21 June 2018

Press Coverage

A new mortgage deal from Leeds Building Society is aimed at buy-to-let landlords seeking to maximise the use of tax relief. Mark Harris of SPF Private Clients said that loading fees to achieve a lower rate has been used in the past to achieve higher gearing, not to maximise tax relief. More lenders were likely to follow suit, he predicted: ‘I doubt we will see product fees higher than pay rate, such as a 2.99 per cent pay rate with a 3 per cent fee, as the regulator will then assume lenders are gaming the system. The Leeds fees are probably at the upper end,’ he commented. The Financial Times, 16 June 2018

Finding the perfect plot isn’t the only difficulty for self-builders – getting a mortgage to purchase the plot and phased construction can be tough too. ‘A specialist broker is worth consulting to find out what options are available,’ says Calum Kerr, self-build specialist at SPF Private Clients. The Daily Telegraph, 16 June 2018

Most British banks have become less willing to lend on foreign properties since the 2008 financial crisis. ‘Research is key to establish whether lending locally is available and, if so, on what terms, as there is a surprising difference between countries within the Eurozone in terms of mortgage interest rates,’ explains Miranda John, international manager of SPF Private Clients. The Mail on Sunday, 17 June 2018

Analysis from SPF Private Clients shows that two-year swap rates have fallen since mid-April after the anticipated increase in Bank Rate failed to materalise. Mark Harris of SPF Private Clients, said: ‘Swaps will continue to move up and down as the market attempts to predict the future path for interest rates. Clearly the trajectory for interest rates is upwards but by how much and at what pace is much harder to forecast. The UK mortgage market is highly competitive and over supplied in certain areas – this is the main downward pressure on mortgage rates.’ The Daily Telegraph, 4 June 2018

People who share health data with their insurer have been warned that they could price themselves out of cover in future. Emma Bell, an insurance broker at SPF Private Clients, said: ‘There will always be a need for insurance, but the way in which it is sold and advised will change, with a move away from a product-based offering to pricing risk based on the individuals and their lifestyle.’ The Sunday Telegraph, 3 June 2018

The generally higher house prices in London mean that it can be difficult for families to afford a three-bedroom house. With the average price of a home close to £700,000, it may be a stretch too far to meet the lending criteria required by banks. Mark Harris of SPF Private Clients, said: ‘While many lenders cap higher loan-to-value mortgages at 4.5 times income, there are a few who will allow you to borrow more – possibly up to five times. The caveat is that these applicants must earn a higher income than the average salary – typically in excess of £60,000.’ The Daily Mail, 2 June 2018

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