by Saqib Khan | May 7, 2024 | Conveyancing, General, Landlord and Tenant Law, People
Introduction
Buying a home is a significant milestone in one’s life, but it often comes with a hefty price tag. Many aspiring homeowners find it challenging to accumulate a substantial deposit for their dream home. This is where 100% mortgages come into play, offering an alternative path to homeownership. In this blog, we’ll explore the concept of 100% mortgages, how they work, their advantages, disadvantages, and whether they are a viable option for prospective homebuyers.
What Are 100% Mortgages?
A 100% mortgage, as the name suggests, allows you to borrow the entire purchase price of your home without the need to provide a deposit. Traditionally, lenders require borrowers to contribute a deposit, typically ranging from 5% to 20% of the property’s value, to secure a mortgage. However, with a 100% mortgage, you can buy a home with no deposit, which may seem like an attractive proposition, especially for first-time buyers.
How Do 100% Mortgages Work?
- Guarantor Mortgages: One common form of 100% mortgage in the UK is the guarantor mortgage. In this arrangement, a family member, usually a parent, acts as a guarantor for the loan. They offer their property or savings as collateral, ensuring the lender has a safety net in case the borrower defaults on payments.
- Joint Borrower Sole Proprietor Mortgages: Another option is the joint borrower sole proprietor mortgage. In this scenario, a family member joins the mortgage application with the borrower, typically to increase the borrower’s income and improve their affordability. However, the co-borrower does not have any ownership rights to the property.
- Specialist Lenders: Some specialist lenders offer 100% mortgages, but they often come with higher interest rates and stricter terms compared to traditional mortgages. These lenders may also require additional collateral or charge higher fees.
Advantages of 100% Mortgages
- No Deposit Required: The most significant advantage of a 100% mortgage is that it allows buyers to enter the property market without having to save for a deposit, which can take years.
- Access to the Property Market: It provides an opportunity for first-time buyers and those with limited savings to get on the property ladder sooner rather than later.
- Family Assistance: It enables families to support their children or relatives in purchasing their first home by acting as guarantors or co-borrowers.
Disadvantages of 100% Mortgages
- Higher Interest Rates: 100% mortgages often come with higher interest rates compared to traditional mortgages, which can lead to higher overall costs over the life of the loan.
- Limited Lender Options: Not all lenders offer 100% mortgages, and those that do may have stricter eligibility criteria.
- Risk to Guarantors: In guarantor mortgages, the guarantor’s property or savings are at risk if the borrower defaults, potentially putting their financial stability in jeopardy.
- Less Competitive Terms: Borrowers with a larger deposit typically receive better interest rates and more favourable mortgage terms.
Are 100% Mortgages a Viable Option?
While 100% mortgages can be a lifeline for some aspiring homeowners, they are not without risks and limitations. It’s crucial to carefully consider your financial situation and long-term goals before opting for a 100% mortgage. Here are some key factors to consider:
- Affordability: Can you comfortably make the mortgage payments, including interest, insurance, and property taxes, without straining your finances?
- Future Financial Stability: Assess your job security and future income prospects. A sudden change in circumstances could make it challenging to meet mortgage obligations.
- Alternatives: Explore other homeownership schemes and government-backed initiatives like Help to Buy, Shared Ownership, or the First Homes scheme, which might offer more favorable terms.
- Seek Professional Advice: Consult with a mortgage advisor or financial expert to assess your suitability for a 100% mortgage and explore all available options.
Conclusion
100% mortgages can be a valuable tool for prospective homebuyers who lack the funds for a traditional deposit. However, they come with their own set of challenges and risks. It’s essential to thoroughly research and consider your financial situation, long-term goals, and available alternatives before committing to a 100% mortgage. Make informed decisions to ensure that home ownership is a rewarding and sustainable journey for you and your family.
Whilst we cannot offer mortgage advice, please call our property department with any other concerns you may have on 0161 850 9911.
by Saqib Khan | Apr 30, 2024 | General, People
Introduction
The legal profession has long been revered for its tradition, expertise, and commitment to justice. In the United Kingdom, solicitors play a crucial role in providing legal services, assisting clients, and upholding the rule of law. However, the pathway to becoming a solicitor has undergone a significant transformation with the introduction of Solicitors Qualifying Exams (SQE). This change, which came into effect in September 2021, has sparked conversations and debates within the legal community. In this blog, we will explore the SQE, its purpose, structure, and the implications it holds for aspiring solicitors and the legal profession as a whole.
The Need for Change
For many years, the traditional route to becoming a solicitor in England and Wales involved completing a law degree, followed by the Legal Practice Course (LPC), and then a period of training known as a Training Contract. While this system produced competent solicitors, it was often criticized for its high cost and lack of standardized assessment.
