Blog Archive

I hope you are keeping well and looking forward, at long last, to getting back to normality soon.   Not long now before we can go to the pub – albeit in the garden!   And I can’t wait to see the hairdresser…..

It’s almost the beginning of the new Financial Year.

Which means it’s our birthday!  Swift Mortgages is now 4 years old.

But to celebrate our birthday we’ve become Swift Mortgages & Finance!

You may already be aware, but I have spent a few months studying for, and taking, my Diploma in Financial Advice (DipFA) exam.  I took the exam in October of last year.  Received the pass result in November and then went through the process of registering my change of permissions with the FCA (Financial Conduct Authority) and also with Quilter Financial Services (my financial network).

It still didn’t seem real until the certificate arrived! 🙂

I’m pleased to be able to tell you that I am now qualified to be able to provide financial advice with immediate effect as well as still being able to help with any of your mortgage, equity release and financial protection requirements.

Whether you’re planning for your retirement by making contributions into a pension or increasing your wealth by investing, please feel free to get in touch.

According to Aegon (The Retirement Confidence Survey, 2019) 36% of people have never considered how much they will need to retire comfortably so it’s important to invest in your pension as early as possible.

If you have pensions from previous employers, we can review those and ensure your requirements are on track to provide the income you need on retirement.

If you have money to invest, we can help you make the most of your ISA allowance to earn tax-efficient returns.  ISAs are free from personal income tax and capital gains tax*.

Although having a wide range of options is a good situation to be in, it can be difficult to make the right choice.  With so many options, how do you know which is right for you and your financial goals?

We’ll discuss your goals and get to know your appetite for investment risk.  Then we’ll use our expertise to help you decide which option is best for you.

Please, do get in touch to arrange a meeting.

Likewise, if you know of anyone else who may like need any of the services I provide, I’d be very happy for you to pass on my details.

Thank you and speak soon! x

You can find me on the Equity Release Council’s Website: ERC 

You can find me on Vouched For: Vouched For

• Equity Release will reduce the value of your estate and can affect your eligibility for means tested benefits.
• The value of pensions and investments and the income they produce can fall as well as rise. You may get back less than you invested.
• Tax treatment varies according to individual circumstances and is subject to change.
• Investors do not pay any personal tax on income or gains, but ISAs do pay unrecoverable tax on income from stocks and shares received by the ISA managers.

Swift Mortgages and Swift Mortgages & Finance are trading styles of Heide Swift and authorised and regulated by Quilter Financial Planning.  

Heide Swift

Telephone: 01525 309300

Mobile: 07903 302895

Email: heide@swift-mortgages.com

Website: www.swift-mortgages.com

#SwiftMortgages

#FinancialAdvisor

This week’s blog investigates your annual personal tax return, due on 31st January, and why you should aim to submit it earlier if possible.

How can it possibly be the middle of January already? In the last lockdown, time seemed to pass exceedingly slowly (but the weather was much better so that was ok!) but this time it feels like warp speed!

With the rush for home buyers to complete their purchases by the March deadline to benefit from the stamp duty holiday, combined with Covid-related delays in all things mortgage-related, here we are already.

This blog, however, is not about the stamp duty holiday. Much more pressing is the HMRC self-assessment deadline of 31 January to submit and pay your taxes for the year ending 31 March 2020. If you live in fear of being chased by the taxman, your tax return may already be done and dusted. However, according to The Guardian, HMRC expects 12.1 million tax returns to be filed this time around and it is thought that more than 4 million people still have to submit their returns.

HMRC has already confirmed that they won’t be fining people who file their taxes late and have a Covid-related excuse.  So, if like me, you are home schooling or you have been ill, you can apply to get your penalty cancelled.  Honestly though, if you don’t have a good reason, why not use this lockdown to get it out of the way?  If you are concerned that you can’t afford your tax bill, doing your tax return now means that you can set up a payment plan over 12 months, provided you owe less than £30,000.  If you leave it too late, you won’t have that option.  Just imagine that wonderful feeling of relief once it’s done 😊.

