It has been commonplace over the last three years for existing borrowers to see to the end their benefit period and ride on the crest of a wave onto the lenders standard variable rate (SVR) and then plunge to the exciting depths of the lower resulting rate all too simply. Gone were the days of those shark (banks) infested waters; circling you as you bobbed up and down on an SVR higher than the rate you have just reverted from, enticing you into a new deal. The credit card like remortgage ethos effectively stalled overnight.

However, it seems in the last month that those same sharks may start to circle once more. It has been announced in the last few weeks that Britain’s taxpayer-backed banks are set to increase their SVR, raising the cost of over 1 million customers, regardless of the record low Bank of England Base rate of 0.5% remaining unchanged.

Halifax for example raised their SVR from 3.5% to 3.99% from the 1^st of May. For those with a £150,000 interest only mortgage will see their monthly payments rise from £437.50 to £498.75, a total of £735.00 per annum increase. In turn lenders point the finger at the rising cost of borrowing in the wholesale markets as to the reason for the current increases.

So are other lenders likely to follow? It’s difficult to say, but it would not be surprising to see small increases taking place in the forthcoming months. There are over 5 million borrows currently on SVR and many of these should perhaps start to consider their options.

Remortgage? Some lenders will offer some ‘switch and fix’ type deals to its existing customers to keep the business, others however will make what they can from their increased SVR and will then reluctantly see you leave, but not without having taken their ‘admin fee’ charge to round things off.

So it seems there may be a return of the murky remortgage waters once again, as borrows seek shelter from the incremental SVR hikes. We here at Omnis Financial Solutions would welcome the opportunity to guide you and help you dodge the sharks to find the right deal for your circumstances and peace of mind.

Should you wish to talk to one of our advisers about your current mortgage requirements or any other aspect of your finances, then please call on 0117 9568267.

Sadly there have been some noticeable passing aways already in 2012, however perhaps one that seems to have slipped through quietly without the press coverage is the change in stance from high street lenders towards interest only mortgages currently taking place on the high street.

So what are the changes?

Many of the current high street lenders are repositioning their criteria with a number restricting their loan to value to 50% when looking at mortgages set up on an interest only basis. What’s more the criteria around what can be used as an ‘acceptable repayment vehicle’ has tightened up significantly with lenders imposing stricter requirements around what may be used. Santander were the first to make the move in making these changes with many others following suit including the Coventry Building Society and Nationwide building society.

Why are lenders making these changes?

The FSA have been conducting the Mortgage Market review and have put together a proposed package of reforms. Within this review they have identified interest only mortgages as an area of concern. Some of the key areas relate to customers using interest only method for affordability reasons as well as borrowing with no specified repayment strategy. Lenders have looked to move to address the issues raised in this latest paper in advance.

So how does this affect me you may ask?

If you currently have a repayment mortgage its business as usual. For those of you who have structured your borrowing on an interest only basis or are looking to do so in the future these changes may have a big impact on your options when purchasing a new property or remortgaging. If you are looking to port your mortgage to a new property lenders have issued slightly more flexible criteria however you may still find yourself in a position where you are forced to switch to a repayment basis or in the worst case scenario be unable to make the move.

So have we seen the last of interest only? In short no, although do keep in mind that you will find an ever changing marketplace moving forward. Many lenders are still sitting back waiting to see what there competitors are doing before making any decisions and interest only borrowing can still be obtained provided you meet the lender in questions new criteria.

Should you wish to talk to one of our advisers about your current mortgage requirements or any other aspect of your finances, then please call on 0117 9568267.

The Chancellor, George Osborne today delivered his budget to the House of Commons. There were few surprises involved and below are some of the key points that may affect you and the housing market in general:

• New rate of stamp duty levied at 7% for homes valued at £2m and over from midnight tonight.
• Homes valued at £2m and over, purchased via a company, will face stamp duty of 15%.
• Extra funding has been made available to construction firms building new homes.

It’s also worth noting that from the 24^th of March the first time buyer stamp duty exemption will be removed.

Should you wish to talk to one of our advisers about your current mortgage requirements or any other aspect of your finances, then please call on 0117 9568267.

