Category Archives: other investments

Base Rate Alert! 0.5pc cut!

bank of england interest rates

The Bank of England yesterday agreed to make everyone on a tracker mortgage richer by reducing the base rates again. This time the base rate was reduced by 0.5% bringing it to an all time low of 0.5%.

This rate cut will benefit everyone on a tracker or discount mortgage which tracks the bank of england base rate. Research show that only about one quarter of all mortgage holders will benefit from the rate cut. I guess I fall into that category. I secured a deal which is 0.95% below the base rate, which should mean that the bank will be paying me interest on my loan. Well I wont hold my breath on that!

Most investors who bought in the last two years will have bought using tracker mortgages or fixed rate mortgages that will be coming of the fixed rate now, or very soon. This is good news too as the mortgages will switch to the lenders SVR (standard variable rate) which is usually base rate plus 2% which will now be a stupidly low 2.5%. So as capital values tumble at least investors will have much improved cashflow.

$212m Mega Millions Jackpot winner

mega millions lottery

Lottery spokesman Dominick DeMarco said the one winning ticket in Tuesday’s multi-state US Mega Millions $212-million drawing was sold in Ocean County, N.J.

The winner will earn about $8.1 million a year, before taxes, for the next 26 years as an annuity. I always thought you had more chance of getting run over by a car as you did of winning a lottery. Well the lucky winner of 212m USD doesn’t think so.

Lottery sales increased dramatically as people poured their money to take a chance on this Mega Millions drawing, which offered a jackpot of $ 212 million, the 10 largest in the history of the game.

The game offered in Massachusetts, California, Georgia, Illinois, Maryland, Michigan, New Jersey, New York, Ohio, Texas, Virginia and Washington. Drawings are held on Tuesdays and Fridays.

The biggest jackpot of $ 390 million in March 2007, which was divided into players from Georgia and New Jersey. A woman from Massachusetts won the fourth-largest jackpot, $ 294 million in 2004.

Bank of England rates slashed to 1percent

1pc base rate bank of england

The Bank of England’s Monetary Policy Committee voted today to reduce the official Bank Rate to 1 percent. Thats the fifth rate cut in a row as the UK recession takes its toll. The rate cut is good news for borrowers and struggling businesses with existing loans. Savers are hit again though as the interest recieved on money in the bank goes down yet again.

I welcome the rate cuts as the interest I pay mortgages of mine seem to be getting lower and lower in the last few months. One of my mortgages with BMS is at 0.95% below base. Thats at an amazing 0.05% of interest. I think my monthly payments will probably be in the region of £50 a month, thats almost too good to be true! I’m also curious as to what will happen if the base rate drops again to lets say 0% then the interest on my mortgage would in theory be – 0.95% Would BMS then actually pay me every month instead?? That would be very nice!

Northern Rock Injection

northern rock queue

The struggling bank may see as much as 10 billion pounds of cash from the government to ramp up mortgage lending. The Treasury has yet to make a final decision, which may also see the bank hiring new staff. Spokesmen for the Treasury and Northern Rock, which is due to unveil a new business plan in the next few weeks, could not immediately be reached for comment.

Northern Rock the first British casualty of the credit crunch, revealed that it had been forced to seek emergency support from the Bank of England in September 2007. The bank has been nationalized since early 2008 after attempts to find a private sector buyer fell through. Northern Rock has been shrinking its mortgage book and focusing on repaying a government loan since its nationalisation.

5 billion pounds of new equity would allow Northern Rock to write about 50 billion pounds of new lending, providing the capital is not eroded by bad debts. Could this be what the UK housing market is waiting for?
If Northern Rock offer sensible loans at resonable interest rates it could just be what the UK public needs.
happy days

UK Recession confirmed – GDP down 1.5pc

Recession

Official government figures have today confirmed the UK is now in recession for the first time since 1991.

The generally-used technical definition of a recession is two quarters running of negative economic growth. Gross domestic product fell by 1.5% in the last three months of 2008 after a 0.6% drop in the previous quarter. It represents the biggest quarter-on-quarter decline since 1980, and a 1.8% fall on the same quarter a year ago.

The figures are from the Office for National Statistics (ONS), showing that manufacturing contracted the most by 4.6% despite hopes that the weak pound would help exporters. This worse than expected shrinkage sent sterling to a 24-year low against the dollar, with one pound buying $1.355. (guess we’re not going on holiday to the US then for a while!)

How long will this last?
The last two recessions lasted for just over a year and many forecasters believe a recession could stretch into 2010 and be as severe as that of the early 1990s.

What does this mean for most of us?
Well I wouldn’t expect a pay rise any time soon, and I would be fearful of job losses as most companys will be cutting their workforces.
Crime will be on the increase too as many people will resort to theft.
Apparently drug additions go up in a recession.
The range of choices when you shop will see a decline too.

Explosion of positive energy
On the positive though things should get cheaper in terms of food and fuel as the government does what it can to help struggling familys and boost the economy.

Bank rate cut to 5.25%

The UK Bank of England has cut interest rates to 5.25% from 5.5% following signs that the UK economy is slowing down. The Bank needs to ensure that growth and inflation are balanced but the move today was widely anticipated by analysts after cuts in the US, where the Federal Reserve slashed its borrowing costs to 3% from 4.25%.

Even myself, I predicted that the prices would be falling. I should have put money on it, that the interest rates would fall in February. Well actually, maybe I did as the last 3-4 investment mortgages I took out were on variable rates so I should be slightly better off every month on these mortgages. A quarter point reduction in the rates would reduce the payments by about £25 on each of these mortgages.

