By admin Comment • Mortgages • Updates 0 Comments

Market Leading Buy to Let Rates

101: Things we DO like to talk about. 

Buy to Lets. 

The Buy to let market can be a little intimidating, not many people know all that much about it, but in the currently depressed housing market a buy to let can be picked up quite cheaply.

With first time buyers finding it difficult to get on the mortgage ladder and buy their first home there is an ever increasing need for rented housing.

Locally in Newark and Nottingham there is very strong demand for rental properties in and around employment centres, with strong rents from incoming migrant workers unable to get on the mortgage ladder, with little or no deposit.

Buy to Let mortgages come in two basic flavours:

The first is the more difficult to get hold of, where the lender basis the loan not on the property but on the person borrowing. These are not the mainstream of buy to lets, but are often the best deals.

The much more common is the standard buy to let mortgage, where the mortgage is based on the properties ability to wash its own face, or rather that the rental is sufficient to pay the mortgage plus a small amount. Usually the calculation used by the lenders is 125%, in other words the rental assed by the valuer must be at least 125% of the mortgage payment based on a an interest only loan.

After this basic criteria there really is not much more to it, there are nuances for each lender, for example, some lenders will not accept any applications from first time landlords, whereas others have special deals for such. The Maximum number of properties available under one particular lender can vary widely with some lenders only allowing 3 properties to some allowing any number up to a total value of £3,000,000 or more.

There are a few other things to consider, usually buy to lets are not regulated buy the Financial Services Authority unless special conditions apply, such as the property will be let to a relative, and therefore some lenders will not consider this type of buy to let. However, in most circumstances this should not affect the manor of the advice you receive.

Currently the Market leading 2 year buy to let mortgage is 3.39% fixed until 31.08.2014 with a maximum Loan to Value of 60%. Which has been launched today, by one of the mainstream buy to let lenders.

Usually the maximum loan to value is 75%, meaning that the lenders usually expect you to be able to deposit at least 25%. However, there are executions to most rules and this is no different, some lenders do offer some schemes with an 80% Loan to value maximum.

Beware of the fees: Buy to lets tend to be slightly more expensive than standard mortgages, recently the interest rates for buy to lets have been running at what appear to be quite low interest rates but beware the fees on buy to lets can be high with some lenders charging percentage based fees.

Most lenders do not expect you to instruct an agent to run the property, just an Assured Short-hold Tenancy agreement with the tenant, which can be downloaded from the net or picked up from your local WHSmiths. This is a very standard landlord and tenant agreement protecting both of you.

There is also the possibility of Let to Buy, this is where you let out your existing property to enable you to purchase a new home as your main residence. Most buy to let lenders have special criteria and deals available for this type of buy to let. The big benefit of this type of arrangement is the ability to brake the chain and not have to sell off your property, given the current market this is a very viable option for most people to consider.

If you would like more information on Buy to Lets, Let to Buy’s, the 2 year deal mentioned above or other financial or mortgage advice, please contact us on 01636 870 069 for your free consultation.

Philip Dales Cert PFS Certs CII (MP & ER)
www.pndales.co.uk

DALES Independent Financial Advisors, are a whole of market mortgage broker and independent financial advisors. Authorised and Regulated by the Financial Services Authority.  The Financial Services authority do not usually regulate Buy to Let mortgages.

By admin Comment • Life Insurance • Uncategorised • Updates 0 Comments

THE END OF CHEAPER LIFE COVER FOR WOMEN – You and The EU Gender Directive!

THE EU GENDER DIRECTIVE  

What
every woman ought to know…..
All
men and women are created equal, but some have been more equal than others.
The gender directive is meant to address
this and it does!
However, do we all want what is fair and
what we may have campaigned for, what have we done?
In our pursuit of equality have we got more
than we bargained for?
Statistically women live longer than men, therefore life and protection premiums cost us less than men!
We want to be equal so after the 21st Dec 2012 we will be.
Obviously in the interests of fairness and the politically correct times that we live in, us ladies will have to pay
the same as our men, gone will be the reduction that women have previously
enjoyed their life insurance and protection premiums will be the same.
Life premiums for women could rise as much
as 15%, what does this matter, because 59% of WOMEN don’t even have any life
insurance!
This is a bit silly of us, ladies, he deserves life insurance and income
protection why don’t we? Society dictates that she can and should earn as
much as him, be the domestic goddess, nurture the children and strive to be as
successful as any man, in fact 40% of women are the main earner*, her life and
salary really is as important as his. 
ITS
TIME TO ACT LADIES, BEFORE THE 21ST DECEMBER 2012 WHEN THE
GENDER DIRECTIVE COMES INTO FORCE, THE CLOCK IS TICKING ON ONE OF THE FRINGE
BENEFITS OF BEING FEMALE.
Nikki
Dales
(Non
Advising Director)
  
Sources: National Statistics Online, March 2012, HM Treasury, DEC 2011,  Opinium research for Bright Grey,
Jan 2011
For more information or advice on Life Cover, Life Insurance – Life assurance and income protection contact DALES Independent Financial Advisers: at Advice@pndales.co.uk, or go to our web site www.pndales.co.uk. Telephone: Nottingham office: 0115 832 0265 or Newark Office: 01636 87 00 69

DALES Independent Financial Advisers, Nottingham & Newark. Authorised and regulated by the Financial Services Authority: 496107.

