Mortgage Broker | Mortgage News | Best Mortgages

In the current environment, people are under incredible stress as it is, but sometimes trying to deal with their lender, whether a bank or building society, can put people over the edge. We understand this stress that people are under and generally it us due to the following circumstances:

•   Coming to the end of an Interest only Period facing a huge increase in repayments
•   Coming off a fixed Rate and repayments jumping due to Variable Rates available
•   Cannot keep payments up on the home or investment property at current levels
•   Have already gone into arrears but have just ignored the problem

Due to the amount of enquiries and in an effort to help our clients, we are now providing an advisory service in relation to dealing with your lenders and overcoming problems that have occurred as best we can. We can in certain circumstances deal with your lender on your behalf if you feel you are not able.

We can advise and help you as follows:

1.   Analyse your current situation
2.   Help you prepare a complete Asset and Liability Statement
3.   Advise on how to deal with the lender and assist in any letters/correspondence
4.   Analyse what options are available to you if any
5.   Negotiate with Lender on your behalf in certain circumstances.

We charge an upfront fee of €195.00 to cover our time. We do not deal with Credit Card and Short Term loans, we are just dealing with any problems with your mortgage lenders whether home or investment properties.

Either way please follow the tips below:

•   Don’t ignore the problem, it will not go away
•   Try and talk to your lender as they are trying to help you
•   Always be upfront and honest with them
•   Give them all the information they ask for as accurate and up to date as possible.
•   Remember there is always light at the end of the tunnel so remain POSITIVE

If you feel you need our help in anyway, please call us Susan McNulty on 1890 252546

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Have you paid too much tax in the last 4yrs?

We are happy to advise our readers on a new way of getting tax back that you may have overpaid in the last 4yrs. The Irish Tax Store Ltd is a web based service which has been designed to provide individuals who have paid tax in Ireland with a very user friendly tax refund facility.

Average Refund €800 for each year claimed totalling over Eur3,000 for the 4yrs.

Research by The Irish Tax Store has established that over 70% of Irish Taxpayers pay too much income tax/PRSI and/or fail to claim their full allowance to their entitlements. You can also be entitled to a refund when you change occupation, if you are made redundant or when you move from employment to retirement.

The Irish Tax Store, operates on a No Refund, No Fee Basis.

The website is as follows: www.irishtaxstore.com we would encourage you to log onto the website and follow the simple 3 step plan which takes about 10 minutes to complete.

Step 1. Hit the “Apply Now” button and complete the different sub-headings. Before making a claim we would recommend that you view the “Tax Refund PAYE” section on the website to view the allowances you may be entitled to claim a refund for and the specific information required from you to make sure you receive the maximum Tax Refund.

Step 2. On Receipt of a copy of you ID, a Utility Bill, the signature page on the F11 form and the letter of engagement (all which are down-loaded from website checklist at this point) you will be informed of the exact Refund due (by email).

Step 3. We will liaise with the revenue on your behalf to make sure you receive the maximum refund possible and forward on your refund cheque less a our payment for this service (15% of Total Refund) The Refund should be with you in approximately 6 – 8 weeks.

The most common sources of Tax Relief are as follows;

Medical Costs : (Except routine Dental & Ophthalmic care) incurred by you, on your own behalf, or on behalf of a dependent or relative, the portion of which is not covered by your Medical Insurer VHI/VIVAS, etc (see medical records, GP, Dentist & Medical Insurer)
Trade Union Subscriptions : see payslip or HR Dept
Service Charges : such as Bin (Includes Bin Tags) and Water charges with relief granted for charges incurred in previous year of your claim year (See Invoice from Provider, Local Authority or Private Company)
Rent Relief : you will be asked for landlord PPS number, term of lease and rent paid.
Tuition Fees : If you have been studying in Ireland during the last four years, you may be entitled to a refund (see the website for qualifying courses)

Important: Please record your Financial Advisor as White Star Finance, so we can monitor your claim on your behalf.

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Personal debt getting you down?

The funny thing about personal debt, credit cards & personal loans is when we had money we used them to build up more and more debt, never thinking of repaying it. But now we have no money all we do is worry about paying it off. Surely we have this the wrong way around, shouldn’t we pay off our debt when we have money. Maybe if the past few years teach us anything it’s the next time we have money its to mind it.

Unfortunately for some of us it’s easier said than done, with redundancies and pay cuts now the norm some people just can’t afford to repay what they used to. what we need to do is put a plan in place that will allow us to pay off our debt as well as live our lives, no one expects you to hand over every cent of the money you earn to pay off your debts but what is expected is you make a reasonable attempt to repay the money you borrowed, after all you did spend it.

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January 2009

Recession Beating Financial Tips for 2009
The Negative Equity Trap
UK Interest Rates and the Irish Investor

Recession Beating Financial Tips for 2009

We all understand the difficulties surrounding our individual finances and our economy and 2009 requires vigilance and action in order to maintain a decent standard of living. White Star Finance has listed below some Financial Tips that might just make 2009 that bit easier for you and your family:

• Protect Your Income - Unfortunately with talk of redundancies and unemployment figures rising protect you and your family in 2009 from this. For a maximum of €81 per month you can cover up to €2,000 net in the event of redundancy.

• Do an Income and Expenditure list – Check your bank statements and see what goes out regularly each month and see what the "real" figure you have for miscellaneous purchases

• Check all short term debt – Look at all your short term debt and assess what interest rates you are paying and what monthly amounts you are paying – there may be a way of consolidating these loans into one manageable monthly repayment

• Look at your Mortgage repayments – see what you are paying monthly and check with your lender/broker what interest rate you are on and if there are better rates available to you – speak to your broker about consolidation or other facilities that might assist you

• Assess your Life Assurance – See what level of cover you have, see if you can consolidate a few polices into one more manageable and lower costing policy - again speak to your broker about looking into this for you

• Retirement Planning – If you have a pension have it reviewed by an independent broker to see where your money is invested and how it is working for you. If you do not have a Pensions, look to start one now, as property and shares have shown their volatility, a well structured pension plan is an absolute must

• Need v Want - Buy what you need and not what you want

• Don’t focus on negatives - such as negative equity, if you don’t plan to sell your house what does it matter, everything in the past has been cyclical, there is no reason the future will not be the same

• Optimism and Pessimism - both are contagious and have a big effect on those around you, choose which route to follow wisely!

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The Negative Equity Trap...

Purchasing an investment property throughout the property boom was the investment of choice. Banks fuelled this desire by making funds readily available for this type of investment and encouraged equity release loans on principle residences to fund for deposits on investment properties.

When you purchase your first home you are requested by the bank to take out a life assurance policy to protect the loan, also know as mortgage protection. This is required whether you purchase on your own or with your partner to protect the banks interest in the loan and make sure any capital is repaid to the bank from the proceeds of the policy should anything happen to either borrower. This is good practise as both parties are fully covered.

