Just an update
Friday 24th May
This week's
headlines:
General Election - What is the consequence of going to the polls on 4 July?
Rishi Sunak’s surprise announcement of an election on Thursday 4 July came the day before the House of Commons was due to have its final session before going into recess until Monday 3 June. Here are a few first thoughts on what lies ahead:
We are now in ‘wash up’ until 30 May, when parliament is prorogued, leaving the required 25 days before the polls open. The formal election timetable can be found here
The ‘wash up’ period sees outstanding bills dropped or rushed through parliament, often on a bare bones consensus basis. That will include the relatively thin Finance (No 2) Bill 2024, currently at report stage. It’s worth noting that this contains no provisions relating to the proposed changes to the rules on the impact of one’s domicile on UK taxation.
Except for the 2019 election, six of the last seven elections have been held in May or June, so we have some experience of what the recent consequences of an election in, or close to summer look like.
If we look back to the 1 May 1997 election, which heralded the arrival of Tony Blair to Downing Street, Gordon Brown’s first Budget followed two months and a day later. The Conservatives’ 2010 election victory on 6 May was followed by George Osborne’s first Budget on 22 June. It is therefore quite possible to envisage, assuming the polls are correct, that the first Rachel Reeves’ Budget could be around the start of September (the August Bank Holiday is on 26th)
One benefit of calling the election in July is that it gives the new government more time to prepare a 2025-28 Spending Review, which Jeremy Hunt announced in the Budget would not occur until after the election. Look back to the May 2015 election, when David Cameron moved from coalition to majority government, and we see George Osborne having a second Budget on 8 July and a Spending Review on 25 November.
The forthcoming Spending Review will have to put flesh on the very bare bones of Jeremy Hunt’s expenditure plans, recently described as ‘worse than fiction’ by the head of the OBR. Whichever party wins – and Labour has so far said it will stick with the Conservatives’ numbers – the Review will be challenging. Although Reeves has said that she wants one (autumn) Budget a year, in 2024 she might end up adding tax announcements to the Spending Review, as did Osborne in 2015.
The Institute for Government reckons that based on experience since 1997, the manifestos are likely to be launched between 5 and 16 June.
Zurich Launches“Zurich Accelerate” 28th May
Why Zurich Accelerate?
Zurich Accelerate provides access to experts from around the world to offer a package of medical care services for cancer, heart and neurological conditions. It gives your client more choice than standard medical care in the UK, with fast access to consultations, diagnostics, and second medical opinions. It can also help your client access the latest precision cancer medicine and clinical trials; as well as treatment abroad at some of the leading hospitals in the world.
What services does Accelerate offer?
Accelerate is comprised of six individual services. Your client can use as many or as few as they like and can access these at any point. They don’t have to follow a linear path and they can choose to combine Accelerate with services offered by public healthcare or their current healthcare provider if they want to.
Accelerate is a complementary service to both public and private healthcare and is not intended to replace either. It gives your clients an alternative route and should be taken up in consultation with their GP. It’s all about giving them choice and offering them greater control over their healthcare decisions.
Clients using the services are also supported by case managers who provide reassurance and help them to navigate their personal healthcare journey. If they choose to receive treatment abroad, Accelerate will organise the travel, accommodation and daily allowance as well as providing your client with the option to be supported by two travelling companions.
You are able to quote and advise from today and apply from the 28th May onwards.
Watch this explainer video HERE to see why Zurich Accelerate is so important.
Click HERE for the link to the dedicated Accelerate page via the Zurich for Intermediary website.
Finally, please join Zurich for a 60 minute Webinar to hear more about this on Wednesday 29th May. Visit HERE to book in
VirginMoneyExclusives–RateChanges
SeebelowtheratechangesfortheVirginMoneyExclusiveProducts:
90%5YearPurchase£1495fee@4.84%-nochange
95%5YearPurchaseFSO@5.34%-nochange
75%5YearRemortgage£895feereducedby0.21%-now@4.40%
75%5YearRemortgageFSOreducedby0.23%-now@4.55%
60%5YearRemortgageFSO@4.50%-LAUNCHED
Gen H boosts affordability by up to 25% for 5-year products
Gen H has begun to differentiate between its 2- and 3-year and its 5year products in its stress testing. This change will enable some aspiring homeowners to borrow up to 25% more on 5-year products. This change has already had a positive impact on borrowers. In one instance, a married couple earning approximately £20,000 and £40,000 respectively with moderate monthly commitments needed £289,000 to purchase a home – but under the previous stress rate structure, the loan was unaffordable.
Following the stress rate changes, they were able to borrow a maximum of £303,000 on a 5-year product and purchase the home they wanted. This isn’t an isolated case; now, many applicants could benefit from boosted affordability on a 5-year product if it’s right for them.
At the same time, the lender is introducing two new loan-to-income multiple (LTI) caps: applications with a gross income of less than £50,000 and cases with income boosters will be subject to a 4.49x LTI cap. These updates align Gen H with the wider market, and existing LTI caps remain unchanged.
Pete Dockar, Chief Commercial Officer at Gen H, said, “The volatility that has characterised the interest rate environment over the last year has a lot of customers searching for stability. For many, a longer fixed interest term is just the thing. That’s what makes this change so positive – customers can find the longer-term peace of mind they’re hoping for without sacrificing affordability.”
This series isn't just about sharing unknown facts; it's also about clearing up any confusion you might have. So feel free to chime in, ask questions, and engage with us! To kick things off, simply click below.
Let's brew some knowledge together and continue with number 3 of our fraud triggers - Friends & Family
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