Buy to Let is a growing arena.

Political and economic commentators seem to be divergent over the outcome of the recent Spending Review, though it is likely to be some time before its full impact reaches the high street. The doomsayers predict that much damage to confidence may have already been done, psychologically at least! I prefer to look at a more positive outcome. If the overall reduction was intended to be 8% that leaves 92% still to spend! It seems more sensible to major on that number now and discuss how best to use it to the benefit of the country as a whole.

There may well be some pain to come but, as the saying goes, no pain, no gain and we cannot ignore the financial mess that the country is in. So far, investment markets have not meandered much suggesting that the details of the review have been well received, in principle anyway! The current base rate structure is good for those with mortgages on base rate trackers, but it is not so good for savers or pensioners who look to higher rates to boost their income. I have regularly encouraged readers to be ahead of the mortgage rate game and, putting my reputation on the line, I am leaning towards a rate rise sooner than many pundits predict.

One area of the mortgage market which continues to gain momentum is Equity Release. Put simply, this is a scheme through which the asset rich can release funds from the equity in their property. This scheme normally applies to applicants approaching the twilight of their life although it is not uncommon for the newly retired to participate. Equity Release is highly regulated to ensure no high pressure selling and we always encourage offspring involvement. After all, the equity is likely to form a major part of their inheritance and they should always have the opportunity of finding alternative methods of funding their parent’s lifestyle first.

Another rapidly growing mortgage arena is in Buy to Let and lenders are introducing more competitive products almost daily. As problems for first time buyers continue, the Buy to Let area is wide open for investors, especially as rental incomes become increasingly attractive. Whatever your interest, talk to an independent mortgage advisor.