The Finance House has been seeking urgent clarification from the government about whether Home buying in the current climate should continue at the current time, particularly as physical property valuations are no longer possible. The government has now stated that:
1. Home buyers and renters should, as far as possible, delay moving to a new house while emergency measures are in place to fight coronavirus.
2. If moving is unavoidable for contractual reasons and the parties are unable to reach an agreement to delay, people must follow advice on social distancing to minimise the spread of the virus.
3. Anyone with symptoms, self-isolating or shielding from the virus, should follow medical advice and not move house for the time being.

Further detailed guidance about buying in the current climate is anticipated shortly, and The Finance is seeking urgent clarification from the FCA to that there are no barriers if the buyer/seller wants to go ahead.

For more information go to Brighton Mortgage Broker – The Finance House
For the FCA go to Register Home Page (fca.org.uk)

There has never been a more important time for customers to seek the advice of a Free mortgage advisor in Brighton as we start to see lenders reducing their exposure to the riskier end of the market. Those operating in the 90-95% LTV arena, Lenders offering first time landlord products and for some who operate predominantly in the self-employed market, there will be a period of re-positioning and re-pricing but of course this is where a mortgage brokers value really shines through. There are still plenty of attractive deals available and feedback from lenders who are well capitalised is that they are very open to business but can’t give advice in their branches in the current climate.

We are hearing and seeing a focus on payment holidays through email social media. What is clear, is that not all lenders have worked out how they will offer this option to customers who are in financial difficulty as a result of the Covid-19, and in what shape it will be delivered. A few are looking at moving customers to an interest-only option for a short period of time, others are looking at extending the mortgage term by 3 months, whilst the rest rely on their current terms and conditions. The challenge, breaking the relationship between a payment holiday and the system impact on your credit report. Of course a payment holiday is not free and has long term cost implications for a borrower, so the decision to take the holiday should not be taken without sound and professional advice.

One question we have been asked is “is the Insurance Industry going to follow the Lending world by introducing a three month holiday for protection premiums” and for the majority of insurers this is a no. Some are looking at the option, but this involves significant systems development and with the Prime Minister suggesting that we may have reached the peak of cases in twelve weeks, it may be that such changes are not necessary. In fact, Insurers, whilst not publicly announcing moves, are warning that anyone looking to cancel a policy and then to re-instate it once we are over the worst, they run the risk of having inferior cover put in place. This means for the sake of 3 months premiums; the policyholder could be putting the future financial security of them and their family at risk if we should ever suffer a repeat to today’s events. Anyone looking to cancel their insurance should be encouraged to think twice and perhaps prioritise the cover they have now, they might never get it again in the future.

Finally, it is worth re-iterating the Government’s message, that this situation is not like the credit crunch of 2010 where banks had little capital to lend, this is about saving the lives of the elderly and vulnerable and helping others.

https://www.bankofengland.co.uk/monetary-policy/the-interest-rate-bank-rate

Base rate

Free mortgage advisor in Brighton, go to Brighton Mortgage Broker – The Finance House

You may, or may not, have heard that The Bank of England has cut the Bank Interest Rate, March 2020 to 0.1% which is the lowest level in history.

This could be a great opportunity to review your current mortgage deal so we can get you the best arrangement for you.

In these unprecedented times, it is only natural to start to think about your current financial arrangements. As a Brighton Mortgage & Protection Adviser, I just wanted to let you know that we are here, open and have access to great technology solutions which means that we can review your finances securely without having to arrange a face to face meeting.

According to the Money Advice Service, each year one million people in the UK find themselves unable to work due to a serious illness or injury. Whether you own your own home outright, have a mortgage or are renting, the thing you will not want worry about when trying to get yourself better is finding the money to pay the bills, or to keep the lender or landlord happy by meeting their monthly direct debit. In our experience people are not always aware of what could happen if they were unable to work and many have no financial back up plans to protect them.

The most common causes of long-term work absence we know are mental health, stress, musculoskeletal injuries and acute medical conditions. But every client is different and so are their needs so that’s why we choose not to limit insurance solutions to just one provider. We have access to a wide range of insurers so we know that there is a solution to match both needs and budget. So, if you want to make sure your bills get paid when you aren’t able to work, an income protection plan is essential.

Should you have any questions about the Bank interest rate, March 2020 or anything else, we are a phone call or email away. We will continue to support you and your circumstances.

https://www.bankofengland.co.uk 
The Finance House, Independent Free Mortgage Broker

As you may have heard on the news this morning, the Bank of England base rate has been cut to 0.25%.

For about 320,000 people who are homeless in the United Kingdom, Banking for the homeless can help to claim benefits, getting wages and paying rent. Banking for the homeless has always been a problem.

