Peter Kay says "Free money for home improvements!!"

Have you ever had a discusision that goes like this:

"It’s all very well suggesting home improvements, but where do you think we’re going to find the money for that?”

The good news is, though: in many cases, there’s free money available to do it, provided the improvements relate to energy saving.

If you want all the details from Peter Kay (yes, I'm not kidding, but its not the Peter you are thinking of!) follow this link: grants. http://ping.fm/zz4vw

Or contact me:

David Lossl The Really Useful Mortgage People Ltd T 0845 170 20 20 M 07855 799 807

email.
http://www.usefulmortgages.co.uk/
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Accounts letting you down on your mortgage application?

Most lenders take an AVERAGE of the last 3 years trading accounts to work out how much you can afford for a mortgage.

This may be good for businesses where the recession has made them take a financial hit, and historic figures are better than recent accounts.

There are many new businesses, however, where trading figures have been increasing year on year, but no matter how good the last trading figures are, the 2 previous years are dragging them down.

How about a lender that will still want 3 years figures, but will base affordability calculations on the most recent figures alone? This applies to purchases and remortgages. If that sounds good to you, give me a call for more details.

As with all remortgages and purchases any lending will be subject to affordability checks and valuation.

Your home is at risk if you don't keep up the payments of a mortgage or any other loan secured against it.

David Lossl The Really Useful Mortgage People Ltd
T 0845 170 20 20 M 07855 799 807

email. http://www.usefulmortgages.co.uk/
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New job and you can't get a mortgage?

Can't get a mortgage because you are on a probationary period in a new job?

Can't get a mortgage because the lender says you need to have 3 or 6 months in your new job?

One High Street Lender will offer mortgages to employed people from day 1, even if they are on probation.

As with all remortgages and purchases any lending will be subject to affordability checks and valuation.

Your home is at risk if you don't keep up the payments of a mortgage or any other loan secured against it.

For more info:-

David Lossl The Really Useful Mortgage People Ltd
T 0845 170 20 20 M 07855 799 807

email.
http://www.usefulmortgages.co.uk/
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Problems funding a 'tatty' BTL purchase?

Many people are buying BTL investment properties at the moment because there are some great bargains to be had.

People who purchase at Auction, or who pick up a bargain that needs a revamp often hit mortgaging problems. Most lenders only allow a mortgage on a 'habitable ' property, so if it needs a 3 month refurbishment programme, they won't lend.

How about a mortgage specifically designed for 'light refurbishment'? the lender will hold a £25,000 retention until the work is done, and the tenants are in.

This product is available up to 70%loan to value, and there is a modest £100 revaluation fee at the end of 3 months.

For more info do contact me.

David Lossl The Really Useful Mortgage People Ltd
T 0845 170 20 20 M 07855 799 807

email. http://www.usefulmortgages.co.uk/
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Only 5% deposit on purchases!!!

It is possible to purchase with only a 5% deposit!!

Although there are no lenders who offer 5% deposit mortgages on a standard purchase, one well known High Street lender offers a way round this:-

Step 1. BEFORE you move you need to remortgage your home with a standard mortgtage with a specific High Street lender. Up to 85% loan to value is available for this.

Step 2. You need to have this new mortgage in place for 1 month. The lender will then allow you to port the mortgage (take it to the new property)

Step 3. The lender allows a TOP UP to 95% on purchases. The top up will be at a higher pay rate than the ported product, but it is still a reasonable rate.

The 5% deposit is available on purchases up to £250,000. For purchases up to £500,000 a 10% deposit is required.

As with all remortgages and purchases any lending will be subject to affordability checks and valuation.

Your home is at risk if you don't keep up the payments of a mortgage or any other loan secured against it.

David Lossl The Really Useful Mortgage People Ltd
T 0845 170 20 20 M 07855 799 807

email.
http://www.usefulmortgages.co.uk/
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Cheap B and B mortgages.

Slash mortgage rates on Bed and Breakfast premises with up to 4 letting rooms.

High commercial rates on a small B&B enterprise? You can get a standard high street domestic mortgage for B&B premises, as long as there are no more than 4 letting rooms. Tracker rates from 3.08% (3.9%APR) £995 arrangement fee (can be added to loan). Free legals and free valuation. If you know of anyone running a B&B they may be grateful for this info so do pass it on!!
David Lossl The Really Useful Mortgage People Ltd
T 0845 170 20 20 M 07855 799 807
email.
http://www.usefulmortgages.co.uk/
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Tory planning proposals

The tories are considering changes to the legislation regarding 'garden developments'. Although the propose legislation would be primarily aimed at developers who want to cram in as many properties into former garden spaces, any changes in legislation could imact on private individuals who are considering garden developments.

Read read the full article

My view

If you are considering putting in a planning application for a property in a 'garden space', get the application in now, because things could get much more difficult or even impossible come the next election.

David Lossl The Really Useful Mortgage People Ltd

T 0845 170 20 20 M 07855 799 807 email.http://www.usefulmortgages.co.uk/

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Stamp duty warning

Up to April 2009 Stamp duty was levied when contracts were signed and not on completion of the property sale.

In the Summer of 2008 many purchasers started holding back on signing contracts as the government said that they were going to review stamp duty - which they did by temporarily raising the threshold from £125,000 to £175,000.

