House ownership obsession

At this time with house prices apparently endlessly on the rise again it is not surprising many are considering buy-to let again. But Buying-to-let is very different from purchasing your own home, and you need to approach it with a completely different mindset.

Established landlords run their portfolios like a business, and never let sentiment get in the way of decision making. First you need to think not about where you would like to live, but what would be best to rent out. Find out which type of properties let well in your area and the best neighbourhoods for buy-to-let. Professional independent mortgage advice is vital some more specialist lenders can only be access through a mortgage broker.

You must really do your homework – letting a property comes  with many rules and red tape, from ensuring your furniture complies with fire regulations to adhering to health and safety requirements for gas and electricity. There are also tenant deposit schemes to sign up to, careful vetting of potential tenants and the production of a thorough inventory for the property and its contents. Finally, ensure you have adequate insurance to cover the buildings, contents (if furnished) and possibly even your rental income.

Buying-to-let is a long-term investment and it’s useful to think about why you are investing in property, and what your exit strategy is – do you want the property to provide you with a pension in retirement for example? Do you have a plan to repay the mortgage at the end of the term?  Enable IFA’s in Bishop's Stortford can talk through whether buy to let is right for your  investment portfolio.

Your home could be at risk if you do not keep up your mortgage repayments. 

Issued by: Enable Independent Financial Life Planners
25c North Street, Bishops Stortford, Herts CM23 2LD
Telephone: 01279 755950 - Fax: 01279 657339
Enable Independent Financial Life Planners is a trading style of Enable Independent Limited is authorised and regulated by the Financial Conduct Authority.
It is important always to seek independent financial advice before making any decision regarding your finances. If you would like any assistance, please contact us.
NOTHING CONTAINED IN THE ARTICLES SHOULD BE CONSIDERED AS GIVING INDIVIDUAL FINANCIAL ADVICE

Housing Supply solutions

Of course there is demand for housing on our small Island but it is the supply that causes many of the problems in our housing market. Mr Carney has already identified that he can try and do something about demand for housing but he cannot build a single house himself.  So what could our councils and government do to improve the supply of housing in the UK?

Of course it seem  so simple, all you have to do is build new houses but the problem for us is space, where are all these new homes supposed to go.  In the year to March there were just 112 630 new houses completed in England only a 4% rise on building from the year before.  But to keep up with demand many believe the UK as a whole has to build at least 250,000 homes a year to meet the rising population, and only then would it put a brake on prices.

In recent years there has been a lot of building on brownfield sites - like old hospitals or factories in or around cities – and for many places there is not a lot of choice particularly in London and the South East, where the population is rising the fastest. Sam Bowman, research director at the Adam Smith Institute, has argued for some time now that local authorities should allow building on greenbelt land. "By rolling back the greenbelt by just one mile around London, we would have space for one million new homes," he said this week but even the Home Builders Federation, which wants more land made available, is not keen on  that idea. If you are looking to buy a home Enables IFA’s in Bishops Stortford can help you look at your options.

Your home may be at risk if you do not keep up your mortgage payments.

Issued by: Enable Independent Financial Life Planners
25c North Street, Bishops Stortford, Herts CM23 2LD
Telephone: 01279 755950 - Fax: 01279 657339
Enable Independent Financial Life Planners is a trading style of Enable Independent Limited is authorised and regulated by the Financial Conduct Authority.
It is important always to seek independent financial advice before making any decision regarding your finances. If you would like any assistance, please contact us.
NOTHING CONTAINED IN THE ARTICLES SHOULD BE CONSIDERED AS GIVING INDIVIDUAL FINANCIAL ADVICE

Lending moving into different suppliers

It was with interest that Enables IFA’s noted that at the beginning of this month more competition appeared in the mortgage market as two Indian lenders opened for business in the UK.  One is the State Bank of India, who have begun lending again on buy-to-let mortgages after pulling out of new lending in September 2012. The other is Axis Bank, one of India’s largest banks, which is also considering a launch in the buy-to-let market.

