Innovation is not a word you would have typically associated with the UK mortgage market over the last few years however slowly things seem to be changing. Recently we saw the launch of the Family Springboard Mortgage by the Woolwich aimed to help first time buyers get onto the market.

The Family Springboard mortgage comes in two parts. Firstly with a 5% deposit, the borrower takes out a Family Springboard mortgage. Next a member of the family takes out a Helpful Start account in which they deposit savings equal to 10% of the purchase price of the property. After a three year period provided that all repayments have been kept up on the mortgage the savings are returned with interest to the family member.

So what does this look like in real terms? The average first time purchase now stands at £173,000*, so the borrower would need to part with an £8650 deposit with the family member depositing £17,300 into the savings account.

Here at Omnis we think this is a great option for those parents or grandparents who would like to help their family members get onto the housing market by utilising their savings without parting with them permanently. What’s more the product isn’t exclusively for first time buyers or family so can be used for those looking to move up the ladder or those with good friends!

To find out more about the Family Springboard mortgage or to talk to one of our advisers about any other element of your finances please call 0117 9568267.

* Office for National House Price Index 2012

We hope that you all had a great Christmas and New Year. By now those New Year resolutions should be kicking in so whichever vice you have chosen to give up or cut down on we wish you the very best of luck! In the meantime we give our take on the forth coming year ahead and take a look at what 2013 may hold for the UK property and mortgage market?

House prices finished the year (2012) fairly stable although slightly down on 2011 with the average UK home now costing £162,262 a drop of 1%*. Demand for mortgages remains fairly subdued with mortgage approvals still a way below their long run averages although this showed signs of improvement towards the tail end of the year with November approvals rising to 54,036, the highest November figure in 3 years. So where do house prices go next? A period of low interest rates have provided a level of support but with the UK economic recovery still looking weak it looks as though house prices will once again stay flat over the forthcoming year.

We sound like a stuck record when it comes to interest rates as again they start 2013 as they did the start of 2012 and 2011 at a low of 0.5%. So where do they go next? It seems the general consensus from many economists is that with the UK economy still stuttering we may see the Bank of England base rate hold again over the forth coming year with many not predicting a rise of 0.75% until any where between 2014-2017.

So what about mortgage rates? Well those sat on base rate trackers are still benefiting from this low period of interest rates and look as though they will remain to do so throughout 2013. The cost of fixed rate funds to the consumer continued to fall during 2012 assisted by schemes such as the governments Funding for Lending scheme introduced back in August. This in turn has pushed down the cost of fixed rate funds to some of their all time lows.

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 2013!

*Source: Nationwide House price index.

It’s been another eventful year in the mortgage market with no shortage of news stories hitting the headlines. We’ll be wrapping up 2012 and looking forward to what to expect in the UK housing and mortgage market in 2013 in our January blog (that is assuming that the Mayans mathematical calculations were on par with those at the Lehman Brothers and the world doesn’t come to a sticky end on the 21^st Dec!)

All that remains for us here at Omnis to say this year is a big thank you for all those who have used our services both clients and introducers.

We hope you all have a very merry Christmas and a happy New Year!

It’s that time of year where the pumpkins appear the zombies and witches come knocking at your door looking for treats and the horror classics you thought you had seen the back of make a return to our television screens.

With this in mind we thought we would take a look at some of the things that may give you a scare currently in the world of finance and protection.

Interest only:

If you have not had to review your mortgage recently it may have gone unnoticed however there have been some major changes from UK lenders in relation to how they view Interest only as a suitable repayment method. Many have restricted their loan to value limits with one lender, the Nationwide, choosing to pull out of the Interest only market altogether. This has in turn coined a new term within the media that you may see quoted in the press ‘mortgage prisoners’, essentially referring to those that are unable to move deal/provider as they may no longer fit a lenders criteria.

So what are your options? This will depend on your lender, repayment vehicle and loan to value. If in doubt, call for a free review of your mortgage.

European sovereign debt crisis:

Problems still remain in the Eurozone region with a number of countries still unable to re-finance or repay their government debt most noticeably Greece, Portugal, Ireland and Spain. So how does this impact on us? Well the UK has one of the highest foreign debt levels of any European country meaning what happens in the Eurozone naturally impacts on what happens here. Should the crisis deepen banks may take a more cautious approach to how and to whom they lend their money.

This change can already be seen and felt with many of the UK’s lending institutions revising their lending policies and criteria in recent days.

Mortgage Applications:

I know, we would have asked you to supply a lot of paperwork when you last applied through us for a mortgage. Lenders are looking now, more than ever before, at mortgage applications in some detail, looking at what you spend and where you spend it. Areas such as fast-track are fast becoming a thing of the past and aspects such as missed credit card or phone bill payments may affect future mortgage applications.

If much of the media hype is to be believed then no one is able to obtain mortgage finance at present due to the restrictions from the banks. Contrary to these stories we have many a current success story to tell just be aware the requirements from the lenders in terms of paperwork have now increased.

