28 June 2017

Press Coverage

Most first-time buyers who get a mortgage through SPF Private Clients receive ‘significant financial assistance’ from their parents, says Mark Harris, the company’s chief executive. He warns that such help must be a gift rather than a loan, or it will have an impact on a borrower’s affordability. ‘It may also be worth considering a product such as the family mortgage from the Family Building Society, or the Barclays Family Springboard mortgage, which allow parents to offset their savings against the loan as security, getting their savings back at a later date, instead of handing them over,’ he says. The Times, 16 June 2017

Annual property price inflation is at its highest level since October 2016, according to the Office for National Statistics. Mark Harris of SPF Private Clients said: ‘On the lending front it is very much business as usual with lenders keen to lend and the oversupply of money set to keep mortgage rates competitive for the foreseeable future. Demand from landlords remains muted as investors get to grips with tax changes and higher stamp duty. But first-time buyers and those remortgaging are making hay while the sun shines in terms of taking advantage of cheap mortgage deals.’ This is Money, 13 June 2017

The number of properties bought by landlords has nearly halved, prompting the Council of Mortgage Lenders to downgrade its lending forecasts for this year and next. Mark Harris of SPF Private Clients said it was no surprise that buy-to-let lending was subdued, as the sector was still coming to terms with various changes. ‘Landlords are being more cautious when it comes to expanding portfolios while others are considering whether incorporation is the sensible way forward. With further PRA guidelines set to be introduced in October, there are new challenges ahead for the sector, and we are awaiting detail from lenders as to how they are going to deal with these.’ The Guardian, 22 June 2017

A Times reader has made some impressive stock market returns over the past decade and now wants to know whether he should use his profits to pay off his mortgage, even though he is only 27. Salini Bundhoo, financial planner at SPF Private Clients, says: ‘Jack is in an enviable position. However, he is heavily exposed to the US market through his investments with only three single shareholdings so he may wish to consider shifting money to a wider number of high-quality companies across various sectors to spread this risk. If he wants to sell the shares to benefit from the gains, a phased approach is sensible to avoid market timing and guesswork. He could use these sales proceeds to pay down up to 10 per cent of the mortgage without penalty, enabling him to reduce this mortgage while still keeping some investments.’ The Times, 24 June 2017

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