Can you believe it’s December already? It’s been a busy few weeks at AToM towers. Consumers have been reviewing their finances and looking to secure a good deal in time for the Christmas break. Many are torn between a long term fixed rate and the temptation of a medium term tracker rate. The latter obviously being lower in rate, but more risky on monthly budgets if the bank base rate was to rise earlier than the experts have predicted. SWAP rates (the mechanism through which lenders can acquire a fixed price for funding over a specific period of time) have also risen recently and lenders fixed rates have seen rate rises. Many expect this business increase to continue, with possibly a dip around the time for the ‘January Sales’.
For the employed consumer, mortgages are relatively easy to come by. For the self employed, where net profits, drawings and dividends have been generally low over the last 24 months, it’s becoming slightly more difficult, despite the number of mortgage products being on the increase. There are many alternatives than can assist in these types of scenarios. Some lenders will
look at adding additional properties as security for mortgage purposes. Others will look at investing two or three years up-front mortgage payments as additional comfort for the lender where income is not necessarily easily provable. Whatever the scenario, and no matter how complex, there may well be a lender willing to assist, if you know where to look!
On a slightly different tack, HMG are faced with a three pronged dilemma in that they need to provide additional cash for small businesses to stimulate growth whilst curtailing public sector borrowing and instilling confidence in the private employment sector. Unemployment
continues to rise and the Doom Sayers - where on earth do they come from – seem hell-bent on driving us into recession again. I guess that, like me, you will yearn for more positive vibes on the basis that positivity is infectious.
Enjoy the start of the Christmas festivities. It is never a bad time to start talking about your mortgage.
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