Frances says, “Everyone has had another tough financial year and people are on tight budgets.  It is important that we use common sense and spend within our means.  You need to know what you have and stick to your budget. People sometimes take on different forms of credit in the run up to Christmas which they then have to pay throughout the following year.”

Christmas is a time of family, children, & friends.  Frances advises “Be mindful of 2012, ask your family to reduce the spend on gifts. There are ways and means to get the expenses down – try Criskindle.”

She says, “You need to be as financially fit as possible in 2012 to weather this storm.  Don’t put extra pressure on yourself with credit or expensive gifts.”

Hear Frances’s views tonight at 10.40pm on RTE.

Frances’s top tips to help you get through this storm include:

1. Ask yourself – Do you have what you need and do you need what you have?

2. Acknowledge the envelopes that are coming through the door.  Do not bury your head in the sand.

3. Seek independent advice as most banks are tied to one provider.

4. Finally – Beware of bar stool advice.

For further information contact Frances or a member of her team on 05261 29487.

Do you know where you stand with your finances?  How is the Pension policy that you took out five, ten or twenty years ago? Or the Life policy you were ‘forced’ to take out when you were single or had no children?

Do they meet your needs now?

Frances O’Hanlon of Frances O’Hanlon Mortgages & Investments Ltd this week stressed the importance of annual financial reviews.  She said, “The economy has dramatically changed in the past couple of years.  Your priorities may have also changed during this period.  You might have changed or lost a job.  You might have set up a business or become a stay at home parent.  Either way, your financial arrangements must reflect these changes and should be reviewed in order to make sure you know where you stand and where you are going.”

She continued, “We deal with many situations whereby the product, whether it be a Pension or a Life Policy do not meet the needs of the individual anymore.  People don’t realise that your policies do not automatically change with you.  They are very specific and should be reviewed annually.”

“It is of paramount importance that you seek Impartial Independent advice”.  Advisors such as Frances O’Hanlon Mortgages & Investments Ltd have access to the main financial providers.  Let us help to ensure that you have the best possible options to suit your needs, not the needs of a particular bank or financial institution.”

“The reality is that financial products change, usually for the best, due to competition between providers. This could be in the benefits they offer to you or simply the price or charges.”

The message is very clear.  People need to review their financial situations, know where they stand and that they are in the best financial health they can be.

For further information please contact Frances O’Hanlon or her team on 052 6129487.

I founded the concept in 2009 and have now a group of ambitious group, highly-qualified, self-employed Independent Financial Advisors from across the region ready to work with me on this venture.

This week, we sought cross-party support for its unique proposal to provide a realistic and resolution-focused service to those seeking urgent assistance from agencies such as the state-appointed Money Advice and Budgeting Service (MABS) and valuable charities such as St. Vincent de Paul.

This concept was established in response to the urgent need for a new and pro-active body to assist with debt-management.  We recognise the considerable strain that many thousands of individuals and businesses find themselves in as a result of the current financial crisis. The proposed services are an alternative to MABS and NAMA.

The financial reality is stark for many families and businesses. With live register figures for the region currently running at 13%, we believe that the Government needs to seize the opportunity to offer a real and viable lifeline to individuals, communities and enterprises in need of immediate assistance as a result of prohibitive constraints and lending practices adopted by banks and other lending institutions.

Our concept aims to alleviate the serious financial pressures facing individuals and small and medium sized enterprises (SME) by offering a wide-range of services such as comprehensive one-to-one consultations, a complete financial analysis of the clients’ current position in conjunction with a highly-qualified and experienced team of advisors. Uniquely, we would also act as mediators between clients and financial institutions in an effort to obtain a satisfactory resolution between both parties. Ongoing access to open and honest, professional advice provided by a team with a genuine commitment to achieving financial resolution for clients will help to alleviate the burdens brought by the credit crunch.

We have already made presentations to influential and interested parties that have included Finance Minister, Brian Lenihan, Minister for Enterprise, Trade and Innovation, Batt O’Keeffe, Minister Mary Hanafin in her capacity as Minister for Social Welfare and the Mortgage Arrears and Personal Debt Expert Group.

Following our presentation to this Joint Committee Group I was interviewed on Newstalk 106FM, Tipp FM.  The Irish Times and Irish Examiner along with numerous regional papers were interested in our proposal and covered it in their publications.

Check out Newstalk interview on Wednesday 8th September – Part 1. Interview at 16 mins on following link: http://www.newstalk.ie/programmes/all/breakfast/listen-back/

THOUSANDS of homeowners are desperately trying to lock in to fixed-rate mortgages as home-loan rates have started to surge in the past few months.

So far Permanent TSB, AIB, Bank of Ireland/ICS, EBS/Haven and KBC Homeloans have increased their standard variable for new and existing customers, with most of these lenders also hiking fixed rates.