By admin Comment • Investment 0 Comments

Things we don’t want to talk about 101 – Savings Plans


Thinks we don’t want to talk about 101 – Savings Plans

I had an interesting conversation yesterday with an unhappy Saver, not mine I hasten to add.

The gent in question had been saving regularly for 15 years. He was justifiably upset that after 15 years he was about to get less back at maturity than he had put into his savings plan over the whole term. It raises two questions:

  1. Our understanding of the risks we are taking
  2. The purpose of savings
  3. What if you had not started the plan in the first place?

I know that’s 3, but I’ve always been a fan of the Spanish Inquisition

Dealing with each point in turn.

1. What did you understand of the risks when you took out the plan? Did you expect any risks, did you understand the relationship between risk and reward.

Most of us take risks everyday and most are calculated risks based on our experiences. Usually we know, that generally the higher the risk the greater potential for reward but also at the same time we know the greater danger of failure or loss. We learn this as children whether it be stealing sweets from the pantry or showing off a new trick on your bike, before you’ve really nailed it.

2. The purpose of savings.

I know this sounds like a silly question, but I’m not sure if we really take much time to think about it when we set out to save. I wonder if sometimes we save just because we know we should. I think at present there are a lot of people saving because the media keeps telling us we’re all in trouble now, and that its all our fault for not saving enough.

3. Where would we have been if we didn’t save?

Now this requires a little latitude: forget for a minute that the Savings plan gave us less than we had put in, we’ll come back to it later.

If Mr A had not started two £25 pm savings plans, 15 years ago, would he now have £8,000? In my experience the simple answer is NO, and a resounding no at that. Therefore, from this sense it could be suggested that the savings plan has worked. Indeed if Mr A had placed £25 each into a Mr & Mrs A’s bank account each month would they have more? Theoretically yes, but this assumes he continues to pay the same money each month, and that he bit his lip every time he thought about how much it was worth, and every time he walked into a shop and saw a new shiny thing or needed a new car etc. etc.

The thing is Saving Plans have a place; they are fire and forget you start them well within your means, and they run for a specified time. You get a statement once a year, which you soon forget because to start with they are going to be worth very little. Then all of a sudden the years tick by and “Thump” a cheque lands on your door step. “Here is that money you forgot about”.

You see, the thing is, you don’t start saving because you can’t afford to and if you don’t start saving you don’t have any savings.

When you start to think about it most of us, yes I really mean most of us, can afford £25pm. Even those with low incomes will soon grow accustomed to £25 less each month. £25 soon disappears, its less than the average take out, or a few drinks on a Friday at the village pub.

One last thought:

Savings Plans don’t have to be endowments, or have life cover within them; they can be tax efficient savings such as ISA’s. However, think about this: If your goal is to have some money to help your children out when they need to buy their own place or maybe get married, or even getting political, pay off their student debts. What happens if you die half way along?

The old style savings plan, the terrible much maligned endowments of the last millennium made sure the money was there whether you reached maturity or not.

The unscrupulous mis-sold them, manipulating the rules, growth rates and such, earning big money but there are many people out there that did very well from them.

Notwithstanding this: The message is clear, start saving, small amounts soon rack up, and 15 years is not that far away.

The only thing we spend but can never get back is TIME!


Philip Dales Cert PFS
Director.

For more information or advice on Savings Plans, ISA’s and other investments contact Philip Dales at DALES Independent Financial Advisers: Advice@pndales.co.uk, or go to our web site www.pndales.co.uk. Nottingham office: 0115 832 0265 or Newark Office: 01636 87 00 69

DALES Independent Financial Advisers, Nottingham & Newark. Authorised and regulated by the Financial Services Authority: 496107.
By admin Mortgages • Uncategorised • Updates 0 Comments

MORTGAGE BEST BUYS, 2 year deals


Mortgage Best Buys – 11th May 2011

Current 2 year best buys, based on a 65% Loan To Value.

FIXED RATES

TMW (The Mortgage Works) – 2.75% fixed until 31/07/13 – total fees of £1,036 (in valuation)

Woolwich – 3.08% with a 20 month Fixed rate – total fees of £948.93

L&G – Leeds Building Soc with a 4.69% fixed until 31/05/2013 – total fees of £559 (inc valuation)

Newcastle Building Soc with a 4.64% fixed until 30/06/2013, but the fees increase to £1,350 (inc valuation)

Trackers

Coventry -2.29% – bank base +1.79% for 25 months – total fees of £1,012

Nationwide – 2.75% – Bank Base +2.25% for 5 years fees are very low at £124

These are just best buys, they are only shown as an example of the type of rates available, you should always seek advice when buying a mortgage. As Independent Financial Advisers, we are able to select and advise from the Whole of the Market.

The loans above are based on a 65% loan to value on a house costing £250,000.

