Mortgage silver lining?

A Cornish firm of independent financial advisers is reporting an increase in mortgage business despite the uncertain economic times.

Truro and Wadebridge-based Worldwide Financial Planning has seen business for the current quarter – July, August and September – increase compared to last year’s equivalent figures.

Worldwide’s specialist mortgage adviser, Ronan Marrion, believes the boost is a result a variety of factors.

“We’ve seen a surge in the popularity of tracker mortgages over the last few months,” he said.

“People had tended to go for fixed mortgages or stayed on a standard variable rate over the last two years, but with the Bank of England base rate continuing to stay at an historic low, people are now prepared to take a calculated risk.

“On average tracker rates are 0.5%  lower than fixed rates, so the interest rate has to go up at least one percent for it to make a real difference.

“People now seem to be more savvy and happy to take a chance over the two-year period.”

The company says it has also seen an increase in buy-to-let mortgages, accounting for around 40% of Marrion’s workload.