For our first blog we wanted to put some perspective on the current financial situation in the UK. Standard & Poor have recently downgraded the UK economy as a whole, in response to the level of UK government debt surging towards 100% of GDP. This is unchartered territory and disconcerting.
Many figures are being touted but one that struck a resonance with us is that it is estimated that the level of UK government debt is so vast (in the £trillions), that it represents £150k for each UK household. This is not to dissimilar from having a second 100% mortgage on your home, courtesy of Messers Brown and Darling.
With banks still not lending to small businesses in the traditional sense, it seems the only access to finance, other than equity investment at present, is through secured borrowing and releasing the equity in the small business owner’s home. This is assuming there is any?
However, even considering the large shift of many home owners into negative equity we are happy to report that here on Merseyside, Mortgage Xperts have been able to help some local businesses access finance through our extensive broker network and in doing so, help small businesses where the banks are failing them.