Here at Omnis we are constantly looking to improve on the service we deliver and go to great lengths to ensure we understand how you feel about doing business with us.  In the first three years of trading we are very proud of the feedback we have received which demonstrates that our clients are ‘very satisfied’ with us.  So for anyone who is considering asking us to assist with their financial matters in 2012 we thought you might be interested in the feedback we received in 2011!

William Roache – MBE -“Omnis delivered an extremely efficient and helpful service and at the same time a bespoke, highly tailored solution”

Graeme Storm – Professional Golfer -“Omnis were able to provide a market leading product and worked hard to minimise the disruption to my busy professional schedule”

In our post completion survey 85% of clients stated they were “very satisfied” with our overall service with the remaining 15% “satisfied”

Here is a selection of commentary received when our clients were asked for their comments:

“A tremendous job done via a steady reassuring relationship; neither too pushy nor too casual.  Promises delivered!”

“Thank you for your help & insight in dealing with our remortgage, it was greatly appreciated. Professional yet friendly and completely competent”

We receive many client referrals from fellow business owners and when asked how they felt about introducing their valued clients to Omnis they replied.

Champions UK PLC – “Omnis have delivered a bespoke and tailored solution for a number of our valued clients.  They have always operated in a professional and confidential manner which is extremely important to Champions UK PLC”

The Watermark Club – “We at Watermark  have always found David Townsend from Omnis Financial Solutions to be very helpful and he has always given sound advice to our clients.  One of our lodge owners (who works for a major financial institution) has even commented that David has managed to find them a better deal on their mortgage than any of their work colleagues.  Nothing is too much trouble for him and he will always work around our clients busy lifestyles”

So if you feel now is a good time to review your financial protection or you would like to discuss a new or existing residential or commercial mortgage please give us a call.  Your business is greatly appreciated and hopefully the above demonstrates that we are the right business to look after you.

For a free consultation please contact us on 0117 9675 052 or enquiries@omnisfs.com

We will be making an appearance at the Listed Property Show taking place at the London Olympia on the 18-19^th Feb.

We will be there to answer any questions you have surrounding financing properties of this type along side many other specialists from architects, craftsmen and planners. Should you have any questions on legislation, conservation or regulation you will have the opportunity to talk these through one-to-one with working conservation officers.

For more information about the show please visit: www.lpoc.co.uk

Should you wish to take advantage of complimentary tickets to the event then please e-mail us at enquiries@omnisfs.com or call on 0117 9568267.

We hope that you all had a great Christmas and New Year and it’s that time of the year where gym memberships take a sharp rise upwards and we give our take on the forth coming year ahead. So what will 2012 hold for the UK property and mortgage market?

House prices finished the year, surprisingly, slightly up with the average UK home now costing £165,798 a rise of 1.6%*. Whilst demand for homes still remains relatively subdued, highlighted by the fact that housing transactions are still way below their long term average, it seems that the resilience seen in UK house prices may be underpinned by the current lack of supply as well as the current low interest rate environment limiting the number of forced sales. So where do house prices go next? Well with the UK economy still struggling to get going it looks as though house prices will once again stay stagnant over the forthcoming year.

We may sound like a stuck record when it comes to interest rates as again they start 2012 as they did the start of 2011 at a low of 0.5%. So where do they go next? Well it seems the general consensus from most economists is that with the UK economy still looking sluggish we may see the bank base rate hold over the forth coming year with little change. Of course the situation in the Euro zone is still one to watch and should the Euro fail all bets on interest rate movements as well as most other economic indicators are off.

So what about mortgage rates? Well those sat on base rate trackers are still reaping the benefits of the low period of interest rates and it looks as though will remain to do so though out 2012. The cost of fixed rate funds to the consumer during 2011 dropped considerably however the underlying cost of funds to the banks has started to rise over the last few months as the uncertainly around the Euro Zone continues. This may have an impact on the cost of fixed rate funds moving forward however currently they still remain extremely competitive.

Should you wish to talk to one of our advisers about your current mortgage requirements or any other aspect of your finances, then please call on 0117 9568267.

Have a happy and prosperous 2012.

*Source: Nationwide House price index.

Guard-i-an

noun

1.  a person who guards, protects or preserves.
2.  Law. a person who is entrusted by law with the care of the person or property, or both, of another, as a minor or someone legally incapable of managing his or her own affairs.