Banking for the homeless

All banks require a proof of Identification and address to open a bank account. This is difficult when someone, more so when you live on the street, wants to open a bank account.

Chief Executive at Crisis, Jon Sparkes said: “It can be almost impossible to get a bank account without a fixed address and without ID, which often can be hard to keep safe and costly to replace if lost or stolen.” Banking for the homeless has always been a problem.

HSBC have joined forces with charities, including Crisis and Shelter, to offer homeless people a basic bank account that removes the need for photo identification or proof of address.

In 2018 the service started in Liverpool. So far it is going well, thirty-one branches, in the UK, have made the service live. More than eighty accounts have been opened so far. One of the first accounts was for a homeless man in Liverpool who had been homeless for about twelve years. Opening a bank account for him meant, for the 1st time in over 10 years, he could to claim benefits and is now on the housing list.

Shelter CEO, Polly Neate said “It’s hard enough if you’re homeless, living day-to-day on the streets in the freezing cold or trapped with your children in a grotty hostel.

Shelter is pleased to work with HSBC UK on this game-changing product. Having a bank account not only allows people who are homeless to receive wages and claim benefits, but it also gives them their independence back”.

Because they can use the “no fixed address” product, those who are homeless must register with charities such as Crisis or Shelter. They are then accompanied by a caseworker to one of the thirty-one participating HSBC branches to open their account.

To get bank statements and a debit card, the application forms will have the charities address. They can access the account online or over via the phone. Statements and any other relevant documents can be collectable from the charity’s office or the selected HSBC branch.

For information on shelter click here
For information on Mortgages click here

CPI inflation drops to 1.5% in October, down from 1.7% in September.

Inflation drops to 1.5%

 This is the lowest it’s been since November 2016, (according to the latest ONS statistics).

CPIH inflation, The ONS’ headline measure which includes owner occupiers’ housing costs, was also 1.5% in October, down from 1.7% the month before.

The main reason was due to electricity, gas and other fuels as a result of changes to the energy price cap.

More effects were due to furniture, household equipment/ maintenance plus recreation and culture.

For more information from the government  click here 

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

Many borrowers are confused about why they should remortgage, if at all.
Hopefully we can show you your options.

Research shows that there’s a lot of misinformation about How to remortgage a property, here are some of them:

• Remortgaging is a negative thing, it’s only done when you are desperate.
• It’s “embarrassing” to admit having done it.
• You only remortgage to borrow more funds.
• You must be desperate to remortgage.
• There is a limit to how many times a borrower can remortgage.
• You just remortgage to take on more debt,
• Remortgaging is only done to carry out renovations.
• People remortgage when they are failing to meet existing repayments,
• Remortgage is difficult so it’s not worth thinking about their deal every 2 years for the next 30 years.
• If you keep remortgaging, you will never pay off your debt because you start again.
• Remortgaging is expensive.

Although, in some circumstances, some of these may be relevant, they are not necessarily so.

So, lets look at the real facts about How to remortgage a Property.

• Remortgaging isn’t negative, although it may be done to help a negative problem.
• It is very common, certainly not embarrassing.
• You can re-mortgage for various reasons.
• Most people who remortgage aren’t desperate to do so.
• You can re-mortgage as many times as you want to.
• People often remortgage just to get a better rate.
• Some people remortgage to carry out home improvements, it is a cheap way to raise capital.
• Remortgaging can be one way to help improve your financial situation, speak to an advisor to review your options.
• Remortgaging can be complicated if you do it yourself as the regulations are changing all the time. A good advisor will do all the work for you.
• It is a common misconception that if you keep remortgaging you will never clear your debt. This is not true if you don’t add the debt each time.
• Remortgaging can be expensive if you get it wrong, a good broker will work out the best deal to ensure that it will save you money, or tell you not to proceed.

If you think remortgaging isn’t for you, this “switching inertia” may be costing you dearly.

Number of people on Standard Variable Rates shows their is borrower confusion

The huge number of borrowers on a higher rate than they need be shows that remortgaging is “greatly misunderstood”.

The best way to remortgage is to give yourself plenty of time before any deal is coming to an end and contact an independent, whole of market (and preferably free) mortgage broker who can demonstrate your potential savings by switching.  By starting about four months prior to your deal ending you have the best chance do let your broker do their market research, speak to the lenders, get their remortgage applied for and approved before you slip on to a costly Standard Variable Rate.

If your deal is coming to an end, contact The Finance House now on 01273 857 024, we are an independent, whole of Market, experienced and Free Mortgage Advisor (We receive a commission from the lenders).

You can check us on the Financial Conduct Authority website here.

Mortgage warning for homeowners

Homeowners whose two-year fixed rate mortgage deals are about to end have been warned they could see a bill shock if they fail to act.

