Who can believe we are already three-quarters of the way through 2021? Here is our monthly round-up of all the latest news, updates and advice about mortgages and protection.
We hope you find the information interesting. If you would like to discuss anything in more detail, please get in touch, and we are happy to help.
MORTGAGE NEWS & UPDATES
Retirement Interest-Only Mortgages
Are you over 55 and already retired? If you have equity in your home, you may wish to consider a Retirement Interest Only Mortgage. Here are some of the advantages:
✅ Often cheaper than a lifetime mortgage
✅ Avoid having to downsize to release money from your home
✅ Loan term is not fixed so you don’t have to worry about repaying the capital until you are finished with your home
✅ No “interest roll-up”. In other words, compounding won’t erode the amount of capital you have left in your house to pass on to your family
✅ Allow you to continue an existing interest-only mortgage into retirement
✅ With a retirement interest-only mortgage you would have more money to pass on to your family
✅ Plus, you would have paid less interest as it wouldn’t have compounded over the years
Find out more about Retirement Interest Only Mortgages and how they could benefit you with a free no-obligation initial consultation. Contact Stratton Thorpe Mortgage Solutions today.
Falling mortgage interest rates offer remortgaging borrowers bumper savings.
Mortgage borrowers watching the weeks tick down until their five-year fixed rate expires will soon be able to lock into a new five-year deal priced 0.35 per cent cheaper.
SOURCE - Mortgage Solutions
House prices climb 7.6% in July 2021: Halifax
UK house prices rose by 7.6% on an annual basis this July, shows the latest index from Halifax. This compares to annual growth of 8.8% in June and 9.6% in May, meaning that price growth has slowed down from a 12-month high of 9.6 per cent in May 21, and 8.7 per cent in June 21. This cooling of prices on a relative basis was expected, says Halifax managing director Russell Galley, “given the strength of price inflation seen last summer, as the market began its recovery from the first lockdown, and with activity supported by the start of the stamp duty holiday.”
He believes that the housing market with “remain solid” over the next few months thanks to limited housing stock and low borrowing costs, with annual growth slowing “but remaining well into positive territory by the end of the year.”
SOURCE - Mortgage Strategy
RECORD NUMBER BOUGHT THROUGH HELP TO BUY IN YEAR TO END OF MARCH 2021
Over 55,000 households bought homes through Help to Buy equity loan in the financial year 2020/21, an all-time high for the scheme.
Government figures out today show that in the year to the end of March, 55,649 homes were bought using Help to Buy equity loans, with a total of 328,506 purchased through the schemes.
SOURCE - Mortgage Strategy
PROTECTION NEWS & UPDATES
Tax-efficient Life Insurance
Are you a company director? Do you know there is a tax-efficient life insurance option for company directors and sole traders called Relevant Life Insurance? By running your life cover through your business, you can make big savings compared to taking out a personal policy. Benefits include:
✔️ Corporation tax relief
✔️ No National Insurance contributions on policy payments
✔️ Premiums paid for by the company typically as an allowable business expense
✔️ Cover up to 25 x your total remuneration to include your salary, bonus, regular dividends and the cash value of any benefit in kind
✔️ Provide your family with a tax-free lump sum if the worst happens
To find out more about Relevant Life Insurance contact Stratton Thorpe today for a free no-obligation initial consultation.
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