The Tenant Fees Act will bring an end to upfront fees charged by landlords and agents to their tenants. It will also limit the levels of both security and holding deposits. Most security deposits are capped at five weeks’ rent and holding deposits at one week’s rent.

Tenant fees Act, a new guide

The Tenant Fees Act will apply in England only, however similar legislation is being introduced in Wales. This means landlords in England will no longer be able to charge for many services provided to the tenant. Such as referencing, credit checks, and services, such as cleaning or gardening.

The only charges allowed will be for replacement of a lost key or security device, and a charge when rent payments are at least 14 days late. Landlords will also still be able to claim for damages where there is a breach of the tenancy agreement.

There will be a twelve month transition period for existing tenancies. This means that any tenancies agreed before 1st June 2019 will not be subject to the new rules until 2020. However, all new tenancies from 1st June 2019 will need to comply with the regulations. Landlords must make sure that any tenancy agreements are up-to-date and reflect the provisions around fees. For landlords who are found to be in breach of the fee ban, a fine of £5,000 will be issued for an initial breach of the ban. However, it will be a criminal offence if an individual has been fined or convicted of the same offence within the last 5 years.

Alternatively, financial penalties of up to £30,000 for breaching the Tenant Fees Act can be issued by local authorities instead of prosecution.

For an Independent, whole of Market, free, Brighton mortgage broker who can get you the best Buy to Lets Mortgage go to www.thefinancehouse.co.uk .

For more information on the Tenants fee act go to the government site at https://www.gov.uk/government/collections/tenant-fees-act .

Pepper Money is the latest lender to remove DSS tenant restrictions on lending to landlord who rent out to a DSS tenant from the 29 June 2019.

The Mortgage Lender (TML) has also said that it has removed the restrictions on mortgages with benefits tenants (DSS tenant restrictions) in-situ last week.
The good news is that most mortgage lenders will to lend to landlords letting to tenants receiving benefits.

Paul Adams, who is the sales director at Pepper Money, commented: “We’re really pleased that we have been able to make the necessary risk and process changes to remove the DSS restrictions on our buy-to-let mortgages. We are continually reviewing our products and risk criteria to ensure they are appropriate for the market and meet the needs of our customers. This was an area, where it was clear that change was required, so we have listened to the feedback and made those changes a reality.”

If this trend continues than renting to DSS will not be the problem that it has been in the past.

What is a DSS tenant? DSS stands for Department of Social Security, which means DSS tenants receive financial housing benefits from the local council, also known as Local Housing Allowance (LHA). The allowance will contribute towards their living expenses.

In the past most lenders have specified that properties can’t be rented to a DSS tenant as they felt it was a high risk. Many landlords also placed the same restriction on their tenants although a lot preferred these tenants as the money was often paid directly to the landlord from the local authority.

This should now mean that it will now be easier to obtain a mortgage if lending to a tenant on benefits as they will have a choice of more lenders. The Finance House can advise on the best deal for landlords, http:thefinancehouse.co.uk/mortgages-2/.

For more information on benefits click here

Individuals and families struggling with problem debt will be given extra help and time to get their finances under control, the government has announced.

People struggling with problem debt are to benefit from a new two-month “breathing space” during which they cannot be hassled by debt collectors and bailiffs, the government has said.

During the 60-day period, those eligible will be protected from enforcement action from creditors, and will also see their interest, fees and charges frozen.

Those experiencing mental health issues will also benefit from extra protection, said the Treasury.

The breathing space scheme was a 2017 Conservative party manifesto commitment, and while the measure has been widely welcomed, it will not be implemented until 2021.

The Treasury said the scheme meant individuals and families struggling with problem debt would be given more time and help to get their finances under control.

Record numbers of people have been seeking debt help, the debt charity StepChange revealed in April this year. It was contacted by 657,000 people in 2018, which was up 6% on 2017.

The majority of its clients are under 40, in work and rent their home, and the most common arrears were on council tax, while credit card debt was the most prevalent form of consumer debt.

The government has previously said the breathing space scheme “would stop most collections and recovery action from taking place”. All contact with a debtor relating to repayment demands would be prevented, while a creditor would not be able to apply to the court to enforce a judgment or order.

It has said the protection would apply to “as many of an individual’s personal debts as possible,” and the Treasury confirmed a broad range of debts would be covered, including money owed to central and local government such as council tax arrears, unpaid personal tax and benefit overpayments.

During this period individuals will be required to engage with professional debt advisers “so they can find a long-term solution to their debts and get back on track with payments”.

However, people receiving NHS treatment for a “mental health crisis” would not need to seek debt advice during the 60-day period. They will continue to receive the same breathing space protections, which will last for the whole of their treatment.

The package of measures also includes a “statutory debt repayment plan” for those struggling with problem debt, which offers similar protection to the breathing space scheme, helping individuals repay debts over a manageable timeframe.

