As the UK’s second dip into recession in less than 5 years looks more and more inevitable we’ve put together a few tips to remind you that it’s not all doom and gloom and there is still money to be made whatever state the economy appears to be in.
Fix Your Mortgage
The Bank of England’s rock bottom interest rate has led to some great mortgage deals appearing on the market. The cheapest rate currently on offer comes from Norwich & Peterborough, who will lend at a rate of 3.99 per cent over 10 years to anyone who has 25 per cent deposit or equity in their property.
Deals such as this can provide excellent financial security for those with a mortgage, however, it’s important to be sure that you’ll want to stay put for the duration, as they are often accompanied by high exit penalties and even charges for early repayment.
Pick the Right Shares
A second recession isn’t bad news for everyone, potential investors should remember this and buy wisely, looking at how the country responds to the struggling economy and choosing businesses likely to weather the storm. In recent years, for example, smart investors have seen excellent returns putting money into take away franchises at a time when fewer people can afford to eat out, or in public transport when cars have become too expensive for many people to run.
Invest at the Right Time
Looking to make a profit once the recovery kicks in again? Well don’t wait around too long. Equity
markets tend to recovery whilst other areas are still falling back. By the time corporate profits and economic growth start to pick up all the real money will already have been made.
What to actually invest in is still anybody’s guess at this stage, diversification is advisable as issues and solutions arising from the Eurozone are highly unpredictable.
Get Euros While They’re Cheap
Currency markets have been all over the place recently, thanks to continuing turmoil arising from the Eurozone. Prepaid cards, onto which euros can be transferred, can be obtained from various companies.
Once money is put on the card it stays at the exchange rate on the day it was transferred, so those who are willing and able to give a bit of attention to the currency market could make significant savings.
Rent out Your Spare Room
The slow moving economy has left many people struggling to buy their own, which means that demand for rooms, as well as price, is high. The government’s rent a room scheme allows landlords to receive up £4250 in rent payments completely tax free.