Listen to Episode 479
In this week's episode, I discuss the latest developments in the mortgage market, explaining the rise in mortgage rates despite the recent cut to the Bank of England base rate. Next, with the price of gold reaching an all-time high, I discuss where the gold price might be heading in the future. Finally, Andy explains how listeners can sign up to receive a number of free products to help manage water usage and reduce their bills.
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Podcast summary
Mortgage rate analysis and predictions
Summary:
The mortgage market has seen some changes in recent weeks, with mortgage rates starting to rise again after previously falling due to a cut in the Bank of England base rate. This is due to a shift in market predictions for where the Bank of England base rate will end up in the longer term. The market now expects the base rate to be higher than previously thought, around 0.25%-0.50% higher over the next 5 years. This has led some lenders to pull or increase the rates on their best fixed-rate mortgage deals. However, the mortgage market is still mixed, with some lenders actually cutting rates, and the average 2-year and 5-year fixed rates still falling slightly overall since September. While some volatility remains, there are still good deals available, and it's important for borrowers to shop around and be decisive when remortgaging.
Where next for the price of gold
Summary:
The price of gold has recently hit another all-time high, reaching around $2,700 per ounce. This has led some people to wonder if now is a good time to invest in gold. I typically hold around 5% of my own portfolio in gold, as I find that holding more than 10% can make the portfolio more volatile. Looking at the long-term gold price chart, I identified a "cup and handle" pattern, which can be a bullish signal. Last year, my analysis suggested gold could potentially reach $2,500, which it has now exceeded. Gold is often seen as a haven asset and tends to perform well when the dollar is weak and interest rates are low and all of these factors have created a positive environment for gold recently.
Free water-saving products
Summary:
Andy revealed that his household's water bills have been increasing, so he started looking for ways to reduce water usage. Save Water Save Money is a website that allows you to enter your postcode to see if your water company offers free water-saving products. Andy ordered a variety of free products from his water company, Southeast Water including a free water-efficient showerhead, toilet cistern displacement bags, toilet leak detection strips and a kitchen tap flow regulator. Check to see if you qualify for free water-saving products to reduce your water usage and save money.
Episode quiz
Questions:
- By how much has the market's prediction for the long-term Bank of England base rate increased? (When compared to predictions in September 2024)
a) 0.10-0.25%
b) 0.25-0.50%
c) 0.50-0.75%
d) 0.75-1.00% - What market conditions usually result in gold doing well?
a) When interest rates are coming down
b) When the dollar is weak
c) Geopolitical uncertainty
d) All of the above - What percentage of gold would I typically hold in my portfolio?
a) 5%
b) 10%
c) 12.5%
d) 15% - What technical analysis pattern did I identify in my long-term gold price chart?
a) Head and shoulders
b) Double bottom
c) Cup and handle
d) Ascending triangle - How much money could Andy potentially save per year by using his leaky toilet strips?
a) Up to £100
b) Up to £125
c) Up to £150
d) Up to £175
Answers:
- b) 0.25-0.50%
- d) All of the above
- a) 5%
- c) Cup and handle
- d) £175
Resources
Links referred to in the podcast:
- To see the charts that I refer to in the podcast, watch the video on YouTube
- See if you qualify for free water-saving products
- MTTM Deals Page
- Sign up to the Money to the Masses Newsletter
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