As you may have read in the tabloids the Skipton Building Society has reneged on its mortgage offer guarantee.  It made a promise that its base rate would be no more than 3% over the Bank of England base rate but, oh treachery and double-dealing, they announced their new standard variable rate at 4.95% effective 1st March 2010.  A whooping 1.45% increase on their old rate and now 4.45% over the BoE base rate!

Legal action is anticipated but where does this leave your typical Skipton client in the interim? The simple answer is, out of pocket, so our advice is to get urgent professional advice to consider your options. One of my clients did just that and I am pleased to relay a happy ending.

In anticipation of the uplift I submitted a remortgage application to the Woolwich.  Now, credit where credit is due. Whilst they had a good rate Woolwich are generally regarded as one of the slowest mortgage processing companies but in this case they received the proposal on the 9th February and completed on the 26th!  Application fee of just £199, with free legal work and a fixed rate of 3.89% saving my client in the order of £600 per annum.

So what’s the message to the 59,000 Skipton clients stranded on the new rate? Call us urgently!

Rather morbidly any conversation with a Mortgage Broker usually involves a question about whether you need life assurance to protect your mortgage in the event of death.  However, in reality, the chance of a client actually dying during a mortgage term is small – they are in fact much more likely to suffer illness, accident or even a period of unemployment.

In light of the above, it is therefore these types of incident that should also be protected against rather than just dealing with the question of death. Whether this is for short-term cover for a maximum period of 12 months or if you require cover right up to retirement age there are policies that can be tailored to each client’s specific needs. There are even life insurance policies available that will reduce the monthly premium if you are a gym member and can evidence the maintaining of a level of fitness going forward.

If you would like to know more about such policies please contact me.

Great news! No downward spiral here!

I recently had an enquiry about arranging life assurance for an American client.  Under normal circumstances insuring a fit non-smoking forty something academic is reasonably straight forward. However, my learned transatlantic comrade has an unusual pastime; he sky dives up to 75 times a year.  As you would imagine this leads to huge underwriting problems with nearly all insurance companies.  They view this type of application as a larger than normal risk and typically charge up to three times the standard premium, when compared to those of us who keep our feet on the ground.

But persistence pays off! I found an insurer who offered cover to the client on standard rates because they took the time to listen to the fact that the client has been sky diving for twenty years and that he actually holds a recognised licence certifying his competence.  So with a bit more effort and a personal approach on my part we were able to provide the client with the right level of protection and, as importantly, at a realistic price. I would like to see the price comparison website that can do that!

If anyone would like to discuss their life insurance needs please do not hesitate to contact me.

This is only a brief summary. For the full guide click below.

Some insurance is a legal requirement when you get a mortgage. Some is just strongly advised. We can help you find the following:

Building and contents insurance

• Buildings insurance – to cover damage to your property
• Contents insurance – to cover the contents of your property

Life insurance

• Level term life assurance – pays out a set amount if you die
• Mortgage decreasing life insurance – pays off your remaining mortgage if you die
• Critical illness cover – covers the event of serious illness
• Income protection insurance – covers no longer being able to earn an income

Investment plans

People with interest-only mortgages invest money so that they can pay off the capital of the mortgage when it matures. Examples of investment plans:

• Endowments
• Personal pension plans
• Individual savings plans