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Don’t panic-pay mortgages amidst economic uncertainty, financial expert warns

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A FINANCIAL expert is advising homeowners in Wales against hasty mortgage overpayment decisions in the wake of recent research findings.

A survey by insurance broker, Lycetts, revealed that 74% of homeowners in the country would be more likely to pay off more of their mortgages in the current economic climate, than save or invest.

Chris Booth, Head of Lycetts Financial Services, said it is vital to consider the broader financial landscape before making what can prove a significant commitment.

“The high inflation and interest rates of recent months have affected mortgage costs, causing concern for many homeowners. This has tempted many to react impulsively and make panic-driven decisions.

“However, forecasts now suggest inflation may have peaked, indicating a potential decline in interest rates in the future.

“Additionally, with the UK technically in a recession, there is likely to be pressure on policymakers to keep interest rates stable or even lower them to support economic recovery.

“One of the key arguments against rushing to make larger mortgage payments and becoming mortgage-free is the loss of financial flexibility. Liquid assets, such as savings, pensions, or ISAs, offer individuals the freedom to adapt to unexpected circumstances or pursue other financial goals. In contrast, tying up all resources in a property can limit options and make it challenging to access funds quickly if needed.”

He emphasised the importance of taking a holistic approach to financial planning, considering factors such as retirement age, mortgage duration and future interest rate trends.

“A balanced strategy that accounts for both short-term needs and long-term financial security is called for.

“When it comes to choosing between savings and investment, individuals should look at prioritising tax-efficient options like ISAs, while also considering the benefits of pension contributions for long-term financial stability.”

He urged homeowners not to succumb to fear or uncertainty but instead to seek guidance from financial advisors to navigate these complex decisions.

“While paying off a mortgage may seem like a prudent move, it’s essential to weigh-up all options and consider the long-term implications. Maintaining financial flexibility and taking advantage of tax-efficient savings vehicles are critical steps towards achieving financial resilience and independence in turbulent times.”

Business

Derelict Cilgerran house to be transformed into cafe

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PLANS by a village shop owner to convert a house “in a state of disrepair” to a café to “improve the variety of community facilities” locally have been given the go-ahead.

Mrs Morris, through agent Harries Planning Design Management, sought permission from Pembrokeshire County Council to convert The Old Post House, High Street, Cilgerran, currently a four-bed dwelling, to a ground floor café, along with a first-floor flat.

The application received five letters of support, saying it would provide local jobs, support the community, promote Welsh and local food, and provide a local community hub, with three letters of objection, raising concerns about parking and traffic, and potential odours from the premises.

A supporting statement, through the agent, said: “The proposed site is currently a dwellinghouse, in current need of modernisations and renovations throughout. The site is under the same ownership as the neighbouring village stores Siop Y Pentre,” saying the proposal “can be read as an extension to the existing Siop Y Pentre”.

“Siop Y Pentre is a thriving local community village shop which acts as a village hub. The shop provides local residents with day-to-day necessities, with a focus on local, sustainable and minimal waste products,” the statement says, adding the dwelling it seeks to convert “is in disrepair and in need of internal works to make suitable for modern living”.

It went on to say: “The proposed café seeks to retain its focus on local and seasonal produce with minimal waste and would provide a welcomed opportunity for socialising, especially during the daytime. The café will also seek to employ local staff retaining a community feel throughout. As such, the principle of the café adjacent to the existing village store is considered acceptable. The site seeks to encourage a sustainable community, with development of an appropriate scale and nature.

“Further to this, the location of the development is within the settlement boundary and seeks to fulfil a need for day-time socialising environments currently lacking within Cilgerran.”

The application was conditionally approved by county planners.

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Ferry Terminal ‘extremely busy’ due to ongoing Holyhead closure

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PEMBROKE DOCK Ferry Terminal has been experiencing significant congestion today as ferry services remain under immense pressure following the closure of Holyhead Port earlier this month.

The disruption, caused by storm damage, has rerouted ferry traffic through Pembrokeshire, leading to long queues and crowded facilities at the terminal.

The Herald can confirm that it has been very busy today with cars, lorries, and foot passengers queuing in large numbers. Staff are working tirelessly to manage the influx, directing vehicles and assisting passengers as they prepare to board the heavily booked ferries.

A spokesperson for the Port of Milford Haven said: “We are working closely with ferry operators and local authorities to ensure traffic flows as smoothly as possible, but the sheer volume of vehicles is causing unavoidable delays.”

Travelers are being urged to arrive early for their sailings and to remain patient as the terminal operates at full capacity.

Both Stena Line and Irish Ferries have increased capacity on their Pembrokeshire routes, deploying larger vessels, including the Stena Adventurer and the MV James Joyce, to handle the surge in demand.

From our position at the terminal, our photographer has captured photos showing long lines of vehicles, groups of foot passengers carrying luggage, and port staff coordinating efforts to ease congestion.

Authorities are advising non-essential travelers to consider rescheduling their journeys where possible and to monitor updates from ferry operators closely.

(Photos: Martin Cavaney/Herald)

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52 homes to be built in Roch as scheme gets final sign-off

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THE FINAL stage of approval for a near-£10m Pembrokeshire residential development of 52 homes has been given the go-ahead.

Back in April, members of Pembrokeshire County Council’s planning committee backed an application by Wakefield Pembrokeshire Ltd for the development, which includes four one-bed affordable housing units, on land near Pilgrims Way, Roch.

18 objections to the scheme were received, raising concerns including an “inadequate” affordable housing level, it being a high density development for a rural area, a loss of green space, the size of some of the homes, and pressures on existing services and facilities, and fears it may lead to an increase in second homes.

Nolton & Roch Community Land Trust (N&RCLT) has raised its concerns about a lack of affordable homes at the development, calling for a 20 per cent affordable homes element, as recommended by policy.

An officer report for members, recommending conditional approval, said: “It is apparent that the proposed development is not fully policy compliant, insofar as it cannot deliver the indicative 20 per cent affordable housing sought [by policy].

“However, a substantial positive social impact will arise through the provision of housing, including four one-bed affordable housing units, in meeting identified needs for both market and affordable housing.

“Financial obligations identified to mitigate adverse impacts arising from the proposed development cannot be met in full. However, [policy] acknowledges that in such circumstances contributions may be prioritised on the basis of the individual circumstances of each case.”

Speaking at the meeting, agent Gethin Beynon said the project had a “significant economic value” of around £10m, and the local applicant had “a sense of stewardship to the local community,” offering affordable housing and community infrastructure towards highways and education.

Approval was delegated to the council’s head of planning to approve the application, subject to the completion of a Section 106 planning obligation, making community financial contributions.

The Section 106 agreement was recently agreed, with the application now formally approved.

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