A welcome by-product of the mayhem, for those with mortgages rather than or as well as savings, is the reduction in long-term interest rates to which it seems to be leading, at least on this side of the proverbial pond. Money has moved from shares into government and other bonds, pushing up their price and so reducing the ‘yield’, and it’s these which are used by banks and building societies as the basis for fixed rate mortgages. The opposite seems to have happened in the US, as there is less faith in the future ability of the government to honour or afford their debt, and some of those funds have flowed in the UK and Europe’s direction. We, ironically for some have become a safer haven than the largest economy in the world. So, gather ye rosebuds.
“Cash ISA allowance could be cut this month”
Our mantra has long been ’straightforward advice that you can understand’. That can mean trying to simplify the many complex products and options with which the world of finance tries to befuddle its target audience.
