LANDLORDS GIVEN POLICING FUNCTION

From this year landlords are required by the new Immigration Act to verify their tenants’ nationality and to establish whether they are legally allowed to be in the country, before renting a property to them. While landlords can pass this duty on to a rental agent (subject to a written agreement, of course), it does mean yet another burden for landlords. Some property is exempt, including social housing, student and tourist accommodation, but most privately rented accommodation will be impacted by this. Those who do not comply can face a fine of up to £3000!

MORTGAGES – TIMES ARE CHANGING

The mortgage market is still struggling to adapt to the new MMR (Mortgage Market Review) requirements. There is a much more detailed focus on affordability which has, in our experience, made quite a dramatic difference for those who need to push the boundaries such as borrowing past age 65 or needing to stretch their income as far as possible. We have also seen that virtually any past or present credit difficulty makes it very difficult to obtain borrowing from High Street lenders. There are still possible lending solutions for all of these hurdles but be prepared for the process to take longer and be more difficult than before.

Having said all of that, it is a very good time to move to a fixed interest rate for 3 to 5 years in order to avoid the effects of the coming rate rises. With the average Standard Variable Rate averaging about 4.4%, and 5 year fixed rates available for 1% or more below that, a re-mortgage could allow you to both reduce your outgoings now and avoid the nasty upward movements in interest rates that will almost inevitably start in 2015. We would be happy to make enquiries to see what could be available for you.

INVESTMENT BASICS

When considering investing here are some proven successful tips:

1. Diversify. Don’t put all of your eggs in one basket.

2. Invest for the longer term where possible (5 years plus).

3. Keep track of your investments and don’t be shy about taking a profit.

4. Never buy what you don’t understand.

5. Take your own decisions – don’t follow the herd.

6. Review your investments regularly (at least once or twice a year).

LOW RISK INVESTMENTS

Savings in cash are safe but they are also giving a very low return – 2% to 3% maximum.

This is tempting us to look for better returns. To cater for those with a low risk requirement investment providers are bringing out some investments with guarantees that protect your capital or protect the income.

The guarantees do come at a cost but it does mean that you can seek a better return without risking large parts of your savings. Do contact us if you would like more information on these options.