Facebook LinkedIn Twitter Login
Aug 122016
 

What about getting a mortgage certificate?

The very first thing you must do before even looking at a property to buy, you must obtain a mortgage certificate, otherwise known as a mortgage promise or an agreement in principle. This is a document from a lender showing how much they will be willing to pay you. These statements only last for a short period of time, usually 3 months, so make you know how long yours lasts for.

It has many advantages being that it demonstrates to the seller that you are a serious and determined buyer, and that you have enough money behind you to purchase the property. It will also speed up the mortgage process later on when you make a formal application because it will already have some of your information on record. You must remember that a mortgage certificate is not a guarantee that the lender will actually give you the money for the property you want to buy. It depends on details such exact details of the property, the outcome of credit checks and the correctness of information you supplied about yourself.

In order to get a mortgage certificate you will need to complete a form, giving details of your income and financial commitments, and your employment records. At this stage it is likely the lender will run credit checks on you, and might even ask your employer for references. The lender will then use this information to calculate how much they are willing to lend you. If you intend to keep your options open, there is no reason why you can’t obtain a mortgage certificate from more than one lender. However, if you feel problems with a lender agreeing to the amount you want to borrow, then there is no point in doing this, also, if each lender you go to carries out a credit check, it could harm your credit rating.

Feb 042016
 

Mike Oliver Associates acquires Chase Mortgages Ltd clients and services

After over 20 years in the mortgage industry, owners of Chase Mortgages Ltd, Chris Young and John Hutchens have retired!

They’ve spent some time considering this and over the last year believe Mike Oliver Associates is the perfect company to dovetail their services into.

Mike Oliver Associates has considerable experience in the mortgage industry and will be able to provide the same level of service, advice and products as Chris and John have done over the years as well as providing a range of other financial services.

Chase Mortgages Ltd are keeping their phone lines and email addresses live for the foreseeable future and working alongside Mike Oliver to ensure the hand over is as smooth as possible.

Finally, Chris and John wish to thank all of their clients for their support over the years.

 

On your side with Buy to Let

 

First time Buy to Let help

Buying property to let as a long-term investment or to generate a regular income has become an increasingly popular option over recent years, and the demand from would-be tenants for quality rental property continues to grow in many areas of the country.

If you’re planning to develop a substantial portfolio as a professional landlord – or you’re just thinking of a fairly modest investment for the future – you’re almost certainly going to need finance in the form of a Buy to Let mortgage. At Mike Oliver Associates, we’re a leader in arranging Buy to Let mortgages, specialising in finance for the residential letting industry.

We’re ready to help you achieve your goals.

Helping you get it right

As Independent Financial Advisers, we’d like to help you establish and run your Buy to Let business successfully and fairly for all concerned. That means careful planning of finances, taxation, and insurance.  It’s also important that you comply with all of the legal requirements of being a landlord. Ask for our mortgage pack which answers many of the most common questions that arise when would-be landlords first consider investing in Buy to Let – it should work as a sound introduction to the business. However, you’re likely to have specific questions relating to your property, locality and circumstances, and we would be delighted to assist you.

Purchase costs

Deposit

If you are funding your puchase with a mortgage you will need to find a deposit from elsewhere. A typical Buy to Let mortgage is currently available at a maximum of 75% loan-to-value, so it’s likely you will need to fund a quarter of the property value.

 Our arrangement fee

For mortgages we can be paid by commission, or a fee of usually £600, or a combination of both.  This is charge is usually split, so it’s easier to pay; we charge a non refundable fee of £300 upon application and once we receive a suitable offer from a mortgage company a further £300 for the mortgage administration of your case. We appreciate your custom so we’ll reduce your mortgage fees by 50% if you come back to us with repeat mortgage business.

The Financial Conduct Authority does not regulate some aspects of Buy to Let mortgages.

Other costs  

Preparing your property for rent – depending on the condition of the property you intend to Buy to Let, you may have to do structural or decorative work.

You’ll also have to budget for furniture and appliances if you intend to let your property furnished.

Other costs will include legal fees, stamp duty land tax (if appropriate) and a survey fee.

Mortgage costs

Mortgage interest payments are likely to be your largest ongoing cost, and most lenders will want to ensure that the rental you earn from letting your property easily covers your mortgage commitment.  Rental income should be at least 125% of the mortgage interest at initial product, this provides a safeguard against periods when your property isn’t let, and should help you meet the costs of running your property.

Your home or property may be repossessed if you do not keep up repayments on your mortgage and any other debts secured on it.

Running costs

Property maintenance –such as repairs and maintaining the safety of gas and electrical appliances.

Insurance – specialist buildings and contents insurance for landlords is essential. In addition, some insurers will also provide rent guarantee insurance.