Unfortunately this was not the case with many investment mortgages taken out during the property boom as banks did not require that a mortgage protection policy be assigned to the bank for this type of mortgage. Many investors felt this was an added cost and if anything happened sure the property could be sold. This is all well and good in a market where property prices are continuing to increase and equity in the property continues to rise. Centre stage credit crunch and recession, - property prices begin to drop and drop fast!

So what does this mean for those who purchased an investment property in the last 2-3 years?

There is a large possibility that this property is now in negative equity meaning there is more owing to the bank than the property is worth! This causes a problem should the property need to be sold quickly due to a death in the family. The market value will not clear the debt to the bank and therefore the vendor needs to have a cash reserve to clear any additional debt owing to the bank before the property can change hands.

It is crucial that you are protecting your liabilities, asset’s and income and making sure that your families are protected should anything unpredicted happen. With the right advice this can be done in a very cost effective and tax efficient manner.

We would urge anybody who has not looked at their protection policies in the last few years to contact us for a free review of your existing cover.

Example

Male (non-smoker) Age 40 Next Birthday - €500,000 Life Cover /Term 15 Years/ Cost €51.42 Per Month

Female (non-smoker) Age 40 Next Birthday - €500,000 Life Cover /Term 15 Years/ Cost €40.26 Per Month

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UK Interest Rates and the Irish Investor

There are a few positives to come out of the global economic slump, especially in the light of the decreased interest rates in the UK. For all the Irish that frantically bought in the UK and London over the past 4 years the outlook looked so dim at the beginning of 2008. With relatively high interest rates, high management charges, low rents and negative equity there was nothing to persuade us as to why this investment decision was made in the first place. It looked (and still does) that a 10 year investment was going to only cover our costs never mind turning a handy profit, as we once thought.

However, UK interest rates have not been so low in nearly a century and this has resulted in the British Pound devaluing to nearly par against the Euro. Not so good if you are trying to sell your exports to the UK or cashing in investments back to Ireland, but if you are one of the thousands of people who bought a house or apartment in the UK for investment purposes things are looking up.

Firstly, the mortgage that you probably have been supplementing each month over the past couple of years has no doubt decreased to such an extent that you have a good surplus of rent gathering up monthly in your UK bank account.

Secondly, what seemed expensive at the time in Sterling is now quite good value even by Irish Standards so we don’t feel so exposed risk wise.

And finally, if you have a cash positive investment that is not causing you any worries, there is no pressure to sell (and why would you?) and it can roll along painlessly for another 5 years or more perhaps giving you a small income at the end of each year.

It may not solve any problems in the short term but the advent of this new low interest rate environment gives the investor both here and in the UK a chance to breath again. More importantly these rate cuts are ensuring the rental income is covering the reduced repayments and therefore no pressure on the investor to sell their property in the near future. Once there is demand in the form of tenants to rent the properties the investment is sound and you don’t lose or gain until you sell.

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November 2008

Market Outlook for 2009
New 3.25% Fixed Mortgage rate for First Time Buyers!
Protect your income in these uncertain times
Tracker Rates - Gone but not Forgotton ...

Market Outlook for 2009

With Christmas coming upon us, White Star Mortgages is issuing it’s last Newsletter for 2008 and with that, providing it’s Market Outlook Summary for 2009.

2008 was the worst year for financial markets in decades and the first to have a major effect on many of the under 35’s in this country. Since the crash of the financial market and in turn the property market, our Governments and banks have been rallying to try and stabilise the situation.

White Star Finance believe that 2009 should provide a more stable financial market than 2008 with lower cost of funds helping to ease the pain.

Factors that will help the property/mortgage market in 2009 are as follows:

• Interest rates may drop by a further 1%

o This will greatly reduce the mortgage repayments of many existing homeowners and reduce the cost of borrowing for First Time Buyers giving them greater access to properties they desire.

o The reduction in ECB rate will also have a positive effect on the cost of funds at which banks borrow, making it more achievable for them to raise the capital required to lend more freely.

• Banks joining forces

o White Star Finance believes that some of the Irish banks will merge or simply be taken over in 2009, strengthening their overall size and structure and ability to source finance.

• Governments Guarantee Scheme

o Given the fact our Government has already guaranteed the savings and deposits of Irish banks, we are in a strong position to borrow from other World Banks, which will hopefully stimulate the mortgage market.

• Lower Property Prices

o House Prices have fallen up to 30% over the past 18 months and in some areas of the country may fall further. What purchasers need to be aware of are 2 main factors with this:

o Many of the lenders are reducing their loan to value percentage which is increasing the deposit required to purchase a home. At present it is still 92%.

o Many people are waiting to see when the property market hits rock bottom before acting on anything. With the huge reduction in new home completions in 2009 and 2010, supply will begin to ease and this could present something similar to a bear-rally with stocks, and house prices sharply rising over a short period only to reduce a little and then pan out.

Factors that could affect the housing/mortgage market in 2009:

• Unemployment

o Unemployment is set to continue to rise in 2009 and this could have a serious affect on the housing market with people offsetting purchasing a home in case they are made redundant. Everyone should be looking to protect their income from redundancy, illness and disability.

• Further lending woes

o Although the financial markets and Governments seem to be doing their utmost to stabilise the current conditions, there is no guarantee that all their efforts will be pay off! Further crashes of some of the world’s leading investment banks would see further chaos ensue, and have a serious effect on the world’s economic outlook.

• Media Coverage

o There have been a number of incidents covered by the media that show people to be victims of the ‘property crash’. Unfortunately a number of people that accepted 100% loan to value mortgages from banks since 2006 will possibly be in negative equity which is strongly highlighted by the media, but the affordability of mortgage repayments has improved with recent rate cuts which is not so keenly advertised.

Overall, although the current situation is bleak but White Star Mortgages believe that there are opportunities within the housing market. The moves that the World banks and Governments are taking are positive in restoring consumer confidence and protecting the economic future of our country.

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New 3.25% Fixed Mortgage rate for First Time Buyers!

AIB has reduced mortgage rates for first-time buyers in a move to kick start this fledgling area of the market.

The bank is offering new buyers a one-year fixed rate of 3.25pc and is currently the best on the market.

AIB said this product would be a cost to the bank in the beginning but wanted to get the property markets moving again.

AIB will lend up to 92pc of the purchase of the home, which is in contrast to a number of other banks and building societies which will now only give First Time Buyers funding for 80pc of the Purchase price.

With rates coming down and property prices being slashed across the country the question on most first time buyer’s lips is this a good time to buy? There certainly has been a correction in the property market with values coming down considerably from their peak prices in 2006-2007. With the added reduction in mortgage rates this has certainly fueled the interest of the first time buyer as their affordability has now improved.

Value seems to be the order of the day as many first time buyers go bargain hunting. If the purchasers take a 5 year view on the property they are buying, at the interest rates now available and the value in the market, we believe it’s a good time to buy.