If you are self-employed and trying to reduce your tax bill, one way to do this is to pay more into your pension.  You can deduct your pension contributions from your taxable income.  For example, if your annual earnings were £50,000, and you contribute £5,000 into your pension, this reduces your total taxable income to £45,000.  So instead of giving money to the taxman, you are saving for your future.  It won’t help for 2019/2020 but it is worth thinking about now for the next tax year.

If you are self-employed and planning to apply for a mortgage, you may be better maximising rather than reducing your taxable income. Remember that mortgage companies will look at your income when they decide what you can afford to borrow and may also want to look at your bank statements to check your outgoings.  I wrote a specific blog on getting a mortgage when you are self-employed, so it might be worth having a read if this applies to you.  It is definitely worth getting to know your mortgage advisor in advance and getting some advice so that you can be prepared when the time comes.

Personally, I’m one of the people that lives in fear of the taxman, so I like to get my tax return done early.  Whatever your situation, I hope my blog has given you some food for thought and some encouragement to use this lockdown to submit your tax return on time.

Tax treatment varies according to individual circumstances and is subject to change.

Get in touch if we can help in any way.

Telephone: 01525 309300

Mobile: 07903 302895

Email: heide@swift-mortgages.com

Website: www.swift-mortgages.com

#SwiftMortgages

#TaxReturn

Equity Release

With the festive season behind us and families at the forefront of our minds (whether we’ve managed to see them in person or not), it seems like the perfect time to talk about the Bank of Grandma and Grandad!

We are all familiar with the Bank of Mum and Dad.

According to Saga, one third of grandparents have also given financial help to their grandchildren, donating a total of over £37 billion for education, holidays, driving lessons and house deposits.

Read the article here

If helping your grandchildren financially is something you have been thinking about doing but you don’t have enough ready cash in your savings, you may still be able to help. If you are over 55 and own a property, you may be able to access the equity in your property through an equity release plan.  This could provide a lump sum, several smaller amounts, an income or a combination. It is then up to you how you spend it.

I think the pandemic has forced us all to re-evaluate what’s important and many people are deciding to pass on their wealth when it is most needed. They would rather see their relative enjoy the money now than leave it as an inheritance.  In addition, they can see their families benefit from their wealth and enjoy that themselves.

What sort of scheme is right for you?

The most popular type of equity release scheme is a Lifetime Mortgage.  You have the right to remain in your property for the remainder of your life or until you need to move into long-term care. You are guaranteed not to have a negative equity situation.  This means the total amount owed will never be more than the value of the property.

In addition, for the duration of the lifetime mortgage, you can choose whether to pay some or all of the interest, or none at all.  If you pay none at all, the interest will compound over time and the final debt will be significantly bigger than the original loan you take out.

Is Equity Release safe?

There have been some equity release horror stories over the years, but the industry has improved immeasurably, with many product options and competitive interest rates. In fact, according to the Equity Release Council’s most recent market report, average interest rates fell to a record low of 4.11 per cent in July 2020, with over half of products offering a rate of 4 per cent or lower, and a fifth offering rates below 3 per cent.

Equity Release Council Article

What are the downsides?

If you are considering equity release, you should bear in mind that it can be more expensive than a traditional mortgage and as there is no fixed term by which you need to repay the interest, the size of the debt will escalate over time. It may leave you short of funds or unable to claim means-tested state benefits and if you want to downsize, you may need to repay some of your mortgage.

Of course, equity release is just one way of helping your grandchildren. As with all big financial decisions, you should speak to a professional adviser with access to the whole market about how an equity release plan could affect you and discuss the most suitable option for you.

It is also advisable to discuss equity release with your family as the property is likely to need to be sold to pay off the loan (unless your beneficiaries are able to secure a suitable means of re-financing at that time).  This means the value of your estate is likely to be lower than it would be if you had chosen not to use Equity Release.

