The January Effect

For Share Investors, it is not Christmas that is the most wonderful time of the year but January. January in Investors' circles is known traditionally as the month in which share prices rise quite sharply. It will therefore be quite interesting to see what will happen this time!

Traditionally, it has been estimated that January and April are months where Shares actually do well. It is said that in the other months the average gap between equity returned and cash returns is zero.

Most stock market commentators are unclear why the January effect should exist. The reasons often quote are to do with Riskiness of Shares- Higher returns should be a reward for taking on extra risk. If Shares are riskier in January, then they should generate higher returns. This seasonality is caused by higher risk at particular times of the year.
At the turn of the year, sales, output and the money supply are all larger than other times. Economic data is more important in December and January than other times. Investors therefore face a greater risk of bad news e.g Christmas trading is poor etc.

To summarise, therefore to compensate for the higher risk, expected returns must be higher.

Proposed changes to PPI Sales (Payment Protection Insurance)

There has been a proposal by the Competition Commission (CC) to curb Payment Protection Insurance (PPI) Insurance at the point of sale by the provider of a financial product. This is so that there is an increase in competition and and effectively a real choice in the PPI market. In its provisional findings report, the CC concluded that distributors of PPI—such as banks, mortgage providers and credit card providers—face little or no competition when selling PPI to their credit customers.

The details of the proposal are that the distributor of the product can not contact the consumer within 14 days of credit being sold, however consumers can contact the distributor for PPI 24 hours after the sale.
Credit providers will be required to provide a personal PPI quote, which will clearly state the cost of the PPI policy individually and when added to the credit product.
The Competition Commission is also proposing a ban on the sale of single-premium PPI policies, which it says act as a barrier to customers switching and the costs of which are difficult to compare with other PPI policies.
There will also be a requirement on all PPI providers to provide certain information and messages in PPI advertisements which will include the price of their PPI, expressed in a common format of monthly cost per £100 of monthly benefit, and that PPI is optional and available from other providers.
A requirement on all PPI providers to provide an annual statement for PPI customers,including information similar to that provided in the personal quote, to encourage customers to review their policy annually and make it easier for customers to decide whether to switch.

PPI is a very useful tool however there has been problems with this products as previously discussed in this blog. This is the very economic climate that consumers need this type of product the most and any information that gives the consumer choice and options by introducing transparency should be welcomed

Sale and Rentback code of practice

There has been a number of stories reported in the media about problems with the practice of sale and rent backs and although a very useful option for many, with many Win: Win situations created. However a minority of the companies set up in this market have unscrupulous practices which have been widely reported and subsequently there has been various calls for regulation of the sale and rent back market.

This has given rise to a number of organisations who have been formed to introduce self-regulation and a code of practice. The main ethical code of practice operators in the market are:

http://www.propertybuyersassociation.org/

The Property Buyers Association (PROBAS) was established by established companies such as by A Quick Sale Limited, UK Property Buyers and North East Property Buyers.


http://www.nlarentback.org.uk/

NLA RentBack (formerly NASARB) is part of the National Landlords Association (NLA), the leading independent national organisation for private residential landlords.


http://www.rentbackcharter.com/

The Rent Back Charter Association is a not for profit company that has been formed by a number of individual prominent below market value investor.

Colossal Exit Penalties for With-Profit funds

It Gets Worse! There is bad news for anyone who has investments in the form of a With-Profit policy. These With-Profits policies are equity-linked saving schemes and due to the current turbulence in the stock market, it is natural for some people to want back their money by exiting this type of investment and cashing-in on the policy. However it does not seem to be convenient for the financial service providers as they would like to keep your money too!

To this effect, they are relying on their 'small print' to introduce a Market Value Reduction (MVR) or as some providers call it the market Value Adjustment (MVA)- the adjustment is only one way and that is downwards!

In an ideal world the With-Profit policies should smooth out the ups and downs as in the better years they build up some reserves so that they can be paid out in poor years. This does not seem to be the case for the majority of providers who are all relying on the MVR.

The Market Value Reductions that have come in force by all the providers are massive and they effectively 'kill' off your already dwindling investment. The providers have introduced whatever percentage deduction they see fit to 'stabilise' their fund, typically these are currently at around 20%.

For example- you have a policy where you have a valuation that states £20,000, however when you come to surrender this, the provider applies a typical Market Value Reduction and you only get back £16,000. The value of the investments have fallen and you get a MVR applied - a real double Whammy!

There are also many other individuals who have invested in bonds, hoping that they would provide a guaranteed income and /or capital growth. Most are now finding that they have next to nothing as a return on their investment and even in some cases that they have lost some of their initial capital.

The following is a list of bonds that are commonly problematic for some individuals

a) Fixed term Investment Bonds
b) Growth Bonds
c) High Income Bonds
d) Guaranteed Investment Bonds
e) Stock Market Guaranted Bonds
f) Capital Investment Bonds

If you wish to discuss a financial compensation claim on any investment and you believe you have been mis-sold/advised then contact me in confidence and I can put you in touch with experts who can assist.

email me on info@easy4life.com

Reclaim back you business bank charges

Many banks are now paying compensation for business banking charges, as businesses claim back money that the bank has charged them in unfair fees.
If your business breaks any of the terms and conditions associated with its bank account, for example, if you exceed your overdraft limit, the bank will charge your business. The law is clear that any charges by the bank must reflect the actual costs of damages incurred, but many banks charge more money than they should. Estimates of the maximum amount that any bank can justifiably charge is usually about £2.50 whereas charges are commonly about £30.