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Protect your income in these uncertain times:

We have all been taken aback by the sudden and sharp downturn in the Irish economy over the past 6 months, and the impact this is having on jobs. There is little doubt that many people do not feel as secure in their jobs as they did this time last year.

For the first time in a generation the question now needs to be asked:

‘If I lose my job how will I replace my income?’

In addition to this you may need to ask yourself:

‘How will I manage to meet my day to day bills if I suddenly lose my monthly income as a result of being out of work due to redundancy, sickness or having been involved in an unforeseen accident?’

Remember even if you are in a secure job and your employer continues to pay you if you are out of work, this tends to be for a limited period and for a limited amount.

One option we recommend you consider is to take out Income Protection Insurance.

White Star mortgages can now offer a unique product which is new to the Irish market and enables you to cover up to 75% of your net monthly income (maximum €2,000). This payment is made in conjunction with any social welfare payments and is guaranteed for 1 year, unless new employment is found.

You can have this policy put in place today by simply calling 1890 252546, or email us at info@whitestar.ie

We look forward to hearing from you.

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Tracker Rates – Gone but not Forgotten…

For those of you who still managed to hold on to their tracker rate and did not succumb to temptations that were on offer by the lending institutions to tempt you away, well done and you will be pleasantly surprised by what savings the recent interest rate cuts will bring you, for example:

If you have a mortgage of €450,000 over 25 years at a tracker rate of ECB plus 0.95%

Old Rate: 4.25% plus .95% 5.2% €2,683.00 per month

New Rate: 3.25% plus .95% 4.2% €2,425.00 per month

That is a net savings of €258.00 per month. If you have a tracker rate you have the peace of mind of knowing that you will get the full benefit of any decrease in interest rates and the tracker margin agreed from the outset cannot change.

If however, for whatever reason you were on a fixed rate that expired for example in August 08 and wanted to go onto a variable rate, at that time you could have negotiated a variable rate as high as c.6% , so based on the same example

Old Rate: 6.00% Variable Rate €2,899.00 per month

As Interest rates decreased and ECB fell by a full 1%, the problem that arises for the Variable rate holder is: when and if the lender will pass on the full or any of the rate decrease. The variable rates are set by the Bank Board of Management so your variable rate is very much reliant on their decision. The good news is that most of the lenders have decided to pass on the full rate decreases to the Variable rate customers and although still higher than their Tracker counterparts it’s as they say ‘better than nothing’!

New Rate: 5.00 Variable Rate €2,630.00 per month

So, even the Variable rate holders benefit by up to €269 per month savings, in the example above.

So, are there any Tracker Rates left on the market? As you can imagine they are not the ‘darling rates’ of the lending institutions. Tracker rates have caused the lenders to lose even more money as they could not borrow the funds at the rates they had to honour to their customers hence the mass exodus away from this type of product. The few lenders that are still offering Tracker Rates do so at a more profitable margin, so again based on €450K over 25 years:

New Tracker ECB plus 2.2% 5.45% €2,475 per month

So, you still can get a tracker if you really want one, but as Variable Rates have become cheaper it’s very tempting to take the variable and hope for the best. If you want certainty that the margin over ECB will remain you would have to take the now higher tracker rate.

So, whatever you decide, the good old days of the low Tracker rates, some as low as .55% above ECB are well and truly over, and no matter how low the ECB is reduced, I think the days of those low Tracker Rates will become stories of Legend, or perhaps just bar stools!!

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October 2008

Budget Report
Mortgage Interest Relief
Government Home Choice Loan

Budget Report

INCOME TAX CHANGES

A new levy of 1% will apply on gross income up to €100,100 per annum or €1,925 per week. A rate of 2% will apply to individuals earning in excess of this amount. This new levy is paid on gross income before deduction for pension contributions and capital allowances. The levy will not apply to social welfare payments including the contributory and non contributory social welfare pensions. This comes into effect in Jan 2009.

Lower and Higher Tax Bands
No change here to the rates 41% and 20% still apply. The Standard rate tax bands have been widened as follows:

Single no children, €36,400@20% Balance @ 41%
Lone Parent €40,400 @ 20% Balance @ 41%
Married couple one income €45,400 ’@ 20% Balance @ 41%
Married couple two incomes €45,400 @ 20% with increase of €27,400 max. Balance at 41%.

PRSI
As from 1 January 2009, the employee PRSI contribution ceiling will increase from €50,700 to €52,000.

Capital Gains Tax (CGT)
CGT is to increase for all disposals made from midnight on 14/10/2008 from 20% to 22%.
The collection of CGT in 2009 has also been brought forward - all disposals between January and November must now be paid by mid December and tax on disposals in December will now have to be paid by the following 31st October.

Health Expenses Relief
Tax relief on health expenses will be allowed at only standard rate of income tax with effect from 01/01/2009. It was previously allowed at an individual’s marginal rate of tax.

Levy on Car Parking
A levy of €200 per annum will be charged on employees who are provided with car parking facilities by their employer in the main urban centres.

Levy on Non-Principal Private Residence
Owners of a residential property which is not their principal private residence will have to pay a charge of €200 per dwelling to their local authority.

PENSIONS
Earnings Cap
Currently there is a limit of €275,239 on the amount of earnings, which can be taken into account for the purpose of tax relief on pension contributions. This limit will be reduced to €150,000 for 2009. This earnings cap does not currently apply to any employer contributions to an occupational pension scheme.

Individuals with relevant earnings in excess of €150,000 should therefore make the most of the forthcoming tax deadline to reduce their tax bill for 2007 (please note that the earnings cap for 2007 was/is €262,382). They may also have one last opportunity next year in respect of their 2008 tax bill as the limit appears to apply from the 2009 tax year.

EXIT TAX CHANGES (gross roll-up)
Currently exit tax on life assurance policies effected on or after 1st. January 2001 is the standard rate of income tax plus 3% - a total of 23%. From 1st January 2009 exit tax on these life assurance policies (which are also called gross roll-up policies) will amount to 26% (i.e. the standard rate of income tax plus 6%) and this rate will also be applied to the deemed disposals on investments which also comes into effect from 1st January 2009 for policies reaching their 8 year anniversary and on each subsequent 8 years thereafter. This tax applies to any gains made on the policies and under the rules relating to the deemed disposals any tax paid now is taken into account when calculating the final tax liability when the policy is finally cashed in.

DIRT on bank and building society accounts will also increase by 3% to 23% with effect from 1st January 2009.

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Mortgage Interest Relief

Good News for First Time Buyers

What does the increase in Mortgage Interest Relief mean to me?

If you are a First Time Buyer (FTB) looking at purchasing a property, you will avail of a larger amount of tax relief for the first 5yrs of your mortgage.

