If you want it, do it now…
There are currently some very serious issues in obtaining First Charge, Second Charge, Third Charge loans, and mortgages.
No, this isn’t designed to be sensationalist or be a sales message, this is written in very earnest seriousness whilst watching to Coronavirus develop and affect the money markets.
There is a very real scarcity threat looming ahead.
One Pound Sterling £1 is now worth roughly 1 Euro, under $1.2 USD, and around $2 AUD. The FTSE and Dow Jones have taken massive hits, crashing almost 10% in one day, and some say property prices may also suffer here too; I’ve heard figures of up to 30% price drop being talked about.
In times of dire uncertainty, lenders and institutions will always revert to a knee-jerk reaction, often citing others as a reason for their responses, and with massive Directors’ salaries and bonuses at stake, who can blame them for their own self-preservation of profit and self-interest – But that’s not really helping you, is it?
This week alone, I have seen 4 lenders fully withdraw from lending anything to anyone. They are closed for all business. There is an ever-growing list of others who are retracting, tightening policy and needing greater certainty (and equity) from their clients, often changing the rules after an application has been made – This applies to both personal borrowings and Limited Company business borrowing, indeed, certain sectors of routine trading are now Blacklisted until further notice.
In the last two weeks, we have seen the financial woes of 2008 coming back, but this time it isn’t self-made, it’s from Worldwide external events. This week, over 800 residential and BTL products have been withdrawn, and over 1,000 criteria changes have been made to individual lender underwriting rules, and it’s about to get a whole lot worse.
So, what does all this mean, to you?
Well, let’s look at some pertinent facts.
Trace back over the last 30 years and you will see that I was RIGHT about Endowment mis-selling, PPI mis-selling, Pension mis-selling, Mortgage mis-selling, the LIBOR rigging, Pension Transfer mis-selling, Property Market crash, Sub-prime Mortgage disaster, Self-Cert Mortgage issues – The list goes on and on – therefore I am probably right in my current thoughts too.
I am seeing the undercurrent of scare tactics arising, from the media reports that you can Google for free anytime you want – It’s the behind-the-scenes reality, and the daily dealings with lenders of all shapes and sizes, that you won’t have exposure to. So, when Zoopla predicts property sales are set to reduce by 60% it is time to consider just WHY they are saying this, what their thoughts are and what evidence this is based upon.
Lenders are like shoals of fish – when one moves and changes direction, the rest follow instinctively and in unison. I prefer to work with the free-spirited fish that can think for themselves and make decisions that are based upon fact, not fear – There are always solutions to problems, there are always lending sources that remain open, and thrive, in times of crisis.
Last week we saw the Bank of England cut their Base Rate from 0.75% to an unprecedented 0.1%, yet immediately, as a knee-jerk reaction, many lenders immediately announced that their product rates were being increased. The net result? Borrowing instantaneously became, in effect and on paper, over 1% more expensive. Additionally, many Base Rate Tracker products were withdrawn, leaving only Fixed Rate products available, and at a higher cost. With higher rates comes increased stress-test strain, combined with more rigorous underwriting, engineered in such a way that only the fittest and financially strongest can get what they either need or want. Combine all of this along with loss or decline of income and you have a melting-pot of serious problems brewing-up. Therein lies the problem.
Going back to the title again – “If you want it, do it now”
By now, you can see the logic of this: If you even THINK that you may need finance for whatever reason, either personal or for business, then please act now whilst channels are open, you can thank me later.
And as always if you need to talk, discuss, enquire or whatever, do give me a call – I’m here to help.
May I wish you, and your families, personal safety during these uncertain Covid-19 times.
You may wish to read this Article too – Tax Bill, or Tax Demand
Let us say “Yes, we can help” – If you want it, do it now
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