Bank of England leaves interest rates on hold

Wise Money is pleased with loans interest rates news from Bank of England.

Wise Money is pleased with loans interest rates news from Bank of England.

The Bank of England rate decision meeting didn’t provide any fireworks last week, as UK policymakers voted 9-0 in favour to keep interest rates unchanged. Despite signalling further rate cuts in the future, the decision didn’t come as a surprise considering the amount of stimulus they introduced last month.

The central bank is monitoring recent data closely, and they are encouraged to see that the stimulus package seems to be working, as recent data has been fairly positive and at times even better than market expectations.

It appears that investors are still not worried about the implication of the Brexit, at least until they find out what it really means. For this they will have to wait until article 50 is invoked early next year.

Busy money market data releases

It has been a very busy 24 hours in terms of economic releases. In the US, data came in softer, led in particular by a disappointing retail sales number. Headline sales were down -0.3% last month, the first decline in 5 months. Excluding autos and gas, spending fell -0.1%. Industrial production also declined in August, printing -0.4% against a market expectation of -0.2%.

It wasn’t all bad news though, as manufacturing activity encouragingly bounced back in the New York and Philadelphia regions, but it is not enough to convince investors that the FED will have enough reasons to lift interest rates next week.

Data in Europe will be quiet with final Q2 wages numbers due out in France. In the US, investors will closely look at August CPI report with market expectations of an increase of +0.1% month on month. Those numbers also match the views of our US economists. As always in the US, the University of Michigan consumer sentiment is scheduled for release.

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.

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

Buy To Let loans for landlords

Cheap Buy To Let (BTL) second charge loans for landlords

Cheap Buy To Let (BTL) second charge loans for landlordsAre you looking for a buy to let mortgage? If you are planning to buy a property to rent out you will need a buy-to-let mortgage. As many existing landlords already know, this market has shrunk considerably over the last few years. However, there are still finances out there.

With the chancellor changing the rules on stamp duty for BTL, this white hot market is going into overdrive as investors set out to beat the April 2016 deadline, but sometimes it doesn’t make sense to remortgage in order to release funds. A second charge loan may be a more financially viable solution.

We have a complete range of fantastic second charge BTL loans online.  Please check out the quick free, no obligation form below where you can generate quotes and browse the range of products at anytime or you can call our to discuss your enquiry with our underwriters on 0800 6522 052 quoting Wise Money.

What’s on Buy To Let Loans and Mortgages offer:

£10,000 – £1,000,000 on a second charge basis
LTV’s up to 75%
Rates from 5.79%
ERC: 1 month notice + 1 month’s interest
No personal income required
Any adverse credit over 12 months ignored
Procuration fee 2.5%

Good Luck!

Euro skewered by ECB Chief’s negative talk

The euro has been well and truly Draghied- falling almost two cents against the Dollar and around a cent against Sterling after the ECB chief revealed the governing council discussed cutting the overnight deposit rate below zero and suggested the Bank was operationally ready to do so when needed.Euro skewered by ECB Chief's negative talkThe prospect of negative interest rates is a sell signal that any sane currency trader could not ignore, which explains the speed and scale of the move so far.

Whether we see further falls in the single currency depends now on if the ECB actually goes through with it, which unfortunately is looking unlikely until the New Year.

With the downgrades to growth across the euro zone, market sentiment over further rate cuts seems to be ‘what are you waiting for?!’

This afternoon the US non-farm payrolls for November are released.

Expectations are for around 90,000 new jobs added over the month which is about half of Octobers total.

The main drags on job creation are expected to be Hurricane Sandy and the general slowdown in corporate earnings we saw in Q3.

For the US Dollar any disappointing number will reaffirm the trend in the EUR/USD, with the Dollar strengthening as risk is sold.

Looking at the Fed with policy explicitly tied to the unemployment rate, we may see a change in wording at the next meeting rather than any change in policy which is pretty set for the foreseeable future.

We begin next week with a large amount of Chinese data which will set the tone for risk during the week.

Key data highlights also include the German economic sentiment, the UK jobless claims and the US retail sales.

UK house buyers interest rises

According to the Royal institution of Chartered Surveyors (Rics) the number of potential new house buyers placing enquires increased during the month of March. UK house buyers interest risesThe survey revealed that compared with February 9% more surveyors reported an increase in interest.

This was credited to the warmer weather and buyers looking to purchase ahead of the stamp duty holiday end date.

Despite this news house prices around the country (except London) continued to fall although some were considered “modest” according to Rics.

Over to Europe and Greece’s economic worries continue to dominate headlines with latest industrial output data falling again according to figures released yesterday.

