July 2023
Financial Worries
With inflation not coming down as quickly as expected, interest rates still going up, and mortgage rates back on the climb, it’s now a goodtime to review your finances.
I’m sure the older generation can remember when mortgage rates were in double figures, but for those with mortgages taken out in the last ten years, these new rates are going to hit hard.
Some standard size mortgage payments are going up £400-£800 per month. Compared to the rates we paid, they seem low, but the amount borrowed today is so much higher.
Many landlords are reviewing their buy-to-let mortgages and are now selling because the rent just doesn’t cover the new loan repayments.
Unfortunately, many companies have taken on extra borrowing due to the lack of sales during and after Covid. So now these companies are having to pay much more in repayments, on top of a higher payroll cost.
Companies also need to look at their structure, as well as individuals. And I am starting to talk to business owners about this concern. Whilst I am finding the demand for this to be low at the moment, it is expected to increase.
Companies, just like individuals, need to take advice early and not wait until it becomes an emergency.
Poor stock market valuations have also curbed the growth expectations and indeed many individuals have seen no growth for a few years.
High inflation, interest rates, and loan repayments –coupled with a lack of investment growth, has lead to many having to review their financial goals and objectives.
My colleagues and I are now helping individuals, and companies, regarding the changes needed to their financial plan and/or investment strategy, which incorporates our in-house investment team.
If you are worrying about your financial plan, talk to one of our Chartered and Certified advisers.
If you would like to speak with our experts, please call us on 01480 869466 for a free initial, no obligation chat.
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