The lender says it will consider allowing borrowers in difficulty to defer or reduce payments. It will also consider increasing credit limits and offering help to businesses that are suffering cashflow issues. The bank has warned customers to be on their guard for phishing scams and other attempts by fraudsters to take advantage of the situation.

It has asked customers to make sure they are set up for online banking and know their log in details. First Direct announced yesterday that it would consider allowing affected borrowers to extend the term of their mortgage or switch to a more favourable rate. For borrowers with unsecured debt it might allow breathing space on repayments.

Customers might also be able to increase their credit card and overdraft limits to help cope with financial strain. The announcements come after Royal Bank of Scotland/ Natwest and TSB both said earlier this week that they would allow borrowers suffering a sudden loss of income due to the virus outbreak to defer mortgage repayments.

The RBS/Natwest group says it will allow borrowers to postpone payments for up to three months, while TSB is offering a deferral of up to two months. RBS says loan repayments may also be postponed for the same amount of time. Customers who are struggling as a result of the virus outbreak would also be able close fixed savings accounts to access cash with no early closure charge. Refunds will be applied on credit card cash advance fees, customers can apply for an increased temporary credit card limit, and request an increased cash withdrawal limit of up to £500 for debit cards.

Are you worried about your monthly mortgage repayments given the current situation regarding Coronavirus (Covid-19)?

A number of lenders are offering support or payment holidays for those affected by the disease so it’s important to stay in contact with your lender.

If you wish to talk through your options or concerns, please don’t hesitate to get in touch. I’m happy to help and understand you may have a lot of questions during these uncertain times!

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Parents are using savings, investments, equity release products and other means to be able to provide their children with the money they need to get on the property ladder – and it comes as no surprise as the average deposit has increased by 71% from £19,364 in 2008 to £33,127 in 2018 according to research by Halifax.

But are the Bank of Mum and Dad still lending?

First-time buyers are managing to find ways to take their first step onto the property ladder at the highest rate in 10 years. This increase in first-time buyers, in part, can be attributed to the Bank of Mum and Dad.

The Bank of Mum and Dad are continuing to lend in order to help their children in what appears to be difficult times, following a surge in house prices over the last 30 years. Prospective first-time buyers who plan to use the bank of mum and dad for funds has remained the same, at 23 per cent, since 2017, according to research by Aldermore.

Data collected by the firm shows that 54% of those parents willing and able to provide a helping hand for their children will draw on their cash savings.

Meanwhile, 24 per cent plan to use money generated using an equity release product, 19 per cent through downsizing, 17 per cent from remortgaging, 6 per cent by cash taken from their parents’ pension, and 4 per cent through the sale of their parents’ second home.

With increasing house prices and larger deposits needed to purchase property, many potential first- time buyers are reliant on the support of the Bank of Mum and Dad in order to own their dream home, and the mortgage market has responded to this.

Over recent years there has been more innovation from lenders looking to support this space, with many big names now offering a range of different options to support families. This includes being able to use a parent’s savings as a potential deposit or being able to use parental income to boost first-time buyer affordability.

If you’d like to help your children onto the property ladder, and want to discuss the options for their future, contact your adviser today.

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As landlords it’s incredibly important to keep on top of your tax issues, so here we take a look at some of the major aspects of landlord tax and make surethatyou’re up to date.

1. Stamp duty on second properties

From April 2016, stamp duty landtax (SDLT) on second properties, including rental properties, was increased to include an additional 3% surcharge over and above standard rates.

Anyone purchasing a rental property now pays 3% SDLT for the first £125,000; 5% instead of 2% on the portion between £125,001 and £250,000, and 8% on any amount above £250,001–increasing the amount of up-front cash landlords need to buy a new property.

2. Tax on rental income

Until recently, landlords could deduct all finance costs from their rental income and profits were taxed at their marginal rate. However, starting from April 2017 and phased in over a four-year period, tax relief for finance costs is being restricted to a basic rate tax credit.

How these rules will impact you as a landlord will depend on your individual circumstances. However, there are a range of strategies to mitigate the affects of these changes, from resizing your portfolio to moving properties into a limited company –this is where seeking professional advice can be so invaluable.

3. Wear and tear allowance

Landlords with furnished properties can take advantage of a ‘wear and tear’ allowance to reflect the fact that furnishings need to be replaced regularly.Until recently, the allowance was set at 10% of gross rent but, following a change to the rules, landlords can only deduct the cost of new items against their rental income now.

4. Insurance premium tax

Landlords can expect to pay 12% insurance premium tax on any insurance they arrange associated with their rental property. While there is no legal requirement for landlords to take out insurance, mortgage lenders usually require specialist building insurance to cover the costs of rebuilding or repairing the structure of the rental property if it is damaged or destroyed by events like fire, storm,flood or vandalism.

5. Capital gains tax

Landlords are subject to capital gains tax on property sales. The size of the gain is usually the difference between the amount paid for the property and the amount achieved when the property is sold. Landlords can deduct costs associated with buying, selling and improving their property to reduce the gain so it’s important to keep receipts for all these items.

This article is only a brief overview of some taxes that may be applicable to landlords and should not be considered as an exact guide. Before investing in property or looking to restructure an existing portfolio, individuals should always seek expert advice from a qualified tax specialist.

If you’re a landlord and would like to discuss your buying options, contact your adviser today.

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According to the latest report from the Intermediary Mortgage Lenders Association, the need to serve a growing population of older homeowners is producing a new generation of mortgage products.

The report has showed that homeowners over 55 now hold a staggering 69% of the UK’s housing equity and the increase in later life lending products is starting to reflect this.

Some of these new products,which offerfeatures such as no maximum age limitor repayment on an interest only basis, are leading to a ‘softening’ of the traditional divide between later life and mainstream financial products.

With the ageing population and a number of later life lending options becoming available, it will come as no surprise to you that lifetime mortgage lending has increased by 29% every year since 2014.

If you think you could benefit from Britain’s later life lending boom, or to simply discuss what options are available to you, contact your adviser today.

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Entering retirement in debt is never ideal. Nobody wants to still be paying off mortgages, loans and credit cards in their retirement days. We all wish to have a relaxed retirement, without the worries of financial debt.

However, for many of us, this won’tbe possible. It will take more than three and a half years for the average retiree to be debt free, according to research by Prudential. This is going to cost on average £285 a month.

For many this is a substantial amount, especially assomepensions continue to drastically underperform and retiree’s savings are dwindling. But, there are options for older homeowners struggling with debt.

Many lenders are now offering different avenues for retirees and older homeowners ranging from increased maximum ages on mortgages to equity release.

If you’re entering retirement in debt or simply want to discuss your options for older homeowners, contact your advisor today!

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