Service charges and ground rents – for leasehold properties

Your tenant will normally be responsible for other property related costs such as council tax, a TV licence and utilities. The tenancy agreement should clearly set out who is responsible for each of these payments.

Letting Agent services and charges

If you’re new to the Buy to Let market, have several properties, live some distance from your property or you have other demands on your time, it could make sense to use a reputable letting agent. Naturally the fees or commission you pay to an agent will eat into your profit, but it may save you a great deal of trouble. An agent can be a great source of advice, and it’s worthwhile speaking to local agents who know your area before you buy. A good letting agent will market your property, select tenants, take up references and credit checks, compile inventories and tenancy agreements, collect rent and deposits, and generally inspect and manage the property.

Typical letting agent charges are around 10–15% of the monthly rental. In addition there can be a one-off set up fee. These charges vary from agent to agent, so it may be worth shopping around.

Cost and Income

Your income

Your main source of Buy to Let income will be rent. It is vitally important that you get a true sense of likely rental levels by speaking to local estate agents and generally researching the local rental market. You’ll also be interested in the potential resale value of your Buy to Let property. Therefore the local market, employment opportunities, transport links, schools and other amenities will be important considerations.

Your obligations to the tax man

Tax is payable on the profits you make from letting your Buy to Let property. It’s normally calculated on the gross annual rental income, less any allowable expenses incurred as a result of renting out the property, as well any other allowances that you’re entitled to. If you lose money in any one year, you should be able to carry the loss forward and set it against profit you make in subsequent years.

As a landlord, you’ll have to submit your rental income on your tax return, so it’s vital you keep detailed records of the rental payments you receive as well as all the expenses you incur. It’s standard practice for a landlord to employ an accountant to ensure HM Revenue & Customs are properly advised – and to make sure that all allowable expenses are identified so you can offset them against your profit. Although using an accountant will cost money, the fees you pay for the service will be tax deductible, and the help you’ll receive could easily save you money in the long run.

Expenses which can normally be deducted from your income to calculate your profit include: utility bills, insurance, mortgage interest, maintenance and repair (but not improvements), professional fees, cost of services like cleaners and tradesmen and other expenses such as advertising for tenants.

Sale proceeds and tax

If and when you decide to sell your Buy to Let property, the proceeds from the sale will be subject to capital gains tax. Calculating this tax liability can be quite complicated and it’s almost certainly worth paying for the expert advice of a qualified accountant.

Further information on taxation and allowances can be found by visiting the HM Revenue & Customs website at www.hmrc.gov.uk.

Tenancy agreements

A tenancy agreement is a contract between landlord and tenant. It is most likely to be an Assured Shorthold Tenancy agreement (AST) regulated by the Housing Act 1988 as amended, and provides limited security of tenure to the tenant. Although the content varies, your tenancy agreement should cover:

• details of the parties involved

• The date that the tenancy began

• The duration of the tenancy

•  details of the initial deposit that the tenant should pay  and how it is to be protected

•  details of the monthly rent, when it is due and how it  is to be paid

•  The length of notice that the tenant and landlord need  to give to end the tenancy

• details of the tenant’s obligations while renting the property

•  a provision confirming that the tenant is not liable  for fair wear and tear to the property

 The tenancy agreement should be signed by the tenant and the letting agent, or the landlord if no agent is involved. It can subsequently be changed if both parties agree. Unless you have considerable experience already, it’s a good idea to seek advice from a letting agent or legal adviser on the terms of the proposed tenancy agreement. Initial deposits
An initial deposit should cover you against missing items, or any damage caused by the tenant.

Landlord Obligations

Deposit protection schemes

Tenancy Deposit Protection (TDP) schemes guarantee that tenants will  get their deposit back at the end of the tenancy. (However, the tenant is  still obliged to meet the terms of the tenancy agreement and must not damage the property.)

Landlords are legally required to protect deposits on tenancies which began after 6 April 2007, it’s good practice for landlords to protect deposits in all circumstances. If you don’t protect you tenant’s deposit you could be taken to court. You could be required to repay the deposit plus a sum equivalent to three times the amount, and you may not be able to seek possession of your property. Tenancy Deposit Protection schemes do not cover holding deposits

Types of scheme

There are two types of Tenancy Deposit Protection schemes and you  should seek professional advice – for example from an agent or solicitor –  on what’s the best for you:
•  Custodial – the Deposit Protection Service provides the only custodial  scheme. It holds the deposit in a bank account and returns it at the end  of the tenancy to the person who is entitled to it. This scheme is free to landlords and letting agents.
•  Insurance based – where you or your agent holds the tenant’s deposit  and pays a fee to insure it against default. My Deposits and Tenancy  Deposit Scheme are insurance based providers.

