Interest rates - maybe going down next month?

Well, the speculation is that we'll see a rate decrease in December (or maybe in January at the latest).

With the Pound so strong at the moment, the general consensus seems to be that rates can't stay at their present level, and they'll have to drop very very soon.

As a mortgage holder myself, I'm hoping for the decrease next month, but let's wait and see. I've learnt my lesson about counting chickens before they have hatched (and it only took me 30 years!).

Take care,

Tam

What are your savings worth, really?

The Motley Fool website has a great article about the real value of savings.

Click here to read the article.

In a nutshell, the article tells you what interest rate you need to receive on your savings after tax and inflation, in order for you to be making any money on your squirrelled-away dosh - or even to be holding steady.

We are used to thinking about savings in relation to interest rates, and even tax (sometimes), but inflation in not on the radar for many of us, despite the fact that many of us can remember exactly what 50p's pocket money used to be able to buy you.

The message is clear: Be careful where you put your savings.

If you are considering buying your first home, the likelihood is that you are (or have been) saving for a deposit. If so, well done you! Every little helps, and you are going to get yourself onto the property ladder quicker than many of your contemporaries.

Think about where you are putting your nest egg though - an ISA (which are tax free) is a great place if you haven't already used up your allowance. Don't just hoard it in your normal bank account.

If you are only just embarking on a savings programme, don't let this article put you off. You CAN beat inflation and the tax man. For a great guide to savings, go to www.moneysavingexpert.com.

Also, remember that savings and investments are not the same thing. If you have only savings, and no investments, compare the returns available from both, and think about putting your eggs in more than one basket.

As we always say, if you want a long term investment, property is a good place to look, and investing in your own home a great starting point.

Happy Saving!

Tam

Interest rates to hold for another month (at least)

Despite doing my best rate-cut dance every night for the past week, it has been anounced that The Bank of England will hold interest rates at 5.75% for another month.

Good news for Owners and Investors buying now, as it means rates arn't going up again just yet.

In fact, speculation is that the rate is likely to hold through December as well, which would make the earliest date for a possible cut to be in January.

Are the whispers right or wrong? Will we be going down again in January? Let me know.

Tam