Financial regulator Matthew Elderfield warned last week that more crippling mortgage rate rises are on the way for hard-pressed mortgage holders.

The regulator told an Oireachtas committee higher mortgage rates were an “unfortunate but inevitable consequence” of the banking crisis.

But is it always a good idea to fix? And some homeowners are finding that it is not even possible to fix.

A survey by the Irish Mortgage Corporation found that almost a third of adults are struggling to pay bills.

And the survey found that nearly a half of homeowners fear they will struggle to pay their mortgage this year if rates rise as expected.

Monthly repayments rising by more than €250 would pose a problem for mortgage holders, the survey found.

But some of those seeking to lock in to fixed rates are finding they are being blocked from fixing, being offered very uncompetitive rates, or kept in the dark by their lender on what fixed rates are available for existing customers.

Panicking

Mortgage adviser Frances O’Hanlon of FOH Mortgages & Investments in Clonmel, Co Tipperary, said homeowners were panicking about rate rises and were rushing to sign up for fixed rates.

But she warned that it did not always make sense to fix, especially if your lender only offering a very high fixed rate.

The virtual closure of the switcher market meant that homeowners were at the mercy of the mortgage lenders and are forced to accept whatever fixed rate their bank offers, especially if they are in negative equity.

“People should tread carefully, By panicking now people could end up entering in to something that will cost them dearly in the long run,” Ms O’Hanlon said.

This was especially the case with the fixed rates on offer from Permanent TSB and Bank of Scotland (Ireland) for existing customers, Ms O’Hanlon said.

“People need to ask themselves: what are you buying into and what will it cost you? You could end up paying an extra 3pc, so you need to clear about what it is costing you.”

She advised people to grab a fixed rate if it is in or around 4pc, but rates of more than 4.5pc or 5pc were hardly worth considering.

One lender that is making it difficult for those who want to fix is building society EBS. It has been accused of treating members unfairly after it emerged that it won’t publish a list of fixed rates for existing customers.

The society admitted that each application from existing customers who want to lock in to a fixed rate was assessed on a case-by-case basis.

Michael Dowling of the Independent Mortgage Advisers Federation said he dealt with an EBS customer recently who was offered a rate of 4.75pc to fix for three years, but when Mr Dowling rang the society on the client’s behalf he was offered 4.25pc.

National Irish Bank has defended its policy of refusing to allow its customers who are in negative equity to qualify for a fixed rate. This is because the bank only offers fixed rates for those whose loan represents 80pc or less than the value of the home.

A spokesman for the bank admitted that those customers on a standard variable rate, who are in negative equity, would not be able to fix their mortgage.

Homeowners who want to fix are also finding that they are being offered much higher rates than brand new customers of the lender, in an apparent snub to customer loyalty.

Among the lenders punishing existing customers with higher rates than new customers are Permanent TSB, EBS/Haven, KBC Homeloans and Bank of Ireland.

• For tips on whether or not you should fix see the National Consumer Agency’s financial website, www.itsyourmoney.ie, and search for the word “fix”.

According to the figures from CredyCare, a debt management company, an increase of €250 equates to roughly a 1.5 per cent rate hike on a typical €300,000 mortgage.

The study found that 49 per cent of mortgage customers currently paid less than 3 per cent interest, but this looks set to change in the months ahead.

Last Friday, Bank of Ireland raised interest rates, following an announcement a week earlier. As a result of the 0.5 per cent increase in the bank’s standard variable rate, monthly repayments on a €300,000 mortgage will increase by about €80 to €90 for existing customers.

On the same day Bank of Ireland announced its higher rates, EBS announced that its standard variable rate would increase by 0.6 per cent to 3.3 per cent from May 1. AIB raised its variable mortgage interest rate by 0.5 per cent last month, following a similar move by Permanent TSB in February. And, last week ,KBC Bank hiked its standard variable rate from 3.28 to 3.71 per cent.

Banks cite the cost of funding as a major problem, and say that current mortgage pricing is unsustainable – so consumers take the hit.

Matthew Elderfield, the Financial Regulator, in a statement to the Joint Oireachtas Committee on Economic Regulatory Affairs last week, said interest rate increases for borrowers were an ‘‘unfortunate but inevitable consequence’’ of the banking crisis.

‘‘It is important to be frank and to acknowledge that the coming months are likely to see a continuation of the process of the banks repricing their mortgage books,” Elderfield said.

‘‘Ireland had very low mortgage rates in the recent past, but that era is now clearly ending. Part of the reason for such favourable rates was that the banks’ business models were, as we now know, fundamentally flawed.”

In Elderfield’s view, this restructuring of business models coupled with higher funding costs means borrowers will feel the pinch in the months ahead.

However, consumer representatives were unhappy with the regulator’s comments.

‘‘The more people suggest that something is inevitable, the more of a reality it becomes,” said Dermott Jewell, chief executive of the Consumers’ Association of Ireland.

