Rat and Mouse
Tue
23
Aug
News for London homeowners... Olympics bad, endowment mortgages good

That's right. And coffee's good for the stomach. Eggs are good for the heart. Excessive masturbation doesn't give you RSI if you invest in a Carpal Mate. The Olympics are the subject of a press release, today, by the Conservative Party. Apparently, anything we hope to make from an increase in house prices, we're going to have to spend in a huge and permanent hike in the council tax. More, here. Meanwhile, over at Reuters, we're told not to get too down on our endowment mortgages. According to a leading financial advisor, the poor communication that characterised the selling of endowments in the first place has merely carried on over into the distribution of "traffic light" warning letters, with different projections being made based on entirely different values:

Lakey [the IFA] maintains that the FSA's consumer website gives advice to consumers based on a false premise. It explains that falling projection rates are because funds are invested mainly in shares.

He goes on to point out, "the 2005 endowment update showed average equity content in with profits life funds at 41% and some funds held no equities at all". The message appears to be... don't be panicked into drastic action without having your own policy examined first. More, here.


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