Tuesday, June 21, 2022

Bank of England To Relax Mortgage Affordability Tests

The Bank of England is pressing ahead with plans to scrap mortgage affordability tests despite rising interest rates.

Rules imposed on borrowers in the aftermath of the financial crisis stopped banks from granting loans to anyone who could not afford the repayments in the event that the reversion rate – usually the standard variable rate after their initial deal came to an end – went up by three percentage points.

The aim was to stop banks and building societies from offering risky loans to those who could not afford them.

The Bank is now scrapping these rules, arguing that an existing limit on mortgages with a high loan-to-income ratio and the Financial Conduct Authority’s other required affordability checks “ought to deliver the appropriate level of resilience to the UK financial system, but in a simpler, more predictable and more proportionate way”.

This will of course stimulate demand and push up house prices.

Tax Investigation Insurance

Market leading tax fee protection insurance for businesses, sole traders and individuals. Protect yourself from accountancy fees in the event of an HMRC enquiry.

Having a Solar Protect Tax Investigation Insurance policy at your disposal means that should you be one of the many 1000's of businesses or individuals that are selected by HMRC each year to look into your tax affairs your own accountant (your tax return agent) can get on and defend you robustly.

You have the peace of mind knowing that your accountant's (your tax return agent) fees will be paid by the insurance without any Excess for you to find.

Tax Investigation Insurance is an insurance policy that will fully reimburse your accountant's (your tax return agent) fees up to £100,000 if you are subject to enquiry by or dispute with HMRC.

A Solar Protect policy will enable your accountant (your tax return agent) to:

  • Deal with any correspondence from HMRC
  • Attend any meeting with HMRC
  • Appeal to the First-tier Tribunal or Upper Tribunal
  • Having the security of knowing that fees will be met in full will enable your Accountant (your tax return agent) to defend your position robustly

Please click here for details.

No comments:

Post a Comment