October 2007

Interest Rates
5th October 2007

The Bank of England have kept interest rates on hold at 5.75%. There is now a general feeling that we may see the Bank of England move to lower interest rates in the coming months. This feeling seems to have come from statistical figures showing a slowdown in the housing market and the obvious outside pressures of the world markets.

There are predictions that a correction in the already well inflated housing market is overdue so would it be a knee jerk reaction from the Bank of England to start slashing rates in order to try and slow this down?? What does the future hold? Watch this space!!

Post Office to Trial Mortgages – Peter McGahan Comments on BBC Working Lunch
1st October 2007

The Post Office has launched a trial in the North of England to offer fixed rate mortgages. If successful, this scheme could be in operation up and down the UK.

Last week on BBC Working Lunch, Peter McGahan, Managing Director of Worldwide Financial Planning, was asked by Working Lunch Business Reporter, Rachel Horne if the mortgage rates offered by the Post Office are worth bearing in mind.

“Earlier I spoke to Peter McGahan, an Independent Financial Adviser, and he said because all three of the products have a fixed arrangement fee of £399 which comparably to other mortgages is quite inexpensive, they are worth considering” Rachel Horne

The reputation of the Post Office, in light of the Northern Rock ‘blip’ over the last two weeks, should also be considered.

“When we look at the issues we have had just now with Northern Rock which I have to say has been hyped up a little bit but borrowers and savers all have responded” Peter

“We have had more concerns into our office over the last two weeks in relation to Northern Rock than we did after the September the 11th crash from the stock markets – so brand is vital just now, and of course the Post Office is a very good brand” Peter McGahan

“It is important to remember that any products you buy from the Post Office are coming from their financial services partner – the Bank of Ireland, so although you may see the Post Office having a public service brand or you perceive that image, you are afforded no extra protection on any savings or loan that you take out” Rachel Horne

For any queries or questions about mortgages and the types of mortgages available to you by the Post Office or other lenders, please contact us on 0800 0112825 or email info@wwfp.net

‘Your home may be repossessed if you do not keep up repayments on your mortgage’