Homeowners fail to see cash from lending cuts
Many British homeowners were left out in the cold with the Bank of England’s announcement on earlier this month that the interest rate would remain unchanged for now.
However, the question begs: Would a rate cut have had a significant impact on struggling homeowners in dire need of more disposable cash? MPG Investments, the UK’s number one cash property buyer, has a look at the way that property mortgage lenders rule homeowners’ pockets.
According to ThisIsMoney.co.uk, Prime Minister Gordon Brown earlier warned mortgage lenders that they have a duty to pass on interest rate cuts to homeowners to bring relief. Speaking at the first Prime Minister's monthly news conference of the year, Mr Brown addressed lenders saying: 'I think where interest rate cuts happen the building societies and banks have a duty to take that into account.'
The warning elicited a furious reaction from mortgage lenders who promptly informed the Prime Minister that there were no regulations that require them to pass on interest rate cuts.
At MPG we believe that your financial situation should benefit from interest rate cuts, and that lenders should not assume the right to take it upon themselves to decide whether or not to pass on rate changes.
According to experts, at least 14 lenders - almost one in five – didn’t bother to lower their standard mortgage rates in line with the base rate cut announced at the beginning of December.
Are these the kind of institutions you want to trust with your biggest asset? So are homeowners actually benefiting?
The reality is that homeowners will probably not enjoy many benefits of a rate cut.
According to reports, more than 1.4 million people will see their fixed rate mortgage deal come to an end early this year.
This means that these homeowners will each be expected to pay around 200 pounds per month extra to make up the increased repayment cost of their home loans.
The credit crunch is also expected to take its toll with fewer approvals of credit card applications, and a reduction in the availability of second mortgages.
Tighter lending conditions could further exacerbate the situation as consumers brace themselves for increasing food and energy costs, sky-rocketing oil prices and the inability of wages to keep up with inflation.
How homeowners can survive the credit crunch.
Need to release equity in your home to cope with increasing living costs, but unable to secure a second mortgage?
As one of the first cash property buyers in the UK, MPG Investments has the means to buy your house and then rent it back to you – all within the space of a week! This means that you get access to all the equity you’ve built up over the years, without the hassle of having to find new accommodation.
In short, MPG’s Sell and Rent Back option gives homeowners the opportunity to solve their financial and accommodation problems in one transaction.
Besides the convenience of being able to sell your house in only one week and then rent it back, homeowners don’t have to pay any commission fees, property valuator fees, HIP fees or legal fees when using an MPG-approved solicitor.
Visit the website or contact cash property experts MPG Investments on 0800 634 9231 today to find out how you can benefit from releasing your home’s equity within only one week.
Tags: Finance, Investing, Business, stock market, loans, insurance, banking, credit cards, pensions, Stock Market, tax advice, mortgages, mortgage advice
Labels: banking, business, credit cards, Finance, insurance, Investing, loans, mortgage advice, mortgages, pensions, Stock Market, tax advice
posted by PR DEAL @ 11:09 PM
0 Comments