This temporary increase in threshold applies to to transactions made between 22 April 2009 and 31 December 2009 inclusive.

The rules have now changed so that the purchasers have to pay stamp duty on completion, instead of when contracts were signed.

What does this mean? Anyone who is arranging mortgages on new build properties thinking they are exempt from stamp duty because the 'deal is in progress' may have to pay stamp duty after all if the build does not complete until early 2010. The stamp duty threshold will have been reduced at this stage from its current level of £175,000 back to £125,000, and many of these buyers will fall into the trap of having to pay stamp duty when they thought they would be exempt.

For purchasers and first time buyers - you need to get your purchase completed in time to avoid the lowering of the stamp duty threshhold. Remember, stamp duty on a £150,000 property will then cost you an extra £1,500.

For further clarification please view BN45 Stamp Duty Land Tax

Give me a call - 0845 170 20 20. mob 07855 799 807 or email.
http://www.usefulmortgages.co.uk/

Going 'cheap' didn't pay.

When we moved into our current property 14 years ago I had a window and a triple patio door done by a local 'cheapie' company. It was a rush job. I wans't too pleased with the results, so when it came upgrading the rest of the house later that year- 4 more triple patio doors and 7 Windows - I went for a 'top of the range' national company. 14 years on the small 'cheapie' company has long since ceased trading and I've had to replace their patio door and bay window. The 'expensive' windows and doors are all absolutely fine, and have turned out to be cheaper in the long run - and apparantly are still under guarantee according their anual courtesy call!!

Everest are a National Company who produce very high quality products. They currently have an offer in the local press of a 30% discount, and a 35% online discount - but I can top this, because I have negotiated a 40% discount with Keith, a local representative. There is also a 10% cashback on offer.

If you want a no obligation quote on:
Doors
Conservatories
Kitchens
Solar Panels
Roofline
Flat Roofs
Garage Doors
Driveways / Patios
Security

Give me a call - 0845 170 20 20. mob 07855 799 807 or email.

http://www.usefulmortgages.co.uk/

5% off petrol and shopping in a load of stores!

I got fed up constantly changing my utilities to get the best deal. A friend recommended Utilities Warehouse - and I have been really pleased with the service and savings ever since. They also do a brilliant home shopping discount card - 5% off petrol and shopping in a load of stores including Sainsbury. What I really like is that I get a single monthly bill for ALL my utilities ... so much easier.

Check out their offers here

Give me a call - 0845 170 20 20. mob 07855 799 807 or email.

http://www.usefulmortgages.co.uk/

Royal Bank Of Scotland economic forecast

There is a chance that the UK economy will manage positive growth in Q3 for the first time since the start of 2008.

Full details: RBS interest and Exchange rate forecast

Give me a call - 0845 170 20 20. mob 07855 799 807 or email.
http://www.usefulmortgages.co.uk/

Free trip to Morocco to view investment properties.

Important note:

The costs of accommodation in Morocco and the flights from the UK to Morocco including ground transfers in Morocco for attendees are at the expense of Stately Investments.

Limited spaces available for 10th and 24th Novemeber 2009.

Stately Investments have recently secured a development in probably one of the most sought after areas of Morocco. The resort area known as Cabo Negro is near to Tetouan, and is only a short distance from the airport and high-speed ferry port of Tangier. Cabo Negro is on the northern Mediterranean coast of Morocco, and is the place where the Moroccan Royal Family spend their summer in the summer palace situated only a short distance from the resort.

The development is called Maha Beach and consists of a 230 key mixed use hotel and apartment development. The hotel has full spa and commercial units onsite.
There are 160 2 bedroom apartment suites and a 70 key hotel in the grounds of the development which is a fully gated secure complex located adjacent to the Royal Cabo Negro Golf Course, and just 400m from the beach.

The feedback on the Maha Beach project from the Hotel Operator specialists indicate a net return of 9% per annum on a wholly managed package. The unmanaged option returns are therefore higher.

The unique investment aspect of the Stately presentation is to provide property backed investment vehicles that provide substantial returns based on the Hotel & Leisure activity. Long term capital appreciation is an added bonus to the actual mechanism of the return on investment

The costs of accommodation in Morocco and the flights from the UK to Morocco including ground transfers in Morocco for attendees are at the expense of Stately Investments.

My Comment
I think a free trip to sunny Morocco seems like a good oppotunity at this time of year. There will be an informative sales presentation, but there will also be time out to explore and get a feel for the area. There are some really good foreign property deals to be had at the moment, and the credentials of Stately Invest are impeccable. If there are 2 or 3 clients who have an interest in property investment abroad, and who would like to come with me on a 'fact find', that would be great as we can then do a report back in the next newsletter.

Give me a call - 0845 170 20 20. mob 07855 799 807 or email.

http://www.usefulmortgages.co.uk/

Landlords -some brighter news

After months of weak demand, the market for buy-to-let investors is beginning to stabilise thanks to new tenants taking up the excess of privately rented properties.

Figures from the Association of Residential Letting Agents showed that one third of its members felt the supply and demand of such property was now in balance, up from 19 per cent last quarter.

When asked whether they were more residential properties on the market than there were tenants, fewer than half of the members said there were, down from 70 per cent three months ago.

