When I read that Mr Shapps, who I actually like, had made a speech within which he called for 30 year fixed rate mortgages I must admit my shoulders sagged a touch.
My first reaction was if that was the best idea he can come up with then we are all up the proverbial creek without a you know what. In reverting back to an oft tried and never achieved call for 30 year mortgages we suddenly saw that actually, no one in power at least, seems to really get the issues.
As politicians all over the world wonder how the hell they are going to get out of the mire that surrounds them, we are beginning to see options taken that are provoking a great deal of debate. The latest is the US’s Operation Twist.
First tried back in 1961 as an “experiment” whose results are still disputed, this involves the Fed selling short-term bonds and, here’s the twist, replacing them with longer term ones. The result is that as more long-term bonds are purchased interest rates should fall, (it’s a supply and demand thing, sort of).
In anyone’s eyes the last few weeks have been an extraordinary news cycle. Phone hacking, the closure of the best selling UK paper, European crises, the carnage in Norway and of course the tragedy of Amy. Now the frightening prospect of the US defaulting on their loans, due to nothing more than political wrangling, threatening the world economy.
It’s enough to leave us all thinking that anything else is a little mundane, however it is far from it. If anything it tells us to make the most of everyday life, to worry only about the things we can control, to rejoice in the mundane and make it as fun and worthwhile as we possibly can.
For those of you who think times are more than a little tough at the moment, the news that there are still major fears about the strength of the European Banking System, is not really what you will want to hear.
However, this week sees the release of a major report involving the “stress-testing” on a range of European Banks to determine their health and, perhaps more importantly, whether they are in a position to cope if anything goes seriously wrong again. These “detailed” tests have been undertaken on 91 banks, including names such as Deutsche Bank and Commerzbank in Germany, HSBC and Barclays in the UK, as well as Societe Generale and BNP Paribas in France.
As expected we have our first Hung Parliament since 1974 and if every party leader was honest, each one of them would admit to being very disappointed.
Whilst Brown did not do as badly as polls predicted a month ago it was very clear that he has not been given a mandate to govern. Nick Clegg admitted it was a disappointing night as many who said they would vote Lib. Dem. did not have the courage of their convictions when it counted most. However, with 23% of the vote equating to just 50 odd seats, the issues of the electoral system are glaringly obvious.
Andrew Montlake, Communications Director at Coreco and ‘Mortgage Personality of the Year 2008’, gives his views — honest and no holds barred — on the latest developments within the mortgage and property markets.A fee of up to 1% of the mortgage amount may be charged depending on individual circumstances. A typical fee is £495.
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