That was a bombshell

No doubt you've heard about the government's sweeping changes to the taxation of rental properties. Are landlords now Public Enemy Number One? I have some thoughts, which I'll share with you in the next issue of this newsletter, once the dust has settled.

In the meantime, there's another change that may have been overlooked. And this change is a very good thing, in my opinion.

The end of the unregulated Adviser.

From 15 March 2021, everyone who provides advice on loans, insurance and investments must be registered with, and regulated by, the Financial Markets Authority.

It’s the end of a Wild West era, where pretty much anyone could call themselves an Adviser and sign up clients. Now the cowboys have been kicked out of the industry. There’s a public register of Advisers and firms that meet the government’s standards, and Sue Tierney Mortgages Ltd is on it.

Our processes are changing, too. For a start, you’ll receive a written summary of your goals and expectations before we provide advice. This is to help ensure you get the cover or loan terms that fit with your life goals – so it’s clear why you’ve taken out a particular health policy, for instance, or a mortgage with a floating rate.

The overarching objective is to make sure that all involved – the Advisers, banks and insurers – are doing the right thing by you. We think that’s great.

However, you do need to be aware that this careful and considered approach will make things s-l-o-w-e-r than before. And that could change the way you buy properties.

Negotiate in haste, repent at leisure.

“I’ll do a quick deal” is no longer good practice when you’re negotiating with vendors. 

Many people use this as leverage to get a vendor over the line in a competitive situation. They then rock up to their bank or mortgage broker and ask for a loan to be sorted in double-quick time. Bad idea.

We can’t rush the process. The FMA will come down like a ton of bricks on Advisers who facilitate loans that go bad. As a buyer, you need everyone to follow the rules.

That means you might promise a quick settlement, but then can’t deliver. That could be expensive if penalties are payable. We can’t make the banks go faster, so caveat emptor.

We're always here to help.

If you’re keen on a property, we’re happy to have a chat before you put in an offer. We don’t charge for this advice. So before you commit to a deal that can’t be delivered – talk to us.

One final tip: Click on the link below to book a meeting. My diary is online, so you can choose a slot for an in-person chat, phone or video call.