The findings, released last week, also showed that the average void period of a rental home has dropped for the first time in more than a year, indicating that properties are being rented more quickly.

My Comment
A pick up in the market is just what landlords need to hear. Many of you will who are on trackers will be benfiting from lower mortgage rates, so the cash flow pressure should be off. If you are thinking about selling this coming Spring should provide a good opportunity as the selling market has seen a marked improvement recently.

Give me a call - 0845 170 20 20. mob 07855 799 807 or email.

http://www.usefulmortgages.co.uk/

FREE Money advice at work

Would you or your work colleagues benefit from some money advice and education at work? If your employeer has more than 25 employees print this off and take it in to the HR department.

Really Useful Money Advice

Independent money management services to your employees at no cost to your business.

We provide financial education and confidential advice to employees at the workplace.

Because we are FSA registered and independent we can provide information AND deliver solutions.

From the Institute Of Employment services, 2009:-

* Employees with better financial well-being were more likely to report improved productivity.
* Financial education programmes for staff should be more widespread and accessible.

Your business could benefit from:-
* Less financial stress related absence.
* Improved employee concentration
* Employees with a better appreciation of personal money management
* Employee recognition of an employer provided benefit

What do we offer?
Money management training based on the FSA ‘Money Made Clear’ website delivered by FSA authorised advisers.
Products sourced from the whole market for employees needing investments, savings, mortgages, pension planning, insurances and other financial planning services.

Why is this service free?
We get paid by service providers for any business transacted.
All you need to provide is some office space for confidential meetings, typically scheduled during a working day, on a monthly or bi-monthly programme of visits according to your workforce size.

For further information please call David, 0845 170 20 20, 07855 799 807

Really Useful Money Advice is a trading subsidiary of The Really Useful Mortgage People Ltd, Authorised and regulated by the Financial Services Authority (FSA), Reg No 438462.

The tracker rate which lets you escape.

There are many people who would like a tracker rate, but who feel the risk is just too great - people who would worry about the consequence if mortgage rates took an early and unexpected hike.

How about a tracker mortgage that has no penalty for switching to a fixed rate at any time, as long as you stay with the same lender?

These products have come and gone from various lenders over the year - and now a new one is on offer :-

A variable rate which is 2.58% above the Bank of England Base Rate (currently 0.50%), for 2 Years, to give a current rate payable of 3.08% (APR 4%), which will not go below a floor of 2.83%.

My Comment
This may soon disappear, just like previous offerings - but remember that you can reserve many products for up to 6 months in advance, so if your mortgage is due to expire in Aril 2010 you could reserve this one now!

Give me a call - 0845 170 20 20. mob 07855 799 807 or email.

http://www.usefulmortgages.co.uk/

Low interest rates - but for how long?

There has been a great deal of bouyant talk about interest staying low into 2014 or beyond, but here is a cautionary word from Nadeem Walayat from The Market Oracle :

"In my opinion It is not possible to accurately project UK interest rates beyond more than 12 months forward given the risks that the budget deficit of 15% of GDP and debt monetization pose to the currency and the wider uncertainty of global instability that could result in stagflation i.e. high inflation and low growth, therefore it is highly probable (90%) that the CEBR's interest rate forecast of UK interest rates remaining below 2% until 2014 will prove to be wrong ."

My comment.

It is clear from the mortgage interest rates being offered that lenders are comfortable about interest rate stability for at least the next 2 years with cheap 2 year fixed and tracker rates. 3, 4 and 5 year rates are much higher - which must reflect uncertainty about longer term financial stability.

I am finding that mortgages are getting a little easier to place, which is a reflection of improved cash liquidity among the lenders - a good signal that there the mortgage market should be ready to spring in the New Year (no pun intended!).

There is little doubt in my mind that 2010 will be a good time to buy and sell.

If you want to talk to me about property or investments in relation to long term planning do call email

Give me a call - 0845 170 20 20. mob 07855 799 807 or email.

http://www.usefulmortgages.co.uk/

Natiowide House Prices

House prices rose by 0.9% in September, the fifth consecutive monthly increase
High supply of rental property raises questions about durability of price recovery

Martin Gahbauer, Nationwide's Chief Economist, said:
"The recent upward momentum in house prices has continued into September, with the price of a typical house increasing by 0.9% on a seasonally adjusted basis. The 3 month on 3 month rate of change - generally a smoother indicator of the near term trend - rose from 3.3% in August to 3.8% in September, the highest level since August 2004. At £161,816, the average price of a typical UK property was essentially unchanged from a year earlier, representing the first time since March 2008 that the year-on-year rate of change has not been negative. Over the first nine months of 2009, the seasonally adjusted index of house prices has risen by 4.1%, though relative to the October 2007 peak it is still down by 13.5%."

My Comment:
There is likely to be a cooling off in property sales as we approach Christmas. But I am expecting another strong surge in April, the traditional time for house hunting. If you are thinking of selling, aim for a new year. Give the property a good sort out before marketing - and get rid of clutter. Remember 'curb appeal' is critical. Clean the front of the house, paint the front door, clean up the garden and hide the rubbish bins - and don't forget to call me to organise the new mortgage!