Many people have already successfully recovered all of the charges plus interest that occurred in the past six years on their current business accounts as well as closed bank accounts and (Six years is as far back as you can go in the courts).

You can do this too, whether you're claiming against your bank's charges or your business credit card. Compensation claims can be made independently or through independent claims specialists. There are several advantages to making a claim through an independent company: You will save time and money as most companies do everything on your behalf. Most companies operate on a no win-no fee basis. If the case goes to court you will receive advice and representation in court, and any necessary fees will be underwritten.

I can put you in touch with a expert financial claims management company that has a nationwide coverage and specialises in reclaiming unfair bank charges, providing: A No Win No Fee Service Expert friendly advice Handling your case from start to finish.

Email me on info@easy4life.com

Don't get crunched: Consider a management franchsise in health care

An outstanding franchise opportunity in homecare services.

One of the very few industries at all fronts - demographics, economics etc. that is doing well is the health care industry and by grabbing this great opportunity you can avoid going through a boom and bust approach in business and completely bypass the credit crunch.

A home care business is such an outstanding proposition that it grows year on year regardless of other market forces and industries also regardless of the state of the general economy. If you are looking for a business opportunity and have the necessary management skills and entrepreneurship and motivation, then talk to me to realise your ambitions.

You need to be able to invest £12,000 (excluding working capital), have a firm commitment to owning, operating and developing your own business and a desire to deliver the very best service possible to some of the most vulnerable members of our society.

Contact Safaraz Ali initially be email: info@easy4life.com

The FSA to regulate Secured Loans?

There has been a number of associations and others involved in the secured loan market who have began thinking openly and discussing the future regulation of the secured loans sector and specifically whether the Financial Services Authority (FSA) should regulate secured loans.

The secured loan market is currently regulated by the Consumer Credit Act, with firms accountable to the Office of Fair Trading, the political climate at the moment is that secured loans need to be regulated by the 'super regulator' the FSA, as it only has the infrastucture and setup to monitor the Secured Loans market.

Some secured loans operators lenders and packagers do not think that at this stage that the FSA should be regulating secured loans as the industry is self-regulating itself fairly well and above the self-regulation the consumer has the protection of Consumer Credit Act to rely on as well.

However overall the opinion is divided and it doesn't seem that we are going to get regulation in the secured loans market in the near future.

Pre-action protocol for mortgage possession claims

Residential mortgage lenders will be required to have complied with the pre-action protocol in all
mortgage possession claims commenced in England and Wales from 19 November 2008.

The pre-action protocol is designed to encourage parties to exchange information at an early stage, to encourage early settlement of cases or where that cannot be avoided, more efficient case management.

Lenders will be expected to demonstrate that they have tried to discuss and agree alternatives to repossession when borrowers get into trouble with their mortgage repayments. If a case reaches court, lenders will be required to tell the court precisely what they have done to comply with the protocol. It does not alter parties existing rights and obligations although the overall aim of the government has been to help make repossessions a last resort.

The key points of the pre-action protocol are:

· It applies to all first and second charge lending over residential property.
· Lenders will be required to tell the court precisely what they have done to comply with the protocol
· If a lender rejects a proposal for payment of the arrears it must give written reasons to the
borrower within 10 working days.
· The lender should consider not commencing proceedings where the borrower has applied for mortgage payment protection insurance, has a reasonable expectation of eligibility, and can cover the excess, also where the borrower has demonstrated the property has, or will be, put on the market at an appropriate price or has submitted a genuine complaint to the Financial Ombudsman Service about the potential possession claim.

Where the lender decides not to postpone possession proceedings in any of the
circumstances described it must inform the borrower of the decision with reasons not less
than 5 working days before commencing proceedings

Additionally, there are provisions requiring lenders to consider reasonable requests from the borrower for a change of payment date, to respond promptly to a borrower’s proposal for payment. The parties should take all reasonable steps to discuss with each other, or their representatives, the cause of the arrears, the borrower’s financial circumstances and proposals for repayment of the arrears.


For more information visit:
http://www.civiljusticecouncil.gov.uk/files/Mortgage_Pre-Action_protocol_21_Oct.pdf

Affordability is Key

The effect of NINJA mortgages (no income, no job or assets) in the United States is widely credited to be the source of the current credit crunch. In the UK, the Financial Services Authority (FSA) stated when it was originated that affordability is the key to any lending that they formed a number of regulations to prevent excessive lending and the practice of granting mortgages to people who could not afford it.

There are a number of acts to regulate mortgage advice and prevent this type of mi-selling and they are listed below:

The Financial Services and Markets Act (2000) creating the FSA.

The Regulated Activities (Amendment) Order 2003 SI 1475, by which the Treasury gave responsibility for regulated mortgage lending and related activities to the FSA from 2004.

FSA rules requiring lenders to take account of a "customer's ability to repay" (Mortgage Conduct of Business (MCOB) 11.3.1 R) as well as maintaining a "responsible lending policy" (MCOB 11.3.4 R).

The FSA rules cover the whole mortgage selling process and states that consumers should be advised on suitability. In assessing whether a mortgage is suitable, the affordability of that mortgage is the key criteria.

The Demise of Payment Protection Insurance

Going back only a few years, most of the financial press and operators in the financial market warned Financial Advisers and Mortgage Brokers that they were not selling enough Payment Protection Insurance (PPI) and that this is could result in their clients not having adequate protection and leaving them exposed. I have recently come across a number of articles in the financial press that I believe are considerably misleading and in somewhat degrading a very important insurance cover which could protect people from losing their homes, that is mortgage payment protection insurance (MPPI).