The Solicitors Regulation Authority (SRA) recognized the need for a more flexible, accessible, and consistent assessment process for aspiring solicitors. The SQE was conceived to address these issues, aiming to create a fairer, more inclusive system that would uphold the profession’s high standards.
The Structure of the SQE
The Solicitors Qualifying Exam consists of two stages: SQE1 and SQE2.
- SQE1: Assessment of Functioning Legal Knowledge
SQE1 is a computer-based assessment that tests candidates on their knowledge of the core legal principles and how they are applied in practice. It comprises two parts:
- Functioning Legal Knowledge (FLK): This part assesses candidates on legal subjects such as contract law, tort law, property law, criminal law, and more. It aims to ensure that candidates have a strong foundation in key areas of law.
- Practical Legal Skills (PLS): PLS evaluates candidates’ skills in areas like legal research, legal writing, and drafting legal documents.
- SQE2: Assessment of Practical Legal Skills
SQE2 is a series of practical assessments designed to test candidates’ ability to apply legal knowledge to real-life scenarios. It includes tasks like client interviewing, advocacy, legal research, and drafting. SQE2 aims to evaluate candidates’ practical skills, ensuring they are ready to practice law effectively.
Implications and Benefits
The introduction of the SQE has several implications for aspiring solicitors and the legal profession:
- Standardization: The SQE creates a standardized assessment process, ensuring that all solicitors meet the same minimum standards of knowledge and competence.
- Accessibility: The SQE’s modular structure allows candidates to choose when and how they prepare for the exams, making it more accessible to a diverse range of individuals.
- Cost-Efficiency: The SQE may reduce the overall cost of qualification, as candidates can choose from a variety of preparation providers and materials.
- Flexibility: The SQE provides flexibility in the way candidates prepare for the exams, allowing them to study part-time or while working in legal roles.
- Practical Skills Focus: With a stronger emphasis on practical skills, the SQE ensures that solicitors are better prepared for the challenges of legal practice.
Challenges and Concerns
While the SQE offers numerous benefits, it is not without its challenges and concerns. Some critics worry that it may put too much emphasis on exam performance and neglect the development of soft skills essential for legal practice, such as client communication and teamwork. Additionally, there are concerns about the potential for inequality, as some candidates may struggle with the cost of exam fees and preparation materials.
Conclusion
The introduction of the Solicitors Qualifying Exams represents a significant shift in the path to becoming a solicitor in England and Wales. By focusing on standardized assessments and practical skills, the SQE aims to create a more accessible and inclusive route to the legal profession. While it is not without its challenges, it is a step towards a more equitable and efficient system that aligns with the evolving needs of the legal profession in the 21st century. As the legal community continues to adapt to these changes, the impact of the SQE on the future of solicitors will undoubtedly be a topic of ongoing discussion and analysis.
by Saqib Khan | Feb 13, 2024 | Business, General, Litigation, People
Introduction
In the dynamic landscape of business energy contracts, companies often find themselves grappling with unforeseen challenges, one of which is the presence of hidden commissions. These covert charges, lurking beneath the surface of seemingly transparent agreements, have become a significant concern for businesses seeking fair and cost-effective energy solutions. In this blog post, we shed light on the issue of hidden commission claims in business energy contracts within the UK, exploring the potential avenues for redress and the legal concepts of dilution and rescission.
Understanding Hidden Commissions
Hidden commissions are concealed charges that energy brokers or suppliers may include in business energy contracts, often without the knowledge or consent of the client. These undisclosed fees can significantly inflate the overall cost of energy services, impacting a company’s bottom line. Unscrupulous practices related to hidden commissions have prompted increased scrutiny, leading to a growing number of businesses exploring their options for reclaiming overpaid amounts.
Hidden Commission Claims
Businesses that suspect they may have fallen victim to hidden commissions have the right to pursue a claim against their energy supplier or broker. The first step in this process is often conducting a thorough review of the energy contracts in question. We can assist in identifying any hidden commissions and assessing their impact on the client’s financial obligations.
Dilution and Rescission:
Two legal concepts that may come into play when addressing hidden commission claims are dilution and rescission.
- Dilution: Dilution occurs when hidden commissions dilute the benefits intended for the client in the energy contract. In such cases, the client may not fully realize the expected cost savings or favourable terms initially negotiated. Legal remedies for dilution may involve seeking compensation for the diminished value of the contract or negotiating revised terms to restore the intended benefits.
- Rescission: Rescission is a more drastic measure, involving the cancellation of the contract altogether. If hidden commissions substantially impact the fairness and validity of the agreement, a business may pursue rescission to void the contract and seek restitution for any payments made. Rescission aims to place the parties in the position they would have been in had the contract never existed.