The plan will adjust as people’s circumstances change – which could mean their monthly payments fall if their disposable income changes.

The Treasury said regulations on the breathing space would now be put to parliament “before the end of the year,” with the aim of it taking effect in early 2021.

For FCA details go to Register Home Page (fca.org.uk)

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

Mortgage approvals jump to highest level for more than two years.

The UK housing market has shown signs of resilience after figures revealed high street banks approved the largest number of mortgages approvals for more than two years last month.

British banks last month approved the largest number of mortgages since February 2017, showing stability in the housing sector. Banks approved 42,989 mortgages in April, which is up from 40,564 in March and 11.5% higher than a year ago, marking the biggest annual increase since March 2016, according to seasonally-adjusted figures from industry body UK Finance.

Net mortgage lending rose by 1.795 billion pounds last month, a smaller increase than March’s 2.440 billion pound rise which was the largest in 15 months.

Britain’s housing market slowed sharply in the run-up to the original March Brexit deadline but consumer spending has remained solid, driving economic growth just as businesses have cut investment spending due to Brexit uncertainty.

In a news release by consulting firm, EY. Howard Archer, chief economic advisor to the EY ITEM Club, comments:

“April’s marked rise in mortgage approvals suggests that housing market activity may well have got at least some temporary support from the avoidance of a disruptive Brexit at the end of March. It may very well also be that the housing market has benefited from recent improved consumer purchasing power and robust employment growth.”

“It is possible that the avoidance of a “no deal” Brexit at the end of March has provided some support to the housing market through easing some of the immediate uncertainty and concerns.”

For details on a Brighton Mortgage Broker go to Brighton Mortgage Broker – The Finance House

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Protection insurance ensures peace of mind for many as record number of protection claims are paid.

New figures released by the Association of British Insurers (ABI) and Group Risk Development (GRiD) show that the insurance industry paid out more than £5.3 billion in protection claims in 2018 – a £200 million increase year-on-year.

The numbers also revealed that:

 The number of claims paid surpassed 200,000 for the first time ever

 Nearly every claim made was paid (97.6%)

 Average life insurance payouts reached £81,000, the highest average on record

 More than 35,000 families/beneficiaries were supported following an unexpected bereavement, to the tune of £2.9 billion

 Payouts equal to £14.5 million paid every single day

The ABI recently launched a calculator to help consumers better understand their financial exposure to income shocks caused by being left unable to work after falling ill or injured. Percy The Protection Calculator can be found on the ABI’s website

Roshani Hewa, Assistant Director, Head of Health and Protection at the ABI, says: 

“It’s good to know that families going through some of the worst times, dealing with a loss and serious injury or illness, are at least getting more support from insurance products than ever before. The growing size of a typical life insurance claim shows how much of a difference such cover can have, and the potential difficulties families without it might face. 

“Falling ill or being injured can be traumatic, especially if you find yourself unable to work.  Protection insurance is there to ease the financial burden, so it’s heartening to see the levels of protection showing such positive growth, particularly considering the excellent mental health support many products provide.” 

Figures for the whole protection market (individual and group): 

* Includes figures from the Association of Financial Mutuals

**This is the total number of claims in payment at the end of the year

Give yourself the peace of mind that you and your family deserve by getting in touch so we can find a protection policy that suits you and your situation. For more information go to  Brighton Mortgage Broker – The Finance House

Looking for ways to add almost £50,000 to the value of your home? Here’s how.

Research from the Federation of Master Builders (FMB) and the Home Owners Alliance (HOA) has shown that certain renovations can add almost £50,000 tens of thousands of pounds to the value of your property in a very short space of time. “By investing less than £3,500 on the creation of an open-plan kitchen and diner, home owners in London can add a whopping £50,000 to the value of their home in just one week,” says Brian Berry, chief executive of the FMB.

“If you’re looking to move up the property ladder, it’s obviously in your best interests to increase the value of your home as much as possible. By investing in low cost, high return projects, not only will you make your home a more pleasant place to live, you’ll also be increasing its value significantly.

“Better still, these projects take no time at all, so the hassle factor will be kept to an absolute minimum.”

Here are some ways that you can add value to your home:

Removing Internal walls

At the top of the list of value adding home renovations is the removal of internal walls with the aim of creating an open plan kitchen/diner. The research showed that this could cost £3,426 but could add £48,417 in value to an average-priced London home in just seven days – this is a 1,313% return on the money invested.

Create a garden room or outside playroom

For £6,653 you could hire builders to create a garden room or outside playroom which could increase the value of a home by £35,611 to a typically priced home in Surrey.

Kitchen Refurbishment>

Refurbishing a kitchen with new flooring, worktop and cabinet doors would cost £4,127 and could potentially add £26,838 in eight days to an average-priced home in Dorset.

