Monday, 4 July 2016

BoE signals rate cuts over summer

From Mortgage Strategy:
Bank of England governor Mark Carney has warned monetary policy easing will be needed over the summer in a speech today aimed at reassuring markets.

Speaking in the Bank’s court room, Carney said a first assessment around easing would take place on 14 July with a full forecast outlined in the August inflation report.

Carney adds that if interest rates are too low the hit to bank profitability could reduce credit availability or increase its overall price.

He says: “I can assure you that in the coming months the Bank can be expected to take whatever action is needed to support growth subject to inflation being projected to return to the target over an appropriate horizon, and inflation expectations remaining well anchored.”

Thursday, 2 June 2016

Simplifying Serious Illness Cover 

A handy tool for all conditions covered by Vitality serious illness cover

Thursday, 11 February 2016

From 1st April 2016 there going to be some changes to Stamp Duty Land Tax for buy to let property purchases.

An additional 3% Stamp Duty will be added to the existing rates when purchasing a buy to let or second home. The table below shows the new rates that will be payable:

Existing residential
SDLT rates
Rates for BTL’s/2nd purchases
£0 - £125k
£125,001 - £250k
£250,001 - £925k
£925,001 - £1.5m
£1.5m +

It is important to note that spouses/partners will be treated as one unit. Minor children will also be included. So if a spouse/partner already owns a property in their sole name, the purchase of another property in your name will still be liable for the additional charges. You will however be able to claim a refund for the additional Stamp Duty paid if your spouse/partner sells the property within 18 months. This will have to be requested from HMRC.

If a parent is looking to help a child join the housing market they may also be liable. If a parent is named on the deeds it will be classed as a second purchase and therefore liable for the additional rate.

Foreign property is also included. If for example you own a property abroad and are looking to purchase a home in the Britain you will be liable for the additional rate.

There may be a few exemptions to the new rates however they haven’t yet been confirmed by the government. Landlords with 15 or more properties may be exempt from the additional charges. Also properties valued at £40,000 or less do not require a tax return and may not be subject to the higher rates.

The new rates apply to completions that take place after the 1st April 2016. If however you exchanged on something before 25th November 2015 and complete after the 1st April, you will not have to pay the extra charges.

The chart below was published by the government and is a useful tool that illustrates who will be affected by the changes.