SWINGS AND ROUNDABOUTS

Welcome back loyal readers

A low interest rate cycle is not what it is cracked up to be. From the point of view of savers who are depending on an income, will find it very hard to find a savings rate anywhere on the high street that will live up to their aspirations. Added to that, the ravaging effects of inflation on your savings will offset any savings return that you may be receiving.

Inflation needs to be tackled before it gets seriously out off hand for those savers who choose to prefer low risk savings plan however if you are one of those people who do not mind taking a degree of risk with your money then returns could be higher. This is not the ideal solution for everyone and before entering into anything, the advice of an Independent Financial Adviser should be sought.

However, there is a flip side to this economic coin.

Now that mortgage rates are at their lowest point for years, savings on mortgage payments are being enjoyed by many. Similarly, people with little or no mortgage, are taking the opportunity to raise funds on their property, on 3 to 5 year fixed rates which offer an historically low interest rate. This is commonly done to help first time buyers fund a deposit, to spend on themselves as a lifestyle choice or to invest for income. Those who do this must be aware that this debt has to be repaid therefore a repayment plan must be created.

Equity Release borrowers in particular are enjoying  low long term rates  and with 11 lenders in this side of the market, there is plenty of choice on offer including the option to make a monthly payment of one’s choice rather than have the debt completely roll up.

We at Berkeley Consultants UK Ltd are experts in this field and we would be delighted to offer any Independent Mortgage Advice where appropriate.

Back soon.

Stephen Rodgers

Director

Berkeley Consultants UK Ltd