Landlord insurance

Standard home insurance doesn’t normally pay out when a property is let, so it’s important that you arrange a specialist policy. As well as insuring the building and any contents that belong to you, landlord insurance often provides legal cover which could help in disputes. Many policies also include other valuable cover like:

•  Rent guarantee cover – helps protect you against a tenant failing to pay  rent, or if something unexpected happens to make letting impossible.

•  Landlord liability cover – this can protect you against large compensation claims arising from an injury caused by a defect in your property.

Your tenants will be responsible for insuring their own personal possessions.

Landlord repair and maintenance obligations

The Landlord and Tenant Act 1985 covers the three main areas of  your responsibility as a landlord under an assured shorthold tenancy.

Repair

You must keep the structure and exterior of the property in a good  state of repair. You have final responsibility for ensuring your property  is safe and fit for use, and you must ensure that all necessary repairs  are carried out properly.

Gas and electrical safety

As a landlord, you’re responsible for the safety of gas installations and appliances. You must arrange an annual safety check and keep proper records. There are also regulations covering the safety of electrical installations and appliances. Though not currently compulsory in all properties, it makes extremely good sense to fit carbon monoxide and smoke detectors in all let properties.  As a landlord, you must also keep up to date with changes in relevant legislation – it’s your responsibility to find out when your obligations change.

Fire safety of furnishings

You must ensure that any soft furnishings and fittings you provide comply with the relevant standards for fire safety, and it’s a good idea to seek independent advice on your legal responsibilities in this area.

Ending a tenancy

At the end of an Assured Shorthold Tenancy (AST) you have an automatic right as a landlord to possession of your property as long as you’ve given  the tenant two months’ notice to vacate the property.

If the notice period expires and the tenant has still not left the property,  you will need to start the process of eviction through the courts. You can’t forcibly remove a tenant without an eviction order.

If you wish to seek possession under an Assured Shorthold Tenancy because your tenant has not paid the rent, or if they’ve broken other terms of the agreement, you’ll need to use one of the reasons or ‘grounds’ for possession specified in the Housing Act 1988. You will have to seek independent legal advice on bringing an AST to an end.

There are certain criteria that are  applied to all applications for Buy to Let borrowing, as Financial Advisers we are happy to explain any points  relating to your own circumstances.

Guides & Information

 

Guides and InformationWant to do some research before you see us?

We have developed our own explanatory leaflets and guides, just call or email us and we will ensure you receive the latest up to date information and we are here to answer your queries.

Mike Oliver Associates are directly authorised and regulated by the Financial Conduct Authority.

Speak in confidence to us on 0845 4021757 or tell us your requirements here and we will get straight back to you.

Protection For You And Your Company

 

ProtectionProtection For you

Life may seem nice and secure at the moment but who knows what could be waiting around the corner?  You may have:

  • Dependants
  • A mortgage or other debts
  • Potential inheritance tax issues
  • A business – Partnership & Shareholder Protection
  • Key members of staff that you wish to protect

We are experts at analysing your protection needs, giving appropriate advice and helping you to make the right choice for your budget. Speak in confidence to us on 0845 4021757 or tell us your requirements on the Contact Us page and we will get straight back to you.

  • 96% of the population do not have adequate income protection cover.
  • Concerned about being made redundant?
  • How you will pay your mortgage if unable to work due to accident or illness?
  • Critical illness cover?

For accident sickness and unemployment insurance we offer products from a selected panel of providers.

Your home or property may be repossessed if you do not keep up repayments on your mortgage or any other debt secured on it.

If you think you could be paying too much for your existing cover or would like to customise it, we offer a FREE no obligation comparison quote on all your existing policies.

Life Cover – pays a cash lump sum to your family or someone else you have nominated, if you die while you’re covered.  A policy can also pay a cash lump sum if you are diagnosed with a terminal illness.

Serious Illness Cover – pays you a cash lump sum if you are diagnosed with a condition covered. The amount you are paid is based on the severity of your condition.  If you claim for a condition that is less severe many policies will pay out part of your cover amount, and the insurer can continue to cover you for the remaining amount.  This means that if your condition gets worse, or you are diagnosed with a  more severe condition, you can claim again.

Critical illness insurance or critical illness cover is an insurance product, where the insurer is contracted to typically make a lump sum cash payment if the policyholder is diagnosed with one of the critical illnesses listed in the insurance policy.

Income Protection Cover – pays you a monthly income if you become ill, injured or disabled and can’t work.  Primary and Comprehensive Income Protection Cover will pay you until you are well enough to go back to work, or until you reach the end of your plan.  Short Term Income Protection Cover can pay you a monthly income for up to 2 years.

Cover that will help pay off your mortgage – Decreasing insurance helps to protect your family financially if you have a repayment mortgage or loan.  As what you owe reduces over time, so does the amount of cover. This helps keep costs lower.