From January 1st 2009 the rate of mortgage interest relief for FTB’s will be increased from 20% to 25% in years 1 & 2, and 22.5% in years 3,4 and 5. The rate for years 6 & 7 will remain unchanged at 20%.

In real monetary terms, in 2008 the maximum tax relief a FTB received was Eur167pm as a single applicant and Eur333pm on a joint mortgage.

Due to the increase in 2009, FTB’s will now receive a maximum mortgage interest relief of Eur208pm for a single applicant and Eur417pm on a joint mortgage for the first 2 years and then Eur187pm for a single applicant and Eur375pm on a joint mortgage for the next 3 years. For the final 2 years they will receive the standard amount available at the moment.

Example – If two FTB’s purchase a home for Eur400,000 and borrow Eur368,000 (LTV=92%) and take the mortgage over 35yrs at a standard variable rate of 5.5%, the mortgage repayment would be Eur1,976pm.

As the interest payable on the mortgage will be in excess of the Eur20,000 threshold for a joint application you will be credited with Eur417pm for the first 2yrs giving you a net repayment of Eur1,559pm. Please note this figure does not take into account home insurance or life cover.

For more information please contact us at (01) 293 2373 or info@whitestar.ie

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The Government digs deep!

The Government digs deep with a new programme to help First Time Buyers get on the property ladder.

It emerged last week that €500 million had been earmarked by the government for the Home Choice programme. The scheme is to e implemented as a result of the lack of funds being currently offered by banks to First Time Buyers. We have outlined the product details below, so if you have any questions or are inetersted in the Home Choice Loan Scheme please contact one of our mortgage specialists on 1890 252546.

What is Home Choice Loan?

Home Choice Loan is a mortgage provided through a number of local authorities for First Time Buyers who cannot get sufficent finance from a bank or building society. The loan will provide up to 92% of the market value of a property purchased, with a maximum loan amount will be €285,000. The loan is a normal Capital and interest bearing mortgage which is to be repaid on a monthly basis and the term will be for a maximum of 30 years. The loan will only be available for newly built homes.

Who can apply?

To qualify for a Home Choice Loan applicants must:

• be a first time buyer (some exceptions may apply)
• earn more than €40,000
• be in permanent employment for two years; If self-employed be able to submit two years certified accounts
• have proof of being unsuccessful in securing a sufficient mortgage from a bank or building society to buy a home.

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September 2008

Great Value for Affordable Home First Time Buyers
Final Date for Pensions
€100,000 Safe in our banks hands!

Great Value for Affordable Home First Time Buyers

More and more First Time Buyers are going through the ‘Affordable Housing’ route to get on the property ladder and are acquiring fantastic apartments and houses at great value.

Affordable Homes are properties made available at a discount to the price that would normally be paid if the house was bought on the open market. Affordable homes are provided on the basis that you will live on the property and not use it for any other purpose.

To qualify there are some basic criteria you must meet:

• You must be a first time buyer but there are some exceptions. (for example purchasing after a divorce)
• You must have enough income to meet your mortgage repayments after you have paid all your other monthly outgoings.
• You must register with your local authority and if you are accepted they will add your name to the ‘Affordable Housing Newsletter’ with the list of developments available.
• From this list you can select the properties you are interested in and you will be included in a draw.
• If you are selected and you agree to buy a property from the draw, you must then get a mortgage or loan to proceed with the purchase.
• At that point you can start arranging your mortgage and there are currently six lenders offering mortgages to this type of purchaser.
• 100% finance is available on the discounted purchase price.

The discounts that are now available are really impressive and in our experience as much as 40% off market value.

We at White Star Mortgages will arrange Approval in Principle so you have the peace of mind that you will qualify should your name come up and we will then take you through the steps to Loan Offer and completion ensuring the process is as simple and hassle free as possible.

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Final Date for Pensions

Friday 31st October 2008 is the final date to pay a pension premium and elect to backdate the tax relief into the previous tax year.

The date for filing the tax return and payment of tax due will be extended to Monday 17th November 2008 where both are made through Revenue On-line Service (ROS). If a client qualifies for this extension they also have until 17th November to make a pension contribution.

Clients don’t have the option to defer. If they don’t take this opportunity, they will not get another chance to reduce their 2007 income tax liability. And remember there is a range of investment options available to suit everyone from the cautious investor looking for security, to the more gung-ho investor looking for value in current market conditions.

Who Files a Self-Assessment Tax Return?

The self employed, proprietary directors (those who own more than 15% of a company) and people with non-PAYE income are required to file self-assessment income tax returns under the Pay and File system with Revenue.

To avoid interest and surcharges they must, by 31st October 2008:

• File their 2007 Income Tax return
• Pay any balance of Income Tax outstanding for 2007
• Pay Preliminary Income Tax for 2008
• Pay any Capital Gains Tax due on disposals in the period 1st January 2008 to 30th September 2008 inclusive.

Employees and non-proprietary directors whose earnings are taxed through PAYE are not obliged to complete a self assessment tax return. However, they can do so if they need to. For example, if they make a pension contribution now and wish to backdate this against last years PAYE earnings, they will need to complete a self-assessment tax return.

How Much Can an Individual Contribute to a Personal Pension Plan, PRSA, PRSA AVC or AVC?

Tax relief limits for personal contributions as a percentage of earnings:

Age Tax relief limits
Up to age 29 15%
30 to 39 20%
40 to 49 25%
50 to 54 30%
55 to 59 35%
60 and over 40%

1. The above limits include any employer contributions made to a PRSA.

2. For contributions set against 2007 earnings, an earnings cap of EUR 262,382 applies for tax relief
purposes to aggregate contributions to PRSAs, RACs and employee/AVC contributions to
occupational pension schemes. For relief against 2008 earnings the cap increased to EUR 275,239.
The earnings cap does not apply to employer contributions to occupational pension schemes.

3. For Occupational Pension Schemes the total contribution (Employer and Employee) must be
within overall Revenue maximum contribution levels.

Plan early to avoid panic!

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€100,000 Safe in our banks hands!

THE GOVERNMENT has decided to increase the statutory limit for the deposit guarantee scheme for banks and building societies from €20,000 to €100,000.

The cover will apply to 100 per cent of every individual's deposit. Brian Lenihan announced this decision and commented on the strength of Irish banks.

"The Government is committed to the stability of our financial system, so that money placed with an Irish credit institution would not be at risk. The Irish Government wants to protect the whole financial system, secure its stability and ensure that all deposits in Irish banks are safe." Brian Lenihan

Mr Lenihan said the Central Bank and Financial Regulator have stressed the soundness and stability of the Irish financial system.

This measure provides additional reassurance to depositors in Ireland that their savings are safe. The new guarantee level is now among the highest in the EU and provides a welcomed vote of confidence in the banking sector.

Warren Buffet also went bargain hunting this week and has invested $5bn in Goldman Sachs. When the man generally known as the world’s best stock-market investor makes a move, people get excited. This was also a strong vote of confidence in the investment banking sector in America and could be an indicator that things may finally be on the up.

