Michael Knight’s Blog

Many people are very happy with the NHS for emergency treatment - break a leg or have a heart attack and you know you’ll be seen straight away. Where the NHS can fall down is in the treatment of less acute but still lifestyle affecting conditions. Waiting times can be a real issue and if you’re worried about the delay, then potentially you’re making the situation worse.

Another concern is the condition and cleanliness of NHS facilities - aging buildings and equipment can be very difficult to keep in a tip-top state. With private care, while you can opt for a stay in an NHS hospital, many people prefer to use a private facility such as a BUPA hospital.

Boiling it down, there are 5 major benefits for taking out Private Medical Insurance:

•  peace of mind - you have access to a 24 hour GP helpline where you’ll speak to a real doctor
• High quality of care - access to the best specialists
• Choice of where you’re treated and the specialist you want
• Convenience of when you’re seen and treated - you remain in control
• Speed of getting specialist advice - reduces the worry of delays and cancellations of treatment

While the benefits are clear to most people, there is also a concern that this type of cover is expensive and that all conditions are not covered. As in all insurances, the more comprehensive the cover, the higher the financial commitment but you can tailor most plans to cover your personal requirements. This can make the monthly cost more affordable while still giving you the cover you want and need. 

Let’s look at some example costs:

• male non-smoker aged 35 - from £32.89 per month
• female non-smoker aged 45 - from 41.91 per month

The above costs are for indication purposes only; if you want specific details for your requirements, please contact me for an illustration.

The above costs can be decreased if you take regular exercise and with some providers, you can benefit from subsidised gym membership. So not only do you improve your health and fitness, you pay less to do so!

If you have a pre-existing condition, then generally this will not be covered. However, in certain circumstances, if it has not recurred in at least the past 2 years, it can then be included for future coverage. The best way to find out is to make an application and see what the insurer says.

Want to find out more? Why not get in contact and we can start looking at what provider and product will be best suited to your own needs. Call now on 0845 0291962 or mail at michael@michaelknightmortgages.com

It’s been quite a while since I last posted a blog on here and many things have happened in the last 6 months or so. From the re-emergence of the housing market to a change of network to taking on a new adviser!

First things first, the market has picked up and I feel that confidence is returning. Houses are being sold but there remains a shortgage of stock. Is this because you need a HIP in place now before putting your house on the market? As a result of a shortgage of stock, prices have bounced a bit but we’ll have to see if it will be maintained longer-term.

The second point noted has had an equally large impact on business. My old network had been taken over by a company called Network Data Ltd who were already reported to be experiencing financial difficulties and not paying their creditors. After months of lies and smokescreens, the plug was pulled leaving Appointed Representatives up in the air and no income!

Happily, I have found a new network which has financial strength and  equally as importantly, a commitment to providing first-class levels of support and products. Now with them for four months and yet to find a significant fault.

Which takes me on to my last point - a new trainee adviser on board. Welcome goes to Ross Robinson who I have known for the last 4 or 5 years. We met when he was an estate agency manager and I was employed to run the mortgage side of things. We’ve kept in touch and recently he asked how to get into financial services. It was only after I had joined my new network that it became apparent how and that was for him to join Michael Knight Mortgages.

It’s not quite as easy as it sounds though as Ross has had to study for, and pass the first two papers for CeMAP (Certificate of Mortgage Advice and Practice). With some hard work, he did just that and passed his induction course with flying colours.

I will be acting as his supervisor which has meant I too have had to undertake additional training to do so. Ross is now entering onto 6 months of close supervision after which time he will be able to arrange mortgages and source insurances rom the whole of the market.

So, all in all, a very interesting 6 months out here in broker land. Roll on 2010!!

If you have any questions or queries about this article, please call me on 0845 029 1962 or email michael@michaelknightmortgages.com

In the past, equity release may have been seen as a last resort but it is now regarded as a real opportunity for people to take tax planning steps that would not otherwise be available.

While the recent changes to inheritance tax may have reduced the number of estates liable to IHT, there are still a significant number of households that are potentially liable to pay the tax. For these clients, Equity Release offers a potentially attractive option.

Equity Release will not be appropriate for every client but it can, in the corrct circumstances, be a valuable part of and IHT-saving strategy. The first stage will always be to consider the more obvious forms of planning. Fpr example, it is essential that clients have wills in place that make maximum use of tax-planning opportunites, particularly where business property is concerned.In addition, all IHT exemptions should be fully utilised and, where a client has suplus free assets, outright gifts (PETs or Potentially Exempt Transfers in IHT talk!) should be made if possible.

This is an involved area and I have linked with a well-reputed local IFA which specialises in IHT planning. Utilising our experience and skills will ensure you have the best of advice and the most tax efficient solution for your needs.

All Equity Release products offered by Michael Knight Mortgages offer great peace of mind for my clients as they have a no negative equity guarantee and you are certain of being able to remain in your home until death or moving into long-term care. Check the following site www.ship-ltd.org which is the body that looks after the interests of equity release providers.