Equity release will reduce the value of your estate and can affect your eligibility for means tested benefits.

Equity release can be more expensive than a traditional mortgage.

There is no fixed term by which a loan needs to be repaid so interest can escalate quickly

Releasing equity in your property now may leave you short of funds later.

Get in touch! 

Email: heide@swift-mortgages.com

Phone: 01525 309300

Mobile: 07903 302895

Visit our website www.swift-mortgages.com

Find us on the Equity Release Council’s website: Equity Release Council

I can’t believe it’s nearly the end of December already! So many people have had their Christmas trees and decorations up early this year. I must admit: I’m one of those people!  But thinking I’ll probably take them down quite soon as well.

Christmas seemed very strange on all levels this year.  I’ve been so busy recently with the rush of mortgage applications due to the stamp duty holiday, that I felt Christmas almost passed me by without even noticing!

January is likely to be very busy with the stamp duty ending and also with the changes to the Help to Buy scheme.

It’s really important to plan ahead so that you don’t run out of time and end up on your current lender’s standard variable rate, which can be very costly. I am sure you have read in the news that lenders are taking much longer to produce mortgage offers at the moment. The housing market is “set for the busiest December in over a decade as buyers rush to beat the stamp duty deadline”, according to Zoopla (quoted in a Mortgage Strategy article dated 25^th November 2020), so you definitely need to allow more time.

Read the article here

The other thing to consider is that “UK average house prices increased by 4.7% over the year to September 2020, to stand at a record high of £245,000”. This is according to data published on the gov.uk website and relates to the House Price Index in September of 2020. If you’re not planning to move house, you may think this is not relevant to you right now but, if the value of your property has risen, that means you have more equity in your property.  A lower loan-to-value ratio generally means a better mortgage offer. With house prices rumoured to drop in 2021 to coincide with expected rises in unemployment, it makes sense to secure the best possible rate while you can.

I think also that this renewal might be a bit different for a few people because of the pandemic. If your circumstances have changed and your income has reduced, your choice of lenders may be more limited.  You’ll need to complete a new affordability assessment with a new lender. You may even need to consider switching to a different product with your current lender, even though it’s not the best deal on the market, but it will be cheaper than paying your lender’s standard variable rate.

Whilst the end of your fixed-term may not be imminent, now might be a really good time to get your financial ducks in a row. Even if you don’t plan on applying for a new mortgage until January, why not do some preliminary work? Check your credit rating. Get your documents together. And make an appointment with your advisor for January. You can then relax enjoy Christmas knowing  you have a plan in place.

Maybe you don’t have a mortgage advisor?

Perhaps you’re confused by your renewal letter?

Just not sure of your options?

Feel free to get in touch. I will help you to make sense of your offer and, together, we can look at the whole market to find the most suitable mortgage for your circumstances. We can include your current lender in that search as well.

Well, I guess I’d better start thinking about New Year and see whether it feels any different to Christmas! 🙂

Well, the end of the year is fast approaching and I am expecting a quieter time during the winter, especially with the stamp duty holiday finishing in March. I do love this time of year with the autumn leaves falling but it’s always so much harder to get up and get going when it’s still dark! Still, winter for me is a time for planning ahead for the coming year.

Getting a mortgage when you are self-employed can also take a bit of planning. With jobs disappearing due to the pandemic, lots of people have decided to set up their own businesses so I thought I would share a story with you about a self-employed couple who needed a new mortgage to move house.

I had worked with these clients on an earlier mortgage, before they were self-employed, and I was so pleased that they decided to come back to me. Both had become self-employed within the past year as directors of a limited company. When they first approached me, they had been trading for less than a year.

