If you’re considering buying or selling your home in 2021, here are a few things to consider.

Expect delays
According to Rightmove, there are currently 613,000 properties trying to reach completion. Their latest data revealed that it’s taking 126 days from the time an offer is accepted until legal completion – just over four months to complete the selling process. If you are buying or selling your home this year, be aware that you may experience delays. 

While it may take a while, the process will depend on a few things. For example, if you’re a cash buyer you may be able to move more quickly, however, if you are in a chain, the local searches may take longer than usual.

Stamp Duty Savings
Rightmove estimates that around a million sales currently going through, will miss out on the stamp duty savings. If you are in the process of selling your home and feel you or your buyer may be purchasing a property in the hope to save on stamp duty, speak to your estate agent as soon as possible and seek advice – you may be able to avoid the purchase falling through by renegotiating the price. 

The temporary stamp duty holiday that started on 8th July 2020 is due to end on 31st March 2021. With this in mind, Rightmove recommend that you should not factor in stamp duty savings from the temporary holiday – this will be more beneficial to first-time buyers who are buying a property for no more than £300,000.

The Current Market
Buyer activity has increased since the first lockdown back in 2020, many have reconsidered their housing priorities as the market has remained open during the current lockdown. Rightmove believes there are signs we are surpassing 2020’s new year surge activity.

Research from the online property portal reveals that the number of prospective buyers contacting agents between 2nd and 12th January 2021 was up by 12% and sales agreed numbers were up by 9% on the comparable period last year.

Visits to the Rightmove website have also continued to increase since the start of January and are up by 33% from the same period in 2020.

Resident property data expert, Tim Bannister, explained that the housing market is experiencing a processing logjam, with some homemovers likely to miss out on their stamp duty savings.

He said, “As we enter the new year and a new lockdown, the housing market remains open but is focused on the imminent end of the stamp duty holiday and on the challenges of the pandemic.”
Matthew Smith, Sales and Lettings Director at Thornley Groves in Manchester, said, “Many people have outgrown their homes and, with more people now working from home and undertaking home schooling, it has really focused their attention on getting their properties ready to sell.”

If you are considering buying or selling your home or you are close to remortgaging your home, get in touch with us and we can discuss your options. 

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Further to the Prime minister’s announcement of a national lockdown in England, you may be wondering if You can still move. People are still able to move home. However, those outside of the household or support bubble should not help with moving to a new house unless absolutely necessary. Estate and letting agents and removal firms can continue to work. Those who are looking to move can go to property viewings. You can still move, but it is important that the national guidance on moving home safely, which includes advice on social distancing, letting fresh air in and wearing a face covering are followed. Further information on the national lockdown can be found here. Nicola Sturgeon also announced a lockdown in Scotland. Advice from https://www.gov.scot/publications/coronavirus-covid-19-stay-at-home-guidance/ states that people are able to leave their home for activities in connection with moving home (including viewing a property), or for activities in connection with the maintenance, purchase, sale, letting, or rental of residential property that the person owns or is otherwise responsible for. For home insurance click here

In the current pandemic, children and their families may well have  questions in the lead up to the festive period, such as ‘Will COVID prevent Santa bringing presents?’

Eight year old Monti from Cockermouth, Cumbria, has written to Boris Johnson asking whether Santa will be able to proceed with the usual present deliveries this year.

A post on Facebook from the Prime Minister revealed an addressed letter from Monti that read ‘I was wondering if you and the government had thought about Santa coming this Christmas. If we leave hand sanitiser by the cookies can he come? Or will he wash his hands?  I understand you are very busy but can you and the scientists please talk about this.’

Thanks to Monti, the Government has provided the much needed clarification we have been looking for.

The response received from Mr Johnson was as follows:

‘Many thanks for your letter which raises the very important question of whether Father Christmas will be able to deliver presents this year in spite of Coronavirus.

I know millions of other children are asking the same thing. Just to make sure, I have put in a call to the North Pole and I can tell you Father Christmas is ready and raring to go, as are Rudolph and all of the other reindeer.

The Chief Medical Officer has asked me to tell you that, provided Father Christmas behaves in his usual responsible way and works quickly and safely, there is no risk to your health or his.

Leaving hand sanitiser by the cookies is an excellent idea to help prevent the spread of the virus – and using it yourself, and washing your hands regularly, is exactly the kind of thing that will get you and your friends on the nice list.

Will COVID prevent Santa bringing presents.

Thank you again for your letter, and have a very Merry Christmas.’

