Review your finances for 2013

January of often a time when we all look to tighten our belts and look to save money in the coming months of 2013. There may be aspects of your finances that could help you save on some of important monthly outgoings.
If you currently have a mortgage on a standard variable rate (SVR) or if your mortgage deal has come to an end, now might be a great time to re-mortgage. Many lenders have recently reduced their interest rates on new products particularly on mortgages with low loan-to-values. There are a number of reasons for this reduction in rates including the announcement in July of the Funding for Lending scheme in which the Bank of England and Treasury offer incentives to banks to boost lending and lower interest rates.
A number of lenders increased their SVR last year, meaning your monthly mortgage payments would increase if you are a borrower on SVR with these lenders. There are an estimated 1.6 million customers* that have been affected by these increases. If you have been affected by an SVR increase, moving your mortgage could save you money. While not all lenders have made an increase some lenders could make a change at any time. Lenders could also have the option of increasing the cap on how much they can increase their SVR by, so it is also worth checking your mortgage contract to see if this may apply to you.
You could also reduce your monthly out-goings by reviewing your Buildings & Contents insurance. We offer buildings and/or contents cover through a panel of reputable insurers. This means that we can fully guide you through the benefits of different policies and assist you in choosing the most appropriate policy to meet your requirements & budget effectively.
It is always a good idea to keep your finances under review to see if you have the best products for your circumstances. Thankfully here at Harvey Bowes we provide a full advice service and guide you through all the options available, so why not contact us today? Call 029 2115 6918
*Figures from Barclays
Please note that you should never cancel an existing policy prior to taking out a new one without fully investigating the generic and individual elements that are covered.
Your home may be repossessed if you do not keep up repayments on your mortgage.

Your home may be repossessed if you do not keep up repayments on your mortgage.

High Value Property Transactions Likely to Fall in 2013

Agents specialising in high value properties are likely to see a reduction in transactions through 2013. Glenntree Estates, who operate in ‘millionaire’s row’, London has reported that turnover is down 50% because of the new tax treatment of rich overseas purchasers buying £2m-plus properties through company vehicles.

The impact on high value transactions is bound to be a negative one since George Osborne’s decision to increase VAT to 15% on such deals.

Last month, Osborne also announced details of the new Annual Residential Property Tax, to be paid by rich buyers using corporate vehicles.

The new ARPT will start at £15,000 for properties worth between £2m and £5m, go to £35,000 for properties between £5m and £10m, and to £70,000 for properties between £10m and £20m. For properties over £20m, the annual tax will be £140,000.

It will be interesting to see if this also has an impact on the prices achieved for properties in this sector. Recent reports show a downward trend of 2-3% in house prices in the last quarter of 2012, however, there is often a seasonal fall at the tail end of the year.

At the other end of the spectrum, first time buyers can benefit from some of the lowest rates offered by the high street banks for 90% loan to value mortgages for some considerable years. Combined with the New Buy Scheme and Funding for Lending scheme which are having a positive impact we may see some activity in this field through 2013. However, it would seem apparent that the high value transactions fuelled by foreign funds is most likely to fall.

To discuss your mortgage requirements, call Harvey Bowes today on 029 2115 6918

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