Okay, it is true that the Office of Fair Trading (OFT) , the Financial Services Authority (FSA) and the Consumers Association continues to highlight and find failings in the sale of loan and credit card PPI and all have stated in one respect that they would like to see the end of single premium PPI sold alongside personal loans.

The PPI attached to loans particularly maybe the subject of mi-selling particularly if the individual is unable to claim on the policy, however the PPI product itself is an excellent product with a very important role particularly in the current economic environment.

Consumers need to be aware that the two kinds of PPI (i.e single and regular premium) are considerably different and they need to check that the insurance that they have purchased continues to meet their changing needs. Consumers need to be rest assured that while the PPI sales process is facing a lot of negative focus in the media, most of the mortgage payment protection insurance (MPPI) sales in particular go through very robust and thorough sales process and majority of these product were correctly advised and sold.

The media need to be more accountable in writing about these financial products and ensure that they do not state that all payment protection is bad and enable consumers to remain confident that Mortgage Payment Protection Insurance is a valuable product that will ultimately help them keep their home.

The triumph of Bridging Finance in the current property market.

The present property sector is seeing a number of winners emerging as well as the majority of expected people losing out. The number of people losing out is mainly down to the number of new entrant landlords and developers who are now finding it increasing difficult to survive through a very difficult market. Most of these individuals were relying on no money down financing and cash back deals as well as raising equity from purchased property.

There is now a multitude of properties coming to the market and this has given rise to individuals with cash and /or strong equity to maximise opportunities in the present property market. There is agreement across the board that this is the wrong time to put for sale any property, however depending on the price this could be an ideal time to consider potential deals.

There are a number of bridging finance providers who have reacted to this market and developed new innovative products to enable quick completion and the provision of full purchase price funding where there is strong levels of equity available in either the clients own home or other properties.

The current market is and will for the foreseeable future present good opportunities to acquire good quality strong assets and therefore one should consider bridging finance to enable the deal occurring. This is particularly the case where there is a time constraint as most bridging finance providers work on the basis of no requirement for bank statements, accounts, projections, cash flows and also the underwriting is not based on income multiples and purely on the property asset.

The demise of "Family Savings" products

It is surprising how many of the with-profits plan which the life providers were describing as "family savings fund" have deteriorated in value. These policies were sold for a minimum period of 10 years and after the term the client can could cash in on the policy or in some cases part of their policy at any time. These were marketed and sold on the basis of long term savings for events to support the family - for events such as a wedding, university fees and other such matters.
The surrender values of these policies are currently worth less than if the equivalent savings amount was put away in a non-bearing interest account!
I am looking into this a little more detail and analysing the average returns for all the main providers such as Standard Life, Clerical Medical, Friends Provident, Scottish Provident, Scottish Amicable, Scottish Equitable and Prudential.
If there is any secondary information out there or if you have any further information to assist me with this then please contact me on info@easy4life.com

Quotes from the "Rich Dad Poor Dad" Book

In this time of uncertainty I thought it would be a good motivator to remind ourselves of the contents from this well recommended book.

"Financial Literacy = Know your Assets from your Liabilities."
"An asset = something that puts $$$ in your pocket whether you work or not."
"Choosing to be rich starts by choosing your IDEAS."
"Too many middle-class people try to "keep up with the Joneses". The problem is… the Joneses are broke. They may have the big house, the nice car… but if you study their financial statements, you'll find that they own nothing, they have no assets, they are in debt."
"There is no "job security" anymore - you need "financial" security."
"With every $ that comes into your hand, you have a CHOICE. If you're smart, you'll buy an asset with that dollar."
"Most people are afraid of failing and being rejected. Get over these 2 things, and life is easy!"
"Think big! Leverage your ideas! "How can I reach more people with less effort?"
"To get rich, you need to desire it. Do you have the strong reasons why?"
"Do you wish to learn from your mistakes? Get up once you're down?"
"It's not how much you make that matters - it's how much you keep. Check out your saving/earning ratio. Live below your means! How much actually drops to your bottom line?"
"Who you know can make the biggest difference in your financial life. Get out there and meet people! NETWORK!"
"Poor people are afraid of risk, rejection,fear of losing, losing face… Losing is part of the winning!" "Successful people try and try again, they fail over and over again. At school we are taught that losing and failing is bad. At school, if you make mistakes, you are a "failure". People spend their entire lives fearing MISTAKES. And yet mistakes are how we learn. There is a priceless kernel of knowledge in every mistake. Admit it - don't deny or justify it. Learn from it!"
"Only borrow money when you don't need it."
"Just do it once. "How can I do it just once, for it to return money to me forever?
" Creative multiple streams of passive income!"
"The biggest challenge you have, is dealing with your self-doubt. Challenge your self-doubts!"
"More important than the HOW we achieve financial freedom, is the WHY. Find YOUR reasons why you want to be free and wealthy."
"Most people look for the easy road to wealth, because they lack a strong enough why. The easy road ALWAYS leads to a dead end."
"Stop hanging out with some of the people that are holding you back."
"Thinking is the hardest wish you'll ever do."
"There is no security anymore. You can't rely on Social Security or company pensions for retirement. We need new answers."
"No longer can we simply tell our children to "Go to school, get good grades, and look for a safe, secure job." It's some of the most dangerous advice we could give."
"How many millions of people are out there in the real world struggling financially?"
"The world has changed, but education has not changed with it."
"One of the reasons why the rich get richer and the poor get poorer is that most of us learn about money from our parents. So what scan a poor parent tell their child about money?"
"Rich Dad forbade the words "I can't afford it" - instead, "HOW can I afford it." One lets you off the hook, ad the other forces you to think. "My brain gets stronger every day because I exercise it. The stronger it gets, the more money I can make."
"Poor Dad thought that the rich should pay more in taxes to take care of those less fortunate. Rich Dad said: "Taxes punish those who produce and reward those who don't produce."
"I encourage you to study to be rich, to understand how money works, and to have it work for you!"
"Passion is ANGER and LOVE combined. When it comes to money, most people want to play it safe and feel secure. Passion does not direct them - FEAR does."
"To wake up in the middle of the night terrified about paying bills is a horrible way to live."
"In life, it's not how much money you make that counts, but how much you keep."

