.

Near-instant access to assets that are tricky to offload is a dangerous mirage.

Double up?

Your only other option is bricks and mortar. Here, the challenges are, firstly, to achieve a decent level of diversification (not easy, given the sums necessary) and, secondly, all the fees, taxes and other vexing little costs involved.

The conundrum for homeowners is that they already have exposure to the property market – whether or not they consider it part of their investment portfolio. Does it really make sense to add more, for example through a buy-to-let? (Especially considering the tax implications, beyond the scope of this article.)

Off-plan

Perhaps the best answer is not to force an illiquid asset like property to do a job best left to a highly liquid and diversified portfolio of stocks and bonds.

To bring real estate into the equation – to try to satisfy the same objectives and constraints as instantly tradable shares and fixed income – is to attempt a stir-fry and 10-hour slow cooker recipe in the same pan.

Conclusion

There is nothing wrong with real estate investments per se. In fact, they can be excellent diversifiers, as we’ve seen with their performance lately, decoupled from stocks and bonds. However, it’s arguably worth doing property properly, rather than through a fund offering unrealistic liquidity.

And, as with so much in the world of investing, the true value of advice lies not in the intriguing detail of what will be bought and sold on your behalf, but rather in the high-level financial planning that makes sense of it all from 30,000 feet.

So, whether you already own huge tracts of land or are still a first-time buyer, it’s probably best to take advice on your whole estate. In other words, let a fresh pair of eyes assess whether you’re potentially over-allocated to property – in case it’s tying up your capital in an inefficient way. Then, work out if and how a portfolio of stocks and bonds can fill in the missing pieces of your financial goals’ jigsaw.

As for dour house price forecasts? Unless you’re under pressure to sell in the near future, don’t dwell on them. Even if property values decline, it’s hard to imagine they’ll be depressed forever – and after all, a blip could represent a good opportunity to upsize.

Important information
Past performance is not a guide to future returns. Please note that the value of investments can go down as well as up, and you may get back less than you originally invested.

The post The oddity of property appeared first on Weatherbys Private Bank.

What’s changed?

In short, almost all of the mini-Budget provisions have been reversed. The fact that the abolition of the 45 per cent tax rate will not now go ahead was announced on 4 October. The reversal of the decision not to increase the corporation tax rate to 25 per cent – the tax cut that never was – emerged in an announcement on 14 October. These U-turns were followed on 17 October by a statement from Jeremy Hunt with yet more reversals:

• The basic rate of income tax is to remain at 20 per cent for the foreseeable future.
• The additional 1.25 per cent dividend tax, which was scheduled to be abolished in April 2023, will now continue.
• Reforms to the off-payroll working system will remain in place.
• Other measures – VAT-free shopping and an alcohol duty freeze – will not now happen.

What remains?

What now remains in place from the mini-Budget? Jeremy Hunt’s approach appears to have been to retain only those measures where the legislative drafting to implement them has already begun. So staying are:

• The reversal of the National Insurance increase, due to take effect on 6 November.
• Cuts to Stamp Duty Land Tax, which were effective immediately.

What it means for you

Since it’s impossible to plan in these fast-moving times, is there anything in the latest round of changes which can affect our financial decisions?

Anyone planning to pay themselves a bonus, for example from their own company, would be well advised to wait until after 6 November, when the National Insurance reversal takes effect. For companies, those with profits below £50,000 will continue to pay corporation tax at 19 per cent with a marginal rate applying to profit levels between £50,000 and £250,000. If there is any opportunity to bring profits forward to the 2022/23 financial year, for example in a company selling an asset at a gain, there could therefore be a 6 per cent saving.

Otherwise, the tax system is to remain much as it is now. Where Kwasi Kwarteng’s mini-Budget suggested deferral of dividends (and possibly bonuses too) until 2023/24, with the retention of the 45 per cent tax rate and higher dividend taxes, that opportunity has evaporated.

Future stability

We’re told that the changes have been designed to ensure economic stability and promote confidence, so hopefully our tax rates will stay put for a while. Certainly, while the policy reversals have made double negatives sound normal, any more would be unwelcome as sensible financial planning is only possible in a stable tax environment.

Tax laws are subject to change and taxation will vary depending on individual circumstances.

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Alternatives, like collectibles – think fine wines, vintage cars, art and handbags – may deliver rewards through value appreciation. But they can require hefty outlays just to hold them – in specialised storage and insurance costs, for instance.

Investment in trees has the potential to offer both income and capital returns. In addition, woodland attracts grants and financial incentives for carbon capture. And then there are the tax breaks.

To start with, there is no income tax on profits from commercial forestry in the UK. On the face of it, that sounds attractive, but woodland comes with costs too. You must factor in the time between planting and felling the trees, the expenses defrayed while they grow and the fact that if you make any losses, they cannot be set against other income.

To be free of income tax, the woodland must be occupied and managed commercially. That means there must be an intention to profit from the sale of raw timber, which effectively rules out smaller woodland investors.

Even then, it is only the tree-growing activity that is tax free; any profits from other activities on the land – like camping or growing Christmas trees – are taxable.

Similarly, there is no capital gains tax (CGT) on the sale of trees. However, if the whole woodland is sold, the amount received for the underlying land will be subject to CGT, so the price needs to be apportioned between trees and land, with only the former being tax free.

Business property relief

Perhaps the more compelling tax case for woodland investment is the fact that commercially operated woodland attracts Business Property Relief (BPR), which means it can help reduce your inheritance tax (IHT) liabilities.

