Mortgages Uncovered

Savings

Well subject to you having less than £35K savings in any UK financial organization, you can’t lose even if the worst happens and your bank goes bankrupt. All due to the protection which is offered by Financial Services Compensation Scheme.

The only downside is that you may have to wait a while to get your money recovered.

The UK market differs from the United States in that there is no scheme in place to save a UK bank that is in trouble.

Either way, it would be prudent should you have more than £35K in savings with one financial organization, consider spreading it across a couple to cover yourself under the F.S. Compensation Scheme.

Will your mortgage increase?

Both yes and no.

Another thing that has risen in the recent week’s is the cost of borrowing and lending money between the banks themselves which means they are driving up the cost between themselves on the new fixed rate and various other mortgage deals (which has an impact on us).

HBOS’s sudden takeover by LloydsTSB means less competition in the market place of mortgage lending making it far easier for remaining mortgage lenders to charge more for loans and provide less interest to savings and bank accounts.

Therefore, it is the case that most mortgages will be higher than the Bank of England’s base rate.
However, another episode in a statement from the Bank of England who have now predicted rate of inflation would quickly hit 5%, before it will start to fall back.

Whenever the Bank of England become convinced of this happening it is quite likely it will cut rates to boost the economy and attempt to overcome the economic recession.

So wait a little, it’s coming and mortgages will get cheaper…but not just yet.

More mortgage information:
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