STICK OR FIX?

The burning question in all home owners minds…

The last year or so has been a tough one for many. Although, for a sizeable number –who are in employment and enjoying lower interest rates on their mortgage loan – they may feel that it’s left more money in their pocket than usual.

I have noticed over the last couple of months that the talk of recession and credit crunch has started to bore people. They are fed up with putting their lives on hold and are now ready to act – whether that’s to purchase their first home, move home or simply carry out the home improvements. Some are even tidying their finances up and looking at their options through re-mortgaging.

With interest rates falling from 5.75% to 0.5%, many of my clients have enjoyed significant reductions in their monthly mortgage costs. This has now lasted for more than 13 months. With last week’s surprise announcement that inflation is now at 3.4% (Consumer Prices Index) it got me thinking – is now the right time to look at fixing your mortgage for the coming years or should you keep enjoying the lower monthly mortgage payments?

With this in mind, it makes sense to take advice to see how you can meet your borrowing needs for the rest of 2010. In some cases, the best option is to stay with your existing mortgage deal, but you may be mindful that at some stage the Base Rate may start to go up. And when that happens the Lenders are likely to rapidly re-price their deals. To possibly avoid losing out, this may require you to anticipate when a rise could occur, in order to secure a fixed or variable deal that best suits your needs.

My general feeling is that interest rates will not move too much in 2010, but given the higher than expected inflation figures and the possible effects of recent Bank of England Quantitative Easing on the economy, the base rate may need to go up to control inflation.

My belief has always been that if you act early and receive good, honest, independent advice you will be in control which will allow you to make the best decision when the time is right. To ensure you have the right information and complete peace of mind that you know the facts upon which you can make your decisions, call me to make an appointment. For 30 minutes of your time, either in my office or at your home at a time that suits you, you can take control of your financial decisions before the uncertainty of this world makes the decision for you…

Call me on 02890 769 769 or email paul@viewfinancialservices.co.uk

Our business relies on ‘word of mouth’ business and therefore referrals are very important to us. We can provide financial advice in many different areas so please feel free to pass on any of my details to your friends and family. As a way of thanking you for an introduction we will send you a £25 Marks and Spencer’s voucher for everyone you send us who becomes a client.

The contents of this blog are believed to be correct at the date of this publication (May 2010). However, all the information and figures are subject to change and you should always make enquiries and check details and where necessary seek legal advice before entering into any transaction.

The information in this blog is simply my opinion and does not constitute financial advice. You should seek professional advice tailored to your needs and circumstances before making any decisions.

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.

We normally charge a fee for mortgage advice. The amount will depend on your circumstances. A typical fee is £295

You may have to pay an early repayment charge to your existing lender if you remortgage

The Financial Services Authority does not regulate Credit Card advice
Registered in Northern Ireland No. NI070072. View Financial Services is an appointed representative of Personal Touch Financial Services Ltd which is authorised and regulated by the Financial Services Ltd.