Call me now on 0845 029 1962 or mail at michael@michaelknightmortgages.com for more information or arrange for an informal discussion.

The latest research from Your Move shows that the property market stabilised in February.

According to the research, property instructions overtook mid-2008 levels; internet traffic was back up to 2006 levels; new buyer registrations ‘boomed’ in January and February; and house price falls are beginning to slow. Whilst more buyers have larger deposits, new instructions are still lagging so the market is undersupplied with fresh stock.

On the lettings side, tenant demand was up by 15% compared with February 2008 and up by 46% year-on-year. New landlord instructions are up and rents are stabilising.

David Newnes, managing director of Your Move estate agents, said: “The banks have still got their hands tightly around the neck of mortgage finance. But if you’re lucky enough to have a nest egg, Warren Buffett comes to mind, “Be fearful when others are greedy. Be greedy when others are fearful.” If landlords can get finance, low interest rates, low house prices and a strong rental market makes now a superb opportunity to invest.

“We’ve endured a painful adjustment in the property market – but I think we could be seeing some light at the end of the tunnel. Lettings are the silver lining of the past year’s market. Tenant demand in February was up strongly on 2008 – by 46%. More importantly, the flood of new stock coming onto the lettings market as some disgruntled sellers became accidental landlords has ebbed, taking the pressure off rents.”

Good to see that impartial commentators are echoing my sentiments and launch of my Rental Property Search and Select Service. With three levels of service ranging from full research, recommendation and ongoing liaison with lettings agents to a simple report on suitable properties, all budgets can be catered for for the investor looking to expand into areas with which they are not familiar.

With years of experience working with estate and lettings agents, I can help you find the perfect rental property to make your money work harder for you.

If you are interested in any details of this article, call me on 0845 029 1962 or email at michael@michaelknightmortgages.com.

In days gone by, at the end of your special deal, you had a good look around (hopefully via a whole of market broker!) and moved to another lender as the rate was better and it cost nothing to do so. In 2008 the market started to change with the restriction in credit meaning that lenders decided that keeping their existing customers made financial sense.

This was good news in a way for customers as taking a new deal with the same lender is much less hassle than moving to a new lender. However, in exchange for the simplicity, lenders were able to charge high arrangement fees with customers reluctant to go elsewhere for fear their credit rating or loan to value would prove to be insufficient.

In a way therefore, competitive retention products have killed a vibrant open market for customers to shop around in. Often lenders will only offer 1 or 2 products to existing customers which means only rarely are their true needs satisfied. Still, if you’re between a rock and a hard place………………….

So what should anyone do if their deal is coming to an end in the next 6 months? Easier said than done but reducing the existing mortgage balance or clearing other debt is a must. Lenders are looking at loan to values more than ever when calculating the interest rate they will offer and other credit in the background makes you a more risky proposition, particularly if you are close to your limit.

Obtain your credit record and make sure nothing  untoward appears on it - identity theft is on the increase and the time to discover it’s happened to you is not when you’re looking for new finance. Ensure you are still on the voters roll, mistakes happen and clients I know have been removed for no reason. Make sure you make all repayments to credit commitments on time as even one late credit card payment can have an adverse impact on your record.

So, in answer to my own question, I don’t believe re-mortgages are dead. Every person’s situation is different and needs to be examined. Even if it means you do take a replacement product from your lender, at least you know it’s the best deal you can get.

Call me on 0845 029 1962 or email michael@michaelknightmortgages.com

Many people ask me about this area and it one where I urge caution. As more and more people find their credit commitments becoming untenable, they want to find a way out and start again. There are ins and outs to the various solutions and it is essential that advice is taken before committing to one of them.

There are many companies offering products but at the root of it, they want to earn money. No problem there but there are free sources which should be used first. Firstly, the Citizens Advice Bureau gives completely unbiased advice although it can be difficult to get in to see someone. Find them at www.citizensadvice.org.uk. Another is a registered charity called Consumer Credit Counselling Service (CCCS) which is dedicated to providing confidential, free counselling and money management assistance to financially distressed families and individuals. They have a good website at www.cccs.co.uk and they will call when is best for you.

The following list shows different remedies in descending order of seriousness:

• Debt consolidation - amalgamating all debts under a new loan to reduce outgoings by increasing the term over which the debt is repaid. Could be difficult to obtain in current credit conditions and/or how existing commitments have been maintained.
• Informal arrangements with creditors - contacting each creditor to propose reduced payments or freezing of interest. Could be daunting for the inexperienced and no guarantee of success.
• Administration and composition orders - a court order which covers existing debts where the court makes the payments to creditors on a pro rata basis for a fee. A composition order is where only a proportion of the amount owed is repaid.
• Debt Management Plan - an arrangement between an individual and their creditors to repay outstanding debts brokered by a third party. The third party distributes the money on amonthly basis to creditors taking a proportion of the payment in fees.
• Individual Voluntary Arrangement -  constitutes a formal repayment proposal presented to a debtor’s creditors usually via a third party such as an insolvency practitioner. Typically the arrangement will last for 5 years and must be kept up to date or can be revoked.
• Petitioner bankruptcy - a legal proceeding where an insolvent person can be relieved of financial obligations, but loses control over bank accounts, and future financial options. Bankruptcy is a last resort for those with debt problems and although may wipe the slate clean (to some extent) interms of debt, it is extremely harmful to your credit rating and will no doubt effect the way you are handled by financial organisations in the future.

