Interesting Investment
The recent interest rate roller coaster has brought with it a legion of winners and losers. When interest rates were up - as recently as last summer - the savers were the ones reaping the rewards while some property investors found it a challenge to keep up with the relentless monthly increase in their mortgages. Now, the recent nosedive in interest rates has completely turned the tables and it is the turn of the mortgage holders to enjoy the benefits and for savers to wonder if it might be better to keep their hard-earned savings under the mattress rather than in a bank account with miserable interest.
However, whatever your status, there is no doubt that the current historically low interest rates have their advantages and now is an optimum time to consolidate or even restructure your financial affairs whether you are a saver or borrower.
Mortgage holders have a range of options available to them, particularly those with less than 70% loan-to-value (always the banks’ preferred clients). Consider remortgaging to take advantage of lower rates or renegotiating your mortgage terms with your current bank. Releasing equity from your foreign home to take advantage of the low value of sterling is another option.
Even though interest rates are at an all-time low, Ken Thorkildsen, Director of Obelisk Private Finance, believes that if you have a variable rate mortgage this may be the time to fix your mortgage rate. “Interest rates are certain to rise again,” says Ken, “and when they do, taking advantage of a low fixed rate mortgage will be highly beneficial and considerably more manageable than having to make ever-increasing monthly payments brought on by growing interest rates.”
Savers are currently the big losers with virtually no banks offering the nest-egg rates seen just a year ago. The average notice account in the UK is now offering beleaguered savers the lowest interest rate since 1995, instant access accounts give a mere 0.51% and the interest rate paid on ISAs comes in at just 1.38%. National Savings products are slightly better, but interest rates are hardly impressive or particularly conducive for the saver.
In the current climate, Ken advises savers to consider other means of making their money work. Traditional alternatives such as stocks and shares are an uncertain option at the moment, particularly for the saver looking for security and a guaranteed return. “Products offering guaranteed returns can be difficult to find, but there are some excellent schemes around,” says Ken, who advises asset-backed products for those who are looking for 100% security for their money. Products with asset-backed guarantees include property, although this tends to be commercial property rather than residential.
For more information on overseas property investment and to find out about Obelisk's latest projects, contact Obelisk free on 0808 160 0670 (UK) or 1800 932 514 (IRE).
Obelisk also produces its Absolute Guide Series which contains the most recent investment information on 30 of the world’s top emerging markets. They can be downloaded free of charge from at http://www.absoluteguideseries.com
Email: info@obeliskinternational.com or visit our website: http://www.obeliskinvestmentproperty.com
For press enquires, please contact Obelisk’s marketing department on (+34) 952 820 319 or email press@obeliskinternational.com
However, whatever your status, there is no doubt that the current historically low interest rates have their advantages and now is an optimum time to consolidate or even restructure your financial affairs whether you are a saver or borrower.
Mortgage holders have a range of options available to them, particularly those with less than 70% loan-to-value (always the banks’ preferred clients). Consider remortgaging to take advantage of lower rates or renegotiating your mortgage terms with your current bank. Releasing equity from your foreign home to take advantage of the low value of sterling is another option.
Even though interest rates are at an all-time low, Ken Thorkildsen, Director of Obelisk Private Finance, believes that if you have a variable rate mortgage this may be the time to fix your mortgage rate. “Interest rates are certain to rise again,” says Ken, “and when they do, taking advantage of a low fixed rate mortgage will be highly beneficial and considerably more manageable than having to make ever-increasing monthly payments brought on by growing interest rates.”
Savers are currently the big losers with virtually no banks offering the nest-egg rates seen just a year ago. The average notice account in the UK is now offering beleaguered savers the lowest interest rate since 1995, instant access accounts give a mere 0.51% and the interest rate paid on ISAs comes in at just 1.38%. National Savings products are slightly better, but interest rates are hardly impressive or particularly conducive for the saver.
In the current climate, Ken advises savers to consider other means of making their money work. Traditional alternatives such as stocks and shares are an uncertain option at the moment, particularly for the saver looking for security and a guaranteed return. “Products offering guaranteed returns can be difficult to find, but there are some excellent schemes around,” says Ken, who advises asset-backed products for those who are looking for 100% security for their money. Products with asset-backed guarantees include property, although this tends to be commercial property rather than residential.
For more information on overseas property investment and to find out about Obelisk's latest projects, contact Obelisk free on 0808 160 0670 (UK) or 1800 932 514 (IRE).
Obelisk also produces its Absolute Guide Series which contains the most recent investment information on 30 of the world’s top emerging markets. They can be downloaded free of charge from at http://www.absoluteguideseries.com
Email: info@obeliskinternational.com or visit our website: http://www.obeliskinvestmentproperty.com
For press enquires, please contact Obelisk’s marketing department on (+34) 952 820 319 or email press@obeliskinternational.com
Labels: finance, interest rates, investment, mortgage, property
posted by Alison Kane at 2:52 pm
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