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We are working with a company who can help clients improve their returns on cash deposits by offering a service where they proactively manage cash to maximise returns, whilst ensuring that your deposit money is covered by all the necessary protection schemes.

We often talk about offset mortgages being a safe place to store cash and maximise the real return on investment, but with the new competitive trackers being launched (for 60% loan to value and below), and no big rate cuts on offset mortgages, if you have sufficient equity, you might find it better to minimise the interest rate on your mortgage, and manage your cash dynamically.

Currently this Dynamic Cash Management arrangement secures returns of between 2.65% and 4.00% gross (depending upon the notice periods required). The provider charges an annual fee of 0.3%.

Here is a simple example for someone with £1m mortgage and £250k savings (the minimum for the cash management service):

1. Offset Mortgage

Mortgage interest payable at 2.39% on the net balance of £750,000 = £17,925 per annum. No savings interest earned. Net cost £17,925 per annum.

2. Tracker Mortgage + Cash Management

Mortgage interest payable at 1.99% on £1m = £19,900 per annum.

Using the lowest return figure from above, savings interest earned on £250,000 at 2.65% gross = £6,625, less 50% tax (assume highest rate tax payer) and 0.30% fee = £2,562 per a net.

The overall position is therefore £19,900 paid less £2,562 earned = net cost £17,338 per annum, a saving of £587.

Clearly, greater benefits are possible for larger amounts and longer notice periods on the cash deposits.

Professional landlords look set to prop up the UK housing market over the next few years as major changes to social housing are introduced as part of the Coalition’s Comprehensive Spending Review. New tenants will be offered intermediate rents at around 80% of the market rent, from next April; the chancellor, George Osborne, forecasts this will save around £4.4bn and allow the building of up to 150,000 new affordable homes over four years.

However, in the short term, it seems that the Government has effectively handed social housing to the private sector, with a massive rise in demand expected for private rental property from potential social tenants unwilling to face a long waiting list for a much less attractive deal.  Only a few lenders are active in the buy to let market, so there may not be enough to cope with the likely increase in demand for funding.  There could be a shortage of private rental property at a time of unprecedented levels of demand.

Many landlords in cities, who have targeted housing benefit tenants, are now likely to switch their focus to young professionals, who are being forced to rent for longer because of the scarcity of mortgage loans available for First Time Buyers.

Finding a buy to let mortgage is still a challenge with the majority of High Street banks in risk averse mood. There are a few mainstream buy to let lenders picking up the standard purchase and remortgage business but it is the commercial lenders and private banks who are stepping in to fill the void with assistance for the less straight forward arrangements. The return of Paragon is also a welcome boost for professional landlords with large portfolios.

Maximum LTV available for non-standard BTL is 75% but with the commercial and specialist lenders applying quite strict rental coverage criteria, investors are having more success in obtaining better terms at 70% LTV and below.

For the first time in three years a remortgage product is cheaper than all UK lenders’ standard variable rates (SVRs). Around 2.5 million borrowers have mortgages that are charged interest based on their lender’s SVR, but is this still the best option for them? Is it time to remortgage?

We have just seen the launch of several new competitive remortgage deals; if you wish to take advantage of them, we can arrange a 2 year base rate tracker mortgage up to 60% loan to value (LTV), at a rate of just 1.49% above Bank base rate (until 30/11/2012, reverting to 4% thereafter, giving an APR of 3.8%), with a £499 product fee, free remortgage valuation and legal service. An early repayment charge applies until 30/11/2012.

Or we can arrange a 5 year fixed rate mortgage up to 60% LTV, at a rate of just 3.99% (until 30/11/2015, reverting to 4% thereafter, giving an APR of 4.1%), with no product fee, free remortgage valuation and legal service. An early repayment charge applies until 30/11/2015.

Our latest market intelligence report, entitled Is this the time to remortgage?, contains our research into UK lenders’ SVRs, highlighting the continuing discrepancy between the cheapest and most expensive rates. It also charts UK property prices over the past three years and discusses the particular challenges faced by £1 million plus mortgage borrowers.

Competitive remortgage interest rates may be returning but lending criteria will continue to be a challenge in the present economic climate. Now, more than ever, seeking professional advice on your mortgage is crucial.