It’s quite understandable that most parents would prefer not to think about what would happen to their children in the event that one or both of them died, but sadly, it is a possibility. Its not a pleasant statistic but 24,000 children are bereaved of a parent each year in Britain*. Many people assume that if one parent was to die then the surviving parent would automatically obtain legal parental responsibility but what if the parents aren’t married? Mothers have legal responsibility from birth however this is not always the case for fathers.

Let’s take for example a father who was not married to his child’s mother at the time of or after birth. Even though his name my be registered on the birth certificate, if that certificate was registered prior to 1^st December 2003 and he has not set up a parental responsibility agreement with the mother or obtained an order from the court he may well find he does not have parental responsibility for his own child.

So what about those who are married surely this does not apply to them? Well in the event of something happening to both parties appointing a parental guardian becomes the responsibility of the court. This often can be a lengthy and expensive process and what’s more, during this time the children concerned may be taken into care. After a final decision has been made you may find they have been left with someone you may not have chosen yourself.

So how can you make sure that your children are looked after in the event of the worst case scenario? Well one of the simplest ways is to include the appointment in a will. The Children Act 1989 sets out various different ways that guardians can be appointed, to find out more visit:

http://www.legislation.gov.uk/ukpga/1989/41/contents

Should you wish to discuss your circumstances in more detail with one of our advisers then call Omnis Financial Solutions on 0117 9568267.

*Source: www.winstonswish.org.uk, July 2011

When it comes to trying to put a value on a parent it is very much like your child telling you just how much they love you – there’s just no amount big enough.

It’s impossible to put a cash value on a parent; however L&G have looked to put a value on parenting with their ‘Value of a Parent’ research. Their 2011 survey estimates that you would need on average £30,032 per year to replace a Mum and £21,306 per year to replace a Dad in order to fulfil the unpaid work done in the home. These figures were calculated using the number of hours spent on household chores and childcare which is then, multiplied by the average hourly rates for equivalent job roles, as supplied by the Office of National Statistics Data.

Most people recognise the costs of bringing up a child in today’s world and are aware of the impact that losing an income would have on the household. Therefore you would assume that most families have protected themselves against this? Sadly not. L&G’s survey indicated that only roughly half (53%) of UK parents had any form of life insurance in place. More worrying is that a similar survey undertaken by Aviva showed that 91% of parents stated they understood the need for life insurance. So why the gap?

More often than not it comes down to ‘it won’t happen to me’ and hopefully it won’t, but think for a moment, what if it did?  Take a few moments to think what your family’s situation would now look like. Would your child be able to remain in the family home? Would they still have the things and upbringing you would like them to have?

These are often uncomfortable questions to ask yourself and perhaps one of the main reasons people choose to bury their heads in the sand when it comes to family protection. However, with some careful consideration and planning you can make sure your family and children are covered should the unthinkable happen.

Should you wish to discuss your circumstances in more detail with one of our advisers call Omnis Financial Solutions on 0117 9568267.

More and more people are turning to the great British outdoors for their holidays and the key buzz words this summer seem to be ‘staycations’ and ‘glamping’. I suspect your first thought may be ‘what on earth are you talking about?’ Well glamping has recently derived from the merger of the two words ‘glamorous’ and ‘camping’ and essentially means upmarket camping. For those of us perhaps not so well equipped to deal with the great outdoors and a little more accustomed to four walls and a roof then perhaps a look towards the new build second home market may be for you.

A recent report from Knight Frank shows that whilst the housing transactions in the UK’s mainstream market have remained sluggish since 2007, the number of second homes has continued to rise into 2010. The growth of this sector is due to a number of factors with the increase in ‘staycations’ being one of them. An increase in overseas visitors is tipped to result in an increase spend of 4.4% a year whilst spending by domestic tourists is expected to rise by 2.6% over the next decade.

The British coastline is a particular draw for many offering activities such as surfing.  The South West in particular accounted for more than one in five trips by UK holiday goers last year. Other areas such as the Cotswolds are attracting much interest especially from the capital. With its short commuting distance it offers a piece of ‘quintessential’ England with its limestone villages set in a rural background. With the option of a secure gated community and family based facilities, families are opting to ‘get away from it all’ in the Cotswolds at the weekend.