Monti’s Mum, Abby, said “we just needed some reassurance that Father Christmas was going to still be able to deliver all of his presents across the world. Monti was really excited, not just with the letter from the Prime Minister, but with reassurance from Santa that he is going to be able to deliver on Christmas Eve, we’re just very excited now.”

Similar political responses have been seen elsewhere. In October, Nicola Sturgeon made a promise to Scottish children that Santa would still deliver their Christmas presents. She said, “Santa will not be prevented from delivering your presents on Christmas Eve, Santa is a key worker and he has got lots of magic powers that make him safe to do that”. 

Sturgeon added “If he is having to do Grotto appearances by Zoom, that is to keep you safe, it is not because he is at any risk. Santa will be delivering presents across the world as normal.” 

Irish Foreign Affairs Minister, Simon Coveney, confirms that Santa has been cleared to enter Irish airspace, after being given essential worker status. Addressing the Dail parliament, Mr Coveney shared the news that Santa has confirmed his intention to fly to Ireland on 24th December.

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Government introduces the Green Homes Grant to make homes across England more energy efficient

A new Green Homes Grant Government scheme enables homeowners in England to get vouchers worth up to £5000 to make their home more energy efficient.

From the 30th September this year if you are a homeowner or landlord you can apply for a Green Homes Grant voucher towards the cost of making your home more energy efficient. 

These improvements could include installing low-carbon heating to lower the amount of carbon dioxide your home produces, insulating your home to reduce your energy usage or replacing single glazing windows with double glazing.

If you are to apply for a Green Homes Grant you must redeem the voucher and ensure that all improvements are completed by 31st March 2021.

The Green Homes Grant vouchers will cover two-thirds of the eligible improvements up to a maximum government contribution of £5,000.  

If you, or someone in your household receive certain benefits, you may be able to get a voucher worth 100% of the cost of the improvements, up to a maximum value of £10,000.

However, landlords are not eligible for the low income scheme.

The voucher covers the costs of the labour, materials and VAT but the work cannot be completed by yourself, a member of your household or your immediate family. 

If this is something you are interested in, you need to make sure you leave enough time to get a quote, apply to the scheme and get the work completed. 

Martin Lewis explains more about the scheme in this video: https://www.youtube.com/watch?v=lpqRQF0NmrY&feature=emb_title

The Chancellor Rishi Sunak first announced this grant in July with the hope it would upgrade the energy efficiency of homes, support low-carbon heating technology and help reduce the number of people who are unable to heat their homes. 

The government has set aside £2 billion for the Green Homes Grant and hopes it will help pay for improvements in over 600,000 homes across England. 

There are several benefits to making green improvements to your home such as insulation and low-carbon heating systems can help cut energy bills which could save some families up to £600 a year. 

For more information go to Brighton Mortgage Broker – The Finance House

To find out what home improvements are best for your home visit https://www.simpleenergyadvice.org.uk/energy-efficiency/home-improvements

To check if you are eligible for a Green Homes Grant visit the government website: https://www.gov.uk/check-eligible-green-homes-grant

Boris Johnson promises Generation Buy scheme with low deposit mortgages

Millions of people hoping to get onto the housing ladder in the UK may be buying a house quicker than they expect as the Prime Minister announces a brand new scheme. 

Boris Johnson wants to turn ‘Generation Rent’ into ‘Generation Buy’ as he promises to boost the availability of ‘long term’ mortgages for borrowers with a five percent deposit.

This comes after the Prime Minister gave a speech to the virtual Conservative Party stating that around two million people who could afford repayments cannot currently get home loans. 

He said: “We need now to take forward one of the key proposals of our manifesto of 2019: giving young, first time buyers the chance to take out a long term, fixed rate mortgage of up to 95 per cent of the value of the home – vastly reducing the size of the deposit. 

“We believe that this policy could create two million more owner-occupiers – the biggest expansion of home ownership since the 1980s with the Generation Buy scheme.

“We will help turn generation rent into generation buy.”

At the moment there are no further details on how this scheme will work or when it is to be launched, however, experts have said the plan may cost tens of billions of pounds.

Mr Johnson also said that the party needed to ‘fix our broken housing market’ to help young people back onto the property ladder.

Those who want to borrow with only a five percent deposit have been able to do so in recent years. However, since the pandemic, lenders have pulled out of these deals. 

For borrowers who have a 10 percent deposit, there are few lenders and funds are limited.

This means that currently first time buyers are struggling to buy a house without putting down at least a 15 percent deposit. 