You may not fit the criteria of the above lenders.

For Further information, or advice

Contact:
email: advice@pndales.co.uk
phone: 01636 642 844 or 0115 832 0265.

PNDALES LTD are authorised and regulated by the Financial services authority. You home may be at risk if you fail to keep up payments on any loan secured against it. PNDALES Ltd a typical fee for mortgage advice is £350, the precise amount will depend upon your circumstances

By admin Comment • Protection • Uncategorised • • 0 Comments

Things we don’t want to talk about 101 – Funeral Plan Advice


Things we don’t want to talk about: 101 – Funeral Plan Advice
A client of Dales Independent Financial Advisers recently asked for some advice on a funeral plan. It made me think about my own experience a few years ago on the death of my Farther in Law, what is available, what are the benefits and who needs to consider such a plan.
First things first: just how much does it cost to die in the UK these days?

On average it costs anywhere between £2500–£5000, depending upon either, where you live or how basic the funeral is. From my personal experience, for the most basic funeral in the south of England with no wake, no trimmings and no limousine it cost us around £5000, two years ago. In the Midlands, i.e. Newark or Nottingham for the same funeral you may expect to pay around £2500. Adding a limousine, a small room for the wake, and you would expect to pay closer to the £5000 mark.
Who pays for the funeral?
In the first instance the deceased estate is responsible for the cost. The cost of the funeral, is the first call on the estate (this means that before anyone else can get their inheritance or costs, the funeral director gets they’re money), however probate will still need to be granted to make the payment. Therefore, as probate can take some time the next of kin will be expected to make payment to the funeral director before probate has been granted.
If the deceased has insufficient resources to pay for the funeral from the estate, it is the responsibility of the next of kin to pay for the funeral.
Can you get any help with funeral costs?
The simple answer is, if you have any money probably not. Similarly, if the estate of the deceased has any money no probably not either.
However, if you have no savings, and are claiming income support or similar benefits you may be able to claim some help as an interim payment for the funeral, until the estate’s funds are released, if the estate has sufficient money you will have to pay the council back once probate is granted.
The only situation where the local council would be expected to pay the full costs of the funeral is where the deceased has no next of kin, with sufficient funds, and no assets, or personal belongings that may be sold to cover the costs of the funeral.
It is important to point out that if the next of kin have sufficient funds to cover the cost of the funeral, then the council will not be liable for the funeral, you will have to pay, even if the estate has insufficient funds to reimburse you.
In my mind this means that most people will have to pay for their own funeral, or their next of kin will be expected to. With this in mind many people over 50 start to consider the issue.
Covering the cost of the funeral
There are a number of ways to consider how one pays for your own funeral: You could leave sufficient funds in a savings account. The main disadvantage is that the funds will not be accessible by your family until after probate has been granted. Consider for a moment whether or not, your son or daughter may have as much as £5,000 in a savings account to cover the cost until the estate is released.
Some people consider life insurance (assurance), this can be an inefficient method, as a lump sum is insured not the cost of the funeral, as we discuss later the cost of funerals keeps increasing, therefore the lump sum may not cover the cost in the future.
Notwithstanding that – if you do use this method please take advice on placing the policy in trust, otherwise you may not have alleviated the issue of access to the funds on death.
The other method and probably the best is a pre paid funeral plan.

Funeral plans: how do they work and why should I get one?
Most funeral plans are a way of pre-paying for your funeral, with some you can select various options e.g. you could elect to cover limousine high. Most cover the cost of a cremation, but again you could elect to cover the cost of burial. The basic premiss is that they guarantee to cover the cost of the funeral. This makes a lot of financial sense, the price of a funeral has gone up considerably over the years, between 2004 and 2009, the rate of increase has been higher than inflation or savings account interest at 7.32% per year. (source|: Mintel). Usually the money you have paid is held in trust for you, this puts the value of the plan outside of your estate, so there is no Inheritance tax issues or indeed probate requirements. Therefore, your nearest and dearest can access the funds straightaway.
Funeral Plans: Where Can I Get One?
There a number of suppliers available, some may have restrictions on what funeral director you can use and some may have limited guarantees or options, the point is that it is important to get the plan that best suits your needs.
Traditionally these plans are something one buys without any real advice, most people who buy one go through a local funeral director, and are not aware that you can get independent advice on which funeral plan is best for you.
Dales Independent Financial Advisers can help you chose the right funeral plan for your circumstances. Although the sale of funeral plans are not regulated by the Financial Services Authority, they have issued guidance on funeral plans. We use this guidance, consider your circumstance and requirements, then review the market and find the plan best suited to your situation.
For more advice on Funeral Plans contact Philip Dales Cert PFS Cert CII MP at Dales Independent Financial Advisers: advice@pndales.co.uk. We have offices in both Nottingham and Newark, and would be happy to discuss your situation in more detail.
Call us today to discuss your requirements. Nottingham: 0115 832 0265 or Newark: 01636 87 00 69 or email advice@pndales.co.uk or look at our website www.dalesindependentfinancialadvice.co.uk
The Financial Services Authority do not regulate Funeral Plan advice.