Why right now could be the best time in history to take action
Whilst I do like the odd flutter, I’m not a big betting man.
But I do believe that we’re right in the middle of a huge opportunity.
After the shock Brexit vote, many of us are feeling a bit unsettled.
The future may not be as clear as it was before the vote.
In the near term, your costs may increase. Your GBP wont buy as many USD or EUR if you’re off on your hols.
But there may be opportunity that we’ve not considered.
Your biggest monthly outgoing may well be your mortgage?
And it’s clear that mortgage rates are at their lowest ever levels. Right now.
So, why are so many folks waiting “to see what happens”?
Anecdotally, it seems that we don’t want to make any decisions until it’s clear what is happening in the wider economy, until it’s clear what’s happening with house prices, until it’s clear what’s happening with interest rates, until it’s clear what’s happening with exchange rates, with jobs, with opportunities, with relationships…and on and on and on.
There is another way, regardless of how you voted or what you want the future of our relationship with the EU to look like.
It’s all about making a positive decision – and the decision is really simple. It’s not whether to borrow more or whether to fix for the long term. It’s not about interest only vs repayment. It’s not about leave or remain (with your current lender that is!). It’s not about moving or staying put. It’s not about overpaying or payment holidays.
OK JT, get to the point….what IS it about?
It’s about understanding your options.
The really frustrating thing for us is seeing people doing their own thing without truly understanding their options. This can happen if you chose to go the DIY route or going direct to your bank. To be clear, I’m not saying that it’s necessarily a bad thing to DIY or go to your bank…..I’m saying it’s far more likely that by talking to an adviser who is not tied, you’re more likely to understand all of your options.
A quick example – I saw a family this week (the week after Brexit vote), who were coming to the end of their current fixed rate deal and wanted to retain flexibility while they “wait & see” what happens. They thought they had no option but to revert to the Standard Variable Rate if they wanted to retain flexibility. After much discussion they’ve ended up with a product which is 3.5% less than their current lenders rate with full flexibility.
The point here is that to make an assumption about what is possible, is…well…probably not the best approach.
The media has to take some responsibility with this. I’m never surprised by people’s interpretation of what is read in the media, which in no way reflects reality.
The actual reality is:
- Lenders want to lend
- Rates are at their lowest ever
- If you’re self employed or Ltd co. director, there ARE options for you.
- Flexibility can be built in….if that’s what is right for you.
- Security can be built in….if that’s what is right for you.
- Finding the right lender yourself is tricky.
So there you have it.
Is it right for you to REMAIN with your current lender or LEAVE for a more competitive deal?
The only way to find out is to talk to your adviser.
I’d bet my house on the fact that this could be the best time to be looking at your options!
Your home may be repossessed if you do not keep up repayments on your mortgage.
For mortgages, there is a fee, typically £397, payable on production of a mortgage offer, and we will accept commission from the lender. Visit https://www.yournextmortgage.co.uk/your-mortgage-choices for more information.