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August 2008

White Star Finance Group Affinity Schemes
White Star Mortgages are still in business for UK Buy To Lets
Business Protection

White Star Finance Group Affinity Schemes

White Star Finance have been working with a number of companies over the past few years to identify the numerous advantages (to both the company and it’s employees) of having a group affinity scheme with a finance company.

Within the group affinity scheme, a member of the White Star Finance team arrange to visit the company premises once a month/bi-monthly (dependent on company size) to answer questions and assist staff with any mortgage queries they may have.

The immediate advantage to the employees is they receive professional independent advice from an experienced mortgage broker who will outline all their options ensuring they get the most concrete advice and competitive options. By dealing with White Star Finance the employee has access to 18 lenders, covering each and every type of mortgage available in Ireland. They also have access to Ireland’s largest UK broker, for any queries with regard investment properties they may have there now or in the future.

There are a number of advantages to the employer as well. By having a representative from the White Star Finance team available to meet their employees on site, the employer helps to curtail lost productivity through staff only requiring half an hour to meet and discuss their mortgage options. If they were to arrange to meet a bank or another broker it would mean taking a lot more time off to arrange this.

Employers can benefit from providing this service to their employees which can be seen as an extra perk by offering an independent company to provide financial assistance to all their staff. Employers can also take advantage of the expert mortgage advice on offer, and benefit from having a dedicated mortgage professional to guide them through their own mortgages.

The other huge advantage of dealing with White Star Finance for affinities is their expertise in pensions, income/mortgage protection, life assurance, private health insurance, savings and investments. White Star Finance can arrange to have a dedicated wealth manager on site at the request of the company to speak to people individually or as a group about how to protect their lives and families now and their future.

A further addition to all of the above is business protection, key-man insurance, director’s pensions, AVC’s and group pension schemes. Employers can benefit through a free consultation on the above products to compare and contrast against existing schemes/policies that are in place.

Overall, a group affinity scheme with White Star Finance provides endless benefits to the employer and the employee, and costs nothing to set-up. If you feel that you or your company could benefit from a group scheme affinity then please send this on to your HR department and they can contact us on 1890 252546 or email us at info@whitestar.ie

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White Star Mortgages are still in business for UK Buy To Lets

Many Irish people in the height of the Property Boom decided to purchase Buy to Let units in the UK. Most of these were new apartments off plans with a forward completion date of between one and three years. There were a lot of logical reasons for doing this at the time:

Buying off plan meant that investors could start participating in the increasing housing market with out actually owning the property.
Stamp Duty in the UK is 1% under £250K so entry costs to investment was low.
Rental Yields in the UK are generally higher
Investing in the UK spreads some risk away from the Irish Property Market

Now in 2008 the new developments are coming to completion and the Irish Investor has to arrange a Sterling Mortgage. Traditionally there were several lenders in Ireland that offered sterling mortgages on UK. However, due to current UK market conditions they have one by one tightened their lending criteria and in most cases withdrawn UK lending leaving Irish Investors in the lurch.

We at White Star Mortgages have recognised this and have linked up with a leading UK broker to meet the demand for Sterling Mortgages for Irish residents without them having to go through the maze of lenders in the UK. We can still act as agents and arrange everything from here in Ireland.

For Example:
Client Purchased UK property off plan in 2006 for £180,000 and paid 10% . In 2008 client needs to complete and get the maximum mortgage in UK.
Maximum Mortgage is 75% for a new property
£180,000 @ 75% £135,000 Interest only @ 6.5% (UK base +1.5%)
£730 per month

The Client sets up a bank account with the lender and pays the mortgage monthly from this account, the rent from the apt goes into the same account to meet the mortgage.

The client will still have to come up with the shortfall but we can arrange to raise these funds by refinancing their home or another investment property in Ireland or the UK.

Each situation is different and we would be delighted to go through your options and advise on a case by case basis.

Call us today on 1890 252546 with any UK mortgage queries and we are ready to help.

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Business Protection

Many business owners continue to surprise me when we begin to talk about what protection they have in place for their business. The general answer I get is we have Public Liability, Fire and Damage but it stops there.

It is so important for the financial security of a company to have a comprehensive protection plan in place should anything happen to a key employee, director or large share holder. It is generally observed that employees are the one of the biggest assets of a company yet many employers do not insure their key staff members under a Key Persons Life Assurance Agreement. Statistics show that 72% of businesses stop trading 5 years after the death of the founder of the business. The death of a key person can lead to major issues, bank loans could be called in or even a reduction in credit. The operation of the business and the revenue it produces can be affected greatly by the loss of a key individual. There will also be a recruitment cost in replacing the employee.

Key Person cover is life assurance policies that will payout a specific amount of money in the event of the premature death of a key employee of a business. The benefit is paid to the company and is regarded as earned revenue so is taxable in the same manner. This payout will provide capital to cover all the financial losses experienced by the company due to the death of the particular employee.

Getting the right advice on business protection is vital as there are many different areas you can look at from Key Person cover, Corporate Shareholder Protection and Partnership Protection. To find out which one is best suited to your particular business or circumstances please do not hesitate to contact us directly.

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July 2008

White Star launches its first in a series of business morning seminars at the Merrion Hotel Dublin
ARE YOU MAXIMISING YOUR EQUITY ABROAD
WHITESTAR’S TAKE ON THE MARKET
Why Self Build
Take a fresh look at deposits...

White Star launches its first in a series of business morning seminars at the Merrion Hotel Dublin

Wealth extraction from your company and current market opportunities was the topic of the day. With a full house in attendance the morning was a complete success. James Skeehan from New Ireland Assurance was the first guest speaker to deliver his presentation. What is the most tax efficient way to take money out of your company was the topic covered. James highlighted several areas where a company director can avail of tax breaks through efficient pension planning and covered a small amount on succession planning.

Following New Ireland we had Niall Murphy from KBC asset management presenting on current market conditions and what opportunities exist. Niall was received with great anticipation given the current condition of the markets. Niall explained what have been the major drivers in the down turn in the economy and how Ireland has been affected. Niall went on to explain that even though we are seeing poor results in the markets in general, there are still some investments with a positive outlook.

For further information on Pension Planning or Investments contact us directly on 01 2932373.

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ARE YOU MAXIMISING YOUR EQUITY ABROAD

If you have an overseas property in Spain, France or Portugal and your property has experienced capital appreciation, like many in these countries over the last decade, you could be sitting on a large amount of untapped equity.

One of the most popular products with our clients at the moment is our Equity release mortgages. If you require money for home improvements, education, medical expenses or investment capital, one of the most cost effective borrowing options available to you is to release some of the equity you have built up in your overseas home over the years.

Here is an example of what a client of ours did recently.