Creative Real Estate Online

The CREOnline webiste is a US based webiste however it has many fresh money-making ideas, has an abundance of revealing "how-to" articles, new educational opportunities, and powerful tools for working smarter and increasing your property profits.

In particular I would recommend you read the Lease Options Articles and information as this will be the next big thing in the UK.

The website is:

http://www.creonline.com

Property Search Engine

Take a look at Globrix , this site allows you to search nearly every property for sale or to rent in the UK down to the last detail.

It is Not a property listing site, Its a true property search engine. The big difference here is that property listing services such as rightmove.co.uk charge estate agents a fee, and in exchange bring their properties to a wider audience.

Not all Estate Agents are members of such services nor will they pay other property listing services to list their properties, therefore just relying on a property listing site, will not get you access to all the properties available at any one time and you get miss out on a gem!

With this serach engine,estate agents don't have to come to them with a list of properties that they'd like to promote online, they go to them. Globrix tracks down almost every single estate agent (as long as they have a web presence) in the UK and scours their websites, coming back with a reliable list of what's available to buy or rent.

http://www.globrix.com

Alliance and Leicester Fined £7M for PPI Mis-selling

The FSA announced that has fined Alliance & Leicester Bank (A&L) £7m for serious failings in its telephone sales of payment protection insurance (PPI).

The regulator said that between Jan 05 to Dec 07, A&L sold approximately 210,000 PPI policies to customers seeking a personal loan at an average price of £1,265, however there was a general failure by advisers to give customers details of the cost of PPI.

Also, A&L sought to find reasons to sell PPI without considering customers needs. The FSA said A&L did not make it sufficiently clear that PPI was optional and had a culture of training staff to put pressure on customers where they queried the inclusion of PPI in their quotation or challenged advisers' recommendations.

A&L has agreed to implement a substantial and comprehensive customer contact programme, overseen by by a third party. It will write to all customers who took out policies by telephone in conjunction with an unsecured loan between 14 January 2005 and 31 December 2007 prompting them to review their policy against product information sent to them. It will also review any relevant rejected complaints and claims and has committed to pay redress where appropriate. This remedial action has been taken into account by the FSA and has reduced the level of penalty which would otherwise have been imposed on the firm.


Many operators in the financial services market have failings and considerable shortcomings in their sales processes. It is disappointing that after the Pensions mis-selling scandal, the endowment mis-selling and the various investment products mi-sold over the years and even with regulation there is considerable problems.

In a previous posting I stated that there is a unique opportunity for motivated individuals to start their own profitable and No Risk business with No capital outlay. An opportunity exists to assist individuals who have a potential mis-sold financial product to obtain recompense and as stated it is a good business opportunity to establish a Financial Claims Management business specialising in Financial Services.

For further information and to have a initial confidential discussion contact me on info@easy4life.com

Distressed Property Purchase with No Money Down

For nearly a year the property investment market place has faced considerable change.
These changes have presented many "below market value" property investor with considerable challenges in purchasing property with little or no money down. Majority of the no money down deals used to occur with a closed bridge or daylight bridge and remortgage facility. This is no longer the case due to various lenders withdrawing their mortgage products and changing their criteria.

I am however of the opinion that over the medium to longer term, five to ten years property will remain a strong and excellent asset class and as the past has proven property will give opportunities for long term growth and profit.


Many investors who are operating in the distressed sales market are now looking to purchase again (on average these properties are 25% to 30% below the current "market value" and in some cases even more!) .

As an Impartial Finance Broker, I have a innovative solution to purchase buy to let residential property without a deposit, I can assist to purchase "No Money Down!" .

Please contact me to discuss further.

Planning Permission and Building Regulations for Householders

There has been a significant number of changes to planning with effect from 01 October 2008.

There is an excellent visual guide which outlines the new rules on common household projects and that can be accessed on the planning portal website.

One area of significant change is that you now need to apply for planning to pave over your front garden.

For further information visit:

http://www.planningportal.gov.uk/england/genpub/en/1115311947777.html

Buy to Let Mortgage product choice obliterated

The concept that that there are significantly fewer repossessions from buy to lets compared to residential mortgages needs to be examined again as I suspect that it is no longer the case.

The buy to let product choice has been obliterated as nearly 90% of the buy to let products have been stripped out of the UK market. The residential market has also been hit hard losing 60% of its products in a 24-hour period.It appears that lenders have little to non-existent appetite to lend and it will take a while for stability in the market to return.

Code of Practice for Commercial Leases in England & Wales

Code of Practice for Commercial Leases in England & Wales

Although this code of practice is voluntary, most large commercial landlords have now signed up to it.

http://www.commercialleasecode.co.uk/

Stamp Duty Land Tax Avoidance Scheme for Properties

It is possible and above board to use the services of a specialists solictors to remove Stamp Duty from properties of £500,000 or more. As you may be aware transanctions above this amount attract a 4% tax rate.

A specialist taxation solicitors charge a fee for this service which is 2% of the purchase price of the property. This equals half of the Stamp Duty that should have been paid.

From a client s point of view their costings are halved.

