EBS

The Financial Services Authority has just confirmed that compensation limits for investors will be increased in line with a new European Economic Area (EEA) limit of €100,000, equivalent to £85,000. This represents a significant increase over the current limit of £50,000 per individual, per financial institution.

This protection applies to bank deposits, insurance policies and insured pension arrangements. The limits apply per person, so a couple can receive up to £170,000 joint-protection but the limit also applies per financial group – so savings or investments with two different companies sharing the same banking licence would only receive £85,000 total protection.

Compensation is just one factor which should be taken into account when reviewing your investments, EBS’ Investment Performance Review lifts the bonnet on your current arrangements and reports back on:

• Performance – is it meeting your expectations?
• Asset Allocation – do you understand where your money is actually invested?
• Charges - are you paying more than is necessary?
• Taxation – are you paying too much tax on your returns?

Why not find out more & get your investments in order for the New Year? An initial meeting is free from obligation & is held at our expense.

As the year draws to an end a raft of data has been released which will have caused mixed reactions amongst home-owners & would-be buyers:

• Bank of England once again holds interest rates at 0.5%
• House prices fell by 0.1% in November
• Mortgage Lending fell 5% in November

The Bank of England’s Monetary Policy Committee has now kept interest rates on hold for 21 months which is good news for everyone with, or looking to secure, a mortgage. Not such good news for savers of course & we expect to see rates remain low throughout 2011.

The Halifax House Price Index reported a 2.1% reduction in the three months to November. The Halifax attributed this trend to higher numbers of properties for sale combined with reduced demand. On a more positive note for homeowners a spokesperson said that fewer properties coming onto the market and continued good mortgage affordability would prevent a significant fall in house prices.

The Council of Mortgage Lenders reported a 5% drop in mortgage lending for the month of November.  However, it is widely accepted that this fall was accentuated by a relative peak a year ago as first-time buyers came into the market ahead of the withdrawal of Stamp Duty concessions.

Whether you are looking to move, improve your current home or remortgage, EBS can provide independent mortgage advice. An initial consultation is free from obligation & conducted at our expense. Get in touch to find out how we can help you.

Last week EBS’ Dave Welch was one of a small group of specialists invited to Quaglinos by one of the largest UK lenders to discuss trends in the housing & mortgage market in light of the current economic environment and increased regulation.

Based on their discussions change will have a big impact on almost everyone in a year where property prices are expected to remain flat and interest rates set to rise before the end of 2011:

Do you have an existing interest only mortgage?

Lenders must now  carry out spot checks to ensure a suitable repayment vehicle is in place. If you do not have something arranged speak to EBS to discuss your options.

Are you looking for a mortgage above 75% loan to value?

These will now only be available on a repayment mortgage basis – even if you have a suitable repayment vehicle in place. If you have an interest only mortage at this level then you might find yourself locked into your current  lender as remortgage terms may only be offered on a repayment basis. Increasingly mortgage lenders are now calculating affordability on all new mortgages on a repayment basis which will create a drag on property prices.

Fast-Track Mortgages

With self-certification mortgages no longer available, the feeling is that fast-track schemes will soon similarly disappear, requiring evidence of income for every new mortgage application.

Some good news – Looking to remortgage in 2011?

As an independent mortgage consultant, EBS can access a wide range of schemes including an innovative new scheme, from a major lender, which takes the pressure off the decision to fix your interest rate or not. This new scheme offers:

• Lifetime tracker rate
• Free property valuation
• Free legal fees
• No arrangement fee
• The option to switch to a fixed rate at any time with no early redemption fee

This is great news for anyone looking to remortgage during the next few months.

If you need independent mortgage advice contact Dave Welch.

We can assure you  of high levels of expertise and client care – as evidenced by this thankyou received by Dave & Geoff earlier this week from Ms. E. Crichton:

“…just one more big thank you to you both for all the support you give. I always feel like I am the only client you have (maybe I am….just kidding!) and that nothing is too much trouble. If only everyone was as responsive, the trauma of moving would be so much easier. Thanks again.” 

YOUR HOME IS AT RISK IF YOU DO NOT KEEP UP PAYMENTS ON YOUR MORTGAGE