A POSITIVE approach to the mortgage market

Whitney UK and Rich Dad Education, a provider of educational programmes in property investment and financial well-being, have drawn up their own POSITIVE advice relating to the current mortgage market.

The advice is:

P lan ahead for the longer term. Try not to sell your home or investment properties unless you absolutely have to. Even if house price dips are making you fearful, historically in the UK, house prices will and do double every 10 years. So the only time you will potentially lose money is when you sell a property prematurely.

O ptions – speak to recommended brokers or lenders to look at your options. The mortgage product market is unlikely to dry up altogether – what you will find though is that only the major lenders will still be offering buy to let products for a short period, but perhaps with lower LTV built in, together with higher short-term interest rates and front end fees.

S supply and demand – understand that economic activity is cyclic and will change over time. The UK Government has said that we will need at least 200,000 new housing units until 2016 and we aren’t keeping up with this target. As demand continues to outstrip supply prices should remain strong. (Source: Whitney Development’s Wealth Club Newsletter: April 2008 Edition).

I nterest rates – economists are predicting that there will be at least two more rate cuts by the end of this year and that even fixed rates may also come down over time.

T ightening of credit? What this refers to is largely the availability of credit and mortgages in the domestic residential sector. For investors, different criteria applies so step on the investor ladder with a credible source of education from Whitney UK and Rich Dad Education.

I nformed. Keep yourself informed of how market changes affect you in real, not perceived terms.

V ictim mentality. Avoid this by finding solutions for your problems. With every perceived problem comes a viable solution. Don’t forget that as consumers we keep the banks and credit card companies in business! If one lender can’t help you, there is one out there who can and will.

E mployment levels are at record highs and stand at fractionally under 30 million people. Unemployment stands at approximately 1.6 million.

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