Elain Hughes

20 March 2020

Covid-19 Update from Ardent

In line with current health concerns and recommendations from Government, Ardent has temporarily suspended any face to face contact with clients, but we have full capacity to conduct all meetings with new and existing clients via video conferencing or by telephone. 

 

In addition to this, we are currently implementing our Business Continuity Plan, and due to the technology that we have in place, we are preparing for our staff to be working from home.

 

With regards to the markets, these are likely to be uncertain and volatile for a while yet. All our clients’ portfolios are globally diversified so risk is spread, but many people will still find it an uncomfortable ride.

Human nature leads many investors to crave stability and security at times like these. But withdrawing from markets then consolidates losses and introduces the risk of missing the recovery. To give you some idea of how markets have performed since 1900, we have attached a link below called ‘Bull and Bear Markets’ from Vanguard for your perusal.  

 https://www.vanguard.co.uk/adviser/adv/articles/research-commentary/markets-economy/behavioural-coaching-conversation-aids.jsp

For our mortgage clients, you may have seen that lenders are going to be offering a 3 month break from monthly payments to help those financially affected. Whilst we still await details from each individual lender, below are some key points about the general offering:  

  • A payment holiday will be available to all customers who are up to date on their mortgage payments.
  • A payment holiday will also be available to all buy-to-let landlords whose tenants have lost income      because of the impact of Covid-19. Landlords are expected to pass on this relief to their tenants to ensure that they are supported during this time.
  • Customers will still owe the money where a payment holiday has been granted and interest will still      accrue, so if borrowers are able to make part of the normal mortgage payment to reduce the money owed or interest charges then they should consider doing so.
  • Firms will make every effort to ensure that the payment holiday does not negatively impact on borrower credit files.
  • If already in arrears, borrowers should contact the lender as soon as possible. Lenders will review any change in circumstances to ensure that payments remain sustainable.
  • If borrowers are already experiencing financial difficulty, lenders have also agreed a three month      moratorium on residential and buy-to-let possession action, meaning that no homes will be repossessed at this difficult time.

As the situation unfolds and each lender sets out their individual stance, we will be collating the relevant contact information. If you have any concerns, or want to look into applying for a payment holiday, please contact your Adviser who will be able to provide you with the latest information from your specific mortgage provider.

Thank you for your cooperation and please feel free to contact us by the usual channels.

Kind Regards,

Gary O’Brien

Managing Director

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