Not all mortgage lenders will pass the interest rate cut onto their customers soon, limiting the cut’s impact on the economy. Some banks will not cut their rates until the 1st of the next month giving them over 20 days to make some more money from their customers.

Savers will be worst off from the interest rate cut. Most banks will pass the changes in interest paid on savings almost immediately. Isn’t that nice of them?

Sell Quickly Rent back Fast – new website

This week I have released a new Real Estate website titled Sell Quickly Rent Back Fast. The site will be an information based site to appeal to UK homeowners wishing to sell their homes quickly and those interested in Rent Back schemes.

Presently there is not much information on the web for people in the UK trying to sell their property quickly or for those intereseted in Rent Back schemes. I aim to make this site a resource for people that wish to know more or are in a situation that requires a quick property sale. They can read more about how sell and rent back schemes work and the potential pitfalls they may face with unscrupulous landlords. Selling ones home is peotentially one of the biggest financial transactions you can make, therefore it is important to seek advice and do much research before entering into any agreements.

The site is powered by wordpress blogging software with a free theme downloaded from the wordpress site. As you can see the site is still in its VERY early stages, but hopefully this post will help google index the site. I’ll then leave it alone for a few weeks whilst I get the content for the site written and compiled. I’m not really sure what to do with the traffic for the site. I may use it to gather leads for my property business or try other methods of money making from it.

Goal Setting for Q1 2008

Goal Setting

Rather than make New year resolutions I always prefer to set goals a few times a year. I do this as I prefer to make goals several times a year rather than just in january and if you read my earlier post you know that most resolutions made in the new year usually fail.

So what goals will i set for the first quarter of 2008?

Professional Goals

1. Make money online

I make a bit of money offline with my property investments, it would be nice to make some money online. Even though my proffession is actually IT I’ve yet to make any money directly from the web. I’ve started to run google ads on this site and will be looking into other money making ways for this site. I’ll report as much as I can on this blog.

2. Build an extension

I’ve bought many a homes, had a few done up and refurbished, but never extended any of them. My next major project is to extend my own home. Well the new house that I have purchased for me and the misses. I’ll report more on this blog when the plans have been approved by the council.

3. Learn some bookkeeping

Whilst I now run 2 companies I’m finding it really difficult to keep track of all the expenses and profits with the old spreadsheets that used to work when I owned 2 houses and had 2 tenants. I need to either learn some good book keeping practices, find some good software or employ somebody to help me.

Personal Goals

1. Get married

With my wedding in April I can’t really get this wrong. I would like to help my fiance to organise this though as she is doing most of it on her own at the moment. awwwww 😛

2. Do classess at the gym

My fitness has taken a bit of a battering lately. to help me improve my CV I think it would be beneficial to join some of the clasess at my gym. Boxercise and circuits yes, bums and tums no.

5 Reasons why New years Resolutions fail

Do you make new years resoulutions?

Do you find that making new years resolutions like quit smoking, lose weight, work harder, go to the gym etc. are bound to fail? Research shows that 9 out of 10 new years resoulutions fail within days of making them. I have compiled a list of 5 reasons this may happen:

1. You are trying to “not” do something.

Because you are not trying for something positive, it can be harder to acheive. Make your resolution about something you want and think about how to achieve it. If you want to work harder, think about why. It maybe as you’ve always want to buy that dream car. Think how you will achieve this, pull in extra shifts, blog more etc.

2. You haven’t written it down.

You should always write down resolutions or goals that you make. Spends some time to make it look good. Hang it on the wall, make yourself proud of YOUR resolution. Also if the resolution is written down and in plain sight, you aint gonna forget it soon!

3. You’re trying to fly before you can walk

People always try to achieve mountainous tasks without any planning, they almost always fail. If you’ve always wanted to learn how to swim don’t just turn up at the pool in your shorts and go for it. Find out about taking lessons, go with a friend who can swim, so they can comment on your current ability. You should always break up tasks into smaller steps.

4. You’ve only promised yourself

If only you know about your resolution, if you fail, then you’re only letting yourself down. Make sure everybody knows. Tell all your friends and family. Make it well known what you are trying to do. This goes back to 2. if you write it down and display it somewhere then more people will known. You wouldn’t want to let the world down now would you?

5. Don’t give up

Too many people give up when then come to even a minor problem. You must be strong. Keep positive about your resolution. It helps to think about the likely problems and how you’ll deal with them. If they do occur it’ll be easier to overcome them.

Northern Rock Collapse?

Northern Rock Plc, the U.K.’s worst performing bank stock, will receive emergency funds from the Bank of England. this is to ease a credit shortage sparked by U.S. subprime mortgage defaults.

since the funding has been agreed its customers have been rushing to branches to withdraw money in a panic. they fear the worst for the bank and have withdrawn at least 2 billion pounds, about 8 percent of its retail deposits. the branches are too busy to serve most of the queuing customers, the website has also experienced problems as people rush to withdraw money.

northern rock lending
rising credit costs due to the US credit crunch left Northern Rock unable to make new loans, sparking the first rescue of a U.K. lender by the central bank in 34 years. The bailout stoked concern among investors and depositors that other financial firms relying on short-term money market credit rather than deposits from customers may be vulnerable because the rate they borrow at exceeds the amount they earn from lending.

bank of england
i think people are overly worried when they shouldn’t be. the bank of england would not lend money if they felt the northern rock would collapse. they must be sure that the funds they lend will be sufficient and WILL enable the bank to get back onto its feet.

the first £35,000 of savings you have with any bank are protected by the official Financial Services Compensation Scheme. so if you are overly worried and you have more than £35’000 of savings with northern rock, then take out the excess. i’m not sure if the thosuands of people withdrawing money are aware of this. unless they ALL have over £35’000 in their northern rock accounts!