First time buyers have also had the hurdle of rising house prices in recent years with prices rising dramatically recently because of pent up demand and the stamp duty holiday.

The criteria of the affordability tests that current borrowers have to go through could potentially be relaxed under the Prime Ministers new plan, however no final plans have been confirmed. 
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Mortgage holidays ends soon and according to the Office for National Statistics (ONS), 11% of the British workforce is currently on partial or full furlough across all sectors.

After Mortgage holidays, a new Job Support Scheme will be available for those who have been furloughed.  As of the 1st November, the scheme will be in place for six months and employers in the UK will be required to decide what happens to their furloughed staff. 

While the government has announced further support after furlough, mortgage holidays will end as of 31st October. Many who have been on furlough, or had a mortgage payment holiday, may see a significant decrease in their income for a further six months – this will become challenging for those needing to keep up with mortgage payments and household bills.

What do you need to do when your mortgage holiday ends?

Unless you have been in touch with your lender, you will be expected to pay your usual monthly payment as of November. It’s vital you get in touch with your mortgage provider as soon as possible to discuss how you will make up the shortfall in the future.

When taking a mortgage payment holiday, you may have already discussed your plans with your advisor, however, if you haven’t, it is recommended you do so as soon as possible to find out your options.

If you can now afford to re-start your mortgage payments, you should do this as soon as you possibly can.

What if you can’t afford to repay your mortgage?

If you have lost your job or been given reduced hours that will interfere with repaying your mortgage, you must provide evidence to your lender.

In the current climate, most lenders are quite understanding and will offer support through this difficult time, this is why it’s important to discuss your situation with them. 

Your mortgage provider will be able to provide you with various options such as; spreading your deferred payments over the outstanding term of your mortgage, increasing the length of your mortgage term or making interest or capital only payments. Lenders may also offer to extend your payment holiday by a further three months. 

Already in arrears?

It might seem daunting to discuss these situations with your lender, but it’s really important to do so. If you have already missed payments and are not able to come to an agreement with your lender, you should consider getting debt advice as soon as possible, particularly if you have other debts as well.

Need further advice?

If you need any further advice regarding your mortgage holiday ending, get in touch with us by either using the form below or click on the banner above to get our contact details. 
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The regulator looks to help customers save money with Home Insurance Changes.

Some customers are paying more for their home or motor insurance when they renew, compared to if they were a new customer.

The Financial Conduct Authority (FCA) has announced a proposal to make it fairer for loyal customers. The consultation, which has been launched this week, marks a significant intervention by the regulator to make Home insurance changes. 

The proposal suggests that if a customer bought the policy by telephone several years ago, they would pay the same premium as a customer purchasing the same product by phone today. 

Insurers have been known to use complex and opaque pricing practices that allow them to raise prices for policyholders who renew with them year on year. While some people shop around for a deal, many are being penalised for being loyal.

The FCA has found that up to 6 million policyholders could be disadvantaged by the current situation and identified £1.2 billion of savings if they were to switch. 

The proposal also considers other measures to boost competition further and deliver fair value to all insurance customers, including:

• Product governance rules requiring firms to consider how they offer fair value to all insurance customers over the longer term.
• Requirements on firms to report certain data sets to the FCA so that it can check the rules are being followed.
• Making it simpler to stop automatic renewal across all general insurance products.

The consultation should be concluded by 25 January 2021, which will then be followed by a policy statement and new rules next year. 

There are plenty of solutions to help customers understand what cover they have in place, and its price, irrespective of how long they have held the policy.

Should you need to check that a home insurance premium is competitively priced for the type and of course contents of your home, you can always talk to us.

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What is Gazumping. What does it really mean and how can you avoid it?

After months of property searching and finding the perfect home, getting an offer accepted can be just the start.

While the excitement of having your offer accepted may get you carried away with interior design ideas, decorating plans and preparation for the big move, unless you’ve got the keys in your hand there is something to bear in mind.

Gazumping

What is Gazumping?

This is when another seller comes along and places a higher offer than yours, even when yours has been accepted. Unfortunately, in England and Wales, there’s no law against a seller accepting an offer from someone else even after they’ve accepted yours.

Whether it’s on the day you’ve had the offer accepted or later on in the buying process, gazumping can happen at any point until contracts have been exchanged.

How do you minimise the risk of being gazumped?

Being gazumped isn’t fun for anyone but to help avoid another seller topping your offer, here are a few things you can do.