It will be interesting to see how their services develop . John Charcol senior technical manager Ray Boulger says: “One would hope and expect that State Bank of India has learned from its previous mistakes. To make a mistake once is forgivable for lenders that are new to the market; to make it twice is not. ”He says: “Obviously, the best way to step into a new marketplace is to dip your toe in. Lenders need to understand not just the industry they are working in but the market as well. That means speaking with existing players in that locality, exploring distribution channels and getting the lay of the land.”

“State Bank of India previously wanted to be the best on rates in its particular market and we saw what happened: it got inundated with applications and had to shut down its operation. That is an example of the wrong approach.”  It would seem that the right approach would be to find a gap in the market and target lending where there are not enough options for borrowers.  The Financial Conduct Authority is reviewing three banking licence applications and is in talks with a further 19 prospective lenders.

Your home might be at risk if you do not keep up your mortgage repayments. 

Issued by: Enable Independent Financial Life Planners
25c North Street, Bishops Stortford, Herts CM23 2LD
Telephone: 01279 755950 - Fax: 01279 657339
Enable Independent Financial Life Planners is a trading style of Enable Independent Limited is authorised and regulated by the Financial Conduct Authority.
It is important always to seek independent financial advice before making any decision regarding your finances. If you would like any assistance, please contact us.
NOTHING CONTAINED IN THE ARTICLES SHOULD BE CONSIDERED AS GIVING INDIVIDUAL FINANCIAL ADVICE

'Comfort' pension level is £15,000, says study

Enables IFA’s know that one of the hardest things to think about when you are young is saving for a pension.  But one of the surest things to do to make sure you have some savings for retirement is to start early.  A recent industry report suggests that when you are planning for retirement your should try and plan for an income of at least £15,000 a year.  It suggests that once people reach that income level, they begin to feel more comfortable and more financially secure and that that sense of wellbeing jumps significantly once retirees earn between £15,000 and £20,000 a year, including their state pension.

Interestingly enough the £15,000 contentment threshold seemed to apply however many people there are in the household.  A report like this really does help give a much more clear idea of how much people need to save for the very basics in pensions for retirement to top up state pensions.  The revised state pension is expected to be worth at least £7,500 a year when it comes in in April 2016.

Nest - a non-profit-making organisation which supplies pensions under automatic enrolement- has recently produced some tips for saving into a pension.  It claims that if a 30-year-old worker replaced a takeaway with a home-cooked meal at least once a week, they could save £12 a week.
If all of that was paid into a pension, it could build up to a pot worth more than £50,000.  Makes you think about what you might be frittering away if you want to start planning for your pension early Enable’s IFA’s are here to help.

Issued by: Enable Independent Financial Life Planners
25c North Street, Bishops Stortford, Herts CM23 2LD
Telephone: 01279 755950 - Fax: 01279 657339
Enable Independent Financial Life Planners is a trading style of Enable Independent Limited is authorised and regulated by the Financial Conduct Authority.
It is important always to seek independent financial advice before making any decision regarding your finances. If you would like any assistance, please contact us.
NOTHING CONTAINED IN THE ARTICLES SHOULD BE CONSIDERED AS GIVING INDIVIDUAL FINANCIAL ADVICE

Ways to cut your monthly mortgage payments

If you already have a mortgage but want to make sure you have the best deal you might be considering some of the following. Enable’s Independent Financial Advisors can help you you’re your decisions.

Some would say don’t stay on a standard variable rate (SVR) mortgage. It can be the most expensive mistake that mortgage borrowers make staying on standard variable rate (SVR) mortgage after their introductory rate (whether tracker or fixed) has expired.

Others would say overpay on your mortgage repayments whenever you can with interest rates at an  historic low, there may never be a better time to get your mortgage down by paying more than your scheduled monthly payments by as much as you can afford to.

What about a deal with daily interest calculation if the interest on your mortgage is calculated annually, you could still be paying interest on the parts of the loan you have paid off for almost a year after you have repaid it, worth checking.