The demand for holiday lets last year remained strong following the large rise in 2009 which has made the prospect of a second home for many an attractive one. When not in use the option of renting the property and providing gross yields of 6-7.5% have proved attractive especially in this current low interest rate period.

So before you don your wellies and start packing the tent perhaps take a look at some of the second home sites on offer.

Should you wish to discuss your circumstances in more detail with one of our advisers call Omnis Financial Solutions on 0117 9568267

*Source: Knight Frank New build second home report 2011

This week we welcome a guest blog from Janine Edwards of St. James Place Wealth Management.

In these austere times, tax give-aways are pretty hard to find. In an otherwise gloomy picture for Britain’s taxpayers, your annual Individual Savings Account allowance is one bright spot – an increasingly valuable tax break and investment opportunity that should not be overlooked.

With this in mind, it is surprising to learn that, according to research by Fidelity in October last year, two-thirds of eligible UK adults are not currently making use of their ISA allowance and with it the chance to save free of any further liability to personal income tax and completely free from capital gains tax.

Alongside pensions, ISAs are the most tax-efficient way to save and invest for the future and should be a fundamental building block towards long-term financial wellbeing. Of course, the favourable treatment of ISAs may not be maintained and is subject to changes in legislation, but recent government announcements have hinted at its recognition of the important part ISAs can play in solving Britain’s savings crisis.

The annual ISA limit for this tax year is £10,680 – a level which is nearly 50% higher than the £7,200 limit of just three years ago. It was confirmed in October 2010 that the allowance is set to increase each year in line with inflation (measured by the Consumer Prices Index). 

This means a couple will be able to put away £21,360 this tax year with no further tax to pay on dividends or interest income and no capital gains tax liability at all. Put another way, assuming a realistic annual inflation figure of 3.5%, a 35 year old saving the full allowance each year until their 65^th birthday could invest over £532,000.

The important thing to remember about the tax reliefs that come with ISAs is that if you do not use them, you lose them. If you miss the end of tax year deadline, that’s it until next year.

Unlike a pension, there is no tax relief on the money invested into an ISA, but the tax advantages achieved over time are similar. The main difference is that ISAs are far more accessible – you can make withdrawals at any time and these may be taken regularly to provide an income; whereas with a personal pension you have to wait until you are 55 before you can get your hands on your savings.

When confirming the increased allowance, the government also announced plans to introduce a Junior ISA for children under the age of 18 to replace the now defunct Child Trust Funds. Whilst many commentators were concerned about the withdrawal of government funding that this change represented, the proposed introduction of the new scheme in the autumn is particularly timely given that the axe is also falling on further education spending. As the cost of tuition fees for a university education looks set to rise to as much as £27,000 for a three-year course (source: The Telegraph, 12 October 2010), the Junior ISA will provide parents and grandparents with a means to help children avoid starting their adult working life with a debt the size of a small mortgage.

All of this highlights the importance of making the most of your current valuable tax break. ISAs offer a tax-efficient and convenient gateway to the equity markets and also a useful short or medium term account for cash. You can invest a maximum of £5,340 in a cash ISA – half your annual allowance – but in this environment of ultra-low interest rates it is perhaps no surprise to learn that the average cash ISA rate is at its lowest level since their introduction in April 1999.

As a consequence of this and a greater degree of confidence on the part of investors, sales of stocks & shares ISAs are at their highest since 2001 (source: Investment Management Association, January 2011). You can invest your full annual allowance in a stocks & shares ISA and many investors, prepared to accept more risk than the cash alternative, are recognising that this may be the way to take better advantage of this tax break. You can also transfer existing cash ISAs into a stocks & shares ISA, although it is important to remember that you cannot transfer them in the opposite direction.

We all like to think that we work hard for our money and pay our taxes, but you don’t owe the HM Revenue & Customs any more than you need to. With straightforward planning you can make sure you pay as little tax as you need; and making the most of your ISA allowance is a good place to start.

To receive a complimentary guide covering Wealth Management, Retirement Planning or Inheritance Tax Planning, produced by St. James’s Place Wealth Management, contact Janine Edwards, Senior Partner of the St. James’s Place Partnership on 01676 530606, by email  Janine.edwards@sjpp.co.uk or visit www.janineedwards.co.uk.