Getting a mortgage when you are self-employed can be more of a challenge as you need to prove to any potential lenders that you have a reliable income. Self-certification mortgages are a thing of the past and lending criteria has been tightened up since the Mortgage Market Review in 2014. However, providing you can evidence your income, you should have the same access to mortgages as everyone else.

So, what else do you need to have in place? Well, a good deposit and credit history will obviously improve your chances of a mortgage offer and, of course, make sure you are on the electoral role. Lenders may also want to look at your bank statements to check your outgoings to make sure you can afford the repayments. A professional mortgage advisor with access to the whole market will help you to find the most suitable mortgage for your circumstances, whether that’s a mainstream bank or a specialist lender. They will know which lenders are more likely to offer a competitive rate if you are self-employed.

According to Mortgage Introducer in an article published in 2018 “when it comes to trying to get a mortgage, people living a varied working life might feel like a minority; but they’re a fast-growing minority and are leading the way for the rest of the country. There’s over four million self-employed people in the UK country, many of which mistakenly think their varied income or lack of three years’ worth of accounts means they automatically don’t meet requirements for a mortgage.”

Click here for article

So, back to my story! I was able to help my clients with a mortgage once they had been trading for a year. They had to talk very nicely to their accountant to get their accounts in order at top speed but we got everything in place and they have now moved into their new home 😊.

If you’re self-employed and planning on applying for a mortgage, I would honestly recommend getting to know your accountant as well as ensuring your mortgage advisor has access to your accountant. Keep in touch throughout the year and be extremely nice to them at year end if you want them to complete your accounts quickly!  Bear in mind that as of TODAY (Friday 11th December) there are only 52 days left to submit your tax return by the 31st January 2021 deadline.

Get in touch:
Heide Swift DipFA, CeMAP, CeRER
Swift Mortgages
heide@swift-mortgages.com

Well, here we are, just out of the second lockdown.

It did feel different this time. People seemed generally calmer and just getting on with things, apart from a few loo roll hoarders! Now it’s getting cold and dark, I’m finding it easier to batten down the hatches.

It was much harder in the summer. Having a cosy lounge with a roaring fire does help, I have to admit, although I am writing this from my home office with an extra layer and a radiator to keep me warm!  I have decided to take it easy this time round. One thing I am planning to do though is take the time to review my personal finances.

If you are one of the millions of people who have been affected financially by the pandemic, maybe furloughed, working less hours or made redundant, now might be a really good time to take a look at your own finances to see what you can cut down on.

I thought I would share some advice on this as it can be extremely stressful if your income has reduced and it is not always easy to know where to start.

The first thing I would suggest is to look at your household bills.

Can you switch your utilities to a cheaper provider?

Are you eligible for a 0% introductory credit card deal and can switch so you are not paying interest?

Are you paying for a gym membership that you cannot even use?

What about your car insurance?

It’s worth checking whether you can reduce your payments if your mileage has reduced.

I know Direct Line are offering this option to their customers, so it is worth a call.

Once you’ve reviewed the basics, take a look at your protection policies, such as life insurance and critical illness cover.

You might think, if you are short of cash, this is not the right time but a review of your policies could identify any gaps in your cover and ensure the rate you are paying is competitive.

A quick word about comparison websites whilst we are on the subject of insurance – whilst they can give you an excellent indication of what cover is available, it is always best to use an advisor who can access providers who may not be on comparison websites.

Some companies choose not to pay to be part of a comparison website and you don’t always get the full information you might need to make an informed decision.  An advisor may be able to find you better cover at a lower price.

And then there’s the biggie – your mortgage.

A review of your mortgage could save you hundreds of pounds, if not more, over the course of a fixed term.

However, if you’re furloughed, earning less or have been made redundant as a result of the pandemic, you may find it more difficult to switch.

This because some lenders will assess your affordability based on your new income whilst others may not consider it at all. If you are within six months of the end of a fixed-term deal, it is really important to start looking now, before you are moved onto your current lender’s standard variable rate, which is likely to cost you much more.