Make your offer conditional on the property being taken off the market. This will minimise the danger of being gazumped and while the request may not be accepted, it will demonstrate how serious you are and also give you a warning that the sellers may continue to hold out for a higher price giving you time to withdraw and look elsewhere.

Finalise Fast – Sellers will want the property sale to go through quickly. The sooner your mortgage approval is complete and the surveys are done etc, the sooner the contracts will be exchanged.

Be Prepared – It’s ideal to have your ‘Mortgage in Principle’ ready and conveyancers arranged before putting in your offer. If you have a current property to sell, make sure it’s on the market and preferably only make an offer once you’ve accepted an offer on your current property. 

Show Enthusiasm – If the seller knows how keen you are to get the sale pushed through; it might sway them away from other offers. They will want the process to be completed soon. The estate agent is usually the one representing the seller, but once an offer has been accepted, make sure the sellers know that you’re excited about buying their home and that you mean business.

Already Been Gazumped?

Of course, you will be very frustrated but now is the time to try new tactics.

First things first, don’t get carried away. It’s important to know where you stand financially, otherwise this could affect you later down the line. Work out the maximum price that you can afford and stick to it. Remember, if you come up with a higher counteroffer, there’s still a chance that you could be outbid again. You’ll need to draw a line somewhere.

Highlight the advantages of dealing with you. Are you a first time buyer? No chain? This will mean that the purchase could go through faster and also make your offer more attractive to the sellers. You might also be flexible with dates and able to accommodate a schedule that works better for the seller.

If you or someone you know is looking for advice on their first/next mortgage – get in touch, we’d love to hear from you! https://thefinancehouse.co.uk/mortgages-independent-free-mortgage-broker/

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The Government today announced a Stamp Duty Change and a number of new initiatives to address the economic challenges posed by Covid-19.

Along with a Stamp Duty Change, The Coronavirus Job Retention Scheme (CJRS) has so far supported over one million employers to protect over 9 million jobs. The scheme has been open since March and will wind down gradually until October. The government is now introducing a new Job Retention Bonus to incentivise employers who keep on their furloughed employees. It’s a one-off payment of £1,000 to UK employers for every furloughed employee who remains continuously employed through to the end of January 2021. Employees must earn above the Lower Earnings Limit (£520 per month) on average between the end of the Coronavirus Job Retention Scheme and the end of January 2021. Payments will be made from February 2021. A “Plan for Jobs” delivers new funding to ensure more people will get tailored support to help them to find work with an expansion of support offered via Jobcentres, including doubling the number of work coaches and additional intensive support to those who have been unemployed for at least three months. The plan is also to triple the number of traineeships and sector-based work academy placements, alongside further support for apprenticeships, which enable people to work while training. Called Kickstart, a fund has been created to give young people the chance to build skills in the workplace, and to gain experience that will improve their chances of going on to find long-term, sustainable work. The fund is looking to create 6-month work placements aimed at those aged 16-24 who are on Universal Credit and are deemed to be at risk of long-term unemployment. Funding covers 100% of the relevant National Minimum Wage for 25 hours a week, plus the associated employer National Insurance contributions and employer minimum automatic enrolment contributions. The government is also introducing a new payment of £2,000 to employers in England for each new apprentice they hire aged under 25, and a £1,500 payment for each new apprentice they hire aged 25 and over, from 1st August 2020 to 31st January 2021. These payments will be in addition to the existing £1,000 payment the government already provides for new 16-18 year-old apprentices, and those aged under 25 with an Education, Health and Care Plan – where that applies. In order to support around 130,000 businesses in the hospitality Industry and to help protect the jobs of their 1.8 million employees, the government is introducing the Eat Out to Help Out scheme to encourage people to return to eating out. This will entitle every diner to a 50% discount of up to £10 per head on their meal, at any participating restaurant, café, pub or other eligible food service establishment. The discount can be used unlimited times and will be valid Monday to Wednesday on any eat-in meal (including on non-alcoholic drinks) for the entire month of August 2020 across the UK. Participating establishments will be fully reimbursed for the 50% discount. And, from 15 July 2020 to 12 January 2021, a reduced (5%) rate of VAT will apply to supplies of food and non-alcoholic drinks from restaurants, pubs, bars, cafés and similar premises across the UK. At the same time the reduced (5%) rate of VAT will also apply to supplies of accommodation and admission to attractions across the UK. Further guidance on the scope of this relief will be published by HMRC in the coming days. The housing market has been a clear focus for the government with its critical role in the economy. So, to ensure medium-term confidence in the property market and maintain the growing momentum since the easing of lockdown. the government is temporarily making a stamp duty change, cutting Stamp Duty Land Tax (SDLT) for home buyers across England and Northern Ireland until the end of the financial year. This means increasing the Nil Rate Band of Residential SDLT, in England and Northern Ireland, from £125,000 to £500,000, which means nearly nine out of ten people getting on or moving up the property ladder will pay no SDLT at all. The government is also looking to improve the energy efficiency of existing homes in order to meet the UK’s climate change ambitions by announcing £2 billion to be provided to support homeowners and landlords in making their homes more energy-efficient in 2020-21. For those on the lowest incomes, the scheme will fully fund energy efficiency measures of up to £10,000 per household. The government is also establishing a new Social Housing Decarbonisation Fund to help social landlords improve the least energy-efficient social rented homes, starting with a £50 million demonstrator project in 2020-21 to decarbonise social housing. The government has confirmed that the £12.2 billion Affordable Homes Programme announced at Budget will support up to 180,000 new affordable homes for ownership and rent in England. The £12.2 billion will be spent over five years, with the majority of homes built by 2025-26 and the rest by 2028-29. The Affordable Homes Programme will also include a 1,500 unit pilot of First Homes. There is support for small and medium-sized housebuilders that are unable to access private finance by boosting the Short-Term Home Building Fund, providing an additional £450 million in development finance to smaller firms. Plans to introduce new legislation in summer 2020 will make it easier to build homes in the places people want to live. New regulations will make it easier to convert buildings for different uses, including housing, without the need for planning permission. Later this month, the government will launch a policy paper setting out its plan for comprehensive reforms of England’s planning system to better support the economy and release more land for housing in areas that need it most.