Give me a call - 0845 170 20 20. mob 07855 799 807 or email.

http://www.usefulmortgages.co.uk/

Offset mortgages

OffSet mortgages allow you to do several things:

1. Overpay into your Offset mortgage without penalty. Lump sums and regular monthly overpayments are fine.


2. If you find you are short of money you can take money back out of an Offset mortgage (as long as you have previously overpayed)


3. Have itemised ‘savings pots’ so that you can save for particular things and easily keep track of that saving, eg saving for a holiday a car or saving for a business VAT bill.


4. If you are a higher rate tax payer, and you put capital into your savings pots, you will not pay any tax on the interest that would have been due with a conventional savings or current account.


5. You may have unpredictable cash flow - if you are self-employed, receive occasional large bonuses or commission, or work on highly-paid short-term contracts, any large sums you receive can be put into your savings pot and will start working hard for you immediately, as your interest is calculated daily. This could also be the case with other sources of income such as rent


6. People often dislike consolidating loans and credit cards into their mortgage - they feel it will be sitting there for years However if you consolidate with an Offset mortgage, you can make overpayments every month to clear the additional borrowing as quickly as you want.
   
   Not all Offset mortgages have all these features, so you need to research any Offset mortgage carefully to make sure it meets your needs.
   
   There are some excellent Offset tracker rates from 2.97% (3.1% APR)

Want more info? 0845170 20 20 or 07855 799 807

Want a leaflet? Email with OFFSET in the subject box.

http://www.usefulmortgages.co.uk/

Financial education and financial surgeries

Employees who are worried about financial issues cost companies money.

There is a wealth of research that has shown this to be an indisputable fact. The costs arise because of absence, lateness, poor performance at work and the consequences of operating machinery while tired and distracted.

23% of companies nationally have begun to address the problem by providing financial education programmes for employees.

We combine a a financial education programme with financial surgeries for employees. The big advantage for the employer is there is no cost, either for the employer or the employees.

Why don't we charge?
In any company with 50+ employees there will be a number of individuals who will require financial products or services. When we transact financial business we receive procuration fees or commissions from providers. We don't therefore need to charge at the workplace.

What financial education do we provide?
We base any training on the Financial Services Authority website Money Made Clear.

What services do we provide?
Basically any service related to finance; from mortgages, insurances and wills through to pensions, investments and inheritance planning.

Independence
We are independent brokers, and we work with a team of other independent professionals who offer best advice because they use products from the whole market.

For a discussion about support for your employees call David Lossl:
0845 170 20 20 or 07855 799 807
or email.

Secured loans

Secured loans can be a cost effective way of replacing expensive credit card debt.

It is a top up mortgage – but instead of being with your mortgage lender, it is a loan provided by a company that specialises in ‘second mortgages’

I have a sourcing system that research the whole secured loan market to get you the best deal – and it only takes minutes.

I can advise you on the best course of action if you are considering a secured loan to clear your cards.

A secured loan can also be useful if you want to raise capital but have been turned down for a further advance by your bank or mortgage lender.

Your home is at risk if you do not keep up repayments on a mortgage or loan secured against your property.

To find out if a secured loan could benefit you, give me a call - 0845 170 20 20. mob 07855 799 807 or email.

http://www.usefulmortgages.co.uk/

High dermand for rental properties

New research suggests that the supply of buy-to-let deals on the mortgage market is not enough given the number of people currently searching for them.


Enquiries for buy-to-let mortgages have increased by 50 per cent since August 2008, but the mortgage choice offered to landlords has declined. Lenders have withdrawn 70 per cent of their products off the shelves in the same period.


The cuts in the Bank of England Base rate have also meant that mainstream mortgage interest has come down by an average of 1.95 per cent in the past 12 months, but buy-to-let rates have only seen a 1.13 per cent drop.


My View:
Buy to landlords are suffering from a lack of banking cash flow. There is barely enough liquidity in the mortgage markets to meet the demand for domestic mortgages, so BTL mortgages are being priced to keep demand low.

One solution for one property landlords is to tranfer all or part of their BTL mortgage to their main home. You will need to have enough equity in your home to cover this. It has saved a few of my clients a considerable amount of money.

Do contact me if you need to discuss any aspect of finance on your BTL

0845 170 20 20. mob 07855 799 807 or email.

http://www.usefulmortgages.co.uk/

ARE YOU GETTIING 20% ADDED TO YOUR SAVINGS?

If the answer is no, are you aware that the government will add 20% to any premiums that are made to a personal pension plan?

There are personal pension plans available to suit all individuals and they can be as straightforward or as advanced as required.

Anyone is entitled to have a personal pension plan, even if they are already a member of a company scheme or are a non-worker. Contributions can even be made for other family members, for example a grandparent could contribute for their grandchildren’s future.

As personal pensions are designed to provide individuals with a good quality standard of living once they retire, investments held within them cannot normally be accessed until the age of 55 at the earliest. However, there is a great deal of flexibility in how these benefits can be taken to suit all lifestyles.

Personal pensions can benefit people in a whole number of different ways. To find out how one could benefit you, give me a call 0845 170 20 20. mob 07855 799 807 or email. I will put you in touch with one of our partner advisers


http://www.usefulmortgages.co.uk/

Thaw out your frozen pension!!

How many companies have you worked for in your career?

How many separate pension schemes have you contributed to?

Are you being bombarded with paper work from previous providers or maybe you don’t even know who they are held with anymore.