Conclusion
Businesses in the UK navigating the complex terrain of energy contracts must be vigilant against the presence of hidden commissions. Pursuing claims for redress, whether through dilution or rescission, is a legal avenue available to those seeking to rectify the financial harm caused by undisclosed charges. Consulting with one of our legal professionals specializing in energy law is crucial to understanding the intricacies of hidden commission claims and exploring the most effective paths to resolution. By unveiling the veil on hidden commissions, businesses can protect their interests and foster a fair and transparent energy marketplace.
by Saqib Khan | Feb 1, 2024 | General, People
Embarking on a career in law is akin to stepping into a dynamic and multifaceted realm, where each day presents new challenges and opportunities for growth. As a trainee solicitor at Khan Mather Solicitors, the journey unfolds with a rich tapestry of experiences, building a foundation for a successful legal career. Having completed my property seat and now delving into the intricacies of litigation, this blog post aims to shed light on the unique and rewarding journey of a trainee solicitor at Khan Mather.
The Property Seat:
My journey at Khan Mather Solicitors began with a deep dive into the world of property law. This initial seat provided a comprehensive understanding of the intricacies involved in residential property transactions. From amending contracts to conducting due diligence and negotiating terms, the property seat equipped me with practical skills essential for a successful legal practice. Working alongside seasoned professionals, I had the privilege of learning from some of the best minds. The collaborative environment fostered at Khan Mather ensured that my questions were not just answered but thoroughly discussed, encouraging a holistic understanding of the legal processes at play.
Litigation Seat: A Current Endeavour:
Transitioning from the property seat to litigation has been a fascinating shift, offering a new perspective on the legal landscape. Litigation is the heartbeat of legal practice, involving the resolution of disputes through the court system or alternative methods. This seat challenges me to think critically, strategise effectively, and advocate persuasively. At Khan Mather, the litigation seat is not just about courtroom appearances; it’s about honing negotiation skills, drafting compelling legal documents, and understanding the nuances of case strategy. The mentorship provided during this seat ensures that I am not merely an observer but an active participant in the legal proceedings, contributing meaningfully to the cases I handle.
The Firm’s Values and Client-Centric Approach:
Khan Mather Solicitors prides itself on its commitment to excellence and a client-centric approach. As a trainee solicitor, I am not just learning the law; I am absorbing the firm’s values of integrity, dedication, and a relentless pursuit of justice. The client’s interests are at the forefront of every action, and the firm’s reputation for providing top-notch legal services is a testament to its unwavering commitment to client satisfaction.
Conclusion:
Life as a trainee solicitor at Khan Mather Solicitors is a journey of continuous learning, growth, and meaningful contributions to the legal profession. Having completed my property seat and currently navigating the complexities of litigation, I am confident that the experiences gained here will shape a robust foundation for my future legal career. With a supportive environment, dedicated mentors, and a commitment to excellence, Khan Mather Solicitors is not just a workplace; it’s a thriving ecosystem where legal professionals evolve and excel.
by Saqib Khan | Jan 18, 2024 | General, People
Martin Lewis, the renowned founder of MoneySavingExpert.com, has highlighted a groundbreaking announcement from the Financial Conduct Authority (FCA) that has seemingly gone unnoticed. This revelation has the potential to result in substantial payouts for individuals who acquired a car or van through motor finance before 2021.
In a recent tweet, Lewis emphasized the magnitude of this development, drawing parallels to the scale of Payment Protection Insurance (PPI) claims, which amounted to £40 billion. The FCA’s move is in response to emerging evidence from two significant ombudsman cases, indicating that companies may be wrongly rejecting complaints related to commissions in pre-2021 motor finance transactions. Consequently, the FCA is undertaking a comprehensive review of complaint handling procedures.
Lewis speculates that upon completion of the investigation, the FCA may establish either a redress scheme, requiring all firms to compensate affected customers, or redress rules that dictate payouts based on a predefined formula for those who file complaints. Potential compensations could encompass interest on loans, commission amounts, or even the entire loan, potentially resulting in thousands of pounds returned to many individuals.
The significance of promptly filing complaints becomes evident, especially if the FCA opts for a redress scheme with a potential cutoff date. While the freeze on complaint handling is currently in place, Lewis suggests that initiating a complaint now can serve as a marker for individuals who believe they have been mis-sold motor finance.
Your Motor Finance Payout Questions Answered: Insights from Martin Lewis
Martin Lewis has provided preliminary information to keep individuals informed about the ongoing situation. His team is diligently working on an in-depth guide to answer all questions related to motor finance compensation. This guide will be available in a few weeks.
Q: What complaints will the investigation cover?
