Life Assurance & Critical Illness
As independent financial advisers we also arrange life assurance and critical illness policies for our clients. This may be via a term assurance, family income benefit plan, a whole of life policy, or a mortgage protection policy all of these as just death only or including critical illness cover on a single or joint basis. There are many combinations available and based on individual situations we recommend the best suited policy or policies for the required purpose.
As we are independent we have the whole of the market available to choose from to get you the best terms and best policy. All life assurance is based on a medical questionnaire, family history, job and recreation to name but a few, and all quotes are based on standard terms.
If you need life assurance or critical illness cover for a fixed term or a whole of life basis then please feel free to get in touch by completing the enquiry section below and we will be in touch.
Residential Mortgage, Purchase or Re-Mortgage or Let to Buy
Buy to Let, Buy to Let Portfolio or single purchase, Buy to Let Re Mortgage.
The mortgage world has been in a constant state of change since 2006 and the following market crash and recession. The mortgage world was rocked by lender practices and the goings on behind the scenes mainly and it seemed to start in the USA which then impacted the UK. Mainly the flow of money which then caused lender problems and also changes in lending policy and criteria have served to make mortgages far more difficult than they were previously. Home purchase is ever more difficult and the change of regulation of both residential lending and Buy To Let to the FCA has now seen further tightening of lending policy by the lenders.
We have a situation where young potential home buyers can no longer get the deposits required and also can fail on affordability. Affordability is measured by income versus outgoings and a stress tested mortgage amount. Recently the Bank of England has advised the lender stress test to be increased on residential mortgages which means individuals will have to earn more to get a mortgage thus making it more difficult. This is frustrating when many can afford rent but can’t get a mortgage because of affordability. Also when renting and out in the real world can’t save a deposit because they are renting. The government help to buy scheme has an end date to it but helping buyers in this way is also fraught with danger because the interest only loan that is given is taken into account in the affordability process at the beginning but not paid for, for 5 years and lots can happen in 5 years so there could be problems there with some. As such we have not been party to any of these loans which is a business policy decision.
The home mover wishing to port their mortgage is no guarantee of continued borrowing with the current lender as like always they take into account everything about your current situation so it is basically a full mortgage application again at today’s rules which may differ from when you took the mortgage out in the first place. The only benefit to port is to avoid any redemption penalty you may have otherwise when moving one should look at the whole market. Needless to say just because you are with your current lender doesn’t mean they will lend to you again under the new lending criteria porting or moving.
Can’t Sell, Need To Move Home. This has given birth to the Let to Buy market. In essence you re mortgage your current residential property onto a Let to Buy product, raise capital for deposit on the new property and secure a new mortgage on the new family home. The Let side of it has to fit all buy to let criteria and then is self funding and the purchase has to fit all lender criteria. These two mortgage’s need not be with the same lender but not all lenders are keen for this type of business so the experience and help we can provide can be essential in helping you secure such a proposition.
Some clients wish to raise capital from their residential property and purchase one or more Buy to Let properties which in many cases form part of their long term retirement income strategy. We can of course help with all of this.
Some serial property investors build up large property portfolios over time and often seek new lenders as many lenders have a maximum property amount and or maximum lending amount so there is skills in putting lender portfolios together. Needless to say we can assist Buy to Let Portfolio investors so please get in touch.
Buy to Let Property Management. There are two ways of looking at this. You can manage it yourself or get a management company to do it for you. If you do it yourself then you are dealing with all aspects to include the legal side and formal notice procedures if you wish to remove or give notice to a tenant. Also if there is an issue with the property to the point of even changing a light bulb then you have to deal with it yourself or find a tradesman.
If you opt for a management company to take away all the hassle then it will usually cost 8-10% + VAT so this is an expense you have to weigh up. If your property is close then it is easier to deal with it yourself, if far away then an agent may be better.
Finding a tenant can be difficult to get a good one so we always recommend at least using a letting agent to do all of this for you. Of course you have the final say but they advertise the property for rent and link it to all the main used internet platforms, carry out searches and references on the applicants, take deposits, set up the Assured Short hold Tenancy (AST) usually for a 6 month period, carry out a property inventory for you, set up all the banking to collect rent and pay it to your account all for a fixed fee. If you manage the property yourself then when the tenants move in it is then your responsibility, if the agent does then they continue to manage it and sort out any teething troubles etc plus take care of any law changes and keep the gas and electric certificates up to date for you.