For those who have existing mortgages and even those who are looking to
take out new mortgages in the UK, the question of Greece must loom
large on their minds. If it defaults its debt and exits the EU, what
happens to mortgage rates? The answer is that they may go up. Reason?
The general uncertainty in the region is making bankers very edgy about
lending which means that interest rates on new mortgages may go up and
for people who have mortgages with variable rates, they may see a rise
in interest rates as well.
For those who are looking for new mortgages, it is advisable that they
prepare for a stricter vetting process in an environment where many
complain that the current vetting process is already too rigorous. That
said, the Funding for Lending Scheme could come to the rescue. It was
started in 2012 for just this particular Greece crisis and its purpose
is to counter rising interest rates. Lenders can use the funds within it
as a buffer to higher interest rates.
What about those who say that the crisis should not affect Britain’s mortgage industry at all? True, there are some who are of the opinion
that matter in Greece will not affect the British economy in any way but
that is only if Greece can agree on manage to stay on an even keel – it
will rattle the market but it will not be enough to cause a panic
across Europe. Additionally, the UK is seen by many as a place that is
safe when it comes to money – it is relatively safe and this buffers it
from market shocks.
So what do you do as a mortgage holder?
The best thing to do is use a mortgage advice consultant. This is a
professional whose job it is to keep an eye on the situation and advice
his clients on what they should do about their mortgages – should they
change lenders? Should they take out a new mortgage and more. One of the
best in the business is Mortgage Advice Services. They have worked with
hundreds of clients in the UK to help them determine what mortgage
decisions would be best for them. They are in touch with many different
lenders and they can negotiate a deal that you can afford. You can find
out more by calling them on 01332 257 087 or visiting their website,
http://www.mortgageadviceservices.co.uk/Labels: benefits of re-mortgaging, contents insurance, equity release, fixed rate mortgages, mortgage advice nottingham