Gender Directive:

The EU’s gender directive will come into force on the 21^st Dec 2012. In short it will become illegal for insurers to use gender as a risk factor when pricing an insurance premium. So will the will the gender-neutral rates meet in the middle then for future insurance premiums? It seems sadly not. Providers are warning that premiums for females could rise by as much as 25%*

If you’re considering reviewing your protection policies now might be a good time to do so!

So if you’re hearing bumps in the night and looking to move or perhaps looking to invest in a haunted house then talk to one of our advisers here at Omnis Financial Solutions on 0117 9568267

*Source: LV= (Liverpool Victoria)

This month we welcome a guest blog from Allied Asset Finance:

It often makes financial sense for company directors to finance their company car in their personal name – particularly for higher value cars.

Allied Asset Finance have products specifically suited to financing directors’ cars in this way, meaning we can offer market leading commercial rates and terms for what is essentially, personal car finance.

Most car manufacturers and dealers offer finance of course – but it’s surprising how often their finance deals are either relatively high rates, or have unattractive terms such as large deposit requirements.

In addition to fixed rate Hire Purchase and Leasing, we can now also offer VARIABLE RATE finance for some cars – a product with a number of attractive features and benefits, including:

Don’t rely on dealers to give you the best car finance deal – speak to a specialist and ensure you’re really getting the best finance deal you can.

For more information or a no-obligation finance quote, call Allied Asset Finance on 01761 241055.

This small training company started out like any other, and had grown from its early beginning’s in the 1990’s to a FTSE 250 company in 2007. The shares had reached £12.75 in April 2007 with the company valued at £550 million all due to its visionary CEO.

On his way back from a football match this CEO was tragically killed in a helicopter crash.

The following day after news of his death the companies shares dropped by 20%. By October 2007 the shares had dropped to 82.5p and suspended from trading. Within 10 months of his death, March 2008 the company had gone into administration.

Sadly this story is a true one, the company in question was Carter & Carter established by Philip Carter who tragically died on his way back from a Chelsea match. Philip was the CEO of this business and as such key to its survival. He was not only the founder but he gave it the direction and vision, but also the leadership skills that brought the board together into an effective team.

The other tragedy was that this firm had no effective succession strategy in place.

Do you have someone within your business that possesses all of your business technical expertise? Or maybe they are the founder and main driving force of your business?

As you probably already know, some of the most valuable assets to your company are not the buildings and stock but the individuals within it that drives your business forward on a day to day basis.

There may be only one key person but quite often there can be three or four even in a medium sized business. What would happen to your business if one of these individuals were to die or suffer a critical illness?

Reduced sales? Loss of turnover? Difficulty in recruiting and/or training a replacement?

In previous research, Legal & General found that 76% of businesses recognised the owners, managing directors, and partners as ‘key’ to their business. And 100% of businesses felt that the death or critical illness of at least one key person would impact on company profit.

These are just some of the issues you may be faced with when a partner dies or becomes critically ill. However, do you have the correct protection in place to be able to deal with them?

Thankfully, at Omnis Financial Solutions we are able to help with all Business Protection needs including Key Person Protection, Partnership/Shareholder protection and Business loan protection designed to help you prepare for any of the unforeseen situations described above. We can give you expert and professional advice on how to protect you and your business.

To talk to one of our advisers here at Omnis Financial Solutions about your Business Protection needs call now on 0117 9568267.

For those sharp eyed individuals amongst you, you will notice that we have blogged about this subject midway through last year so you may ask why are we repeating ourselves. As the titles suggests the ‘clock is ticking’ and these changes may impact on your circumstances moving forward therefore we thought it worth a quick reminder.

So first and foremost what on earth is the Test Achets case and more importantly what does it have to do with you? Let us explain:

Background:

Back in 2009 the Belgian Consumer Association, Test Achets, brought a case before the Belgian Constitutional Court regarding the opt-out in article 5(2) of the European Gender Directive. This directive prohibits discrimination on grounds of gender in relation to and the supply of goods and services. Article 5 of the directive directly prohibits gender being taken into account when calculating premiums or benefits in respect of insurance contracts. However, article 5(2) permits a derogation to the general principle of equal treatment between men and women in relation to insurance contracts which governments can opt into, which the UK took up.

In short insurance companies in the UK are currently able to price insurance contracts such as life policies and motor insurance based on gender.

Test Achets argued that this provision was not compatible with the current principles of equality and non-discrimination guaranteed in European legislation. The Belgian Constitutional Court referred the case over to the European Court of Justice (ECJ). On the 30^th Sep 2010 the Advocate General found in favour of the challenge and subsequently the ECJ have now ruled that the directive is invalid. So the knock on effect of this will be that from Dec 2012 providers will no longer be able to determine premiums based on gender related factors.

So back to the original question, what does this mean to YOU? Certain insurance policies such as level and decreasing term assurance policies historically have been cheaper for females because statistically they live longer than men*, this may soon no longer be the case. Although we won’t know for sure how big this increase will be until after Dec 21^st the Treasury is estimating that it could be anything up to 15%. So if you have had a change in circumstances such as a new child or mortgage or simply would just like to review your life policies now may well be a good time to do so before these changes come into force.

To talk to one of our advisers here at Omnis Financial Solutions about your protection needs call now on 0117 9568267.

* National Statistics online, March 2012

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.