If your financial situation has changed due to the pandemic and you are worried about being able to remortgage, please come and talk to me. We can look at what’s available across the whole of the market including your current lender.   Then look at the most suitable options based on your current  circumstances and where you are likely to get the most suitable deal.

Get in touch:

Heide Swift DipFA, CeMAP, CeRER

Swift Mortgages

heide@swift-mortgages.com

Well, it’s hard to believe the new academic year has almost come to the end of its first term and Christmas will be upon us before we know it.

Family life seems to feel a bit more normal with the teenager doing his A levels. We are so proud of him! He’ll be finished and leaving home for Uni before we know it.  Or maybe he won’t want to do Uni.  Who knows?

When your child reaches an educational milestone, you can’t help but think back on your life. I remember when we bought our second property so that we had room for a family and how we scrimped and saved to get there.

Many people are willing to give up nights out and holidays so that they can move up the housing ladder.  What would you be willing to give up? If you were to save the cost of a bottle of prosecco* every week, you would save an extra £468 every year towards your deposit. If you were to save this into a lifetime ISA, the government would further increase your savings by £117, meaning you could actually save £585 in one year! 😊

It is fairly common knowledge that the economy is in recession and the economic outlook in UK is uncertain.  It may seem surprising, then, that both demand and house prices are rising.  The stamp duty holiday introduced in July has certainly contributed to this and home movers, whose purchases tend to be more expensive, have benefitted most as first time buyers are exempt from stamp duty on purchases up to £300,000 in the majority of England currently.

It is also clear that the ongoing pandemic has resulted in many people rethinking how they live their lives and what they want from their homes; whether that’s more space for a home office or just to spend more time at home.

So, what’s the situation for home movers financing a move?

There are often special deals with low deposits for first time buyers but, as a “next time buyer”, it can seem more difficult to get the credit you need with a higher deposit usually required.  Typically at least 15% equity (deposit) is common in onward purchases.

According to the Financial Conduct Authority, in its Commentary on Mortgage Lending Statistics, published in September 2020, the share of mortgages which completed in quarter two with loan to value (LTV) ratios exceeding 75% fell on the quarter to 36.5%, which is 3.2 percentage points lower than a year earlier.

Don’t despair, there is still help available.

The equity loan scheme, also known as Help to Buy, is still available to home movers buying a new build home, providing they complete on the purchase before 31 March 2021. You pay 80% of the purchase price with a mortgage and at least 5% deposit (your mortgage can be 60% in London) and the equity loan makes up the difference.

A myth is that the  Help to Buy scheme is only available to first time buyers but that’s not true!

The loan is interest free for the first 5 years. In addition, if you complete on your home before April 2021 you won’t need to pay stamp duty if your purchase is under £500,000.

And don’t forget that next time buyers often have enough equity in their current property to fund the deposit and other costs such as solicitor’s fees.

If you are thinking of moving and want to have a chat about your current situation to see whether a home move is financially viable, please get in touch.

There is no obligation and the initial discovery session to find out what you can afford is complementary.

*based on a £9 bottle of prosecco available from Tesco’s in November 2020.

Get in touch:

Heide Swift DipFA, CeMAP, CeRER

Swift Mortgages

heide@swift-mortgages.com

Are you prepared for your new mortgage? 

Mortgage Preparation can be started way in advance of your application, particularly if you’re self-employed.

