Mortgage interest rate cycle - will the cost of borrowing ever be this low again?

Independent Financial Adviser Patrick Goddard gives his view on the current market.

Economic fundamentals (i.e. the strength of the general economy and the jobs market along with the Help To Buy' scheme and the stamp duty reforms) all combine to create an environment that encourages demand for housing and the confidence to borrow. 
There is continuing demand and limited supply - we have not been building enough houses for many years now, and this is most likely to have an upward effect on house prices. 

As people clamour to get in the market or move up-market, the increase in prices is driven yet further, as is the demand for mortgage borrowing.

This overview is evidenced by the latest Council of Mortgage Lenders housing commentary which reports gross mortgage lending in March at 21% higher than in February.  As wages inflation continues to outstrip price inflation and confidence is further encouraged by continuing low interest rates, so this upward trend is expected to continue.

So what does all this mean for individuals?

Why pensions are like ice cream

Mike LeGassick, Independent Financial Adviser with Manning and Company, explains why the blended approach to retirement income planning could be the best choice.

If you were born around 1960, you will soon be facing a pivotal decision: how will you shape your life over the next 30 years?

First of all think back 30 years, to 1985 – when music came on vinyl or cassette, and the internet hadn’t yet arrived.  Can you think ahead to the year 2045 and imagine what life might be like?  Honestly, can any of us?!

Yet thanks to the new pension freedoms which come into effect in April, that’s exactly what anyone aged 55 or over will have to do.  As never before, your future is in your hands.