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Troon Kilmarnock Irvine Galston 8 Academy Street Bank Chambers, 42 Bank Street Galt House, 78 East Road 18 Wallace Street Troon, KA10 6HS Kilmarnock, KA1 1HA Irvine, KA12 0AA Galston Tel: 01292 313737 Tel: 01563 533121 Tel: 01294 274097 Tel: 01563 82-216 Fax: 01292 317856 Fax: 01563 570840 Fax: 01294 279692 Fax: 01563 822188 troon@mcsherryhalliday.co.uk kilmarnock@mcsherryhalliday.co.uk Irvine@mcsherryhalliday.co.uk rural@daleandmarshall.co.uk
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Newsletter – MAY 2010 |
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McSHERRY HALLIDAY DALE and MARSHALL is authorised and regulated by the Financial Services Authority. FSA Registration number 113475. The guidance and/or advice contained within this website is subject to the UK regularatory regime and is, therefore, primarily targeted at customers in the UK. Taxation and Trusts are not regulated by the Financial Services Authority. |
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Mortgage Product of the Month
This month there have been a number of changes to the intermediary mortgage market. Of note is the welcome return of the Guarantor Mortgage. The Mortgage Works (owned by the Nationwide Building Society) launched a suite of Guarantor Mortgages across the loan to value tiers from 75% to 85% with a choice between “ full liability “ and “limited liability”.
The Mortgage product of the month is the 3 Year Fixed Rate at an 85% loan to value which has a rate of 6.09%.
The mortgage is open to all those looking to purchase a home (with the required Guarantor) and comes with an extremely competitive £99 arrangement fee.
The above product falls under the “full liability” range whereby, the Guarantor must be able to afford the whole mortgage in addition to their existing commitments.
The equivalent at “limited liability” is priced at 6.59% and the applicant must be able to afford 70% of the loan with the Guarantor supporting the shortfall. (The maximum would be 30% plus 10%)
Whilst this mortgage range will not be suitable to all prospective purchasers and is some way off the lowest priced 85% mortgage at the moment, it remains available only through the intermediary network and may allow more first time buyers a helping hand on to the property ladder.
In general, there have been a significant number of changes to the mortgage market with fixed rate products falling virtually across the board. Depending on your loan to value, it may be an ideal opportunity to compare the options available on a whole of market basis to deals currently on a lender’s Standard Variable Rate.
Historically the Standard Variable Rate is significantly higher than the whole of market options, however, the dramatic falls in the Bank of England base rate have enabled borrowers who have come to the end of a particular deal to stay with the existing lender and at no charge obtain a very competitive interest rate.
The only issue is that these rates are variable and are subject to change. For those individuals looking for security in their monthly mortgage payment, there are a number of fixed rates that may compare favourably depending on the future of the Bank of England base rate. |
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Please note the following risk warning, your home may be repossessed if you do not keep up repayments on your mortgage.
If you wish to review your existing mortgage arrangements or require further details of the Guarantor Mortgage range from The Mortgage Works please contact Alan Hewitt on 01563 533121 (option 3) or send an email enquiry to ah@mcsherryhalliday.co.uk for an independent assessment and recommendation.
Property Update
Despite optimism that the Registers show an increase in the number of new properties registered throughout Ayrshire this is a small percentage and in East Ayrshire the average price change from this time last year sits at -4.6%, North Ayrshire 0.5% and South Ayrshire 0.1%. It remains to be seen whether these increased sales will result in an upturn in values and I suspect this will only happen when Banks and Building Societies lend sensibly and freely to first time buyers which they are not doing at present.
New house builds appear to be on the increase and a new consumer code for home builders has been introduced with effect from 1st April where all new home builders will require to make a code which ensures that home buyers are treated fairly, know what service levels to expect, are given reliable information on which to make their decisions and know how to access speedily low cost dispute resolution arrangements if they are dissatisfied. For more information on this visit www.newhomesconsumercode.com
Estate Planning
Our firm has seen an increase in the number of clients granting continuing Powers of Attorney in favour of their family to avoid the expensive and slow process of Guardianship or Intervention Orders where they may be incapable of handling their own affairs. These can be both financial and/or welfare. For more detailed information visit www.publicguardian-scotland.gov.uk
Legal succession rights are now granted to cohabitants and are contained in the Family (Scotland) Act 2006. These are complex and require to be considered by cohabiting partners but essentially are no substitute for making a Will. With an aging population, an increased value in capital and issues of nursing care careful planning and constant revision of your estate is essential. |