Protect your most important assets

In these strange times we all continue to adapt taking day by day and getting used to a new way of life following the effects of COVID-19 and the ever-evolving Government guidelines. It is more important than ever that we protect some of our most important assets – namely our homes.

Spring is fast approaching and at this time of year we tend to look to the future and think about moving house, or purchasing your first ever home….

To say these current times are uncertain is an understatement, but we must still look to the future and plan accordingly. The current situation has led people to look at alternative ways in which they can remain in their home but still benefit.

The new rules from the Government limiting the reasons we may be able to leave our home have become more stringentand have created limitations in viewing new properties and obtaining valuations.

Things can be done now to plan ahead and plan for your future.

You could choose to stay in your current property and make improvements which Kirstie & Phil on ‘Location, Location Location’ often advocate can be a very cost-effective way of achieving the home of your dreams.

Another way is to take advantage of the low interest rates by re-mortgaging your property. This could reduce your monthly repayments as you move from one mortgage deal to another, either remaining with the same lender or moving to a new one. There are various different reasons why you might choose to re-mortgage including:-

• You want to be able to make overpayments which are not possible with your current mortgage product
• You want to benefit from a better interest rate than your current mortgage product
• You want to move from repayment to interest-only (or vice-versa)
• You want to borrow more money
• Your current fixed deal is up for renewal

Another to benefit of remaining in your home is the ability to transfer equity. This is when a jointly owned property is transferred to a single owner, or when a single owner adds one or more people to the ownership of the property. You may choose to enter into a transfer of equity for a number of reasons including:

• Removing an ex-partner’s name from the title of the property if you have separated or divorced, but do obtain legal advice before doing so
• Adding a partner’s name to the title of the property if you have married or are in a cohabiting relationship
• A parent “gifting” the property to their child/children
• Transferring the property between family members for tax planning purposes, but again do obtain legal advice before proceeding.