June 2016

This month Taj talks about the upcoming referendum, the speculation and the effect of a leave vote. The lead up to the vote has created more uncertainty on the housing market. Once we know the outcome Taj will analyse the impact in more detail. 

Also Taj looks in to lending and a statement released by the Financial Conduct Authority on lenders ability to assess complex income. We are happy to confirm that there is a good appetite amongst banks to lend to contractors as long as they are presented correctly, showing that they are a good risk.

Transcript

Hello and welcome to my blog. So the main theme on everyone's lips this month is Brexit and the likely impact on the economy of a leave vote occurring.

There’s a lot of speculation and no one really knows the real impact but there is speculation around house prices and a potential dip of ten percent if we decide to leave Europe. There's also the likely impact on interest rates, people talking about potential increases in rates happening sooner than the next couple years which is where the predictions have largely been to date. The reality is we don't really know until the vote occurs but the lead up to the vote itself is causing more uncertainty then even an eventual exit from Europe.

The way lenders will react will largely be determined by the impact on the wider economy, so watch this space and I'll examine that in a bit more detail next month once we know the outcome. Just in terms of lending while we're on that subject, we have had some statements from the Financial Conduct Authority, the regulator of financial services in the UK, they have made comments around lenders inability to assess complex income. Now whilst this is a statement around general lending principles out there with the banks, we are quite happy to confirm that there is a good appetite with banks to lend to contractors as long as there is a sound case that we put forward around why contractors are a good risk.

So we will continue to work on behalf of contractors and make those arguments where we think we can add value but the FCA are obviously very concerned about the wider lending market and the lack of sophistication and assessing income something which we've been talking about since 2004.

So in terms of further developments from here we will look in a bit more detail at the impact of the

the vote in the referendum in a couple of weeks and the impact on lending and more availability for contractors. Thank you very much for watching and I'll speak to you next month.