Adding bathrooms

Converting a cupboard under the stairs into a downstairs toilet can add £26,708 in seven days to a typically priced home in Surrey – at a cost of £2,622. A second option is to convert part of the master bedroom into an en-suite bathroom which boosts the price of an average London home by £14,525 in 11 days at a cost of £4,713.

Adding a driveway may add almost £50,000

Adding a driveway can add £13,354 in nine days to a Surrey home at a cost of £2,208.

Garden Renovations

Installing decking and lighting in the back garden can add £8,946 in seven days to average Dorset home with the work costing £3,971.

Not all home renovations will add value to the property and homeowners shouldn’t assume this: for example, homeowners in London and the North East would add no value to their home after spending £3,971 on garden decking and lighting.

For a full list of projects, costs and the value they can add to your home broken down by region, click here
For more information go to Brighton Mortgage Broker – The Finance House

Metro Bank Removes Restrictions and allows landlords to let their properties to tenants on benefits.

The lender has said that the change will come into effect immediately and would not enforce the existing condition to exclude tenants on benefits.

Metro joins NatWest and the Co-operative Bank in allowing tenants on benefits.
For details on the FCA go to Register Home Page (fca.org.uk)
For more details go to Brighton Mortgage Broker – The Finance House

Tesco Bank Stops offering new mortgages and is looking at options to sell on its existing mortgage portfolio.

Tesco Bank says it will consider the complete transfer of related balances and ongoing administration of relevant accounts.

The Bank, which has been issuing mortgages since 2012, currently has more than 23,000 customers with a total lending of £3.7bn.
For information on the FCA go to Register Home Page (fca.org.uk)
For more information go to Brighton Mortgage Broker – The Finance House

DON’T GET CAUGHT OUT, to avoid increasing payments, borrowers whose mortgage deals are due to expire are encouraged to act fast by seeking the advice of a mortgage adviser.

The Times recently reported that thousands of mortgage borrowers whose mortgage deals are coming to an end this month risk a sharp increase in their monthly repayments if they do not act fast. The discounted loan deals that are coming to the end are worth a total of about £22.3 billion which is double the amount of the previous month. Unless these borrowers act with speed, they will be automatically switched onto their lender’s standard variable rate (SVR) and as a result, suffer an increase in their monthly repayments, unless they decide to remortgage.

According to Moneyfacts, the average SVR is 4.24 per cent, compared with a typical remortgage deal of 1.93 per cent. If you are switched to a standard variable rate, this will have a severe impact on your monthly repayments. A homebuyer with a £400,000 mortgage on the SVR would be about £485 worse off each month, £5,796 over a year, than a homebuyer who seized the cheaper rate.

Despite homeowners having the opportunity to save themselves a lot of money, a surprisingly large number of borrowers will fail to transfer, either out of apathy or believing that SVR’s are their only option.

Those who remortgage, stand to benefit from mortgage price wars. With limited demand for mortgages, lenders are competing for a smaller number of customers which means that lenders are offering competitive product transfers to clients, who, not so long ago, would have been forced to move elsewhere to get a cheap rate when their loan terms expired.

If your mortgage deal is due to expire, we would recommend that you get in contact with us to ensure that you do not get caught out.
For information on the FCA go to Register Home Page (fca.org.uk)
For more information go to Brighton Mortgage Broker – The Finance House

co***@th*************.uk

01273 857024

The Times recently reported that thousands of mortgage borrowers whose mortgage deals are coming to an end this month risk a sharp increase in their monthly repayments and be Stuck on a high Rate if they do not act fast. The discounted loan deals that are coming to the end are worth a total of about £22.3 billion which is double the amount of the previous month. Unless these borrowers act with speed, they will be automatically switched onto their lender’s standard variable rate (SVR) and as a result, suffer an increase in their monthly repayments, unless they decide to remortgage.

According to Moneyfacts, the average SVR is 4.24 per cent, compared with a typical remortgage deal of 1.93 per cent. If you are switched to a standard variable rate, this will have a severe impact on your monthly repayments if you are Stuck on a high Rate. A homebuyer with a £400,000 mortgage on the SVR would be about £485 worse off each month, £5,796 over a year, than a homebuyer who seized the cheaper rate.

Despite homeowners having the opportunity to save themselves a lot of money, a surprisingly large number of borrowers will fail to transfer, either out of apathy or believing that SVR’s are their only option.

Those who remortgage, stand to benefit from mortgage price wars. With limited demand for mortgages, lenders are competing for a smaller number of customers which means that lenders are offering competitive product transfers to clients, who, not so long ago, would have been forced to move elsewhere to get a cheap rate when their loan terms expired.

If your mortgage deal is due to expire, we would recommend that you get in contact with us to ensure that you do not get caught out.
For more info go to Brighton Mortgage Broker – The Finance House
Register Home Page (fca.org.uk)