Demand for £1m-plus mortgages has soared on the back of the bumper City bonuses paid out this year, according to a report in today's Financial Times, says the Guardian .
Applications for seven-figure loans have rocketed by 50% over the past year at mortgage broker Savills Private Finance, while another broker, London & Country, said applications have doubled.
The unprecedented demand for large loans reflects not only the record-breaking bonuses handed out in the City this year, but also growing interest in the London property market from wealthy overseas buyers, says the paper.
As much as £8.8bn will be paid out to City workers this bonus season and Savills estimates as much as £5.5bn of it could find its way back into the property market. Repayments on a £1m mortgage would be more than £6,500 a month on a 25-year loan.
COMPANIES WILL have to stump up a total of £675m for the Pension Protection Fund (PPF) next year – more than double the sum which was expected to be collected this year, according to the Scotsman.
The board of the PPF – set up to protect the pensions of staff at companies that fall into insolvency – said the annual levy had to be increased to make up for an under-collection of fees during the current year.
Chief executive Partha Dasgupta said less money was collected "because of market movements, improvements in the quality of data, direct action by schemes to reduce their risk and as a result of fixing the process for distributing the levy between schemes".
CASH-STRAPPED households are having to dig into their savings as the pressure of higher bills, higher taxes and lower wage growth slashes the amount of money left in their pockets, says the Daily Telegraph.
Statistics released by the Government have revealed the amount Britons are saving has fallen for a third successive month while the sums paid in income taxes have jumped by the fastest rate in eight years.
Taxes on incomes rose by 3.1% in the third quarter alone, and have risen by 9.2% since the start of the year – the biggest leap since 1998, according to figures released by the Office for National Statistics (ONS).
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