We’d like to help you protect your baby – some providers can give each new parent £10,000 free life insurance as a first step towards protecting your family. Terms and conditions, and exclusions apply, so please ask us.

Education Cover – if something happens to you, this gives your family payments each academic term.  It means your children won’t miss out on any part of  school life.

Disablility Cover – can protect you from the financial impact of a disability.  Policies can cover anything form temporary to severe disablilities that last the rest of your life.

Protection For Your Company

Our advisers can work with you to help you to future-proof your business. Have you asked yourself these questions lately…
  • Would there be a financial impact on the business if one or more of the directors/partners or key individuals were no longer around?
  • Would the business or its owners have the cash to survive?empty boardroom
  • How quickly would the business or owners need the cash?
  • Where would the business or business owners get the cash from if the worst happened?
  • Are there any liabilities (eg loans)?
  • Are there any personal loans from the directors/partners/members into the business?
  • Are any of these loans subject to personal guarantees?

Why leave it to chance?

Mike Oliver Associates authorised and regulated by the Financial Conduct Authority.

 

Mortgages

 

HomeExpert Mortage Advice

You may be urgently looking for a mortgage; our competitively priced Mortgage Service based in Haywards Heath, supports clients nationally.  At Mike Oliver Associates we pride ourselves in helping all types of clients to become property owners:

•    First Time Buyers
•    Home Movers
•    Owners Looking to Re-Mortgage
•    Owners in the Buy to Let Market
•    Holiday Home Owners
•    Business Owners

We can offer a huge choice of mortgages (more than 5,000 schemes at a recent count) to suit your precise needs and we can help you quickly.  We will find you the right scheme, liaise with the lender, surveyor, estate agent and solicitor and we will update you at every stage.

As Financial Advisers, we are morally and legally obliged to protect the assets of our clients, when taking out a mortgage.

Our Haywards Heath team can source Buildings and Contents insurance at competitive rates. For Buildings and Contents insurance we offer products from a selected panel of providers.

If you are concerned about repaying an Interest Only Mortgage then contact Mike Oliver direct.

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

For mortgages we charge a fee, usually of £600.  We will also be paid a procuration fee from the mortgage provider if one is available.

Remember, Mike Oliver Associates are directly authorised and regulated by the Financial Conduct Authority.  Speak in confidence to us on 0845 4021757 or tell us your requirements on the Contact Us page and we will get straight back to you.

 

 

 

 

Welcome to Mike Oliver Associates, we are a firm of Independent Financial Advisers directly authorised and regulated by the Financial Conduct Authority (FCA)

 


We’re delighted to be headline sponsors for the Business Matters Annual Awards 2017, supporting, recognising and promoting local businesses and their achievements.

We’d like to wish everyone taking part the very best of luck!

 

 

 

 

 

 

Wouldn’t it be great if I could contact an experienced

Independent Financial Adviser who is:

  • From a multi-award winning firm and respected member of the business community
  • On the high street, so that I can drop in for a chat when I want to
  • Available to call out of normal working hours, if I need to talk in confidence
  • Able to visit me at home or at my business, when it is convenient to me
  • Understanding of my budget and aspirations, but doesn’t put me under any obligation
  • Able to research the whole of the market for me
  • Able to advise me on all aspects of my finances, throughout my life
  • Able to assist with my savings, investments and taxation planning
  • Prepared to explain any fees up front and in writing, in a way I understand
  • In regular contact with me to check if there are any changes to my circumstances
  • Able to update me with the latest financial developments.

Here for me………for life

 

What is an IFA?

10 Reasons to use an Independent Financial Adviser

 

The guidance and/or advice contained within the website is subject to the UK regulatory regime and is therefore primarily targeted at customers in the UK.

Where you have a compliant or dispute with us and we are unable to resolve this to your satisfaction then we are obliged to offer you the Financial Ombudsman Service to help resolve this. Please see the following link for further details:  http://financial-ombudsman.org.uk/

The Financial Conduct Authority does not regulate taxation & trust advice, will writing, some aspects of commercial mortgages, buy to let mortgages, finance and secured loans.

We are entered on the Financial Services Register No 646955 at www.fca.org.uk/register/ and further information can be found on the FCA’s consumer website ‘The Money Advice Service’

Jul 082013
 

We can help you to turn your dreams into reality.  There’s no better time to be seeking mortgage advice. Let us show you the best mortgage rates in the UK. Our access to amazing mortgage offers could save you time and money and we will take the worry out of getting your new mortgage deal arranged. We are a customer focussed award winning company here to help you every step of the way.

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

For mortgages we can be paid by commission, or a fee of usually £500 or a combination of both. For a FREE initial consultation call 0845 4021757