Important Information:

1. Property Value must be >£500 000
2. The client can use a solicitor of their choice for Conveyancing
3. The client must have received a mortgage offer to apply.

And yes it really is this simple!

It is legitimate. Our Solicitors have been running this scheme for 4 years and process 40-50 cases a month. To date they have a 100% success rate.

This scheme takes account of legislation changes made in the pre budget of December 2006 and in particular s75A Finance Act Please note that if you wish to speak to the solicitors they will will be more than happy to speak with you in detail.

Please email at: info@easy4life.com

CARE HOME OWNERS - CLAIM BACK YOUR VAT!

The current law does not allow care home owners to register for and reclaim VAT however this was not always the case.There has been a change in the law which now prevents residential care homes from treating their supplies as standard rated for VAT purposes since 2002, there is a possibility that they can recover input tax suffered up to that point.

In a test case which was won on appeal, residential care home Kingscrest successfully argued that because it was a partnership it was not covered by the exemption for healthcare under UK legislation and as a result its services must be standard rated.

Since its clients were Local Authorities who could reclaim the VAT on fees, Kingscrest could pass on the VAT chargeable to the relevant Local Authority and recover the input tax on its running costs.

As a result of the case, new legislation was brought into effect on 21 March 2002 making it clear that the provision of care in a residential home was exempt from VAT.

However, there is no reason why the operators of a residential home cannot decide that it was making standard rated supplies up to 21 March 2002 and benefit from a reduction in their overheads up to the time the law was amended.

Care homes which are interested in pursuing this opportunity will need to make a backdated application to register for VAT.

The above means that eligible residential homes can backdate a VAT registration to 1/1/93, account for VAT on their income and reclaim VAT on expenditure, then deregister with effect from 31/12/02. Some of the claims could be substantial and tend to average £50,000.

Please contact me for further information if you wish to claim on a NO WIN= No FEE Basis.

Please take advantage of this before HMRC find a way of stopping these claims.

email: info@easy4life.com

Payment Protection Insurance Sales Flawed

The Competition Commission published its provisional findings into the sale of PPI in the UK. In its review the Commission has offered its own thoughts on what it calls serious problems within the PPI market. It also focuses on the distribution of PPI and that that the companies who sell these face little or no competition when selling PPI.

It is possible to claim compensation for the mis-sale of a PPI policy. I I am able to assist if you require guidance on a PPI compensation claim.

Have you taken out at least one single premium payment protection insurance insurance policy over last the six years? If so, you may be entitled to thousands of pounds of compensation.

There are over £6 billion worth of payment protection insurance policies out there in the UK and a large portion of them have been mis-sold.

Have you been mis-sold?Do you know that you may have been mis-sold a Payment Protection Insurance Policy and that you may have a valid claim if the company, or its agent, that sold you the policy failed in any one of these areas:

You were not in work or self employed at the time of sale.
You were told that you had to take the PPI out at the same time as the loan or not at all.
You were not asked whether you had any other insurance which would cover the loan.
You were not told you could buy PPI elsewhere to cover the loan.
You were sold a policy which had age restrictions which you fell outside of.
You were led to believe that Payment Protection Insurance was compulsory.
You were told that you would stand more chance of getting the loan if you took the Payment Protection Insurance.
It was not explained to you that there were certain exclusions within the policy that could affect you.
You paid upfront for the PPI but it was not explained that there were some PPI policies where you could pay monthly.
Your PPI was an upfront premium and you repaid the loan early and received no refund.
You increased your loan and the PPI was increased automatically.

If you can answer yes to just one of these questions then contact meimmediately on info@easy4life.com and I will put you in touch with financial consultants who can assist you with your PPI compensation claim on a no win no fee basis.

Would you like to start a new profitable Business?

A unique opportunity for you to start your own profitable and No Risk business with No capital outlay. There is an opportunity to establish your own Financial Claims Management business specialising in Financial Services. You need have no prior knowledge of any financial products as we will supply you with initial training and ongoing assistance as well as all the paperwork you require to set up.

Examples of Financial Claims Cases won:

Mr A from Solihull recieved £6,000 from Natwest within 9 weeks of us taking his Business Bank Charges claim on.We earned £1,500 and got around 3 referrals as well.

In a Payment Protection Insurance (PPI) Case, Our Clients Mr& Mrs s Y recieved a refund of £9,000 from their loan with Firstplus within 10 weeks of us claiming for them.

We have recently started to work with a ex-property developer who was looking for a new opportunity due to the difficulties in the property market. Within 3 weeks of starting he is looking at a potential income of £6,500 when these cases are paid out.

For further information and to have a initial confidential discussion contact me on info@easy4life.com or 07974650751

Empty Commercial Property Tax

Following on from my previous posting regarding empty property rates. I have come across the following which states that Landlords will face a bill of of nearly £1.1bn due to a new empty commercial property tax.

The tax – announced last year, and implemented on April 1st as a means to dissuade owners from keeping properties empty – was originally expected to raise £950 million.

However, falling occupancy rates in the commercial sector, means as much as an additional £142.5 million could now be raised.

A report by property a consultancy NB Real Estate reveals the numbers of unlet commercial properties has risen by 22 per cent over the last two years to 9.3 per cent in March 2008. The rule changes mean most property that has been empty for more than three months will no longer receive relief from rates – exposing them to the new tax.

Andrew Warde, director of rating at NB Real Estate, said: “This empty rates tax was conceived when the property market was performing strongly, but the downturn is heaping misery upon misery. "The government’s belief that landlords keep buildings empty without good reason is just plain wrong and the blanket application of additional rates tax just doubles the pain."