• If you’re a first-time buyer, start saving EARLY and KEEP RECORDS of your savings statements, savings books etc – at least one year’s worth of savings evidence required for anti-money laundering purposes.
• Make sure you’re registered on the electoral role at the address you live at!
• Make sure your passport is up to date. Make sure your Driving Licence shows the correct address.
• If you’re recently married, get a copy of your marriage certificate to verify the change of surname.
• Make sure you have bank statements (even if you do on-line banking) that show your current address.
• Ideally don’t take out any hefty new credit commitments prior to a new application.
• Check your credit report (Experian or Equifax) if you are:
  • Worried about any past credit blips
  • Don’t know exactly what finance you have open – sometimes if your mobile contract includes the cost of the handset, this will show as a LOAN
  • Unsure of whether you’re on the electoral role
  • Hazy about your previous address history
• If you’re in a fixed mortgage term, KNOW when the end date is.
• Start looking at alternatives 4-6 months before the end date.
• Research the value of your property. Most will be easy to estimate comparing other, similar properties listed on Rightmove and Zoopla.
• If you’re employed, start saving your payslips (3 most recent months are needed) and your most recent P60 in safe and easily accessible place.
• If you’re self-employed, ensure you have up to date tax return data in the form of SA302s and tax year overviews. 3 years are required.
• Depending on the lender, if you’re a Limited Company, accounts may be used instead of SA302s but have both fully up to date!
• Also, 3 x months’ bank statements are required so keep them there too.
• If you have any properties in the background (holiday homes or Buy to Let properties in the UK) – have the information about those available too:
  • Mortgage details if applicable
  • Rental income details
  • SA302s and tax year overviews showing your income being declared
  • Tenancy agreement if applicable
• Make a note of your income (other than earned income) such as:
  • Pensions (annual statement required)
  • Child benefit (confirmed by bank statements)
  • Maintenance payments (are they court ordered? If not, at least6 months’ bank statements required to verify regular receipt)
  • For all the above your bank statements should show these being credited.
• Know your outgoings – most people under estimate their monthly expenditure:
  • Council tax?
  • Standing orders for utilities?
  • Mobile phones?
  • Insurances?
  • Travel costs?
  • Childcare costs?
• If you are buying a new property (ie raising funds from a re-mortgage for the deposit), some lenders will need to know more details about the property you’re intending to buy.
• If you’re raising any capital (from a re-mortgage) to do any home improvements, make sure you have some quotes available if there is building work to be done.

Make sure you realise the value of a re-mortgage if that’s what you’re planning to do.

I saw a post recently about someone saving £300 in the year on their car insurance.

Re-mortgaging to a new lender may save you significantly more.

Most people will scour the internet looking for savings on their car insurance or mobile phone tariff. But when it comes to their mortgage, it may seem like “too much hassle”.

Why not let a mortgage advisor search on your behalf? 

Your home may be at risk if you fail to keep up the repayments on your mortgage.

Phone: 01525 309300
Mobile: 07903 302895
Email: heide@swift-mortgages.com
Twitter: @SwiftMortgages1
Linked In: Heide Swift
Instagram: Swift Mortgages
Facebook page: https://www.facebook.com/SwiftMortgages/

Use the hashtag: #SwiftMortgages to keep in touch

Your home may be at risk if you fail to keep up the repayments on your mortgage.
The Financial Conduct Authority does not regulate Buy to Let mortgages.

Click here for my blog archive: https://www.swift-mortgages.com/blog/

#SwiftMortgages

People often ask why they would choose to use a mortgage broker rather than go to their bank.  Or, indeed why they couldn’t go through the mortgage process themselves rather than asking for help.

The answer is, you are free to choose whichever option you wish … as long as you make an informed decision as to which route you choose.

If you have any questions or would like to review your current mortgage arrangements please don’t hesitate to get in touch!

Phone: 01525 309300
Mobile: 07903 302895
Email: heide@swift-mortgages.com
Twitter: @SwiftMortgages1
Linked In: Heide Swift
Instagram: Swift Mortgages
Facebook page: https://www.facebook.com/SwiftMortgages/

Use the hashtag: #SwiftMortgages to keep in touch

Your home may be at risk if you fail to keep up the repayments on your mortgage.
The Financial Conduct Authority does not regulate Buy to Let mortgages.

Click here for my blog archive: https://www.swift-mortgages.com/blog/

#SwiftMortgages