|Welcome to November's Capital Comment...
Apart from seeing a bit more sunshine over the past few weeks, not a lot has really improved since our last newsletter! COVID continues to dominate the news; interest rates have risen further; more regulation has made it harder to get people approved at the same levels as was previously possible and now the Black Caps have just missed out on claiming the T20 World Champions title! Christmas can’t come soon enough!
Covid dominating the bulletins has meant that the large increase in interest rates has largely gone unreported by the media. They tend to only report the OCR increases (next OCR announcement due on the 24th November) but since mid July, interest rates have gone up by between 1 – 1.5% across all the fixed terms which is well above the 0.25% OCR increase in that time. The speed and scale of the increases have caught everyone completely by surprise. We will unfortunately find that a lot of people who opted for short term rates earlier this year will have a significant increase when re-fixing next year. It is important to highlight this early so that people can be prepared for it and make adjustments to their budgets early in preparation rather than being taken by surprise. At the moment we are finding that some people are looking to break out of their lower fixed rates and re-fix for longer now before rates go up any further. If you would like to look into this option, please get in touch.
After 12 years of these newsletters, the provider who has sent them out for us over that time has told us they can no longer facilitate it for us. So, sadly this is our last newsletter in this format! We are looking at alternative options and will look to start sending out newsletters again in early 2022. So, much as I hate to be saying Happy Christmas in November (!), we do wish you all the very best for the holiday season and hope you have a safe and enjoyable time with family. A big thank you to all our wonderful clients and referrers for your support this year. Without you, we would not be in business! We are all taking time out over the holidays but our phones will be on throughout and so if we individually can’t assist you, we can tell you which one of the team can! Take care and here’s hoping 2022 can be a little more normal!