Fixed Rate Mortgage

In September 2017, the average two-year fixed rate mortgage rate hit its lowest ever level at 2.17 per cent, according to Moneyfacts.

Borrowers can still swap to deals almost as cheap as that now, but those who do not remortgage and instead fall onto their lender’s default standard variable rate risk monthly payments rising substantially.

Today’s average standard variable rate sits at 4.89 per cent, and a shift to that from 2.17 per cent would see the average mortgage’s monthly mortgage payments jump by 26 per cent – adding £175 – as monthly payments rose from £680 to £855, according to Compare the Market.

The benefits of searching out a new mortgage deal promptly are shown by the fact that at today’s average two-year Fixed Rate Mortgage rate of 2.44 per cent, a homeowner with a £130,000 mortgage with 20 years left would only see bills rise £11 a month to £691 if they moved to that from 2017’s average rate of 2.17 per cent.

Moneyfacts finance expert Darren Cook said: ‘Borrowers who may be arriving at the end of their current two-year deal will probably have a high motivation to remortgage.

‘But they may need to look carefully to find a rate similar to the one they may have negotiated two years ago.’

Homeowners were warned not to be lulled into a false sense of security by the low interest rate environment, as lender’s default rates are considerably higher than new deals.

Compare the Market’s Mark Gordon said: ‘Rolling onto a standard variable rate mortgage can cost you thousands of pounds.

‘We may be in a “lower for longer” rate environment now, but that doesn’t mean interest rates will remain at rock bottom forever.

‘For those people on a standard variable rate mortgage, the additional costs should be a wake-up call.

‘Not only could your mortgage get more expensive if the base rate rises, but SVR mortgages tend to be much more expensive than fixed rate deals available.’

Check us on the FCA register here
For more information go to Brighton Mortgage Broker – The Finance House

Research from the Trade Union Congress (TUC) reveals that 1 in 12 UK workers are not getting their legal Holiday leave entitlement.

Holiday leave entitlement

The analysis estimates that 2.2 million employees are not getting the minimum paid Holiday leave entitlement they are due. And over half of this number (1.2 million) are not getting any paid leave at all.

Workers are losing out on nearly £3bn worth of Holiday leave entitlement a year. 9.2% of female workers and 7.2% of male workers are losing out.

The sectors in which workers are most likely to lose out are agriculture (14.9%), mining and quarrying (14.7%) and accommodation and food (13.9%).

Which sectors are missing out on their Holiday Leave entitlement

The sectors with highest numbers of staff losing out are retail (348,000), education (342,000) and health and social care workers (291,000).

Working people are entitled to a statutory annual minimum of 28 days paid leave (pro rata and including public holidays).

The main reasons people are missing out are:

• Workers being set unrealistic workloads that do not allow time to take leave.
  
• Employers deliberately denying holiday requests and managing out people’s leave.
  
• Employers not keeping up to date with the law.
  
• Minimum holiday entitlements are a vital part of reducing overwork, says the TUC. People who work excessive hours are at risk of developing heart disease, stress, mental illness, strokes, and diabetes, which also impacts on co-workers, friends, and relatives.
  

The TUC wants HMRC to be granted new powers to clamp down on employers who deny staff their statutory Holiday leave entitlement. This would include the power to ensure that workers are fully compensated for missed holidays.

The government has recently consulted on enforcing holiday entitlements but has yet to announce any plans. The TUC says ministers must guarantee all UK workers can take the holidays that they are entitled to.

TUC General Secretary Frances O’Grady said:

“We’re now in peak holiday season. But while many workers are away enjoying time off with friends and family, millions are missing out. And that puts them at risk of burnout.

“Employers have no excuse for robbing staff of their well-earned leave. UK workers put in billions of hours of unpaid overtime as it is.

“The government must toughen up enforcement to stop bosses cheating staff out of their leave.”

For more details go to https://www.tuc.org.uk/
For details on our free mortgage finding service click here

The Bank of England’s Monetary Policy Committee has voted unanimously to maintain the Bank of England Base Rate at 0.75%.

Bank of England Base Rate

 A lot of the MPC’s minutes concentrated on continued Brexit uncertainty, with the Committee stating that “entrenched Brexit uncertainties and slower global growth have led to the re-emergence of a margin of excess supply”.

The Committee also commented on that Brexit-related developments are making UK economic data more volatile, the GDP has fallen by 0.2% in Q2 and now expected to increase by 0.2% in Q3. The Committee judges that underlying growth has slowed, but is still slightly positive, and that a degree of excess supply appears to have opened up within companies.

For mortgage advice go to www.thefinancehouse.co.uk/

For more information on the BofE click here