He explained commercial properties are often left empty due to low demand and high tax rates will have little effect on landlords pushing for tenants. “In the longer term landlords will simply demolish empty buildings which are particularly difficult to let rather than pay this tax, a wasteful loss of properties that might otherwise be refurbished when market conditions are right.”

Mr Warde added about six million sq ft of space due to be completed in the City by the end of the year, adding to seven million sq ft already unlet. "We could have up to 11 million sq ft empty just in the City alone a year from now.
The cost to the property sector of paying rates on all these vacant buildings since April has been considerable, and is likely to increase.”

Mr Warde concluded as a lot of construction is speculative, "developers will have to think twice about building without a pre-let in future".

Bank of England Interest Rates decision- Should lending banks follow suit?

The Bank of England (BOE) today kept their rates at 5%. The decision had been widely expected, despite calls from business groups to cut borrowing costs.

The BOE reduces rates as a way to control the economy. I was asked the question today from a colleague what I thought about forcing the lending banks to follow suit if the BOE had reduced their rate.

It is often the case that the lending banks keep their inter-bank rate high when the BOE has reduced rates and the two are not necessarily linked, this then negates the effect of the rate cut.
The BOE based their decision on what is the best for the country as whole, whereas the lending banks have their own business issues to to consider. I believe that market forces will usually win through and this will correct itself base. Do you agree?

Energy Performance Certificates (EPCs) for commercial properties

The introduction of Energy Performance Certificates (EPCs) as part of Home Information Packs (HIPS) for residential properties has been well publicised. It is however surprising that the lack of awareness with businesses and Landlords in respect of the the impact of EPCs on commercial properties. It is vital for Businesses to understand the regulations or they will risk fines up to £5,000.

The EPCs have already partially come into force. By October this year the majority of commercial properties will require an EPC. The current timetable is as below:

6 April 2008 - EPCs required on construction for all dwellings. EPCs are required for the construction, sale or rent of buildings other than dwellings with a floor area over 10,000 m2.

1 July 2008 - EPCs required for the construction, sale or rent of buildings other than dwellings with a floor area over 2,500 m2.

1 October 2008 - EPCs required on the sale or rent of all remaining dwellings EPCs required on the construction, sale or rent of all remaining buildings other than dwellings.


4 January 2009 - First inspection of all existing air-conditioning systems over 250 kW must have occurred by this date. 4 January 2011 - First inspection of all remaining air-conditioning systems over 12 KW must have occurred by this date.

All businesses need to assess if EPCs will b required and if they need an EPC. For further information visit: http://campaigns.direct.gov.uk/epc/

International Money Payments- Personal Transfers

Businesses have often taken advantage of working closely with foreign exchange specialists when dealing with foreign exchange risk and managing their international business payments.
This approach of obtaining advise from a foreign exchange consultants and utilising their services for money transfers is well recommended for individuals as well particularly if they need to to effect larger or regular transfers.

With the number of ever increasing individuals owning an overseas property and this number predicted to increase. Individuals who are exposed to currency risk need to obtain advise from a foreign exchange payment specialist otherwise the individuals will face many hidden costs in their international dealings. In most cases using a specialist can bring in some significant savings in transferring payments as well as reduction of currency risk.

It has been predicted that over 1 million people have plans to buy overseas properties or businesses in the next few years, the the hidden costs of owning a foreign home can be significant if not managed effectively. To avoid the extra costs, many Foreign Exchange Consultancies are advising overseas buyers to consider fixing their exchange rates for up to two-years via a forward contracts. A fluctuating exchange rates would directly alter the price of a property before completion and increases the risk of purchasers spending more than they initially intended.

Unsecured Pharmacy Business Finance

Unsecured Pharmacy Business Finance

A unique bespoke service developed for independent pharmacist businesses puts the Pharmacist in control of his NHS prescription side of the pharmacist business enabling him to release immediate cash and also enabling cash release on a daily basis based on daily sales.

The cash released from the NHS prescription payment (PPA) cycle enables pharmacists to re-invest in their businesses in areas such as improved merchandising, upgrading of premises or any other purpose.

The service is easy to use. It is non-intrusive and not tied to any wholesaler or industry supplier. It is not a loan, and grows with the pharmacists as the business grows.

Unlike typical retailers, independent community pharmacists make 80% or more of their sales on credit terms due to the NHS payment cycle.
The NHS / PPA payment cycle is complex, resulting in a minimum payment delay to pharmacists of 52 days.

In addition to having to fund the complex and long payment cycle of the NHS / PPA, the amount outstanding grows each year as the overall drugs bill increases. The drugs bill has increased at an average of 9.5% a year s a result of the growth in demand for drugs due to
(1) An aging population causing more prescriptions to be written;
(2) The changing mix toward higher priced drugs;
(3) Increases in drug prices.

The NHS expects this growth to continue at 8%. The effect on pharmacists of both the initial investment they had to make to fund the NHS prescriptions and the increases in the drugs bill that results in a very significant amount of capital tied up in the NHS / PPA payment cycle. For an average independent pharmacists with annual NHS re-imbursements of £500,000 per year, this results over £71,000 caught up in the in the payment cycle.

The Pharmacy Business Finance service enables an immediate release in the capital caught up in the NHS / PPA payment cycle which is £71,000 on average. Taking this forward the Pharmacy Business Finance service releases cash on a daily basis eliminating the need for the pharmacists to fund the increasing NHS drugs bill.