Over the past few years, many once highly regarded pension providers have closed their doors to new policyholders or in the worst cases have collapsed, leaving the existing policy holders with the headaches of high charges, terrible administration and even worse investment performance.

The good news is that these pensions do not need to be dwindling away in the dark ages anymore. The market has evolved greatly in recent years, with several providers offering competitive charging structures, far superior investment ranges and 21st Century technology and administrative services. With all of these factors in mind, these new contracts are ideal for bringing all previous schemes under one roof.

To see whether you can bring your pensions back out of the cold, reduce the amount of unnecessary paperwork and unlock the full potential of your pension benefits, give me a call 0845 170 20 20. mob 07855 799 807 or email. I will put you in touch with one of our partner advisers

http://www.usefulmortgages.co.uk/

August house price rise

These figures are from Nationwide:

House prices rose by 1.6% in August
Year-on-year decline slows from -6.2% to -2.7%
Low interest rates helping to underpin prices for the moment

Commenting on the figures Martin Gahbauer, Nationwide's Chief Economist, said:
“The price of a typical house rose for the fourth consecutive month in August, increasing by 1.6% on a seasonally adjusted basis. The 3 month on 3 month rate of change - generally a smoother indicator of the near term trend - rose from 2.7% in July to 3.3% in August, the highest level since February 2007. At £160,224, the average price of a typical UK property is still slightly lower than 12 months ago. However, the annual rate of change rose further in August, from -6.2% to -2.7%. Over the first eight months of 2009, the seasonally adjusted index of house prices has risen by 3.2%, though relative to the October 2007 peak it is down by 14.4%."


My Comment:
Although house prices are on an upward move, lenders valuations are still very cautious. If you want a valuation report on your house using an online system similar to that used by many lenders, give me a call 0845 170 20 20. mob 07855 799 807 or email



http://www.usefulmortgages.co.uk/

The ABC of ISA's

ISA

What is an ISA?
An Individual Savings Account. This is a government initiative to encourage people to save for their future. The benefit offered from the government is that any proceeds or income generated from these schemes is virtually tax free. For most people, this is much more tax efficient than saving in a bank account. An ISA also offers a far greater range of investment types than a bank account which means that your money could work much harder for you.

What types of investment can be held in an ISA?
There are two types of ISA available.

Cash ISAs are only able to hold cash in the same way as a bank account. Although this pays an interest rate with no tax deducted, this rate is often dependent on the Bank of England Base Rate (Currently 0.5%p.a.) This is currently at it’s lowest rate ever.

Stocks and Shares ISAs are in fact able to invest in a wide range of investment types. These include property, shares, government backed securities and many other opportunities to suit all investors. These types of investments have the potential for greater returns than cash but could also carry an element of risk to initial capital.

How much can I invest into an ISA?
Due to the highly desirable tax efficiency of an ISA, the government has put an annual maximum limit on the amount any individual can invest.

Total Maximum £7,200
Maximum in Cash £3,600
Maximum in Stocks and Shares £7,200

From October 2009 These limits will be increasing for anyone age 55 or above to:

Total Maximum £10,200
Maximum in Cash £5,100
Maximum in Stocks and Shares £10,200

From April 2010 these limits will apply to all.

You can invest either with a lump sum or with regular monthly payments.

What can I do with my existing ISA’s?
If you have ISAs from previous tax years that aren’t doing as well as they should be, they can be moved without losing their tax efficient status. In addition, you will still be able to invest your current years allowance.

Want more information?

Call David on 0845 170 20 20, mob 07855 799 807 or email David and I put you in touch with a partner Financial Adviser

www.usefulmortgages.co.uk

Mortgage rates set to rise?

Not all lenders are cutting rates. Last month, the Woolwich – now part of Barclays – upped the cost of some of its home-loan deals by up to 0.3%, blaming the rising costs of funding.

Ray Boulger at mortgage broker John Charcol told The Sunday Times that fixed could fall as low as 3.5% from here - and sure enough a 2.99% rate is now on offer. Yet "sooner or later rates are simply going to have to rise, and rise sharply", he adds. "While convincing someone who's currently paying next to nothing to take a fixed-rate between 4% and 5% is as challenging as selling ice to Eskimos, in the long-term there's every possibility they'll be better off."

My view
I have advised many clients to reserve rates - which you can do with many lenders for up to 6 months in advance - its a case of hedging your bets because you can always pull out if the market looks like its going to carry on staying low.


Article source Money Week The full article


http://www.usefulmortgages.co.uk/

Barclays interest rate forecast

The key uncertainty ahead of this month’s Monetary Policy Committee meeting had been whether the bank would extend quantitative easing (QE) under its asset purchase programme (APP). The three month extension of the APP appears to have dampened any real prospects of a rise in bank rate during 2009, which may have been raised following last month’s decision to maintain the previous APP limit.


Barclays go on to forecast that the Bank of England base rate is likely to reach 1.75% by August next 2010


The full report


http://www.usefulmortgages.co.uk/

THE REMORTGAGE CONUNDRUM

There is a lot of confusion about the pay rates different lenders are charging. So what’s best – go for a fixed rate, a variable/tracker rate, or stick with what you’ve got?

Here are a few pointers that may help:

WILL THE BANK OF ENGLAND KEEP RATES AT 0.5%?

