UK votes to Leave eu in BREXIT

After the UK’s vote to leave the EU following a very close sentiment, Sterling has weakened significantly- but is bouncing back from it’s lows.

UK votes to Leave eu in BREXIT

There is a factor of uncertainty within the markets which has caused a lot of major sell-offs. Further to this, GBPUSD has opened this morning at a 30 year low, representing a fall of around 10% from last night’s peak, after breaking through key resistance levels.

This volatility is emphasised by the fact that there has already been a 2% bounce back. Naturally, a heavily declining rate is being seen across other Sterling focused currency pairings.

For the rest of the day, Sterling looks to remain under a lot of pressure, as will EURUSD. The next main focus will likely be the contemplation of the aftershock and how to deal with the uncertainty that is sure to follow the referendum’s result.

Sharp reactions on the money markets

It was widely expected that a remain vote would be seen after all of the polls released and therefore, it comes as no surprise that the markets reacted sharply when the contradicting news came in this morning and last night.

Looking out to the rest of the day, it’s likely to be chaotic and busy in the world of trading. It’s not just currencies that are being affected either – we’re seeing huge risk off moves elsewhere, including within the futures and commodities markets, just to name a couple.

Further to the general impact, it would come as no surprise to see central banks tightening their financial conditions and cutting interest rates. We’re also likely to hear from the ECB soon. Politics will determine the long term cost and with David Cameron resigning this morning, there is yet another factor of uncertainty on this side of the Brexit.

Pound rallies on UK Manufacturing Data

Yesterday we saw a surprise jump in UK’s manufacturing data in April to 2.3% from a paltry 0.1% in March.

Yesterday we saw a surprise jump in UK's manufacturing data in April to 2.3% from a paltry 0.1% in March.

The positive number in an area that has struggled, led to a move higher for the Pound. In addition, the NIESR GDP estimate also came out stronger, which suggests that UK growth could be stronger than thought.

The Pound will continue to be driven by the perceived outcome of the referendum in the short term, and tonight we have a two hour ITV debate (8-10pm) involving politicians from both camps.

Initial jobless claims to come

Today ECB President Mario Draghi will be speaking, and the market will be looking for any new signals or comments following last week’s meeting. In addition, we have US data with initial jobless claims later on. This data is normally benign, but given the weak non-farm payroll number on Friday it will be eyed closely. If jobless claims are rising, it could suggest that labour market growth is turning sour.

Royal Bank New Zealand rates unchanged

Overnight the Reserve Bank of New Zealand (RBNZ) left rates unchanged at 2.25%. There was some expectation that a 25 basis points cut could be on the cards. It is still likely that we will see a rate cut in the near future as the RBNZ maintain an easing bias. The NZD has strengthened on the avoidance of a rate cut.

Federal Reserve likely to hold off interest rate rises as jobs falter

US non farm payroll data last week came as a rude shock to the markets at a paltry figure of 38,000 against an expected number of 164,000.

US non farm payroll data last week came as a rude shock to the markets at a paltry figure of 38,000 against an expected number of 164,000.

The US Dollar lost ground against most of its counterparts straight after the release and has now almost moved an interest rate hike in June off the table.

Analysts and hedge funds now expect the Federal Reserve to only raise rates once in 2016, against the initial mandate of the planned 3 or 4 rate hike dot curve for the year.

The EURUSD pair rallied up 2 cents though has pulled back a bit this morning as German Factory orders data have been released showing a decline to -0.2%.

Markets will now turn their attentions to Fed member Rosengren and Fed Chair Janet Yellen’s speeches later today and also keep a close eye on labour conditions data to try and determine if the non-farm payroll number was an outlier or if broader economic conditions are slowing.

Sterling is losing ground, pushed by the ‘leave’ campaign

The Pound has lost considerable ground against the board this morning as the ‘leave’ campaign continues to gather momentum in the UK’s Referendum polling.

YouGov telephone and online surveys have put the ‘Brexit’ campaign in the lead at 45% against the ‘remain’ side garnering 41% with 11% still undecided. Expect Sterling to be fairly volatile in the lead up to June 23 up to the date of the vote.

Meanwhile, investors will look towards market data comprising of BRC Retail Sales Index for interim direction though the main theme for the pound remains with the UK Referendum polls.

US jobless claims drop

We are just a few hours away from the spring Bank holiday and today is expected to be a quiet day.

We are just a few hours away from the spring Bank holiday and today is expected to be a quiet day.

The main piece of news out today will be the second estimate of US growth in the first three months of the year which is scheduled at 1.30pm GMT.

The first estimate was disappointing and showed growth slowing to an annual rate of just 0.4% and with the latest sets of data; economists believe the figure could be revised up. Jobless claims dropped to 268K from 278K, durable goods orders rose 3.4% and pending home sales increased 5.1%.

We learned from Fed President Powell that a rate hike may be appropriate fairly soon. Powell said “Depending on the incoming data and the evolving risks, another rate increase may be appropriate fairly soon”.

Many analysts agreed that Powell didn’t show any sense of great urgency to move at the June meeting and he stated that he had not made his mind up yet. He sounded cautious when he added “I can imagine the upcoming Brexit vote as presenting a factor in favour of caution about raising rates in June”.

