22 October 2010

It's nearly 3 years on...

Just think, in two months time, we’ll be winding down for Christmas! So I thought I’d get in quick as most of the shops already have decorations to hand and even some of the advertisements on TV are now Christmas orientated! I think most would agree that this year was a year of hope and expectation that we’d see some light at the end of the tunnel. But unfortunately it has remained lacklustre despite all the effort and I for one will certainly look forward to closing the door on it !

However, as we enter the final months of the year, we are starting to see positive movement from some lenders as they relax their strict underwriting criteria and are lending slightly more. One lender this week, on a conference call, asked us if we could help them double their business volumes. There is an appetite to lend, hoorah! I suspect others will make a last ditch attempt to end the year on a high by offering lower rates to attract decent volumes of business in order to hit targets. Watch this space!

Finally, can you believe it’s nearly three years since the first public signs of a credit crunch/major recession were emerging? Northern Rock was the first real public player to go in to financial difficulties in late 2007, with many others following thereafter (many had already vanished from the radar prior to public awareness!).

Long term rates, in 2007, were considerably higher than where they are now. If you are on a long term fixed rate, in excess of 5%, then it may just be worth having a review to see if remortgaging now could save you money. With many lenders offering low rates and some offering fee free remortgage deals, there’s no harm in reviewing your current mortgage product to see if money can be saved. Even if you are to incur redemption penalties to change lenders, a new mortgage could still work out financially beneficial. Speak to your local independent mortgage advisers to find out more. It could be a very worthwhile conversation in the run up to Christmas and looking to the future!

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