The woodland must be run as a business with a view to making a profit. If this and other conditions are met, the relief may cover 100% of the value of the woodlands after just two years of ownership.

It is worth bearing in mind that HMRC may want to see evidence of the profit potential after your death, so keeping good records, with a business plan, evidence of annual inspections and management reports, will make the claim easier for your executors.

Agricultural property relief

Most woodlands are not agricultural property but can qualify for Agricultural Property Relief (APR) if they are ‘ancillary’ to farmland and serve a useful function. An example would be a strip of woodland acting as a wind shelter. APR is another relief from IHT. Unlike with BPR, the owner does not need to be actively involved in the farming; renting the land to a tenant farmer who uses the woodland as part of their farming business will secure eligibility – but only after seven years.

If neither BPR nor APR are available, then there is a specific claim for woodlands relief. This only defers the liability for IHT until the trees are sold, rather than providing a complete exemption. It only operates on the value of the trees and not the underlying land, and purchasers need a five-year ownership period to qualify as opposed to two years with BPR. Anyone who acquired the woodland by gift or inheritance has no minimum ownership period, however. 

Although woodland relief is less attractive than BPR and APR, it can allow the deferral of the IHT to a point, possibly a long time in the future, when your heirs are in funds from the sale. In the meantime, IHT on the underlying land can often be paid over 10 years by instalments, making it possible to retain the woodlands within the family.

In summary

Woodland investment is a long-term prospect – you can expect your investment to be locked in for a decade or more. And there is no guarantee that it will continue to grow in value as it has recently. No investment should be undertaken for the tax breaks alone, and the headline reliefs for income and gains are less beneficial than we might expect. But, as part of a long-term family wealth plan, woodland investment might provide education costs or pensions for future generations and the inheritance tax relief possibilities mean it can be part of a discussion on tax-advantaged investments.

Important information: Tax laws are subject to change and taxation will vary depending on individual circumstances

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There is high demand from a large number of buyers chasing a few properties. Homes are selling faster than ever before, taking on average 33 days to sell rather than 67 in 2019.² This intense competition may be deterring some owners from putting their homes up for sale.

Reports from estate agents on the ground suggest there is an increasing number of cash buyers and a growing number using bridging loans. Indeed, around a quarter of buyers using bridging loans to purchase a property are those looking to fund a ‘chain break’. In other words, they are wanting to buy a property before they sell an existing home.³

What is a bridging loan?

Bridging loans can prove a useful tool for people looking for a temporary solution to their funding needs. Not only are they used for chain breaks, but they are also commonly used for investment property purposes. Previously, these loans have often been an expensive solution to a tantalising problem. However, at Weatherbys, our short-term loans are no more expensive than our longer-term facilities and we work with you to tailor the loan that’s right for you without imposing punitive or unfair terms. And age is no barrier.

Homeowners, including those aged over 70, can obtain a bridging loan with interest charged at 2.59% per annum plus the Bank of England base rate – giving a current cost of 3.59% per annum – with a 1% arrangement fee.

Bridging loans can also prove advantageous for owners of valuable homes who intend to release substantial sums – and where professional investment and wealth advice will be needed in any event. There is a short-term finance option which is even more competitively priced for borrowers who sign up for the Weatherbys Investment and Wealth Advice service with at least £500k of the surplus proceeds from the eventual sale of their existing home.

Using a bridging loan to downsize

With house prices standing at record highs, it could leave many homeowners who are thinking of downsizing sitting on substantial but unrealised gains. Again, bridging loans could be a solution.

For example, for many older homeowners wishing to move, the immediate problem is how to unlock the wealth they have accumulated in bricks and mortar at the price they want or expect. This is where bridging loans can help them to span that gap and buy the property they want to enjoy in retirement.

Bridging loans are only a temporary solution – usually lasting less than 12 months – and are certainly not for everyone, but in challenging market conditions, and with the right advice, they can prove to be a flexible and useful solution.

How Weatherbys can help with your borrowing needs

We can help you with all your borrowing needs – whether for you, your children, or your grandchildren. We specialise in arranging short- to medium-term mortgages and loans secured against residential property, spanning owner-occupied and buy-to-let property.

We look at all aspects of your financial life, at all stages of your life. Rather than relying on the rigidity of credit scoring, we look at the full picture of your finances to make a pragmatic, informed decision. We give equal consideration to all our mortgage and loan applicants (over 18 years old) regardless of your residency status or whether you hold investments with us. Unlike many lenders, we will consider applications from borrowers over the age of 70 and take assets into account such as investments, guarantees or land.

When you apply for a mortgage or loan with us, in addition to personal attention from our Private Banking team, you can expect:

• a quick decision on your application
• stress-free arrangement from start to finish
• easy access to the people who make the decisions
• clear, simple communication to keep you up to date
• us to work directly with surveyors and lawyers on your behalf

Sources:

¹ ONS, ² Rightmove, ³ Bridging Trends

Important information:

Your home may be repossessed if you do not keep up repayments on a mortgage or any debt secured against it.

Borrowing money against your investment portfolio has its risks and is not suitable for everyone. If the market value of your pledged securities declines below required levels, you may be required to pay down your loan or pledge additional eligible securities in order to maintain it, or we may require the sale of some or all of your pledged securities. The sale of your pledged securities may cause you to suffer adverse tax consequences. We recommend you consult your independent financial adviser or your Weatherbys Investment Manager before applying for lending against an investment portfolio.

Our mortgages and loans are subject to underwriting and criteria. You must be 18 years or over to apply for a mortgage or other loan secured on your property. Terms and conditions apply.

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