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/