Client owns property in Paris which is currently valued at €500,000. His existing mortgage on the property is €50,000. Therefore his equity in the property is €450,000.

The clients’ motivation for the Equity release is to take advantage of lower interest rates in France and to use the money to pay off a mortgage on his property on which he is paying a higher interest rate.

He can borrow up to 70% of his equity in the property. He borrows the maximum €315,000 (70% x €450k).
He uses some of these borrowings to pay off his mortgage and makes significant savings on future mortgage repayments. The remainder was used for investment capital and to pay down some short term borrowings

Advantages of Equity Release
• One of the most cost effective ways of borrowing capital.
• Competitive interest rates available in Eurozone, e.g France from 4.33%.
• Freedom to use capital as required by borrower.

Many people with Properties overseas released equity on their home in Ireland in order to purchase as, at that time, the facilities to borrow overseas were so limited. If those purchasers now want to pay off the extra borrowed on their home in Ireland and still retain the holiday home this can be done quickly and easily through our overseas Mortgage service.

If you have any queries in relation to an Over Seas Property Purchase or refinance please call

White Star Mortgage Low Call no. 1890 252546

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WHITESTARS TAKE ON THE MARKET

“Since the beginning of 2008 the mortgage market has been in turbulence predominantly due to the sub-prime mortgage crisis in the US and from that the credit crunch generally in the money markets. Different figures ranging from €250million to several billion dollars have been lost by banks and investment houses around the world. Prior to this crisis the markets were awash with money and it was cheap! Interbank Lending was available in abundance, and at all time low rates, so lender margins were very low. Now, due to the lack of funds available and the increased rates on Interbank borrowing there is less money on offer to lend to consumers. Lenders have to re-price their product range to protect margins and change their criteria to minimise risk.

My view is that until banks can get a firm grip on how much has been lost through the sub-prime fiasco, banks will be cautious in their approach to lend to one another. Once this is determined and loan books are correctly revalued which may take up to two years or more, money will become available again and lender margins will once again become more competitive.

On the ground the most notable stumbling block was the fall of the 100% mortgage to the First Time buyer. This immediately affected the property market further and in turn had an adverse effect on the mortgage market. People who were led to believe they did not require a deposit to purchase their first home were now facing a minimum of a 5% deposit to come up with. To make matters worse, banks then removed the 95% mortgage and now we were faced with mortgage products ranging from 85% - 92%. The problem is now clear in that First time buyers need to arrange a deposit of at least 8%. Given there is no SSIA in the pipeline or similar government backed savings plans, more and more of these individuals and couples have to look to their parents for “gifts” in order to buy. This is not a new hurdle, First Time Buyers less than 3 years ago had to have a minimum of 8% deposit through savings, or rely on parental support.

When any property market starts to fall, the main area of lending to take the hit is the Residential Investment Mortgages. Certain banks have ceased lending in this area altogether, whilst others have increased rates, lowered loan to values or changed criteria to make it very difficult to qualify for the mortgage or justify taking one out.

Although, all this change seems to point towards doom and gloom, I personally see this as a short-term setback and an opportunity for the market to balance itself out. I also believe that within the next 6 to 18 months the current volatility will slowdown and more stable lending at least will be available. For people out there looking to buy, I believe that now is a good time to get on the property ladder, but caution and vigilance must remain when sourcing your property. Be sure to research the area you wish to buy in and see what other properties locally are selling for and have sold for over the last 6 months. Negotiate ruthlessly as there are great deals to be secured and remember ‘Fortune Favours the Brave!’

As always I would recommend using an independent broker, especially now, given the vast changes that have happened to the mortgage market and the difference of products made available from one bank to the next.”

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Why Self Build

If you want to own a new home you have 2 choices; buy an already built property or go for your dream and build a house that matches perfectly with your needs and requirements.

The first option is the easiest, but you will end up living in someone else’s vision and designs. With the high cost of land and houses you might be asking yourself why self build, surely it costs a lot more?

Well the cost of self build is a lot less than most people might think. As a matter of fact, 99% of people who complete a self build correctly will go on to make a profit on it if they decide to sell the house afterwards.
However, self building is not just about making a profit and the main reason that people self build is because they just can not find a house that has been designed to meet their needs as far as design, space or specifications.

The main thing about being a self builder is that you are in control. You choose your location and how much you are willing to spend on it. It is your decision to what size you want to have your new build, what materials you want to use and who and where you want to buy them from.

You can control the cost by buying good quality things suited to your specification and not the builders. It is your choice about the types of construction, the number and size of rooms and bathrooms you want, and how green and energy efficient you wish to be.

As mentioned above, there are lots of advantages to self building and project managing a build but it is not for everyone.

There are different levels of self building and it is up to you how much time and work you wish to be involved with as far as your build.

You can still self build even if the project has been passed on to a building contractor to complete by getting involved in the designs and decisions.

Finding a Site

Many sites on sale will not have planning permission in place. It is important to agree a price but only sign contracts on condition that planning permission has been granted as a lender will not generally finance a standard site without planning permission and the site is worth significantly less without it.

Financing a Self-Build

In order to build your house you first need to make sure that you have your finances arranged and ready to start. Some people already have the capital they need through the sale of the previous house or through personal means, but for most people they need to arrange for a mortgage from a bank or building society.
Do remember that each institute has their own criteria for assessing applicants looking at building their own homes and they can vary drastically from one to another. To get more information, contact the institutes directly or through a mortgage broker, but always shop around for the best deals.

Stamp duty is also payable on land/sites without residential building. If your agreement to buy a site is linked to a construction contract, stamp duty might be payable on the full amount of the site plus the construction contract. Stamp duty can not be included in the mortgage.

Insurance’s & Contracts

Insurance is one of those area’s that some people think they can do without and by doing so they can save themselves some money. This is one area that you have to pay a very close attention to and make sure that you are fully covered against anything that could come unexpected. The idea of “it will never happen to me” does not work and covering yourself and your investment should be one of your main priorities.

The insurance cost in Ireland unfortunately is not cheap and that is why people try to get out of it, but if you do not take cover and something goes wrong, it could cost you your house and more beside. There are a few policies that you will require before and during your project and below you will find an example of some of them;

Self Build Insurance

This is one area that you should not avoid. As a self builder, you invest a lot of money into your project and you need to make sure that your investment is safe from the start of the project.
A Self Build Insurance is a comprehensive cover for your self build. It gives you peace of mind that should something go wrong with any area of your project, you will be covered.

Site Insurance

If a building contractor is doing the project for you, then you need to make sure that they have adequate insurance to cover the whole build. This includes insurance for Public Liability, Employer Insurance and Contractors All Risk insurance. You also have to see the policy yourself and make sure that it is not due to run out during the time of your project.

If you are building the house through a project manager or direct labour, you need to make sure that you take out a policy that will cover you for all of the above. This policy has to be in place as soon as you purchase the land as you need to cover yourself against any injury to trespassers, any injury or death to others during construction of your house and any damage that might happen to property or theft of material from the site. These types of insurance can be purchased through an insurance broker or company.