Got a crystal ball?!

Some commentators reckon that interest rates will creep up by 0.5% in the Spring of 2010. Others reckon that interest rates are unlikely to move until the end of 2010.

HOW MUCH MONEY DO THE LENDERS HAVE?

Lenders are rationing their money in different ways. Woolwich allocate a fixed lending sum every day, and when it’s gone that’s it for the day. Many lenders are reducing the Loan to Value they will consider. Lenders are looking much harder at affordability, lending into retirement, property values and a host of other criteria. As time goes on it is becoming harder to get a mortgage. Some of my clients who put off remortgaging a few month ago are now unable to get a new product.


REVERT RATES

When you come to the end of your current deal you will go on to a Revert Rate – the pay rate that your mortgage offer stated you will revert to.

Your Revert rate may be a tracker. Generally these are excellent value, tracking the Bank Of England base rate (0.5%) by a margin of say 2.5%. This means you might be paying as little as 3.0% if you don’t swap lenders or products

Many products have a Revert Rate that is a Standard Variable Rate (SVR). This is a rate set by each lender independently, and there is a great variation in SVR from lender to lender. Some SVR’s are as low as 2.5%, some are over 5%. To stay on the SVR or swap to a new product will therefore need careful consideration.

FIXED RATES

It’s a good idea to go for a fixed rate if:
1. You have limited income, and you can’t afford to take the risk of a interest rate rise.
2. you have a family –or are about to start one, and you would rather pay a bit more each month now to be certain that there will be no bad financial surprises in the future.
3. You are the sort of person who hates taking risks – especially when it relates to your home and mortgage.
4. You think interest are unlikely to stay this low for much longer

A recent product search listed 539 fixed rate products for a client. The pay rates ranged from 3.98% to 10.15%, and the arrangement fees ranged from £0 to over £2,500.

The cheapest fixed rates are for 2 years. 3, 4 and 5 year rates generally get more expensive. The reason is that the lenders think rates will be reasonably stable for the next 2 years, but the financial future gets much more uncertain. They don’t want to take risks by offering a cheap 5 year fixed rate and then find they lose out if interest rates rise.

TRACKER RATES

Tracker rates shadow the Bank Of England base rate (BBR) by a set margin.

2 year ago I was writing mortgages that tracked the BBR by less than 0.5% now trackers have a margin of 2.49% to 3.99%. The pay rates will therefore range from 2.99% to 4.49%. This sounds good, but you need to think of what happens if the BBR goes up again. It dropped by 1.5% in one month last year, If it rose by the same amount you would suddenly find your 2.99% mortgage was costing you 4.49% . If you are comfortable with this risk, and your crystal ball sees a few more years of a very low BBR, a tracker will be the right product for you.

RESERVING RATES

With many lenders you can reserve products up to 6 months in advance. You are at liberty to cancel at any time, although some lenders may charge a cancellation fee.

EASY ISN’T IT?

I hope this information helps – but if you have any questions or would like a professional analysis of your needs just call 0845 170 20 20 mob 07855 799 807 or email

Twitter Tips

I have started to use Twitter, and found the following info a really useful guide to Do's and Dont's

http://www.ecademy.com/node.php?id=131854

Halifax and Bank Of Scotland Remortgages

Got a Halifax or Bank of Scotland mortgage?

Halifax and Bank of Scotland have some excellent remortgage offers for their existing clients. Most of their deals are cheaper than their current standard variable rate (SVR) –so its probably cheaper to change to a new product rather than stay on their SVR .

Some advantages of staying with Halifax/B.O.S :
· No further income checks.
· No revaluation of your property.
· New mortgage products can be reserved up to 3 months in advance.
(Additional borrowing will need full income and valuation checks).

In many cases staying with Halifax or BOS is the best option, but:
· I will always check the whole market to ensure best value.
· I will always deliver a ‘whole of market’ report so that you can see what other lenders are offering.

(Lenders criteria can be changed at any time without notice)

Useful links House prices
Key Facts about our service

The Key Facts about our service

The Financial Services Authority (FSA) is the independent watchdog that regulates financial services. It requires us to give you this information. Use this information to help you decide if our services are right for you.

Whose Mortgages do we offer?
We offer Mortgages from whole market.

Which Services will we provide you with?
We will advise and make a recommendation for you after we have assessed your needs

What you will have to pay us for these services?
Our fees reflect the amount of work required on different mortgages. Remortgages, purchases and Buy To Lets, £295. First Time Buyers, £150. Right To Buy and Shared Ownership, £500. Adverse cases, £650. These fees are payable on completion. Existing Clients have a discount of £100. We will tell you how we get paid, and the amount, before we carry out any business for you.