Have you checked your insurance deal because if you paid a deposit of less than 20 percent, you might have been sold private mortgage insurance (PMI), which can cost thousands on top of your mortgage each year. Once you have paid off 20% of the mortgage, you can drop your PMI the lenders probably won’t be reminding you, and it will be you who has to ask them to cancel the insurance. Checking out the details of the deals and making sure you have the best mortgage deal for your circumstances can be worth talking through with an IFA.

Your home could be at risk if you do not keep up mortgage repayments.

Issued by: Enable Independent Financial Life Planners
25c North Street, Bishops Stortford, Herts CM23 2LD
Telephone: 01279 755950 - Fax: 01279 657339
Enable Independent Financial Life Planners is a trading style of Enable Independent Limited is authorised and regulated by the Financial Conduct Authority.
It is important always to seek independent financial advice before making any decision regarding your finances. If you would like any assistance, please contact us.
NOTHING CONTAINED IN THE ARTICLES SHOULD BE CONSIDERED AS GIVING INDIVIDUAL FINANCIAL ADVICE

Housing Costs

It would have been hard to miss Mark Carney recently stating that the housing market represented the "biggest risk" to financial stability and the long-term recovery in the UK.  In an interview recently on the Murnaghan show on Sky news, he said the Bank was "closely watching" rising property prices and the subsequent increase in large-value mortgages, which he warned could lead to a "debt overhang" which could destabilise the economy.

 So what are the possible routes to cooling down raging house prices? It could be argued that making it harder for homebuyers to borrow money is already happening with MMR. But some lenders still offer loans that are more than five times a borrower's income. The Financial Policy Committee (FPC) could act to limit such borrowing as soon as next month, they could also make it more difficult to lend so banks and building societies would be forced to raise more capital.   Of course interest rate rises loom but  Mr Carney has promised not to use base rates as a means to cool the market.  Many say the government's Help to Buy scheme - which allows buyers to find a deposit of just 5% -is helping to inflate house prices so the BofE could advise that the scheme is scaled back. The Business Secretary, Vince Cable, has already said it should only apply to properties up to a maximum value of £350,000, rather than the current £600,000.  

But if Help to Buy has helped to put up house prices, remember it has also helped to increase the supply of housing. Private house building has increased by 34% in the year since the scheme started. Without it, the shortage of houses might have been worse, so prices might have been even higher. If you are looking to buy a home of your own Enable’s IFA’s in Bishops Stortford are happy to talk you through your options.

Your home is at risk if you do not keep up your mortgage repayments. 

Issued by: Enable Independent Financial Life Planners
25c North Street, Bishops Stortford, Herts CM23 2LD
Telephone: 01279 755950 - Fax: 01279 657339
Enable Independent Financial Life Planners is a trading style of Enable Independent Limited is authorised and regulated by the Financial Conduct Authority.
It is important always to seek independent financial advice before making any decision regarding your finances. If you would like any assistance, please contact us.
NOTHING CONTAINED IN THE ARTICLES SHOULD BE CONSIDERED AS GIVING INDIVIDUAL FINANCIAL ADVICE

Mortgage regulation struggles

Enable's Independent Financial Advisors know that mortgage regulation is of course vital but sometimes it can feel like one step forward and two steps back. With the recent Mortgage Market Review (MMR) it seems to many that there is indeed added responsibility and it is being put back onto the lenders, leaving each lender to interpret the requirements and design its own systems and processes.  In fear of getting it wrong the rules can become more and more difficult and the processes can develop an inflexibility that provides little room for sensible judgement.

Clearly it is important to establish that borrower can afford their loan but recently brokers have revealed some of the oddest questions they have come across when processing applications:

• How often do you have friends over for dinner? Do you have steak?
• What is your monthly expenditure on pet food?
• How much do you spend on alcohol per month? Does this increase in particular months?
• What is your average monthly expenditure on dry cleaning?
• On average, how much do you spend per month on nappies and other child-related perishables?
• When you move home, are you going to continue paying £21 per month for your milk delivery?
• Do you consider yourself to be a regular gambler? If so, how much would gamble on average per month?

