06 November 2009

The run up to Christmas bargains!

Competition is rearing its head in the mortgage market as lenders start to flex their muscles, lowering interest rates in order to attract volume business before the year ends. Both fixed and tracker product rates have been reduced of late. Base Rate Trackers seem to be back in favour with many as pundits predict that the Bank of England base rate will remain low throughout 2010 (at least) with rises predicted at some point in 2011. Many re-mortgage deals are now being offered with free valuations and free legal costs. Although purchases continue to outstrip re-mortgages by some margin, this might be a good time to consider a re-mortgage bargain in the run up to Christmas with little or no cost involved to change lenders. With product availability on the increase, it’s certainly a time to review all the options and speak to an independent mortgage brokerage to ensure you don’t miss out on the right product. They may not be around for too long in this still fragile market!
October saw a 0.4% rise in average property prices - according to Nationwide – the sixth consecutive monthly increase, taking the value of an average home to £162,038. However the society warned that the pace of monthly increase is slowing and this aligns to other predictions that the first quarter 2010 may prove to be static or possibly even deliver a decreasing house price market.
So, having encouraged banks to get together, and funded them with billions of our hard earned cash, HMG is now looking to break them up! Not only that, but they are going to give them another huge chunk of cash too! How does that work? Well, apparently this edict is from our European masters who have decided that perhaps our banks are too large! I may have a simple outlook, but is this not what many of us said at the time worrying that there was a great danger that too few banks would have too great a control? Its beggars belief that we would willfully waste such large sums of money in such a short period of time and all at the expense of the UK taxpayer! Or is it just me?

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