Keeping you Updated - Thursday 19th March 2020
We have been advised Property funds are being suspended and thought it would be helpful to provide information regarding why this has happened and what this means for you if you are currently invested in these funds.
The Property funds have suspending trading due to the difficulties of valuing commercial property. This is an industry wide issue and is not due to liquidity problems which have happened in the past. Suspending Property funds is a practical measure and one we have seen before and is a tool used by fund managers to protect existing investors. As before when such action has been taken, we expect this to be short term.
For any clients taking regular income/withdrawals from Investments or Pensions we have confirmed you will continue to receive the same level of income/withdrawals and the suspension of the Property funds will not affect the frequency or amount you receive. As soon as we were informed of the suspension of the first Property fund we immediately confirmed with the major investment platforms Aviva, FundsNetwork, Prudential and Zurich that income will remain at the same level as before and the money will be paid from the other funds within the portfolio.
We will of course review the situation regularly and notify you of any changes.
MORTGAGE PAYMENT HOLIDAYS
Britain’s banks have just announced how they intend to implement the Chancellors promise of payment holidays on Mortgage repayments for up to 3 months. There will be a fast track system for payment holidays being applied however not everyone will be granted this and each application will be dealt with on a case by case basis. The unpaid interest will still be recovered later but individual credit ratings will not be affected.
BUY TO LET MORTGAGES
Landlords will also be able to apply for a 3 month payment holiday if they are impacted by nonpayment of rent by their tenants.
The banks have confirmed the payment holidays are not a long term solution but are designed only for a temporary shortfall in income. They have also confirmed that any application should be made directly to the lender as unfortunately they will not deal with third parties such as financial advisers.
STAYING IN TOUCH
In terms of our day to day work at McCreas our business remains open and we have robust plans in place to ensure we can continue to look after our clients and your interests, whilst ensuring the health and welfare of our team and their families remains paramount. We are also very conscious that many clients will be affected by the current situation and may prefer not to have meetings which could involve travelling by public transport.
We are currently working with a number of staff in the office whilst others have moved to working from home and we will continue to follow government guidelines.
For our clients, as well as emailing regular updates, we will provide details on the best ways to contact us should there be any change to the present arrangements and please remember you are very welcome to email either your adviser or email@example.com or call 0141 572 1340 if you would like to get touch in the meantime.