Everyone in the mortgage business wants borrowers and clients to be protected but maybe things are going a bit too far at the moment.  If you are looking to find a mortgage Enables IFA’s in Bishop’s Stortford will try and help you find the right provider and ask sensible questions to help you and the lender establish your ability to manage a home loan.

Your home could be at risk if you do not keep up your repayments.


Issued by: Enable Independent Financial Life Planners
25c North Street, Bishops Stortford, Herts CM23 2LD
Telephone: 01279 755950 - Fax: 01279 657339
Enable Independent Financial Life Planners is a trading style of Enable Independent Limited is authorised and regulated by the Financial Conduct Authority.
It is important always to seek independent financial advice before making any decision regarding your finances. If you would like any assistance, please contact us.
NOTHING CONTAINED IN THE ARTICLES SHOULD BE CONSIDERED AS GIVING INDIVIDUAL FINANCIAL ADVICE

Pension tax relief reform with flat-rate below 30%

Enable's Independent Financial Advisors are often asked to clarify the tax relief position on pension contributions and drawdown.  Last month, the Centre for Policy Studies (CPS) published a report that set off the debate over the future of pensions tax relief again. The CPS policy paper argues that the system we have at the moment– where contributions and investment growth are tax-free but retirement income is taxed – is unfair and tends to benefit the wealthy.

The CPS think-tank says tax relief should be scrapped altogether and replaced by a Treasury contribution of 50p per £1 saved. This would be subject to an annual allowance of £8,000, with prior years’ unused allowance permitted to be rolled up over a period of up to 10 years.

Pension tax relief looks as if it will play a significant part in next years general elections and the implications need to be considered.

There are of course inherent difficulties for each political party to address  in reforming the pensions tax system, but it would seem that the overall  political consensus is beginning to suggest that the current rules need readjusting to make them fairer. Deciding just how, when and what is to be done is still unclear and is likely to generate a fair amount of debate over the next year.  If you want to talk thought how any of these possible changes might affect your pension saving plan Enable of Bishops Stortfords IFAs are happy to talk you though your saving for retirement options.


Issued by: Enable Independent Financial Life Planners
25c North Street, Bishops Stortford, Herts CM23 2LD
Telephone: 01279 755950 - Fax: 01279 657339
Enable Independent Financial Life Planners is a trading style of Enable Independent Limited is authorised and regulated by the Financial Conduct Authority.
It is important always to seek independent financial advice before making any decision regarding your finances. If you would like any assistance, please contact us.
NOTHING CONTAINED IN THE ARTICLES SHOULD BE CONSIDERED AS GIVING INDIVIDUAL FINANCIAL ADVICE

Health monitoring technology set to change insurance landscape

Enable of Bishop’s Stortfords experienced IFA’s know that insurance has been subject to much abuse over the years that have cost the end-user millions in premiums over the years.  Experts in the field have started to predict  a future where protection policies will be technologically tailored to individuals’ needs and insurers will be using more technology to keep closer tabs on their customers’ particularly their health. Many insurers say the main benefit of using wearable technology is the reduction in premiums for healthier individuals.

 Wearable devices like Google Glass and wristbands which track blood pressure and the rate at which calories are burned are already increasingly being used by insurance providers to spot health risks. Underwriteme chief executive Martin Werth says: “The more insurers can track people the more discounts they can offer. If you are overweight and you lose weight then we can give you a discount because your health has improved.” “If someone gets up every day to exercise and eats well then they should be credited for it. These wearable devices will help prove how healthy they are.”

These technological advances will probably dramatically reduce protection premiums for some, but that doesn’t stop there being a host of ethical and practical stumbling blocks coming up from privacy issues to how to really use these devices in the underwriting  process.

Highclere Financial Services partner Alan Lakey says: “Technology is a double-edged sword that could be negative for many in poor health. We could have genetic testing that makes people uninsurable from birth because it is known they will get a certain illness. That is the natural path we are on, which will see the development of an insurance underclass. Using more technology will be divisive.”  LV= head of protection Mark Jones says: “The difficulty we have with wearable equipment is who is actually wearing it? You could easily have a very lucrative secondary market from people abusing it.” Interesting stuff to consider.


