Budgets, briefings and buy-to-lets! It is all happening in Mortgages
The recent budget review by the Chancellor promised a “Budget for long term growth” delivering “more investment, more jobs, better public services and lower taxes”. As always the big promises often paint a much rosier picture of the reality. What does this mean for the mortgage industry? Here some of the key points:
- The taxation of non-doms – the tax regime for non-UK domiciled individuals (‘non-doms’) where people whose permanent home (domicile) is outside the UK may not have to pay UK tax on foreign income, will be abolished. It will be replaced, from April 2025, by a new residence-based regime, where all UK residents who stay in the UK for over four years will pay the same tax on their foreign income and gains, regardless of their domicile status.
- Capital Gains Tax – the higher rate of Capital Gains Tax for residential property disposals will be cut from 28% to 24% from April 2024.
- Stamp Duty Land Tax – from 1 June 2024, the Government will abolish Multiple Dwellings Relief, a tax relief in the Stamp Duty Land Tax regime for people and businesses buying multiple properties in a single transaction (or multiple linked transactions).
- Furnished holiday lettings – from 6 April 2025, the Government will abolish a tax advantage for landlords who let short-term furnished holiday properties over those who let residential properties to longer-term tenants.
- VAT threshold – the VAT threshold will be increased from £85,000 to £90,000 in April 2024.
- Energy profits levy – the levy, introduced in May 2022 in response to the rise in oil and gas company profits, will be extended by a year to 2028/29.
- Household Support Fund – the Household Support Fund allows local authorities in England to make discretionary payments to people most in need to help towards the rising cost of food, energy, and water bills. It has been extended by six months to September 2024 – it was due to end in March 2024.
In other news:
We are delighted to announce our partnership with Perenna:
Perenna have created a new kind of bank, a bank that changes how mortgages are funded (they use covered bonds instead of savings deposits). This unique model allows them to provide long-term value for customers and broker partners. Perenna provides fair and flexible mortgages with short ERCs. Whether your clients are first-time buyers, home movers, want a remortgage, or to borrow in retirement, they’re here to help.
Listen to our podcast:
At The Right Mortgage and Protection Network, we have been talking with Quantum about their Buy-to-let offering and services:
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Anita White
Head of Lender Relationships
A positive start all round!
With the last month of Q1 coming to a close, what an interesting start to the year we have had! Equity release has had a positive start with rates and loan to values becoming more competitive, an increase in applications for helping more customers and the launch of multiple new products.
The National Training Event held a great buzz with many already looking forward to next year already.
Another date for your diary is Wednesday 1st May for our first Later Life Lending Workshop of the year in Knowle, which will be full to the maximum with new provider information, round tables and networking.
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Victoria Clark
Head of Equity Release
Protection statistics to help you stay ahead of the game
As well as sharing the latest in product news below, I thought it would be a good idea to summarise some interesting and important information which can help you understand the world of Protection better:
Cirencester Friendly paid out 95.8% of claims in 2023! An insurer that has better odds for your clients.
- No loading for smokers
- No occupation loadings
- Child CIC included on all policies
- Video GP & support services included
- Day one cover for severe injuries
Click to read more in Cover Magazine
Vitality
- 1 in 12 Serious Illness Cover claimants had claimed previously
- 1 in 6 SIC claims paid would not be covered by a typical critical illness plan
- 96.6% paid across Life, SIC and IP claims
- Income Protection is also uniquely flexible, and can boost payouts by up to 20% for six months when a member engages with the Vitality Programme
- IP muscular skeletal claims were nearly 20% greater than cancer claims.
It is your job to stay up to date and ahead of the news so you can give the best advice possible- see the latest news below for more information, and remember to log your CPD time!
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Tom Fish
Protection Specialist
Targeting the right clients for International Private Medical Insurance
In today’s interconnected world, the demand for international private medical insurance is on the rise. Individuals and families are regularly relocating or traveling abroad for work, education, or leisure. When identifying a target audience for international private medical insurance, we should be considering the following.
Expatriates and Global Professionals.
Expatriates, individuals residing outside the UK for work or personal reasons, constitute a significant portion of the target market for IPMI. These global professionals often require health coverage not only in the UK but also globally. These types of clients require comprehensive benefits which provides quality health care, emergency medical evacuation and repatriation services.
High net worth clients and Business executives.
High net worth individuals and business executives are another target audience who benefit from IPMI. Their regular international travel for business meetings, conferences, golf days makes it a necessity for them to have some form of International Private Medical Insurance.
Students.
Students looking to obtain an education abroad is another target audience. These clients may wish to take out IPMI to cover any treatments, health issues or investigations that they may need to be carried out, whilst living abroad.
Clients who have retired.
Clients who may have retired may wish to spend some of their time living abroad in their holiday homes. Therefore, they may wish to retain the luxury of having access to quality healthcare and feel comfortable and reassured that should they require any medical treatment they can have this as soon as possible, without worrying about the expense of it.
Therefore, let’s not miss out on a trick, have a look through your client banks and see if you have any of the above type of clients. Our PMI panel offers a range of providers who cover client’s for International PMI cover.
If you wish to find out more, please attend our next PMI coffee morning session on the 3rd April at 10am, where we have Now Health and Bupa Global attending, to talk us through their proposition. Cannot wait to see you there.
And a final note to say well done to Jessica Knight from The Protection Parent for being signed off with her Pre Rec!
Key Links:
Dedicated section for PMI advisers
PMI Adviser only Forum Hit ‘subscribe’ in the top right hand corner to keep up with all our latest topics.
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The 20% lifetime discount on selected Bupa Global Health Plans has been extended. Terms & conditions apply
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Bipin Sandhu
PMI Supervision & Development Manager
How home insurance prices have changed in your area
We have all seen house insurance prices rise in the last few months, but how has it actually effected your postcode?
Here’s how the average quoted price of home insurance rose across Britain by region from January 2023 to January 2024*.
- Wales, 43.2%
- South East, 42.6%
- London, 42.2%
- Scotland, 40.7%
- Yorkshire and the Humber, 40.5%
- North West, 40.3%
- West Midlands, 40%
- South West, 39.7%
- North East, 39.4%
- East Midlands, 39%
- Eastern England, 38.9%
Make sure you are talking to your customers every year, so that they don’t go away and look on comparison websites, make sure they come back to you!
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Amy Wilson
Head of General Insurance (PMI and GI)