Building Insurance

There are a few companies in Ireland that would cover buildings against structural defects. The policies cover the homeowner against major structural damage for the first 10 years. If you are going to choose a building contractor route make sure that they are a member of an organisation like Homebond.

If you are interested in financing a self build or are interested in purchasing a site it is a good idea to speak to White Star Mortgages to get a good idea on how much you can borrow and be taken through the process step by step.

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Take a fresh look at deposits...

At certain times in your life you may find that you have built up a substantial sum of money and left it sitting in your current account. It could be a lump sum through inheritance, retirement or even from savings built up over the years. But however you acquired the money, you still need to think about how to best manage it.

One very popular option for lump sum deposits is a Fixed Term Deposit Account. A Term Deposit or Fixed Deposit Account is a secure and attractive way of setting your money to work over a specific period of time. You can choose a term that suits you from as little as one month to one year. It offers full capital security for the term chosen, with a secure rate of interest for the period you choose. Interest rates for the Fixed Term Deposit Account are quoted by the bank based on market term rates. These rates may vary from day to day. The agreed fixed rate of interest will be applied to your Fixed Term Deposit Account for the duration of your chosen term.

Whitestar Mortgages are delighted to announce several changes to their investment/savings products. We now can offer clients a broad suite of savings, investments and fixed term deposits. Here are some examples of the deposit rates on offer from several leading financial institutions.

Notice	Bank A	Bank B	Bank C
30 Day	5%	4.9%	4.65%
6 Months	5.2%	5.35%	5.35%
1 Year	5.3%	5.6%	5%

Generally, the 1 and 6 month deposit rates are fixed, while the 30 day notice accounts carry variable rates. All banks offer a ‘once-off’ or ‘emergency’ access to funds, typically capped at 20% of the original amount invested. No fees are incurred from this withdrawal.

On maturity or expiry of the agreed term, interest is paid after the deduction of Deposit Interest Retention Tax (D.I.R.T), which is calculated using the prevailing DIRT rate at the time of payment.

If you are interested in finding out more about fixed term deposit accounts or any of the products WhiteStar Finance can provide, don’t hesitate to contact our experienced financial advisers today.

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White Star News June 2008

White Star launches “My Broker” Products
Nobody Sounds a Buzzer at the Bottom
Moving back from ‘sub-prime’ to ‘prime’ – how easily is this done?
How White Star focuses on International First Time Buyers

White Star launches “My Broker” Products

No one can predict an Accident or an Illness, or know that they will become unemployed, that’s why we need to protect ourselves and our families against the unforeseen and unthinkable.

White Star Mortgages, a member of the Irish Broker Association, is participating in the launch of some exclusive products under the “My Broker“ brand, underwritten by Assurant Solutions. The offerings include:

Mortgage Payment Protection Insurance
Helps you to protect your mortgage repayments if you are unable to work due to Accident, sickness or involuntary unemployment

Income Protection Insurance.
Helps you to protect your income if you are unable to work due to Accident, Sickness or Involuntary unemployment

How it works.

My Broker Mortgage Payment Protection and Income Protection Insurance products allow you to select the type of cover you need and the length of time you need it for. Then if you are unable to work, typically for 30 consecutive days, a monthly benefit will be paid to you until you return to work (for the selected benefit period).

In the case of critical illness you typically receive a lump sum cash payment for 24 times the monthly benefit if you contract a critical illness covered on the policy.

There are no medical reports required, meaning acceptance is quick and simple.

For more information, contact White Star Mortgages who will be happy to help.

STEP 1

Choose your cover

Accident and sickness
(Provides a Monthly benefit for 12 or 24 Months if you are unable to work due to accident or sickness).

Accident, Sickness and Involuntary unemployment
(Provides a Monthly benefit for 12 or 24 Months if you are unable to work due to Accident, sickness and a benefit for 12 months if you are unable to work due to involuntary unemployment).

Involuntary Unemployment only
(Provides a Monthly benefit for 12 Months if you are unable to work due to Involuntary Unemployment,)

STEP 2

OPTIONAL EXTRAS

The following can be added to the cover outlined above

Critical illness cover
A one off payment equal to 24 times your monthly benefit will be paid on the diagnosis of Critical Illness covered on the policy. A full list of the Critical Illnesses are detailed in the Terms and Conditions
Hospitalisation cover
Pays a full Monthly benefit to you if you are hospitalised for 3 days or more for up to 12 or 24 months.

STEP 3

How it Works

With White Star and "My Broker", you can choose to have benefits paid to you for a period of 12 Months or 24 Months for Accident, Sickness and Hospitalisation. (12 months only in the case of Involuntary Unemployment).

STEP 4

Decide on the benefits you want

The maximum benefits payable to with the Income Protection Prduuct is

75% of you net Monthly income
OR
€2,000 (Whichever is the lesser amount)

The maximum payable to you with Mortgage Payment Protection Insurance Product is

75% on net monthly income
OR
€2,000
OR
110% of the Mortgage repayments (Whichever is the lesser amount).

Full terms and conditions are available from White star Mortgages, 7a Sandyford Business centre, Blackthorn Rd, Dublin 18 or Phone 01 293 -2373.

Facts Supporting these Products

4% of the Irish working Public (78,000) had long term Illness /disability in 2006
1 in 10 Of the Irish population has ongoing Illness /Disability
Unemployment is at a three year high of 4.8% up 30% on 2007
Average monthly mortgage repayment is now €1,008
Average household loans in Ireland €11,891 in 2007
Average first time mortgage in Ireland is now €294,752
Average salary increased by 3% in 2007
All outstanding Mortgages in Ireland total €123 Billion
Personal unsecured loans in Ireland total €17,474 Million

Sourced from IPOS “important facts”

Nobody Sounds a Buzzer at the Bottom

I am continually asked by clients ‘do I think markets have hit the bottom?’ or ‘when do I think it would be a good time to start investing again?’ It is a question I am sure you have thought about, but what should the investor take into account when investing or planning a pension?

Here are some questions you should ask yourself before parting with your money!

Is your goal long term or short term growth?
Is your expectation of return realistic and does this coincide with your investment attitude to risk?
Is the investment outside your short term liquidity needs?
Have you a diverse portfolio that is not too heavily weighted on one asset class?
Does your investment meet your specific risk profile?
Does the term of the product fit your requirements?

These are only some questions that you should be clear about in your mind before entering into an investment. Whether it’s a pension or an investment bond it is important to get the right advice. Our current market offers excellent opportunities, with many shares trading far below their previous 12 month highs. There is also continuing instability, due to factors such as, the continuing high cost of wholesale money throughout the global economy.