Investors encouraged by stronger German data

No major Eurozone economic reports were released yesterday but investors were encouraged by stronger German data. Everybody seems to agree the ECB will leave interest rates unchanged but improvements in Germany and France could persuade the Central Bank to wait and see the effect of the current stimulus before deciding on the next step.

UK GDP figures released yesterday

Over in the UK, GDP figures were released yesterday and came in line at 0.4% on a quarterly basis but were slightly weaker on an annualised basis as they came in at 2.0% versus a market expectation for a 2.1% reading. Brexit is weighing on the economy as the underlying data showed weakness. Exports were down and business investment was disappointing.

The only bright spot was provided by government spending and consumer spending, which helped to offset the decline. The housing market is also showing signs of a slowdown as data from BBA Mortgage approvals showed a low at 40.8K against 45K in the previous month. This seems to indicate that the Brexit might be a drag on the housing market.

As mentioned earlier, the economic calendar is light today. In Europe business and consumer confidence surveys are due out in Italy, consumer confidence in France and retail sales in Spain.

The main focus will be in the US with Q1 GDP growth scheduled for release with analysts expecting a 0.4% upward revision. Later in the afternoon Fed Chair Yellen will also be interviewed at a Harvard event. The US and UK markets will remain closed on Monday.

Hawkish FED triggers repricing of interest rates

FED minutes released yesterday sparked a considerable move in the currency market, as the hawkish Fed triggered a sudden, and sharp, repricing of interest rates.

FED minutes released yesterday sparked a considerable move in the currency market, as the hawkish Fed triggered a sudden, and sharp, repricing of interest rates

The minutes demonstrated a committee determined to continue in their tight monetary policy, with most Fed officials signalling a June hike likely, if the economy warrants it.

The Fed’s Federal Open Market Committee (FOMC) judged that “…if incoming data were consistent with economic growth picking up in the second quarter, labour market conditions continuing to strengthen and inflation making progress towards the FOMC’s two per cent objective then it likely would be appropriate”.

It will be interesting to monitor if the Fed will be able to follow through with their plan, especially as the next rate meeting is scheduled ahead of the UK’s EU referendum, an outcome of which is still in balance.

Remain vote tops opinion poll

There was major focus on Sterling, as it rose sharply both against the euro and the US dollar, after an opinion poll released by Ipsos MORI for the Evening Standard revealed a large lead for the remain camp.

Ipsos MORI reported that 55% of the public are planning to vote to stay in Europe in June’s referendum, with just 37% backing Brexit. In Europe, the main focus yesterday was Eurozone inflation figures, which remained unchanged in April and with the YoY rate of consumer price index growth falling -0.2%.

Data to come

Looking at today’s calendar, this morning the market will receive Q1 employment figures from France, but the real focus for the euro will be the last European Central Bank minutes meeting.

Over to the UK, and April retail sales data is scheduled for release, with the market expecting sales to rebound. In the afternoon, as the North American market opens, the Philly Fed’s manufacturing survey will be closely watched, especially considering the weakness in the NY Fed survey earlier this week.

Initial jobless claims numbers are also scheduled for release, and the market will also have the opportunity to find out more about the Fed plans, with Vice-President Fischer and Dudley both scheduled for comments today.

Second charge secured loans by Wise Money

The improving economic climate and general house price increases have led to an increase in of second charge secured loans following their virtual disappearance after the financial crisis of 2008.

The changing face of second charge secured loans

The changing face of second charge secured loans

Traditionally, second charge secured loans were seen as a last chance saloon product.  Rates were much higher than mortgages and redemption penalties were fairly hefty.  But as rates started to drop off in 2006, the pandemic of self-certification of income led in part to the financial crisis of 2008 and a £6 billion a year secured loans industry quickly became a £150 million industry, a trickle of its former self.

Today however, the market is once again robust with packagers and lenders are back in full swing, albeit at a much more sensible £1 billion a year. Interest rates (starting at 4.55%) are much lower than ever, redemption penalties are extremely low and coupled with no set-up fees for the vast majority of secured loans, they are a very attractive solution in a variety of circumstances.

Second charge secured loans can be used for any legal purpose but are mainly used for:

  • home improvements
  • consolidation of credit cards, store cards and unsecured loans
  • purchasing vehicles
  • paying for a wedding/honeymoon
  • injecting cash into businesses
  • paying for school fees
  • paying tax bills
  • cosmetic surgery

How do second charge secured loans work?

As the name suggests, a second charge secured loans works very much in the same way as a first charge mortgage in that it is a sum of money lent out, secured against UK residential or investment property via a second charge behind the first charge registered by the main mortgage lender.

How much can be borrowed?

For a loan secured on a residential property, the minimum loan size for a second charge secured loans is just £5,000 and we arrange loans all the way up to £2.5 million.

For buy to let properties, we can arrange loans up to £500,000 but should the requirement be there, we would be able to refer the loan amount if more than this was required.

How long can a loan be taken out for?

Typically a loan is lent out between 3 and 25 years.  There are some lenders who offer 30 year terms.