If you are concerned with your level of debt and would appreciate an informal chat, call me on 0845 029 1962 or email michael@michaelknightmortgages.com

The Council of Mortgage Lenders reports that 0.1% of all mortgaged properties repossessed in the third quarter of 2008, up slightly from 0.09% in the second quarter. What this means in ‘real money’ is that this equates to 11,300, 12% higher than the 10,100 in the second quarter (source www.cml.org.uk/cml/media/press/1999).

The bad news is that this looks like increasing the yearly total for 2009 to be around 45,000. Looking more locally to Northamptonshire, black spots appear to be in Corby and Kettering but all towns are experiencing rises in repossessions.

Is there a way out of this? Depending on individual circumstance, it may be that the original mortgage contract was flawed or unenforceable - the consequences are that any repossession proceedings would not be possible.

If this is of concern or interest to you (or friends, family or colleagues), why not give me a call on 0845 029 1962 or email at michael@michaelknightmortgages.com? This service is entirely FREE for repossession reversal applications

While many mortgage holders with tracker products are celebrating recent falls in the Bank of England base rate, the reverse is true of most investors. With interest rates falling to 4% and in most cases lower, this can have a significant impact on the income this can produce. Alongside rising prices for essentials such as gas and electricity means that budgets are being stretched as never before for those on restricted incomes.

For those people aged 55 and above and own their own home, equity release can be a solution to increase income or provide a lump sum for home improvements, helping children out or even a luxury cruise. Equity Release is not suitable for everyone however and it is essential that advice is obtained by a suitably qualified person.

You should look for a product which offers at least the 2 following features:

• a no-negative equity guarantee
• guaranteed right to live at the property for life (or moving to long-term care)

Products now are more flexible and you can choose to take the full amount released, or more commonly at the moment, in ‘portions’. The latter option called drawdown has gained favour as interest rolls up less quickly and potentially more can be passed on in the estate on death.

As well as providing income or a lump sum, releasing equity will reduce the inheritance tax liability as the debt is taken into account when looking at the overall value of assets. As a result however, it is advised that the family is involved in discussions to ensure that any decisions made are mutually agreed. Independent legal advice is also essential to make sure any agreement entered is fully understood as it can be expensive if the wrong option is taken.

Michael Knight Mortgages for Equity Release is authorised by the Financial Services Authority to offer advice on this area and many pertinent questions are answered on the website www.releasequity.com.

If you want to find out more, why not call me on 0845 029 1962 or email michael@michaelknightmortgages.com.

With the government introducing measures to help people cope with the loss of income and stay in their homes, you might ask why this blog is important?

Many people are further down the line however and if not already repossessed, due to be shortly. The great news is that I have linked with one of the largest claims management companies in the UK who now offer a FREE service to help overturn or prevent repossessions.

Contact me at Michael Knight Mortgages and via my agency with Cartel Client Review early enough once your lender has threatened legal proceedings and, if accepted, our solicitors will negotiate with your lender, and the courts if necessary, to try and find an alternative to repossession. Remember that the courts do not want to see people lose their homes and our legal experts will do all they can to negotiate a solution that prevents this.

 If you have been previously subjected to a repossession, through Cartel Client Review we may be able to assist you in a claim for compensation. The repossession unwind is a two stage process. The first stage is to pursue a claim for contract irregularities relating to the mortgage involved.

If this results in a succesful claim we would then progress to the second stage and look to claim against what may have been in effect a wrongful repossession.

Looking to buck the gloomy news which is being reported everywhere, I have launched Michael Knight Mortgages to address the real needs of my clients.

Major concerns at the moment revolve around redundancy, repaying debt  and reducing costs.

I am pleased to say that I have access to a brilliant unemployment policy where you can cover your mortgage repayments (plus additional costs) for up to 24 months. Very competitive premiums and flexible starting periods means you only pay for what you need.

Many people are finding that keeping up their loan and credit card repayments is proving more and more difficult. There are a variety of debt solutions but finding a trusted source for that advice is not as straight forward. With my good reputation for giving customer centered advice in plain  english, I can advise on the best solution for you, whether it is a debt managment plan, IVA or even bankruptcy.

For those who want to rein in their necessary expenditure, I offer an excellent range of insurance products for buildings & contents, life and critical illness cover and income protection. In fact, with the latter two areas I am so confident I will reduce your premiums (on a like for like basis), if that is not the case, I will pay you £25!

More blogs giving more detailed information will be following shortly. If you can’t wait, why not give me a call on 0845 029 1962 or email michael@michaelknightmortgages.com