Issued by: Enable Independent Financial Life Planners
25c North Street, Bishops Stortford, Herts CM23 2LD
Telephone: 01279 755950 - Fax: 01279 657339
Enable Independent Financial Life Planners is a trading style of Enable Independent Limited is authorised and regulated by the Financial Conduct Authority.
It is important always to seek independent financial advice before making any decision regarding your finances. If you would like any assistance, please contact us.
NOTHING CONTAINED IN THE ARTICLES SHOULD BE CONSIDERED AS GIVING INDIVIDUAL FINANCIAL ADVICE

What is pound cost averaging?

One of the many things investors go on about is entering the market at the right time. Some suggest that an efficient way to do this is to spread or drip-feed one’s lump sum into the market as oppose to investing it all in one go. In fact during volatile times this strategy allows one to benefit from what is known as ‘pound cost averaging'.

The idea involves investing on a regular basis through investment trusts or regular savings plans (such as ISA schemes) say on a monthly basis. The beauty of this arrangement is that not only does it instil a sense of discipline to one’s investment habits but also avoids trying to second guess market movements and averages the cost of buying an investment. Of course this means that a regular investment of say £100 a month, buys less fund units when markets rise but a higher number will be purchased when shares fall.

However, it is in a falling market that Pound Cost Averaging really comes into its own as investing regularly in volatile and falling markets results in buying more shares and at a cheaper price.

To sum up Pound Cost Averaging is a technique that reduces exposure to falling markets from investing a lump sum. By investing at regular intervals more shares are purchased when share prices are low and fewer shares are purchased when prices are high.The investor will be better off in falling markets. But he investor will be worse off in rising markets.

It is a system that instils a sense of investment discipline which avoids trying to second guess markets. If you want to chew over what might be the best investment strategy for you Enables IFA’s are in Bishop’s Stortford.

Issued by: Enable Independent Financial Life Planners
25c North Street, Bishops Stortford, Herts CM23 2LD
Telephone: 01279 755950 - Fax: 01279 657339
Enable Independent Financial Life Planners is a trading style of Enable Independent Limited is authorised and regulated by the Financial Conduct Authority.
It is important always to seek independent financial advice before making any decision regarding your finances. If you would like any assistance, please contact us.
NOTHING CONTAINED IN THE ARTICLES SHOULD BE CONSIDERED AS GIVING INDIVIDUAL FINANCIAL ADVICE

Gifting money to Grandchildren

For many grandparents Enables IFA’s in Bishops Stortford know that the thought of such huge loans can be a worry.  If you are considering gifting one of your grandchildren some money it is good to know what the tax implications are.

You can give up to £3,000 per tax year which will be immediately exempt from inheritance tax, this allowance is called an annual exemption.  If you haven’t made any gifts in the previous tax year then you can carry forward the unused allowance making £6,000 to gift which is immediately free from inheritance tax.

If you are feeling especially generous and are making gifts of £250 or less then, in addition to the annual exemption, you can take advantage of the small gifts allowance. This allowance ensures that you can make cash gifts of up to £250 to as many people as you want and this will be immediately free from inheritance tax.  However, this allowance cannot be made to someone who has benefited from the annual exemption already. If you are looking to make regular gifts to your grandchildren then they may fall within the rules governing gifts out of normal expenditure.

If you make gifts, which do not fall within these exemptions, then the gift could be a potentially exempt transfer; this means that you need to survive seven years from the date of making the gift for the gifts not to be subject to inheritance tax.  If you survive seven years from the date of the gift then it is free from inheritance tax however, if you do not survive the full seven years then these gifts will use part of the nil rate band (£325,000 for the 2011/2012 tax year) which is available to offset against your estate.

To make sure you are maximising the tax benefits of any gift by running it by Enable’s IFA’s in Bishops Stortford.