The term of a loan is dependent on several factors, depending on the purpose of the loan.

The second charge secured loans process

Although not set in stone, the process with most packagers is fairly simple:

You provide your basic enquiry details (loan amount, purpose, term and contact) by telephone, email or sourcing system.

Once the client is happy with the deal, a mutually convenient time is agreed upon for a document courier to collect signatures and evidences.

Following receipt of client’s signed documents and evidences at the packager’s office, references and valuations are organised.  Case is re-checked for compliance.

With references and valuation received, the case is packaged and once a final compliance check is completed, case is sent to lender for final packaging and offer.

Once the offer has been made, it is sent out to the client by post and/or email to you.  You then have a 7 day reflection period in which to think about and return the signed offer and in doing so accepting the terms therein.

Interested? Then please call Keely McKay Wise Money’s Second Charge Secured Loans Advisor on 02921 670418 for a free, confidential, no obligation chat. NOW.

Bridging finance- great interest rates available

Wise Money is pleased to be offering competitive bridging finance at only 0.6% interest rates per month.

Wise Money is pleased to be offering competitive bridging finance at only 0.6% interest rates per month

Wise Money is part of a select group who have access to a Bridge that offers a monthly rate of 0.60%. There is a substantial but limited “test the water” fund, on a first come first served basis. You will also note that the lending criteria is quite a bit “tighter” than you would usually expect but this is driven by the lower rate.

Bridging Finance Product information

Maximum Loan to Vlaue: 50%
Minimum Loan Size: £100,000
Maximum Loan Size: £3,000,000
Length of the Term: 12 months maximum
Minimum property value: £200,000 per property
Interest Rate: 0.60% per calendar month
Administration fee: £350

Bridging Finance Underwriting Criteria

No works to be done to the property with our money (can use your own)
No off shore companies
No first time landlords
Purchases or refinances
No adverse credit in the last 3 years
You must have net assets of £500,000 (excluding marital home)
You must earn minimum of £30,000 (provable for employed via 2 x payslips and bank statements showing credits. If you are self employed SA302 or 3 x bank statements showing income being received)
3 months bank statements on all cases

Once again there are limited funds for this product so cases will be accepted on a first come, first served basis.

If you have any bridging finance enquiries, please call our team for a free, confidential and no obligation discussion on 0800 0147798 asking for the Wise Money. Com Service NOW!

Buy To Let BTL finance difficult or complex situations

Buy To Let (BTL) finance for people in difficult or complex situations

Buy To Let (BTL) finance for people in difficult or complex situationsWhen the high street says no, it doesn’t mean the case can’t be placed. Wise Money specialises in difficult and complex BTLs and can place the following unusual application types:

  • Ex-patriots
  • Complex corporate structures, Ltd’s, LLP’s, partnerships, trusts and SIPPs
  • First-time landlords
  • Adverse can be considered
  • HMO’s, light refurb properties, holiday-lets, multi-lets, commercial, etc.

We have many products to suit:

  • Up to 85%
  • Rates from 2.89%
  • Interest only products
  • England, Scotland & Wales

If you have any BTL, Commercial or bridging enquiries, please call our team on 0800 0147798 asking for the Wise Money Service
Please just click on the Get Started button- or fill out the free, no obligation form below:get started

Please just click on the Get Started button- or fill out the free, no obligation form below:get started

Buy To Let Mortgages for the retired

Buy To Let (BTL) mortgages for the retired and retirees.

Buy To Let (BTL) mortgages for the retired and retirees.

If you would like to purchase BTL properties but are struggling to find finance, Wise Money has access to products for applicants up to the age of 80 with a maximum term of up to 30 years (this includes Homes of Multiple Occupancy and Limited Companies).

Applicants to age 80
Rates start from 3.29%
Up to 80% LTV
No minimum income up to £1 million loan
Interest-only option available

If so then please just click on the Get Started button- or fill out the free, no obligation form below:get started

Please just click on the Get Started button- or fill out the free, no obligation form below:get started

New car sales greater than expected

The new car sales figures surprised with the Society of Motor Manufacturers and Traders announcing a huge number of cars had been sold in March- the highest numbers since 1999.

The new car sales figures surprisedwith the Society of Motor Manufacturers and Traders announcing a huge number of cars had been sold in March- the highest numbers since 1999

Although March is notorious for its strong numbers, the amount which were sold had surprised some. The sector’s improvement is welcoming for the UK economy as GBP took a further nose dive yesterday against its major currency pairings as the EU Referendum inches closer.

It looks as if the voting will be fairly tight, with there now being a real possibility of a ‘Brexit’ causing uncertainty with investors and taking some of the back bone away from the pound recently.

Uncertain economic outlook

Last night the FOMC Minutes for March suggested a mixed review with regards to another possible rate hike in April. With global economic uncertainty but better domestic data, the 12 members didn’t see eye to eye which could suggest a rate hike at the end of Q1 is unlikely.

Car and vehicle finance

If you are looking to buy a car, van or vehicle and are struggling to find the finance, then please contact us on the Get Started button- or fill out the free, no obligation form below:get started