If you’re looking for a mortgage at present you may be a little confused as to which type of mortgage to go for. Many people instantly believe that they should opt for a tracker mortgage in times such as these as the Bank of England Interest Rates cut means that all tracker mortgages would also fall.

The Bank of England cut interest rates from 0.5 per cent to 0.25 percent in August this year, and many mortgage deals became cheaper as a result. However, figures published last week show the average rate on new popular 2 year tracker mortgages has crept back above 2 percent, from 1.94 per cent just over a month ago. This means that those taking out certain tracker mortgages today are no better off than if they had taken out the deal before the interest rate cut.

MoneyFacts have recently stated that as many as a quarter of banks have not passed on the cut in base rate to borrowers on standard variable rate mortgages which defies an explicit instruction from Bank of England Governor Mark Carney.

Examples such as the one above are exactly why it may pay to get financial advice when it comes to choosing a mortgage. There is much to read about in the papers with regard to mortgages and deals however My Finance Friend can talk through your options with you and fully explain exactly what each deal entails and what it will mean for you should interest rates change in the future.

So the next time you’re looking for a mortgage deal and you’d like to ensure that you get the best possible deal that’s right for your circumstances get in touch with us. We offer free mortgage advice throughout Derby and surrounding areas and are happy to see you at our offices, in your workplace or at your home at a time to suit you.

When you buy a house you’ll probably be aware that it some cases you may need to pay Stamp Duty Land Tax (SDLT), but how much will you need to pay?

The new way of calculating Stamp Duty Land Tax works very similarly to the way that Income Tax is calculated. Stamp Duty is payable at each rate on the portion of the purchase that falls within each band, rather than at a single rate on the whole transaction which is how it used to be calculated before the recent reform.

Stamp Duty Land Tax is only payable when you buy a property or land over a certain price in England, Wales and Northern Ireland. The current SDLT threshold is £125,000 for residential properties and £150,000 for non-residential land and properties.

For Residential Properties, the following is payable:

Up to £125,000 – Zero

The next £125,000 (the portion from £125,001 to £250,000) – 2%

The next £675,000 (the portion from £250,001 to £925,000) – 5%

The next £575,000 (the portion from £925,001 to £1.5 million) – 10%

The remaining amount (the portion above £1.5 million) -12%

Under new laws that have come into force you’ll usually also have to pay 3% on top of the normal SDLT rates if buying a new residential property means you’ll own more than one.

So if you’re looking for help and advice on Stamp Duty or you’re looking for a mortgage and would like advice why not contact us to see if we can help? We’re Mortgage Specialists and we operate from the Derby area, we’re more than happy to see you in your own home, work place or our offices. Give us a call today and see how My Finance Friend can help you with your mortgage and new home plans.

Many people feel that they don’t need protection however, in reality they’re probably wrong.

If tomorrow you were unable to work due to a serious illness, disability or accident, would you still be able to meet your mortgage repayments every month? How you you pay to feed yourself and your family? More importantly, how long could you keep up you mortgage repayments as well as keep your family fed and warm?

Many people think, ‘it won’t happen to me’ or if it does, somehow the state will meet your financial requirement however, sadly this isn’t usually the case.

So what type of protection may you require now?

Young person – most likely to live at home with parents and have little financial responsibility, in this case there may be lesser need for protection although that doesn’t mean there isn’t any requirement at all.

Adult, single or married with a mortgage – At this point in life, there is usually at least one wage coming in and each month in order to manage repayment requirements and housing costs. They run one or maybe two cars, have an active social life and/or enjoy travelling. If there was suddenly an unexpected loss of income, how would that lifestyle be maintained or the necessary repayments be met?

Couple with a family – Just as above with the additional financial responsibility of a child or children. In this case, there may be one or two wages coming in. If there is only one form of income coming in and the main wage earner is suddenly unable to work due to long term sickness, accident, disability or serious illness how will that family survive in terms of keeping up their mortgage repayments as well as look after their child(ren)? If there are two sets of income and it should be reduced to one, could the financial requirements still be met? If so how long for?

Later Life – Any mortgage would most likely have been repaid and the financial outgoings reduced overall. Although there may be less financial requirements in this stage of life it’s worth noting that income is likely to have dropped and the individual may be reliant on pension income and state pension. In this case, they may be able to meet their financial requirements but very often people in later life choose to save or put aside some money to cover any future funeral expenses.

If you’d like more information on protecting your family, your lifestyle or your income simply get in touch with us here at My Finance Friend, we provide mortgage and protection advice both in your own home, workplace or our offices, whichever suit you.