A: The FCA’s investigation will focus on complaints where individuals purchased a car using car finance before 28 January 2021, with the finance being a personal contract purchase (PCP) or a hire purchase (HP) agreement featuring a ‘discretionary commission arrangement.’
Q: Which claims won’t the investigation cover?
A: The investigation will not cover complaints related to car finance transactions made on or after 28 January 2021, car leasing agreements, or claims unrelated to commission.
Q: How much could I get if a redress scheme goes ahead?
A: The FCA has not disclosed specific compensation amounts yet, emphasizing an orderly and efficient settlement process for those owed compensation.
Q: Should I file a complaint now or wait if I think I’m affected?
A: Lewis advises filing complaints as soon as possible, considering potential cutoffs. However, the FCA has temporarily paused firms from responding to complaints received after 17 November 2023 until 25 September 2024.
Q: What if the firm I want to complain to has gone bust?
A: Complaints can be directed to the administrator or liquidator in case of a firm’s insolvency, with details available on the FCA’s Financial Services Register.
Q: What happens if my complaint hasn’t received a response yet?
A: Complaints received after 17 November 2023 won’t be addressed until after 25 September 2024. Individuals with prior complaints can follow the regular process or escalate to the Financial Ombudsman Service (FOS) if unsatisfied.
Q: Can I resubmit a rejected claim based on the FCA’s investigation?
A: The possibility depends on the stage of the complaints process, with options available for reconsideration at certain stages.
Q: Should I contact Khan Mather now if I think I have a claim?
A: Yes please contact us today and we can collate all the information in readiness to submit a claim on your behalf.
by Saqib Khan | Oct 3, 2023 | Employment law, General, People
Introduction:
In recent years, the traditional 9-to-5 office routine has undergone a remarkable transformation. The rise of remote work, accelerated by global events, has given rise to a new era of flexibility and freedom. While sceptics argue that working from home is synonymous with distractions and reduced productivity, there is a growing body of evidence and personal experiences that counter this notion. In this blog post, we will explore why working from home can still be highly productive, enabling individuals to thrive in their professional lives while enjoying the comforts of their own space.
- Eliminating Commute Stress:
One of the primary advantages of working from home is the elimination of the daily commute. No longer will you find yourself stuck in traffic or crowded public transportation. By reclaiming this time, employees can start their day with a sense of calm and readiness, translating into a focused and productive mindset from the get-go.
- Customizable Work Environment:
Working from home allows individuals to create a personalized work environment tailored to their needs. From selecting an ergonomic chair to optimizing lighting and temperature, the ability to curate a comfortable workspace can enhance productivity. Additionally, people can decorate their workspace to reflect their personality, fostering a sense of ownership and motivation.
- Reduced Distractions and Interruptions:
While some argue that working from home invites distractions, the opposite can be true with proper planning and discipline. Remote workers can proactively structure their day, creating a dedicated workspace that minimizes interruptions. By utilizing noise-cancelling headphones, setting boundaries with family members or room mates, and leveraging productivity tools, individuals can create an environment conducive to deep work and sustained concentration.
- Enhanced Focus and Time Management:
Working from home often enables employees to concentrate on tasks without the constant interruptions common in office settings. Freed from the lure of water cooler conversations or impromptu meetings, workers can allocate focused time to complete assignments efficiently. Additionally, with the flexibility to manage their own schedules, employees can adapt their work hours to align with their natural peak productivity periods, harnessing their energy for optimal output.
- Leveraging Technology:
Advancements in technology have paved the way for seamless communication and collaboration in remote work environments. With video conferencing, instant messaging platforms, and project management tools, remote teams can stay connected, exchange ideas, and maintain a high level of productivity. Moreover, the availability of virtual whiteboards, cloud-based file sharing, and project tracking software facilitates smooth coordination, enhancing teamwork even when physically apart.
- Work-Life Balance:
One of the most significant benefits of working from home is the potential for improved work-life balance. Without the need to commute or adhere to rigid office hours, individuals can allocate more time to their personal lives. This increased harmony between work and personal responsibilities can lead to reduced stress levels and greater overall satisfaction, positively influencing productivity when it is time to focus on work-related tasks.
Conclusion:
Contrary to popular misconceptions, working from home can indeed foster productivity when approached with intention and a proactive mindset. The elimination of commutes, customizable work environments, reduced distractions, enhanced focus, and leveraging technology all contribute to unlocking remote work’s potential. By embracing this new way of working, individuals and organizations can enjoy the benefits of increased efficiency, improved work-life balance, and a motivated workforce. With the right tools, mindset, and support, the home office can be a haven for productivity and success.
Many of our employees work from home a few days a week and we find it has improved morale and productivity. You can always contact our employees by email if they are at home or in the office.
