Lack of human connection. Last week had a strangely familiar feel, but not in a good way. Three things that struck me were:

  • A Ruthless Tory cabinet re-shuffle.
  • RBS Re-brand to NatWest.
  • Yet another person directly linked to Love Island commits suicide.

While these things may seem unconnected, or have nothing to do with mortgages, I argue that they are, and they do.

I feel these three events last week all suffer the same issue – a complete lack of human connection.

The Tories are doing what they do.

RBS is trying to shake off the very negative connotation and perception that brand had especially in relation to treatment of their staff & clients. (Along with the others that were guilty of Casino banking leading up to 2007).

And sadly whenever someone takes their own life, that is often the result of a lack of connectivity.

I have always run my business in a very old fashioned way. In that – I like to meet people! (A abhor a lack of human connection.) In an increasing tech/transaction driven world. I have always preferred to meet people I deal with. It builds a much better connection with the person, which I feel is ultimately more productive and more enjoyable.

The examples I pick out above are ones I feel that are moving in the wrong direction. I often jibe at ‘robo-advice’ firms for the same reason. How can you look someone in the eyes and have a tough conversation if there are no eyes to look into?! What a lack of human connection. If you are dealing online, all you have is the depressing blue glow from a screen and the sound of tapping keys. It’s just not, and will never be, the same.

Why I get so passionate about issues like this, and in particular why I pick out Love Island. (As 3 people linked to that show have now committed suicide. I get the appeal of seeing hot people kick around not wearing much, that bit isn’t rocket science. But is selecting vulnerable people so we can laugh at their frailties, really still passing as entertainment these days? Its not the media to blame, its the viewers. If you don’t like it, switch off, and programmes stop being made. It really is that simple). Is that as a society we are losing connections with real people but yet that is what makes us tick. I heard a talk from Dr Phil Hammond on this very point last year, and his blog on CLANGERS sums this up beautifully.

My company has 2 core values:
– Getting our clients debt free
– Being open on mental health

Both of which are best achieved when we meet in person. Its very hard to do a job to the standard I expect via a keyboard or phone. Moreover, we are all people and respond best to people. Any relationship be it personal, business or client, are all greatly improved from meeting in person. That is our strength and long may it continue. Arranging finance is a deeply personal thing, and if you whittle it down to purely a transaction, you are missing the chance to build a real connection with someone. That is why meeting in person, in my experience, almost always gets a better outcome for all parties.

So if you like to deal with real people, you know where we are.

Rate Corner

Money markets have started to flatten off, which you can see on the chart above. It very much looks like we have past the lowest point in this rate cycle so it would be prudent to secure a product ASAP if you are able to. We are seeing market leading rates being withdrawn, so expect more lenders to follow suit in coming weeks.

Last week we saw:

3 Month Sterling Libor – down 0.004% to 0.752%.
2 Year SWAP rates – down 0.012% to 0.706%.
5 Year SWAP rates – down 0.028% to 0.702%.

These rates are relevant as most Banks buy in money based on the above markets. Libor often funds Variable rates and SWAP rates often fund Fixed Rates. Lenders will then add a margin to the above to reflect their risk and profit objectives.

Best Rates:
2 Year Variable from 1.24%.
2 Year Fixed Rates from 1.14%.
5 Year Fixed Rates from 1.44%.
BTL Rates from 1.19%.

The actual rate you will be offered will be dependent on your personal circumstance and deposit level. Please speak to one of our advisers so that they can guide you through this process.

Source: Twenty7Tec Feb 2020

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