Good morning all,
I love this time of year. I’m typing this while wrapped up on the sofa with Cruz. He’s watching Shrek, the morning looks bright but crisp outside, the heating is on and a warm morning drink feels even more appreciated. Weekend’s suddenly feel special again once the back to school routine kicks in. Even though we don’t have a school run (yet) in our house it some how still has a different feel. I feel more productive in September and there’s a new energy to get things sorted before the Christmas madness starts. One thing I intend to do today is call round and threaten to leave all my providers and cut down my outgoings once I’ve finished writing this so hopefully I can motivate someone else who has been meaning to do the same.
We have a Bank of England rate review today. Quite a few high street lenders cut rates last week but I’m not anticipating a rate cut at this review. You can find high 3% rates across a lot of lenders now (for lower loan to values). However, I do have a slight word of caution. I think the Labour budget in October could be worse than the general public is expecting and there’s some pretty ‘headline’ losses that there have been some whispers about. Perhaps trying to get the worst in early so it’s long forgotten by the next election. Abolition of section 21 is back on the radar again, cutting the single person discount for council tax, we’ve already had the winter fuel payment cut. If they go too far it is possible this could create a bit of panic again and rates could temporarily pop back up. If you are due to fix again any time in the next 6 months I would 100% speak to me right now. We can hold a rate now and if they go up you’ve got one secured already at the lowest point. If they don’t and I’m being too pessimistic then we can change to whatever lower comes out later. If it was my own mortgage, I’d definitely make sure I secure these lower rates right now just in case. The last few years (or maybe just life in general) have taught me very much to err on the side of caution.
50% LTV Remortgage Rates
2 year fixed 4.59%
5 year fixed 3.90%
2 year tracker 5.24%
There are some product transfer rates that are cheaper than this around 3.7% if you happen to be with those lenders already. These rates are at least 0.5%, and in some cases almost 1%, cheaper than when I last wrote to you and we’ve had a rate cut of 0.25% so that shows you that mortgage rate pricing is not directly in line with base rate cuts. The lenders consider lots of different factors when rate setting and at the moment they definitely are trying to capitalise on the increase of business that is occurring. It definitely is busier. I’ve had a lot more enquiries from people considering buying/moving than we’ve seen in the last couple of years. The middle market, the family homes etc, is reportedly doing really well. But the flat/apartment market is still absolutely dire. The lack of first time buyers and buy to let investors is really having an effect. The property market is flooded with properties being sold by investors looking to exit buy to let ahead of the impending doom that Labour is about to reign on landlords but there is no one to sell them to. Empty new build developments are being marketed at less than first time buyers bought them for 2 years ago with hefty help to buy assistance leaving them completely unable to sell. Potential new first time buyers are unable to save due to the cost of rent being so high. Rents will increase further and further as more and more landlords leave and the rental stock dwindles. The bottom end of the market is not a happy place right now. I’ve completely given up on trying to sell my own flat now and moving on with it rented out. With the rental market being strong the numbers allow for this easily now on a let to buy mortgage but if you’re considering it do really bare in mind the changes for landlords that are coming in. Evicting tenants is about to become a lot more difficult.
As always if you need help with any thing at all do give me a call or drop me an email. If you’re planning on remortaging, product transferring, borrowing more, moving or anything else before the end of March we should speak now. you know someone else who would benefit from my updates please feel free to send this on to them or tell them to email me to add them to the list. I could really do with all of my clients support in recommending me to everyone you know for mortgages, life insurance and will writing. I’ve been doing a lot of lasting power of attorneys recently too. Don’t forget I can help with commercial mortgages, bridging, equity release and more too.
Also just to note if you still haven’t sorted out your wills and life insurance let me know if you’d like a free review. I don’t charge for will writing if you take out life insurance at the same time. If you don't need insurance and just want a will written I can offer a 20% discount!
Sarah Drakard DipFA DipMAP CeMAP CeRER MLIBF Independent Financial Adviser - Residential/Buy To Let/Commercial Mortgage Broker - Equity Release Adviser - Insurance Broker - Will Writer 0330 33 22 615 | 07931 702 681 | sarah@cruzefs.co.uk www.cruzefinancialsolutions.co.uk
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