For the investor with long term growth in mind, 2008 offers fantastic opportunity for this very reason, but equally for the person who is looking for short term growth. Depending on attitude to risk, and investment approach, the current environment can offer better opportunities than have existed in the last 15 years.

Moving back from ‘sub-prime’ to ‘prime’ – how easily is this done?

When taking out a mortgage with a sub-prime lender, most clients intend only to use their mortgage facility to ‘repair’ their credit rating. Where clients may have slipped up in the past on loan/mortgage repayments or they could not directly prove their income to mainstream lenders, they would have no other choice than to apply for a “sub-prime” home loan. It would have been the intention of every broker and client alike, that after, 24 months or so, the sub-prime mortgage would be refinanced back through a ‘prime’ lending institution like PTSB, Haven, Bank of Scotland, etc. However, there are conditions that must be adhered to before considering the switch back.

1. A sub-prime mortgage offers clients an opportunity to rebuild their repayment capacity and ultimately, repair their credit history. Therefore it is paramount that each and every monthly repayment for such is made on time, every time. A case with a full 24 months of repayments will appeal to the prime banks.

2. If the purpose of choosing a sub-prime mortgage was due to the client being self-employed and not having a minimum of two years audited accounts then it is important that they liaise with an accountant in order to get the correct advice and begin working towards managing their business accounts. This will result in being able to produce the necessary minimum of 2 years audited accounts a prime bank will require before allowing you to switch back.

3. There are several other reasons as to why one would opt for a sub-prime mortgage, amongst them being – not having the correct work/residency permits or buying out the council’s interest in one’s property. Again for these circumstances, it is a matter of keeping a clean profile with the new mortgage, not over borrowing on short term debt and attaining the correct requirements for the prime lenders.

The importance of having strict control over your personal finances cannot be overstated. The sub-prime mortgage offers you a route back to a mainstream lender and only by keeping your finances in order can you look to benefit from this. Bearing in mind the higher interest rates charged by these lenders, a broker will look to move their clients back at the first recognisable instance. The sooner this can be addressed and completed, the sooner a client’s interest rate will drop resulting in lower mortgage repayments.

How White Star focuses on International First Time Buyers

White Star recognises that the ever increasing number of foreign nationals looking to buy in Ireland can be overlooked by some mortgage companies, and therefore some of these people are not being given the opportunity to fully understand the mortgage process. The principle difficulties encountered are language and correct understanding of the mortgage process/terms and associated products such as life assurance and home insurance. With the amount of information available and by dealing with a good quality broker, everyone should understand the type of mortgage they have and the type of life cover they have in place. A good broker will ensure you know this, otherwise, in our opinion; they have not done their job correctly.

White Star has recently launched a campaign in Russian/Lithuanian and Polish to provide more information about mortgages, life assurance and pensions. We understand that it is imperative to try and provide the best advice and offer the same high level of service that is expected by all our clients, particularly when there is a difference of language.

White Star has a dedicated Russian/Lithuanian speaking consultant to help assist applicants that may have difficulty with English. He can also speak some Polish which we find really helps when trying to explain difficult words, explanations relating to any of the financial services products we provide.

White Star, nepriklausomai nuo Jûsø pilietybës, suteikia aukšèiausios kokybës paslaugas. Bet kokie klausimai, pasiteiravimai yra laukiami.

White Star News May 2008

Is Your Pension Plan Good Enough?
Fixed Rates are your Only Safe Bet
The Truth Behind Sub-Prime Mortgages

Is Your Pension Plan Good Enough?

Is your pension plan really going to provide you with the lifestyle you want in retirement or are you just putting your head in the sand and hoping it will?

The reality is, this is the position of many people. Affluent Ireland has a pensions time bomb looming! The harsh fact is that many people have done nothing about setting up some form of retirement provision. It is never too early to start saving for retirement and it is never too late to make a difference to your retirement fund. If you do nothing be prepared for a drop in income, the current state pension is only €223.30 per week. 87% of people in the pension’s board survey said this would not suffice. Just over 50% of the population have a private pension which means there will be a lot of disappointment at retirement time if people don't act.

Every Euro that you put into your pension you will be able to claim tax relief on and will grow tax free until you need it, at retirement. Remember we work all our life so we can be comfortable in retirement but that will only happen if we plan for it! With the broad pension options available now, there is definitely one that will be of interest to you and suit your requirements. Whether you want to invest in shares, bonds, gold, property, water, renewable energy or wine there is something that will suit your taste.

If you would like to discuss your pension options with one of our specialists please call for a confidential conversation.

Fixed Rates are your Only Safe Bet

Fixing your mortgage rate has never been so attractive than it is now. The increase in rates throughout the lending market and the volatility of the banking system has lead to so much uncertainty for the future. Lenders have increased their margins despite the fact that the ECB base rate has remain unchanged at 4%. There are still very competitive fixed rates available and we strongly advise our clients to fix on any new mortgage, especially if you're a First Time Buyer. A fixed rate ensures you are paying the same amount on your mortgage monthly for the term of the fixed period. For example; If you borrow €300,000 @ 92% of the purchase price over a 35 year term has the option to take the following rates*:

Tracker Variable 5.15% (5.3% APR) €1,543pm

1 Year Fixed 4.74% (5.2% APR) €1,464pm

2 year Fixed 4.99% (5.3% APR) €1,512pm

3 Year Fixed 5.04% (5.5% APR) €1,521pm

Traditionally, if you were to opt for a 2yr or 3yr fixed rate, they would be higher than the tracker rate available highlighting how competitive these rates are at present…but for how long?

* rates applicable May 2008

The Truth Behind Sub-Prime Mortgages

"Specialist" or "Sub-Prime" mortgages and lenders have been in the headlines recently, but what are they and what do they offer for Irish customers, who have these loans or are considering borrowing in this way?

Sub-prime lenders offer mortgages to people with - past credit problems and self-employed applicants, with limited proof of income. The interest rates charged on these mortgages will vary according to your credit profile, employment circumstances and the size of the mortgage. Generally, the more repayments you have missed on loans, the higher the marginal rate that applies. These, along with unpaid debts and court judegements will result in higher monthly repayments and restrictions on your borrowing capacity.

So what are the benefits of taking out a "specialist mortgage"? In most cases, clients who take the specialist mortgage, have previously been declined by the mainstream lenders because problems may have arisen due to periods of unemployment, redundancy, illness and other situations which have led to financial setbacks. The main benefit of taking out a mortgage a specialist lender is that it offers people a chance to repair their past credit problems , address current financial difficulties and begin with a clean slate.

Without the availabilty of such products in the Irish mortgage market, many people would be left drowning in debt, unable to regain control of their personal finances. Although slightly higher interest rates are charged for these home loans, it is important to remember that the purpose of choosing the specialist path is to repair one’s credit. It’s a long term solution to a short term problem and provided the mortgage holders keep a perfect repayment record with the new lender, the switch back to “prime” and lower interest rates can be looked at after 18 months.