With no will, what you leave behind might not go where you want it. So, the answer to your question “Do I need a will?” is probably Yes..

Putting a will in place ensures that you decide what happens with your possessions, your money and property after you die. 

Why do I need a will?

A will, properly drafted, eliminates uncertainty and reduces the potential for family conflict at a difficult and, in most cases, emotional time.  Also divorce and the complexity surrounding families where parents have introduced new partners and possibly other children are becoming more common, making the division of assets more complicated. A will that is specific and lays out clear wishes will prevent any speculation over disposal of assets.

Tax Reasons

Having a will in place can help reduce the amount of Inheritance Tax that might be payable on the value of your estate left behind. Do I need a will?

Thinking about the children

Writing a will is especially important if there are children or where there is another dependent family. A concise statement of intent will ensure clarity when leaving something to people outside the immediate family.

Your wishes will not be met

If you don’t write a will, everything you own will be shared out in a pattern defined in law. This means that your possessions may be dealt with in a way you wouldn’t have wished for.

What should I include in my will?

When putting together your will, there are various things to consider:

• If you have children under the age of 18, you should stipulate who will take care of them.
• What will happen to your possessions, property and liquid assets such as savings, occupational and personal pensions, insurance policies, bank and building society accounts and shares?
• Your beneficiaries. Who are the people who you want to benefit from your will. You should include a list of people to whom you wish to leave money and possessions.
• Finally, you will need to consider who will sort out the estate and carry out your wishes as set out in the will. These people are known as executors.

Do I need to see a solicitor?

Not everyone uses a solicitor and, you don’t have to. A will is a legal document and it is important to make sure it is correctly worded to ensure that it cannot be misinterpreted. Should you decide to write your own will, it is still advisable to seek advice from a professional first. 

A solicitor will make sure your will is in order. While having the support of a solicitor may be expensive, misunderstandings caused by poor wording can be avoided and a solicitor might be able to point out whether there are ways to reduce a potential inheritance tax liability (depending on the size of your estate).

It will usually cost upwards of a few hundred pounds to have a solicitor help with your will although the exact cost will depend on the complexity of your affairs. 

Should you wish not to use a solicitor, you can use a will writing service which can also give you support and guidance. If your circumstances are very straightforward then this might be a better option for you. 

When looking for a will writing service, it is important to make sure that it is recognised by a regulated body. The service can start from around £80 upwards, depending on the complexity of your will and the expertise of the company you have engaged. 

Make sure you receive a full breakdown of costs before going ahead. It is particularly important to look for clauses that give the will writing company the power to administer your estate, as they could charge extra fees for doing so. Even with relatively straightforward estates, you might be charged a percentage of that estate, perhaps 5% to act as sole or joint executor. These charges will still apply if the estate is very straightforward, or if most of the probate work is done by someone else. 

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