Issued by: Enable Independent Financial Life Planners
25c North Street, Bishops Stortford, Herts CM23 2LD
Telephone: 01279 755950 - Fax: 01279 657339
Enable Independent Financial Life Planners is a trading style of Enable Independent Limited is authorised and regulated by the Financial Conduct Authority.
It is important always to seek independent financial advice before making any decision regarding your finances. If you would like any assistance, please contact us.
NOTHING CONTAINED IN THE ARTICLES SHOULD BE CONSIDERED AS GIVING INDIVIDUAL FINANCIAL ADVICE 

Deadlines to apply for maintenance loans

If you have a child heading off to University this Autumn it’s time to make sure all the paper work for loans is completed. To make sure the student loan is in place for the start of the autumn term, students resident in England need to apply by 31 May 2014. In Scotland, prospective students have until 30 June. For Welsh students, it's 16 May. There's no real deadline for Northern Irish students, but you must have applied by nine months from the start of your course.

 If you miss the deadline doesn't mean you can no longer apply for a loan, it just means the cash might not arrive until a few weeks into term. Which can make things pretty tricky for the young person and might mean the bank of mum and dad may be called in again albeit for a shorter term loan.

Remember under £42,620 income households' students get maintenance grants and in 2014/15 full-time students with residual income under £25,000 get a grant of £3,387. Because it's a grant, not a loan, it never needs repaying (unless you leave your course early, when you may be asked to pay it back).  If you're entitled to a full grant the maximum loan you'll be entitled to is reduced though by less than the amount of the grant. So at £25,000 income or less, in 2014/15, a student living away from home (outside London) would get a grant of £3,387 and a maximum loan of £2,725 (not the full £5,555).  Enable’s Independent Financial Advisors in Bishop’s Stortford are here to help you support your young people.

Issued by: Enable Independent Financial Life Planners
25c North Street, Bishops Stortford, Herts CM23 2LD
Telephone: 01279 755950 - Fax: 01279 657339
Enable Independent Financial Life Planners is a trading style of Enable Independent Limited is authorised and regulated by the Financial Conduct Authority.
It is important always to seek independent financial advice before making any decision regarding your finances. If you would like any assistance, please contact us.
NOTHING CONTAINED IN THE ARTICLES SHOULD BE CONSIDERED AS GIVING INDIVIDUAL FINANCIAL ADVICE

Considerations for your portfolio

Another important term to understand in investing is asset allocation, some say it is like dressing for all weathers. Whatever lies ahead – inflation, deflation, market crashes and bursting bubbles – you have spread your investments wide enough to cope with whatever is thrown at them. Many people split their portfolios between the five main asset classes:

Cash e.g. bank account savings
Bonds e.g. government or corporate loans
Equities e.g. shares in companies
Property e.g. residential or commercial
Commodities e.g. gold, oil, wheat and the like

Many commentators describe asset allocation as the most important investment decision you’ll make. Your mix of assets heavily influences the level of risk and reward you can expect, and how your portfolio will react in different market conditions.

Another really useful tool for the management of your investments or portfolio is what financial managers tend to call rebalancing.  Imagine a portfolio that starts off having a split of 50:50 between equity and bonds. In the course of a year it is possible that your equity investments rises by 10% and your bonds could fall by 10%. Your portfolio would now be  55% equity and 45% bond, it that trend continued over an number of years without any rebalancing, your portfolio could become far more equity-biased than originally intended, and so more exposed to risk that you had not planned for .

An annual meeting with your independent Financial advisor is a good way of making sure you have checked in on your portfolio and rebalanced your investment resetting your portfolio’s asset allocation to maintain your acceptable exposure to risk. Occasionally you might want to sell some of the outperforming assets and spend the cash liberated on buying more of the underperforming ones, or investing in ISAs to maximise your tax allowances. Enables IFA’s can help you choose your asset allocation and rebalance.

