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Fool Britannia

There’s a World Cup. England are in it and, those not of Celtic heritage, are getting in a tizzy of anticipation and excitement. As we all know, this leads to anti-climax and, what hyperbolically is called, ‘hurt’ after a “heroic” defeat.

Well, it might for those who actually really care about a bunch of overpaid sportsmen falling over for an hour and a half, but that’s just my personal opinion and I know that I’m in the minority.

So business will grind to a halt for 90 minutes at a time, pubs will fill, barbeques lit and roars of anguish and ecstasy will be heard across the realm. But what, really, does the World Cup have to do with financial services other than the industry world-wide pumping billions in sponsorship into the tournament?

Actually, there is some historical precedent that trading volumes plummet in stockmarkets in the countries where a home team is playing.

The Irish Times quotes a European Central Bank study (question: really? don’t they have higher priorities?) that the number of trades falls by an average 45 per cent when the national team is playing – think UK, Brazil, France, Germany and so on. Additionally, it dumps a further 5 per cent when someone scores a goal.

However, a rather witty connection has been made by an online mortgage broker called Trussle in which it compares mortgage affordability now with the last time England achieved footballing greatness 52 years ago.

In 1966 the average annual salary for a top-flight footballer was £2288, the average house price £2006 and the average annual UK salary was £798.

Today, the figures respectively, the firm says, are; £2.6m, £211,000 and £26,500.

The multiples are staggering. House prices now are 106 times higher than 1966 while the average UK salary has increased 33-fold while the average salary for a top-flight footballer is 1,136 times higher. It therefore follows that professional footballers don’t have much of a problem buying a house.We know, however, the rest of the country’s under 30-year-old, however, really do.

It’s all a bit absurd but really anything that highlights what the Family Building Society has recognised for years now, is without doubt a good thing. Our innovative Family Mortgage is specifically designed to make home ownership for first time buyers easier and less expensive than would otherwise be the case.

It offers three key ways (which can be used individually or combined) to allow the family to help out.  Firstly, a family member can place money in a security account. As well as paying interest, it counts towards the amount used for the security without actually having to ‘gift’ the money.

Secondly, the Family Mortgage allows a family member to offer some of their own property’s value as security for the new property.

And lastly, if family members are unsure of future commitments, our Offset Account allows the family members to use their savings to help reduce the amount of mortgage on which interest is charged.

Even better, any close relative can help out. Mum, Dad, grandparents, aunts, and uncles can all help to club together for the deposit.

If you can get them to play ball, that is.

By Steve McDowell 

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