Monthly Archives: September 2011

Over 55s want to be remembered for the manners borne

Posted on by

Most over 55s believe the best inheritance they can leave their loved ones is good manners.

Property and money are other popular assets to pass on, according to a study by financial firm LV=.
Around one in four (25 per cent) do not expect to receive any inheritance – and three per cent of over 55s do not intend to leave their family anything.

The findings showed 59 per cent wanted to leave property and cash – but at 85 per cent, most thought good manners were more important than more worldly gifts.

The most popular use for any money would be to boost retirement savings (six per cent) or to stash in savings (six per cent). Another five per cent would spend an inheritance on clearing debts.

Besides financial gifts, good manners (85%), good behaviour (82%) and good values (82%) are the traits many would like to be remembered for. These attributes are also the ones most believe were passed to them by their ancestors.

John Perks, LV= managing director of retirement solutions said: “This research highlights a disparity between the number of Brits who are planning to leave some kind of financial asset behind for their family and those who believe there will anything left for them to inherit – this suggests that many may be pleasantly surprised.

“However, it is quite worrying to see that of those who are relying on an inheritance, one of the main reasons cited is the funding of their retirement. Given that we are all living longer, relying on an inheritance to fund your retirement is a rather risky strategy. In order to ensure a comfortable retirement, it is essential that people start saving as soon as possible. “If people do want to leave an inheritance for their family, it is important to seek expert advice on the relevant financial products that can help, and make a will as early as possible so that their intentions for their assets will be followed.”

Mortgage competition heats up as lenders offer cuts in fixed rate deals

Posted on by

The competition in the mortgage lending market continues to develop as several banks and building societies announce cuts to their interest rates for fixed term mortgages.

Nationwide have announced a reduction to their 5 year fixed term interest rate for any property which holds equity of 30% or more. The rate on offer is 3.69%, but incurs a fee of £999, however the rate would be £99 with a higher rate of 3.89%.

Nationwide will also offer a 0.1% rate reduction for any new mortgage applications. Martyn Dyson, a spokesperson for Nationwide, said: “We know from our mortgage consultants and brokers that five-year fixed rate products are popular with borrowers, so our latest rate reduction ensures our deals continue to be amongst the most competitive in the market place.”

Leeds Building Society have also recently announced interest rate cuts on their two year and three year fixed term deals. For their two year fixed term rates, they have announced a rate of 3.5% on properties with 15% equity and 3.14% for those with 20% equity. For their three year fixed term deals, they offer 2.94% for mortgages with 25% equity, 3.49% for 20% equity (a market leader) and 3.79% for 15% equity.

Kim Rebecchi from the Leeds Building Society indicated that the current interest rates were at a historic low and has indicated that many customers are looking for “security, peace of mind and longer term value.” He has indicated that they have offered further cuts across a variety of Loan To Value (LTV) bands. These cuts include a rate of 2.45% for properties with 40% equity and a rate of 2.75% for properties which hold 25% equity.

In response to the current market, the HSBC have also announced a new five year fixed term deal for properties with 40% equity. The rate offered is 3.34%, but attracts a fee of £999.

The Chelsea Building Society have revealed a market leading change to its five year fixed term mortgage for properties with 30% equity. The rate has been cut to 3.29%, although this attracts a higher fee of £1,495. The rate of its five six seven mortgage, which allows the borrower to choose the length of the fixed term, has also been cut from 3.99% to 3.69% – another market leader.

Chelsea have also launched the cheapest available 10 year fixed term mortgage deal. This offers a rate of 3.99% and is available for properties with 30% equity value. However, the fee is £1,495, although, this fee can be reduced to £195 for people who take a 4.19% rate.

However, Lee Karasavass from Prolific Mortgage Finance suggests that there is not much of a market for 10 year fixed term deals, although it’s understandable that in the current economic climate, these deals would be attractive to many people who know that they will not move house in the near future.

Some experts suggest that the new deals indicate that a rise in the base rate of interest may not occur for a while yet and that the low interest rates are adding to the competition and providing a great opportunity for buyers. Customers should take every opportunity to shop around to get the best deal for them.