Pharmacy Business Finance service purchases the pharmacist’s NHS Prescriptions which are receivable assets outright for immediate cash less a small discount, The pharmacy business finance service is not a lending institution. There is no loan facility; hence there are:

· No loan repayment obligations,
· No security requirements,
· No intrusive monitoring arrangements,
· No requirement to meet minimum purchasing obligations, as in the case of typical
wholesaler guaranteed loans,
· No prepayment restrictions or penalties, and
· No termination penalties (terminable in 30 days).

In fact, the pharmacy business finance service is better than a loan as it:

· Eliminates the need to keep on funding increases in the NHS receivables,
· Provides valuable financial information
· Converts the business to a cash business on a daily basis and thereby increasing the
pharmacists control over the business.

The duration of the cash release is either long term or short term (terminable on giving one month’s notice) depending on the requirements of the pharmacist. It may therefore be viewed as a source of permanent development capital.

While the service has universal appeal as to the pharmacist’s ability to gain control over his NHS business by converting it to a cash business on a daily basis, the value of Pharmacy Business Finance service is most helpful to pharmacists wanting funds to:

· Refit their pharmacy
· Take full advantage of shortline wholesaler opportunities
· Pay suppliers more quickly to earn settlement discounts
· Pay off expensive debts
· Releasing cash to buy a complementary business
· Developing additional clinical services
· Developing new retail initiatives
· Reduce the dependence on a single wholesaler
· Eliminate restrictions on borrowing
· Releasing oneself from personal guarantees
· Avoid lengthy and complicated commitments – the pharmacy business
finance service contract may be terminated on 30 days’ notice

For further information and to receive a visit from a Business Relationship Manager throughout the UK please email me in the first instance.

Evaluation of your business proposition

For any one who is seeking private equity finance or looking to raise debt finance then the following questions need to be considered and sef-evaluated before any investment proposition:

1. Please provide a quick summary of the product or service you offer?
2. Please describe its purpose / application?
3. Please provide a brief summary of the sector your company operates or intends to operate in.
What market do you operate or intend to operate in?
4. Who is the management, and what are their strengths / weaknesses?
5. How have you supported yourself so far?
6. What is the long term corporate plan?
7. what is the market potential (demographic, geographical etc)?
8. What are the main events happening or expected in the market?
9. What are the key characteristics of the market?
10. What are / will be the key success factors and will the success of the venture be based on?
11. Is the business profitable? When do you project profitability?
12. What are the main risks that you can identify for the business?
13. Have you considered equity finance or debt finance (depending on what is being pitched)?
14. What is the funding for?
15. What are your proposing to offer your investors?
16.What is the estimated exit timing for investors?

Changes to empty property rates for Commercial Properties

There has been a recent change in the Rates that are payable for commercial properties which I believe will have a significant impact on the commercial property market.

With effect from the 1st April this year, empty commercial property will be hit with an occupied rate liability.

The Rating (Empty properties) Act has made some amendments which include:

"Replacing the current permanent exemption for industrial properties with an exemption for the first 6 months only.

Properties that have been empty for more than three months will no longer receive 50% relief from rates. In the case of industrial property, those that have been empty for more than six months - will no longer receive 100% exemption from rates".

The Government's view is that the changes will enhance the supply of commercial property and create a downward pressure on rents making occupation of commercial property more affordable. However, it may have significant negative effect as any landlord or developer will be less likely to engage in development as they will not want to risk having a vacant property. This will also mean if there are any vacant properties where the owners have not done anything about it so far this may kick start them to sell to off load them.

credit crunch and dual pricing in the mortgage market

Everybody in the mortgage industry is suffering to some degree from the effects of the current 'credit crunch'. I am to some extent more aware than others due to having direct contact with various intermediaries and individuals in the mortgage and lending market that some businesses have been hit very hard.

Mortgage Advisers seem to be suffering more so to some extent due to the actions of a number of high profile high street lenders, who are offering preferential terms to direct branch customers. In the broker community this is being referred to as dual pricing.
These lenders have previously benefited greatly from the mortgage broker market and many have had majority of their new business introduced by intermediaries. It is estimated that overall nearly 75-80% of past mortgage business written has been via intermediaries.

It is as a result of the big volumes of business, which has traditionally been introduced by brokers that Lenders were offering exclusives and better terms for broker business rather than direct business.

It is now with the mortgage market in such a state that these lenders are causing a good deal of distress to brokers, as a result of this dual pricing.
The lenders and the FSA have shown very little sympathy to this matter. The lenders see dual pricing as a short-term expedient to control the flow of lending. With reduced liquidity available in the market and the high cost of funds, lenders are keen to control their new lending.

The FSA has commented on the subject of dual pricing. It does not believe that lenders are doing anything wrong. It states that Lenders are entirely free to determine how they price their products for each distribution channel. The FSA has made it clear that it will not intervene to remove dual pricing from the market place.
Until dual pricing finally disappears, it is vital that advisers face up to the issue rather than surrender to it. Mortgage Advisers as I see it have two choices they either let the customer know that some lenders are offering different rates to direct customers and that they, as a broker do not have access to these products and advise them as usual on what is available to them from their panel of products. If this is done then aaccording to the FSA the Adviser has acted properly and treated his customers fairly and therefore discharged his duties.

The second option is, which a number of financial service market pundits state that the brokers can if they wish direct customers to high street branches if the rates are more attractive and charge customers a finder’s fee. This to a number of brokers sounds very strange. Most of the broker community do not feel comfortable in doing this and cannot see the justification for seeking payment for this.
How long before some normality returns to the markets?

Land Banker in administration

The FSA has finally asked the High Court to wind one of the largest UK land banking operators. It has been granted an interim freezing and restraining order against UKLI Limited to protect its assets for creditors, including investors.