Who Regulates Us?
The Really Useful Mortgage People Ltd, Silver Birches, Greyfield Road, High Littleton, Bristol. BS39 6YF is authorised and regulated by the Financial Services Authority. Our FSA number is 438 462
Our Permitted business is arranging and advising on regulated mortgages contracts and general insurances You can check this on the FSA Register by visiting the FSA website www.fsa.gov.uk/register/ or by contacting the FSA on 0845 606 1234

What to do if you have a complaint
If you wish to register a complaint, please contact us....
Write to: The Really Useful Mortgage People Ltd Silver Birches, Greyfield Road, High Littleton,Bristol. BS39 6YF.
Telephone 0845 170 20 20

Are we covered by the Financial Services Compensation Scheme (FSCS)?
We are covered by the FSCS. You may be entitled to compensation from the scheme if we cannot meet our obligations. This depends on the type of business and the circumstances of the claim Mortgage advising and arranging is covered for 100% of the first ₤ 30.000 and 90% of the next ₤ 20.000 so the maximum compensation is ₤ 48.000.Further information about compensation scheme arrangement is available from the FSCS

The Really Useful Mortgage People Ltd Authorised and regulated by the Financial Services Authority Reg No 438462
Your home is at risk if you don't keep up the payments of a mortgage or any other loan secured against it.

Getting Benefits

Not everyone is claiming all the benefits they are entitled to. Working tax credits, child tax credits, pension credits, housing benfits - these are some of the key benefits you may be able to claim.

Our view - If you would like an assessment of what benefits you may be able to claim, we can help you out. With access to online calculators, we can give you an indication of any benefits you may be entitled to. We offer this as a free service to our clients.

email or call 0845 170 20 20

BTL landlords hit

BBC research suggests that Buy-to-let landlords are being repossessed three times faster than other homeowners.

Landlords are finding more tenants are falling behind with rents.

Our view – seek assistance as soon as cash flow becomes an issue. Consider taking out insurance to guarantee rent.

House prices rise in May

The Halifax have reported that in May house prices rose by 2.6% . They also say that overall activity in the market remains low in the market.

Our view – First time buyers are in a good position to get a bargain.
People who need to sell may find that there are keen buyers, but they will be looking for a good deal.

Is Payment Protection Insurance costing you £££££’s?

Credit cards and loans are often sold with Payment Protection Insurance (PPI).
PPI is usually very expensive
Many clients don’t realise they have been sold PPI with their loan.
We can check out your credit cards and loans for PPI and advise about suitability.

The Facts

CREDIT CARDS
“I didn’t know I was paying PPI”
Is there a PPI payment added to your card every month? Check your statement. PPI is one of the most expensive forms of insurance.

“I thought PPI was compulsory”
It’s a good idea to insure you risks, but credit card PPI is incredibly expensive. It is often sold without a full explanation. Clients have told me they thought they wouldn’t get a Credit Card unless they took out PPI. This is not true.

“I’m self-employed and was sold PPI”
In most cases, PPI is unlikely to pay out if you are self employed. You may be entitled to a refund.

Credit card concerns email or phone 0845 170 20 20

LOANS
“ I didn’t want PPI!”
One of my clients had 2 bank loans. He didn’t know he was paying PPI. I helped him get a rebate of nearly £3,000. He was convinced he had declined PPI in the first place!

“why was £2,000 added to my loan?”
A client recently asked me this. Lenders can add up all the PPI premiums you will pay over the term of A loan. They can add it as one lump sum to the loan. This means they get ALL the money in advance. Because its added to the loan you pay interest as well!! Its called Bulk Premium Payments, and its very expensive.

Loan concerns email or phone 0845 170 20 20

40% less on insurances?

Most people don’t review their insurances.

Many people are paying up to 40% too much.

We can get you a free check and possibly save you ££'s!

The Facts
££'s saved on Buildings and contents
Insurers may give 40% off in year 1, the cost then goes up.

££'s saved on Life Insurance
People are living longer so premiums have come down.

££'s saved for Ex Smokers
Given up smoking in the last year? You may get cheaper insurance.

Free savings on insurance check. or call 0845 170 20 20

Financial stress and employment

Could financial solutions for employees improve your Company bottom line?

Research on financial stress among employees has reported that money worries are causing 1 in 5 to lose sleep, and suggests that absence, loss of productivity, poor performance and safety concerns are all possible results.

We can provide financial surgeries for employees in the workplace to provide information, education and financial solutions. These surgeries are free and are recommended by the Institute of Employment Services in their recent report.

The Really Useful Mortgage People Ltd are authorised and regulated by the Financial Services Authority. We are licensed by the Office of Fair Trading to carry out debt adjustment and counselling.

To discuss our programme, please call David 0845 170 20 20 Or email david@usefulmortgages.co.uk

More…
The Institute of Employment Services (IES) have found huge levels of financial stress reported by employees, They reported…
At least a quarter of employees are worried about debt, with one in five reporting they are being kept awake at night by financial worries and over ten per cent saying their health was suffering as a result.

In Autralia they are taking financial stress seriously. People experiencing financial stress will receive free information through the Australian Government’s Coping with Financial Stress seminars held throughout June 2009. The Government has provided $60,000 to run 20 two-hour seminars focusing on informing people under financial stress about their options and rights, as well as providing information on finding financial help. There is nothing like this in the UK.
Employees don’t just need some financial adviser to come in and tell them what the best mortgage is, or where to invest their £100 a month savings plan. People need to have a source of comprehensive financial information backed up by access to expert resources and where necessary, useful financial education and debt counseling.

IES report author, Annette Cox, commented…
Employees who report better financial well-being are more likely to report increased productivity. Now more than ever, people are going to need help and support to better manage their finances.

Really Useful info for the 4000,000 smokers who have quit in the last 2 years.

The smoking ban in public places was introduced about 2 years ago, and since then, about 400,000 smokers have quit.