He said that some banks might use the regulator’s comments as justification for increasing rates. Jewell also said this would be very hard for consumers to stomach, especially given the role taxpayers have played in bailing out the banks. But one senior banking source said that blaming the banks was pointless.

‘‘We can argue the toss about how we got here, but it is about where we are and where we must go now,” he said.

And where we are going is up. ‘‘Unfortunately, I do believe that the current round of interest rate hikes is only the first of several,” said financial adviser Liam Ferguson.

‘‘Banks are seeking to rebuild their balance sheets any way they can, and this is one way.”

Tipperary-based financial adviser Frances O’Hanlon, who runs a mortgage and investment company, said interest rates would definitely increase over the next few months.

However, she advised mortgage customers and potential buyers to think carefully and not make hasty decisions.

‘‘The bottom line is, as it has always been, make sure you do what suits you and your financial plans, and don’t panic,” O’Hanlon said.

First-time buyers

For many first-time buyers, interest rate hikes are not the sole concern. Obtaining a mortgage can be difficult in light of reduced incomes and shaky job prospects, coupled with uncertainty about the housing market and shifting interest rates.

Attractive rates around the 2.5 per cent mark have all but disappeared for first-time buyers, with rates of 3 per cent and up more common now.

After the recent round of rate hikes, Bank of Ireland’s lowest rate for first-time buyers is its 3.1 per cent one-year fixed rate, available for up to 92 per cent finance.

AIB increased its loan-to-value variable rates by 0.34 per cent in February.

Now, the bank’s best variable rate for first-time buyers is its 3.03 per cent loan-to-value variable rate. AIB also has a one-year fixed rate of 2.82 per cent for first-time buyers, while Irish Nationwide offers a two-year fixed rate of 2.77 per cent.

Trading up

Bank of Ireland’s two-year fixed rate for homeowners planning to trade up stood at 2.7 per cent when it was introduced last winter. This rate has now jumped to 3.2 per cent, but still represents the lowest fixed rate on offer from Bank of Ireland for those moving home. However, those trading up can also opt for variable rates ranging from 2.8 to 3.1 per cent.

National Irish Bank offers the same rates to all new customers, regardless of whether they are new to the property market or not. At present, their loan-to-value dependent variable rates start at 3.2 per cent.

Similarly, Permanent TSB offers some rates to all new customers. A new one-year variable rate of 4.1 per cent is available from tomorrow.

First-time buyers can borrow up to 90 per cent of the purchase price of their home at this rate, but those trading up can borrow only 85 per cent of the property’s value.

Existing customers

Mortgage rates are typically in sharpest focus for those buying their first home or climbing the property ladder, but homeowners who plan to stay where they are are also becoming more savvy when it comes to getting the best deal on interest rates.

Ferguson said that some borrowers on standard variable rates had a limited range of options.

‘‘Switching between lenders is possible only for those with loans that represent a small part of the home’s current value,” he said.

‘‘Those with high loans-to-value due to property value falls or those in negative equity have no option to switch lenders.

‘‘So each lender has a certain captive group of customers who have little choice but to accept any increases.”

Couple this with the threat of European Central Bank hikes and Ferguson said it was worth considering fixing, even though most fixed rates have also increased recently.

O’Hanlon said fixing was an attractive option for variable rate customers, apart from those who had managed to hold onto a tracker rate mortgage.

‘‘We are still in an environment of artificially low interest rates, and some of the fixed rates on offer are excellent,” she said.

Existing Bank of Ireland customers who want to fix can choose from two-,threeor five-year terms, with interest rates of 3.3, 3.5 and 4 per cent respectively.

According to a spokeswoman for the bank, about 15per cent of its existing mortgage book is on a fixed rate, but there has been significant interest from other customers in recent months.

National Irish Bank has a range of fixed rates for existing customers, ranging from4.21 to 4.81 per cent.

AIB’s existing customers have access to the same 2.82 per cent one year fixed rate as new customers.

Existing AIB customers can also opt for a two-, threeor five-year fixed rate with interest rates of 2.89, 3.06 and 3.51pe r cent respectively.

Permanent TSB’s existing business rates range from 5.25 per cent for a two-year fixed rate to 6.1 per cent for a ten-year fixed rate.

Rachel Doyle, director of mortgage services at broker group PIBA, said that, given recent rate hikes for new and existing customers, consumers should be in no doubt as to what the future holds.

‘‘Variable and long-term fixed rates are both on the rise, so delaying a decision may be costly,” she said.

However, Doyle advised people generally not to fix for less than five years.

‘‘Fixing at a good rate for longer terms gives security and enables better planning,” she said. ‘‘Shorterterm fixing could leave you exposed to a large jump in repayments within a relatively short period of years.”

