2019 has picked up exactly where we left it in 2018. Endless speculation on the B word, yet, we find ourselves extremely busy! I suspect that the majority of people are utterly fed up with Politicians and their constant ineptitude, and are simply carrying on with life. That is what is feels like anyway.
This year, we will be changing the nature of these updates, while still giving some commentary, the main focus will be on what you can do, and how you can do it. So look out for guides on how to improve your credit score, how to minimise your mortgage payments, how to invest in property, the importance of protecting your debt and so on. If you have a topic you would like covered, please do let me know and I will be happy to oblige
However, I felt it may be good to kick off the year with some predictions. It has been said that only an idiot would try and predict financial markets as they are so complex, so here goes! Two key things I think you will see this year are:
1) Lending Conditions to loosen – this means banks being more liberal in how and who, they lend too. We already have a number of lenders who will offer 6 x income loans, and more going down that path. Also, we are seeing some of the high street lenders accept borrowers with slightly chequered pasts. So even if people have late payments, defaults, or even CCJ’s, the big lenders are now accepting this. They won’t publicise it, but we are getting this type of lending agreed with lenders you would not expect. As ever, what you can achieve will be down to your specific circumstances so please do speak to our advisers to clarify what is possible for you.
2) Interest rates – this year, I predict that rates could go up, go down, or they could stay the same… (I’m good at this). All things being equal, I suspect the base rate won’t move this year, and if there is a change, it is more likely to be up than down. But with the Spector of the B word, anything really could happen. But in all instances, we are only looking at a 0.25% move up or down (or most likely staying at 0.75% where we are currently), so overall, not really that exciting in the scheme of things. In the long run, rates will go up, as that is what ALL money markets are predicting, but guessing exactly when is a fools game.
Not much happened while we were eating ourselves into a Mince Pie coma. SWAP Rates – 2 year money is at 1.112% – down 0.063% – and 5 year money is at 1.245% – down 0.073%. LIBOR was at 0.905% – up 0.005%. With all the fuss in the press about financial markets recently, interesting that Money Markets haven’t really moved on their expectations
This is relevant as banks largely price their fixed rate mortgages off SWAP Rates, and variable rates off LIBOR. On both fixed and variable rates, lenders will typically add about 0.5% as a starting point to the rates above to create the mortgage products they offer. However, the rate you will be offered is heavily dependent on your circumstances and deposit/equity level.
REVIEW OF THE MONTH
Our favourite review from December was very kindly provided by Alex who had a positive experience with Raj Bhojani. This typifies what we do. We are one of top rated mortgage brokers in London, accordingly to Google, and if you wish to see the rest of our great reviews you can do so here
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