Can we fix it? Yes, WE CAN!

Bob the Builder is one shrewd cookie. He has been in the construction industry since 1997 and his business has gone from strength to strength. He is multi lingual, and works all over the world and has gone about his business, building his company while other construction companies struggled for funding during the credit crunch. Oh, and his diggers talk.

Wow. What a guy.

Sure, most of his work is in the local community but he keeps employment up in his local areas, never really imports his materials and keeps his petrol costs down by only doing local work. A sound business model.

Is he concerned about the impact of GREXIT? Well, in a recent interview, I asked him about his views on interest rates and Bob said this:

"Can we fix it?"

And I said "Yes, we can".

The man should be prime minister. He really knows what he is talking about. Whilst having a pint together, I discussed with Bob that the pending exit of Greece from the Euro's could make the availability of funds harder for lenders and this would drive up the cost of borrowing. So, with lenders this week cutting their fixed rates, Bob was all over it like a teenage girl at SoccerAid.

Many of the "big boys" have reduced their fixed mortgage rates, and Nationwide have even slashed their arrangement fee by 50% on their five year deals as well, making these options appear all the more tempting. Much pressure has been placed on the Bank of England to cut the Base rate yet again if the Eurozone starts to break apart, but a reduction in the base rate would not necessarily mean that the cost of borrowing would reduce. It would suit people sitting on trackers right now, those that have the smaller margins above base on deals from the past, but the pricing of new deals would simply absorb this reduction and I would suspect we will see variable and tracker products become more expensive. 

"So, can we fix it?"

Yes Bob we can, keep your hard hat on. There are some competitive deals out there right now and it would be a good time to assess your options, especially if you have been sitting on your lenders Standard Variable Rates thinking that it will see you through the tough times.

So, once again mortgage brokers should be actively working the market. Working hard for their clients to get them ready for the turbulence that lies ahead. The captain has asked us to put our seatbelts on, and whilst I am not quite sitting with my life jacket on as well, I expect a rough ride. Fixed rates are starting to make sense again, with an uncertain future to the economy, and rates appearing cheaper, its time to review.

So, another pint Bob? Oh...no, the pump has broken.

"Can we fix it?"

Most probably Bob, most probably.

Prisoners of Mortgage War

The Great Mortgage War of 2012 had seized many of my troops. Some converted to repayment, but others were still out there, Prisoners of MortgageWar held captive by their lenders on interest only with no way out, hoping that a rescue mission was coming their way to give them freedom of choice and their independence back. I armed myself with every bit of artillery; Virgin Money, Accord, Aldermore and even Halifax Product transfers, and 'choppered' into the jungle to launch my rescue mission.

Shoe polish on my face, head band on, I began my rescue mission Rambo style to see who I could rescue and bring back home with me. Many had given up hope of escape, with communication lines detailing repayment was the only way out, but Broker Squadron Independence had other options. We needed to show that we had not forgotten our troops, that we had not left them abandoned with their current lenders and that our aim was to offer them alternatives that would grant them their freedom back. Freedom of choice.

The interest only restrictions has left many feeling they are trapped, but brokers offer alternatives. Many of us will not have shoe polish on our face or head bands on, but we will be able to offer guidance in these uncertain times. Quite how we ended up here remains a mystery. Some blame the brokers for mis-selling this niche product, others blame the lenders for being complicit in the advice by actually lending without question in the first place. Some even blame the government! Whoever is to blame, numerous clients are trapped with a lender on interest only, above the thresholds offered by alternative lenders, and are looking for a route out of the war. Inspite of the negative press, their are still options open and we aim to make people aware of this.

As I look down over the jungle, knowing there are more Prisoners of Mortgage War out there, I am happy that I have saved a couple of them this week. Others from Broker Squadron Independence will have also performed such rescue missions, and for those still out there held in captivity, fear not. We will find you, and we will bring you home as we are your Brokers in Arms:

"Through these Apps of repayment,

Interest only has tired.

I've witnessed your suffering

As the payments got higher.

And though they did hurt me so bad

In the fear and alarm

You did not desert you

My Broker in Arms"

The Great Mortgage War of 2012 continues...