Coupled with weak output, unemployment data due out on Thursday is expected to indicate another rise adding to the fears over Greece’s ability to recover.

Furthermore Portugal was forced to go cap in hand to the European Central Bank (ECB) borrowing over €56 billion last month.

Despite borrowing costs falling during March from a high of over 14% to just over 11%, these gains have now been given back based on this news and the yield on 10 year debt currently sits at 12.2%.

As we look ahead to this four day week due to the UK bank holiday, we are light on headline data.

However key events are the ECB monthly report and UK trade balance figures on Thursday morning.

And to end the week on Friday we will get inflation reports from Germany and the US where we expect to see YoY figures of 2.3% and 2.7% respectively.

New UK treasury statistics to be more trustworthy

George Osborne the new UK Chancellor of the Exchequer announced yesterday that he was “changing the way Budgets are made forever”.

He claims that unlike his predecessors he will “fix the budget to fit the figures” and provide tax payers with a greater clarity over the UK finances.

This is ahead of his emergency budget next month when he plans to outline £ 6 billion in spending cuts this year ahead of an emergency budget on June 22.

Sterling hit a 13-month low against the dollar yesterday and continued to weaken versus the euro as data showing a slowdown in UK house price growth raised concerns about the health of the economy.

Property web site ‘Rightmove’ said that asking prices for British residential properties increased at a slower pace for the month of May compared to April suggesting a slow down could be around the corner.

Bank of England hold UK loans rates for 12 months

The Bank of England’s MPC voted to leave their rates unchanged and in addition held QE at £200 billion. 
The improved PMI data yesterday and the up tick in the revised Q4 GDP to 0.3% helped to reinforce this stance. 
It is now unlikely that there will be any change in monetary policy before the general election on rates or QE. 
However we have been surprised in the past by the BoE and we could be again; today the markets will be looking for any subtle changes in tome and sentiment on future monetary policy projections in the statement. 
The minutes in two weeks time will probably help to shed more light than todays decision from the BoE on future moves. 
Sterling has held firm after making gains yesterday against the USD and the JPY.
The 1.50 rate on GBP/USD is still the psychological level that the  Pound needs to hold above and build on.
Sterling was boosted by improvements in consumer confidence and PMI data and the new extra austerity measures announced by Greece. 

The contents of this blog are for information purposes only. It is not intended as a recommendation to trade or a solicitation for funds. The Wise Money Blog cannot be held responsible for any loss or damages arising from any action taken following consideration of this information.

Overseas Holiday Home Insurance through Wise Money

Overseas Holiday Home Insurance through Wise Money

With so many different holiday home insurance policies to choose from; it’s often difficult to know where to begin. However our overseas holiday insurance broker has more than 35 years experience; so you can be confident that you will find the right cover at the right price.
Our overseas holiday home insurance provides comprehensive cover for all types of overseas properties. An example of the benefits of cover we can include:
Comprehensive Contents Cover: Our contents cover is wider than most; we have no upper claims limit for high risk goods (such as electrical equipment or antiques) and will replace or repair items old items with new. Policies automatically include £500 cover for outdoor goods and £1000 for jewelry. Accidental damage cover can be added.
Comprehensive Buildings Cover: Our buildings cover safeguards against damage to all outlying buildings and structures; including terraces, swimming pools and boundary walls. Leaseholders are also covered up to £10,000 if the freeholder’s policy doesn’t cover a claim that we would have covered. Again accidental damage cover can be added.
Flexibility: Our policies are suitable for all types of property whether your holiday home is a thatched cottage or a sleek city centre apartment. Regional Expertise: Our team of consultants has a wealth of regional knowledge covering everything from local regulations to national taxation. And it’s our job ensure that there are no complications should you need to make a claim.
Theft Cover : Whether your property is occupied or unoccupied we provide the same level of cover. Emergency Travel: If you need to be present to make a claim on a damaged holiday home we will cover your travel expenses up to £1,000.
Public Liability: Our policies automatically include public liability cover of up to £2 million; we also cover employer’s liability to provide for any staff (such as a pool cleaner or gardener) that you may employ.
We understand that an insurance policy is only as good as the claims team handling it; which is why we will provide an English speaking loss adjustor and guarantee payment within ten working days of your signed acceptance. For a competitive click here now OVERSEAS HOLIDAY HOME INSURANCE QUOTES for the online application form. Alternatively if you would prefer to speak directly with a consultant on 08700 667 500 quoting Wise Money.

The contents of this blog are for information purposes only. It is not intended as a recommendation to trade or a solicitation for funds. The Wise Money Blog cannot be held responsible for any loss or damages arising from any action taken following consideration of this information.