All interest rates quoted are annual percentage rates (APR)

For online article visit http://www.thepost.ie/story/text/eyidgbkfsn/

With a high calibre of speakers on the night including Brian Hughes Solicitors, Peter Broderick Auctioneers, New Ireland and Frances O’Hanlon, those that attended left with a clear understanding of the First Time Buyers Process.

Advice on the night included:
- Contact an independent broker as soon as you decide to buy or build – they can help you budget and establish what you can afford.
- Involve your solicitor from the very beginning.
- Register with auctioneers in your area to receive regular updates of houses that would suit your needs. This also gives you pricing guidelines.
- Your Independent Broker will advise you of relevant Life Assurance companies and tailor a package to meet YOUR requirements.

Frances O’Hanlon closed the seminar by saying, “Everybody has individual needs and as your independent financial advisor, we have access to all major financial institutions, giving you more options for your personal requirements. We will assist you from the start of your First Time Buyer process, advising you to the very end.”

For further information on the First Time Buyers process or future seminars please contact Frances O’Hanlon Mortgages & Investments on 052 6129487.

In 2006, she started Frances O’Hanlon Mortgages and Investments, and has since been working as an independent financial adviser in Tipperary. She lives outside Clonmel with her husband Gary and their two small daughters.

What’s the best investment you ever made?

A tie between my home and my business.

What was the worst investment you ever made?

Anglo Irish Bank shares. I consider them a write-off even though they were, thankfully, only a small part of my investment portfolio.

Which investment options do you currently favour?

Diversification has been and always will be the key, but I currently favour a monthly drip-feed into an equity-based investment in the hands of a good fund manager. I also like the idea of alternative energy. It is important to have some cash in reserve, but equities have historically outperformed all asset classes, even with extreme ups and downs.

Do you own your own home or other investment property?

Yes and yes, in partnership with a well-known bank.

What type of car do you have?

A 3 series BMW- I do a lot of mileage meeting clients nationwide and, with two small children, reliability, safety and fuel efficiency are important to me.

What was the best financial advice you ever received?

Don’t buy that house! That was my father’s advice when I was working in London and returned home for Christmas 1989 and told him my plans to buy in England. He didn’t like what he was reading about the British property market. The property market in Britain crashed soon after and, while it subsequently recovered and grew again, it definitely would have delayed my return home to Ireland by a few years.

What financial advice would you give to someone starting in a career?

Get into the habit of saving immediately. Save as you are paid, for day-to-day or bigger events. Start a pension immediately.

When you started your career, if you had the financial knowledge you now have, would you have done things differently?

Wouldn’t everybody? Ironically, I probably would have taken a little more risk when investing.

Do you have a pension?

Yes.

Do you invest in equities or equity-based funds?

Yes, both.

Did you open an SSIA? If so, what did you do with the proceeds?

I did have an equity-based SSIA and I used the proceeds to set up my own business.

Are you a saver or a spender?

A bit of both.

What’s your top financial priority?

I would like to clear my family home mortgage as quickly as possible, and accumulate good education funds for my two children.

How would you describe your attitude to your personal finances?

Realistic, but forward thinking.

Have you made any changes to your personal spending habits as a result of the current economic environment?

I have certainly cut a few unnecessary frills, and make an even bigger effort to support Irish business, locally and nationally.

If you were the Minister for Finance for a day and could change one thing, what would it be?

Can I make two? I’d make us more competitive as a whole. I also believe it is vital to help the average person with financial pressures, so I would implement a support system showing them a way forward and providing hope for their future.

If you had all the money you could wish for, what three things would you buy?

A way out of its current financial hole for Ireland, investments in health, alternative energy and climate change and financial security for all my family and close friends.

For online article visit http://www.thepost.ie/story/eyojsneyoj/

Frances O’Hanlon from FOH Mortgages and Investments Ltd has appealed to those who have mortgages to be careful. “Be careful of what you interpret and apply to your own finances from what you hear and read in the media. You need Independent Financial Advice more than ever in the current climate. An independent advisor is someone who will sit down with you and carefully analyse your financial realities, your future intentions and your goals and help you achieve them.”

With all the conspiracy theories in circulation it is very easy for people to get confused. Giving a simple matter of Fixing your Mortgage; how sure are you about the bank you are with and the rates they offer? Frances says, “There are huge variances in every banks interest rates and offerings and most of the time you don’t ever think you have a choice. When you were told everyone is ‘different’, ‘individual’ and ‘special’ when you took out your mortgage, its important you apply that to you individual financial situations aswell.”

“In recent weeks we have advised people of their mortgage interest rates.
Many were contemplating giving up their brilliant Tracker rate to go Fixed. They came to us for advice and thankfully they don’t have to pay a fixed penalty to get out now. They are the lucky ones.”

The message is simple; Seek Independent advice and take control of your own financial destiny.

For further information contact 052 61 29487