DANCING IN THE DARK
BY CHRISTIAN COVENTRY OF CONCEPT MORTGAGES
My eyes nearly popped out of my head this week when I received a letter from our new energy supplier EDF , informing us of the increase in charges for our gas and electricity to our home .
Utility Point our last supplier , went bust , so we have ended up with EDF as a “ supplier of last resort ” something that millions of people across the country have been faced with , given the recent slew of utility companies that have gone to the wall in the face of rapidly increasing energy costs .
Anyway , back to the letter . Although I was expecting an increase in costs , I was probably burying my head in the sand a little thinking , or rather not thinking , I ’ ll worry about that when it happens .
Well , it ’ s happening ! Our energy costs will be almost doubling next year , which has led to the inevitable conversation with our young sons to explain the importance of turning off lights and the usual energy saving tips . “ Does that mean we will be Dancing in the Dark Daddy , my eldest asked ?”
Thanks for the Nile Rogers inspiration son , I can use that in my next feature !
I appreciate that with the precarious situation the world currently finds itself in that this is a small price to pay , given that over a million people have been displaced from their homes and many have paid with their lives in the Ukrainian conflict .
As these costs hit the pockets of homeowners across the UK it will no doubt focus people ’ s minds on ways to save money and reduce household bills . Industry data shows that an astonishing 74 % of borrowers are on some type of variable rate mortgage product , meaning that if interest rates keep on rising as expected , then these borrowers will see their monthly payments rising .
We have seen over 500 mortgage products disappear from the market in the last month or so , as lenders grapple with the volatility of the
swap rate markets . This has inevitably led to an increase in pricing across all lender ’ s fixed rate ranges , but it is still possible to obtain fixed rate products of under 2 % for borrowers with 40 % equity in their home .
Perseverance pays ! We have had two separate occasions with two separate lenders this week , where lenders had declined a borrower ’ s application not once but twice , only for them to accept the applications after we had made our third appeal .
The first was a lender that had incorrectly assessed the employment contract of a client and reduced the maximum loan available massively , meaning they would be unable to proceed with their purchase .
The second was a lender who wasn ’ t prepared to lend on a holiday home , as it had two kitchens , even though one was going to be removed as soon as our client was going to take possession of the property .
In both instances , we worked with our Business Development Teams at the respective firms to take the decisions further up the management chain and after much pushing and shoving managed to get both applications agreed .
I know that without our intervention , neither of the property purchases would be happening , proving that what we do is so much more than picking a rate and submitting paperwork . I would say that anybody who has used Concept Mortgages would attest to that .
Leading me on nicely to the fact that this month we racked up over 300 five star google reviews , which officially makes us one of the highest ranked Independent Mortgage Advisers in the UK .
If you would like to discuss any of your mortgage arrangements , then please call on 0151 342 3084 .
50 wirrallife . com