Issued by: Enable Independent Financial Life Planners
25c North Street, Bishops Stortford, Herts CM23 2LD
Telephone: 01279 755950 - Fax: 01279 657339
Enable Independent Financial Life Planners is a trading style of Enable Independent Limited is authorised and regulated by the Financial Conduct Authority.
It is important always to seek independent financial advice before making any decision regarding your finances. If you would like any assistance, please contact us.
NOTHING CONTAINED IN THE ARTICLES SHOULD BE CONSIDERED AS GIVING INDIVIDUAL FINANCIAL ADVICE

The reality of Buy to Let for your pension

There has been much talk of how with access to their pension pots people turning 55 are going to cash in their pensions and buy into property forever changing the housing market.  But it really is time to bring that idea into perspective. 

Many like managing director of Mortgages at CHL, Bob Young says the impact on the property market has been “completely overblown”. “If you are 60 years old with a relatively small pot, (the average UK pension pot is £30 000) then are you really going to gamble it by buying a property?” he says.

Clearly the tax implications make withdrawing large amounts unattractive to most people. For example, if we took a 55-year-old earning £50,000 a year with a £200,000 pension pot they would be able to access £50,000 tax-free. Then from next April, they could access the rest but would need to pay 40 per cent income tax. If they withdrew £150,000 in one blow, their annual income would be £200,000 and liable for the top rate of tax.  It would cost £65,000 in income tax on their pension fund and they would only be left with £85,000.

 “When you step back and work through the tax implications, then why would you do it?” says Young. “If you buy a property at £150,000 then you need at least a £30,000 deposit and you are beginning to pay 25 per cent tax on it. It is simply not logical for most people.”  The tax implications for most simply do not add up if you want to discuss options for your pension our experienced Independent Financial Advisors at Enable of Bishop’s Stortford are here to help.

Issued by: Enable Independent Financial Life Planners
25c North Street, Bishops Stortford, Herts CM23 2LD
Telephone: 01279 755950 - Fax: 01279 657339
Enable Independent Financial Life Planners is a trading style of Enable Independent Limited is authorised and regulated by the Financial Conduct Authority.
It is important always to seek independent financial advice before making any decision regarding your finances. If you would like any assistance, please contact us.
NOTHING CONTAINED IN THE ARTICLES SHOULD BE CONSIDERED AS GIVING INDIVIDUAL FINANCIAL ADVICE

New rules for the UK mortgage market..

Mortgages in the UK have been big news again with the implementation of MMR recently. The MMR was born out of the economic downturn and will effectively cement the more conservative lending environment we have seen in the UK since the end of 2008 more permanently into the market.

The mortgage market will now be overseen by the Prudential Regulation Authority and Financial Conduct Authority with more proactive regulation in stark contrast to the soft-touch regime of the FSA in the run-up to the financial crisis.

So what does it mean?

Although the UK mortgage market worked well for the vast majority of consumers, following the 2007 crisis and the demise of Northern Rock the FSA acknowledged that the regulatory framework needed to be reformed, particularly with regard to risky lending and borrowing.  In 2009 the FSA began a radical overhaul of the mortgage market commencing with discussion paper 09/03, issued in October. This was the first of a series of papers entitled the Mortgage Market Review. The discussion paper outlined the FSA’s concerns regarding the UK mortgage market and invited a debate on proposed reforms.  The review had at its core two main aims: A mortgage market that is sustainable for all participants and a flexible market that works better for consumers

The jury may still be out on whether or not the MMR will really make things better not worse for consumers, particularly for the every expanding group of mortgage consumers who are self-employed. But if you are wanting to talk through the implications for your mortgage application Enable's IFA’s are here to talk things through.

Issued by: Enable Independent Financial Life Planners
25c North Street, Bishops Stortford, Herts CM23 2LD
Telephone: 01279 755950 - Fax: 01279 657339
Enable Independent Financial Life Planners is a trading style of Enable Independent Limited is authorised and regulated by the Financial Conduct Authority.
It is important always to seek independent financial advice before making any decision regarding your finances. If you would like any assistance, please contact us.
NOTHING CONTAINED IN THE ARTICLES SHOULD BE CONSIDERED AS GIVING INDIVIDUAL FINANCIAL ADVICE