Many ex smokers have life or health insurance products. As a smoker their monthly premium will have been increased by as much as 50%.

Most insurers will remove the additional smoker’s premium, or drastically reduce it, if someone has managed to kick the habit for a year.

If you have quit smoking for a year, let us check out your costs on life and medical insurance – we may be able to save you money.


For some Really Useful help:
Telephone 07855 799 807
Or email david@usefulmortgages.co.uk

http://www.usefulmortgages.co.uk/

5 Really Useful ways of raising money now

Lots of people have been asking me about raising money – and there are 5 key ways:

1. Unsecured loans
For smaller loans, up to £25,000, an unsecured loan may be the best route. The problem for some people is that many of the unsecured loan companies will only lend over a short period, usually 7 to10 years. This means the monthly repayments can be quite high. Rates are generally about 8%, and you can easily go online to check out companies like Alliance & Leicester, or Tesco Loans. If you are refused lending, we may still be able to get an unsecured loan for you using a specialist lender. The rates they charge will depend very much on your credit score and your level of income.

2. Mortgage – further advance.
Many people may be able to get a further advance on their mortgage. The disadvantage of this is that you are increasing the amount borrowed against your home, and this could put your home at more risk. The advantage is that the interest rate is usually very low, and you can select the number of years over which you pay off the loan. We will carry out a financial risk analysis for you, and present you with a report and fill out all the forms for an application.

3. Remortgage
Sometimes it makes more sense to release money by doing a full remortgage with a new lender. You may have no penalties if you leave your current lender, or the rate offered by a different lender may cheaper than your current product. We can sit down with you and work out the cost benefits of the different options.

4. Secured loan or second charge
This is a mortgage on your property, but through a different lender to your main mortgage. Secured loans are usually more expensive than a main mortgage but they are often cheaper than unsecured loans. It is important to fully discuss the implications of a secured loan – we can do this for you, and give you a financial risk analysis report before you make any commitment.

5. Bridging finance.
In certain circumstances you may want a loan for a short period of time,say 6 months. You want to pay the costs when the loan completes rather than month by month as with most loans.Perhaps you need to finish a renovation before selling a property, or you want to purchase a Buy To Let at auction. The auction house will want prompt payment but the mortgage lender can easily take 3 months to release mortgage funds. Bridging finance can release cash in days, however it is expensive, and must be taken with a great degree of caution. We can provide all the advice and information you need to make sure you reach an informed decision.

For some Really Useful help:
Telephone 07855 799 807
Or email david@usefulmortgages.co.uk
http://www.usefulmortgages.co.uk/

Really Useful help for 1st time buyers

Lots of first time buyers are taking advantage of low property prices and low interest rates to get onto the property ladder. Here are just a few facts that may help:

10% deposit mortgages are here again.

£250 cash back towards solicitors’ costs - an offer from some lenders.

No arrangement fee - typically saving £995. Some lenders have waived their arrangement fee for first time buyers, .

Parental income - Some lenders allow a family members income (usually the parents) to be included.

703 products available for 1st time buyer on 05/07/2009. We can help you choose a product that meets your budget and your needs.

Quick tip 1 - When going round a property you like NEVER SHOW ENTHUSIASM, it makes it harder to put in an offer.

Quick tip 2 - You are more likely to get an offer accepted if you have a lenders letter showing that they agree in principle to the lending. We can sort this out for you at no cost.

Quick tip 3 - Most first time buyers are worried about budgeting. We can work this out for you, and present a financial risk analysis report so that you are clear about any financial risks you are taking.

Free booklet for first time buyers. Just email or call.

For some Really Useful help:
Telephone 07855 799 807
Or email david@usefulmortgages.co.uk
http://www.usefulmortgages.co.uk/

Would it be Really Useful to clear your credit card?

Before April 2007, many credit card companies issused agreements that have now found to be uninforceable . For example some didn't give an APR, while others didn't give an example on the cost of paying back the loan. These things are a legal requirement. If they are missing, the contract may be legally unenforceable.

Most people have lost their agreements, so we take your credit card details and pass them on to our solicitors. The solicitors request a copy of the agreement from the lender so that the details can be checked.

If the credit card agreement is flawed the solicitors will take it to court.

Credit card claims of £5,000 or under are dealt with by the small claims court. Over £5,000 they are taken to a higher court.

What are the costs?
The administration costs are £85 per card. If people have several cards, they tend to get 1 card processed each month or 2. (Some companies are charging as much as £495 for this service)

Are there any solicitors costs?
‘No win no fee’- The solicitor makes no charge if the case is not won.
In a small claims court, solicitors cost are not usually awarded, and the solicitor will charge 25% of the balance cleared.
For amounts over £5,000, the case is heard in a higher court. Here costs are usually awarded, usually sufficient to cover the solicitors’ fee.

How long will the process take?
The courts are dealing with so many cases at the moment, that a reasonable estimate from claim to settlement is 2 years. We are hoping that this will speed up.

Will it affect your credit rating?
No – as long as you keep up payments until the card is declared unenforcable by a court. You certainly won’t be offered another credit card from the same company, but there will be no effect on your credit score.

For some Really Useful help:
Telephone 07855 799 807
Or email david@usefulmortgages.co.uk
http://www.usefulmortgages.co.uk/