UK land Investments acquired mainly greenfield sites it claimed had development potential, it then divided these sites into smaller plots, then advertised and sold these plots of land to people by claiming that it could get planning permission for the land, which would increase in value and make investors a large profit once it was sold to a developer.

It is estimated that around 5000 plots have been sold to investors across the country and that around £69 million has been paid to UKLI for various sites where it is claimed that none of the land sold was ever granted planning permission.

As UKLI operated as a Collective Investment Scheme it should have been authorised by the FSA. As it was not regulated, UKLI Investors are not entitled to make a complaint to the Financial Ombudsman Service or to claim compensation from the Financial Services Compensation Scheme.

It is quite surprising that it has taken the FSA this long to take action and when some action has finally been taken it seems a little too late for the many who have lost out.

A statement by the Administrators is on the UKLI website: http://www.ukli.com/

Unsecured Business Funding for as long as you need

It is now possible to obtain unsecured funding for company payroll, PAYE and NI. The specialist lender who provides this service gives 60 day rolling credit on your gross monthly payroll, with a provision to allow for growth.

It is a well know fact that lack of cash flow plays a significant part in holding back the growth of small and medium sized businesses. Its not that you don't have a steady and reliable income. It's just some customer's don't play as promptly as they should and of course, the one payment that has to be made each week or month is the payroll.

The key benefits of Financing Payroll for your business:No security required by company directors The funding appears as a normal trade creditor on a company's P&L, enhancing its credit rating It can be used alongside other traditional financial solutions including factoring, invoice discounting and overdrafts It does not impact on an organisation's secured funding arrangements.

There's no set up fee A flat rate on-going monthly facility fee An interest rate of base plus 3% on the outstanding balance. To qualify qualify for Financing Payroll Funding your company must have a trading history of at least a year and an annual turnover of more than £100,000 and have 5 or more employees. The product is most effective where a company is looking to expand or level cash flow peaks and troughs. The system offers a fast and flexible form of unsecured funding. For a number of our new clients this has meant immediate access to a new funding line of between £25,000 and £125,000.

Clients who have already gained assistance of financing payroll: A plastics manufacturing who applied for a facility of £50,000 per month. They were accepted on 60 day credit terms, base plus 3% interest charge on the outstanding balance and a monthly facility fee of £635. A firm of architects looking for funding of £30,000 per month. They were processed within 3 days and accepted on 60 day terms, base plus 3% interest on the outstanding balance and a monthly facility fee of £400 per month.


A serious alternative to Business financingFinancing payroll system is totally unsecured funding and will lend equivalent to the payroll including the PAYE and NI costs over typically a 60 day period. The Lender ask for no Personal Guarantees, Charges, or Debentures on assets. In fact they only show up on the P&L account as a normal trade creditor

Now is the time to take Commercial Advice

Over 70 per cent of all residential mortgages in the UK are arranged through Brokers and in some sectors this figure is even greater however Business Customers are still in the main talking directly to their bank to sort out their commercial finance needs.
In the US, 80 per cent of commercial loans are arranged through brokers. In the UK, about 80 per cent of commercial loans are sold directly by lenders with only 20 per cent being arranged through Brokers.
Business Customers needing a commercial finance advice including a commercial loan or mortgage or other business finance product should find that an impartial finance broker has a lot to offer them by way of a professional service, delivering quick results and saving them time that would be better spent in their business rather than trying to source finance.
Commercial mortgage rates are rarely set in stone, unlike domestic and Buy to Let mortgages. Therefore each individual mortgage is priced to match the borrower's personal circumstances. When a business customer has establised a relationship with a bank they start taking advantage of that relationship because they know that arranging a commercial finance solution such as commercial mortgage, loan, factoring deal is time consuming and therefore they offer you a rate which has has no incentive.
If a business owner wishes to obtain the best deal in the market place then they need to commit time to researching the numerous commercial lenders that are in the market place and understanding the best source of raising business finance, understanding the terms and conditions of the product in the market together with the lenders’ processing requirements.
For Commercial property investors, it is important to consider the potential of a Business remortgage. Like residential mortgages, commercial mortgages can be refinanced to take advantage of more favourable terms, or they can be re-mortgaged to establish a line of credit to use for running the business. This is also true of other financial products such as factoring, invoice discounting as well. This will allow businesses to increase their margins by reducing their finance costs, and could allow further profit for further investment. This can also offer business clients a way to gain independence from their bank, separating debt from day to day banking arrangements.
If you were to take advantage of the services of an impartial finance broker who does not charge a separate broker fee for their services then you are in a position where you can not lose as you have a whole range of options that open up for you and you are not paying any extra for this service. The broker will be able to best place your business and will often be able to beat any offer from your bank and save you a considerable amount of money. Also the broker will not get paid until your deal is completed giving them a strong incentive to find the best deal for you and at no cost to you as the broker earns their fee from the lender whilst working for you!

Safaraz Ali is an Impartial Finance Broker and can be contacted on 07974 650 751 or by email: safarazali@easy4life.co.uk

Good news - Changes to Consumer Credit Act

Following the recent changes to the Consumer Credit Act the £25,000 loan amount limit (applicable under the Consumer Credit Act 1974) was removed as changes from the Consumer Credit Act 2006 came into force. This means that any secured loan funded must be subject to the new Consumer Credit Act regulation meaning the removal of mortgage style redemption penalties and tie in periods. All loans irrespective of amount will now be subject to 28 days notice and 1 month’s interest on redemption at any point throughout the term of the loan.

This is certainly good news in terms for individuals where a secured loan is a suitable option where an individual is in a penalty period and it is not feasible to remortgage then a secured loan can be a genuine alternative.