From Saturday 26 April, if you want to take out a mortgage to buy a property or you want to re-mortgage, expect a lot more questions from the mortgage lender or broker about how you spend your money. 

The mortgage lending industry has been forced to introduce tougher new rules (part of something called the ‘mortgage market review’), which are designed to make sure that banks only lend to people who can afford to pay back their mortgage.

This means banks and building societies are asking a lot more questions about what you spend your money on and they’ll want to know that you can continue to afford your mortgage if interest rates rise.

It is now even more important that you make payments to things like your credit card or mobile phone contract on time and that – preferably – your bank account is in the black.

Many people are underestimating the value of the State Pension and risk being hard up in retirement, according to a report.

The Joseph Rowntree Foundation estimates that a single person needs a minimum of £8,600 and a couple £12,500, to achieve a minimum standard of living.

With the State Pension standing at just £5,881, or £11,762 for a couple, many could find themselves struggling.

Are you saving for a comfortable future? Give us a call today to make sure you have sound planning in place.

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Chancellor George Osborne announced major changes to the rules around Individual Savings Accounts in his 2014 Budget speech which could have a significant impact on your savings and investment strategy.

Instead of having to invest solely in cash (Cash ISA) or shares (Stocks and Shares ISA) you will now be able to invest in either within one tax efficient New ISA wrapper (NISA).

There will be flexibility to move your money from shares to cash (or vice-versa) within the New ISA, depending on your circumstances and appetite for risk. The total you can protect from tax is also rising to £15,000 per annum.

If you have any questions about how to take advantage of the New ISAs,  please get in touch.

Following changes announced in the Budget people will have complete flexibility, once they reach age 55, to take their benefits when and how they see fit. Up to 25% will be tax-free with the remainder being taxed at the individual’s highest marginal rate. You could blow the lot on fast cars, Bingo and beer…

However, with that freedom comes a huge risk and the possibility of unintended consequences. Many retirees are naturally conservative so while increased flexibility may have some appeal, they will also want to make sure they have long-term guaranteed income –  a hedge against living too long.

Independent advice will be key in helping people take advantage of the new flexibility rules and tax planning, while ensuring they have a sustainable lifetime income.

If you have any questions, please don’t hesitate to get in touch!

The Social Security (Graduated Retirement Benefit) (Married Same Sex Couples) Regulations 2014 (SI 76/2014) have been issued.
The Regulations are made as a consequence of the Marriage (Same Sex Couples) Act 2013 and extend the National Insurance Act 1965 to surviving same sex spouses. The Regulations permit the surviving same sex spouse to inherit the deceased spouses graduated retirement benefit under the same circumstances as currently apply to widows, widowers and surviving civil partners.
The Regulations come into force on 13th March 2014.

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A recent report by the Financial Conduct Authority estimates that 80% of consumers who bought an annuity from their existing pension provider could have got a better deal on the open market and are missing out on £millions in income each year.

The review (published on 14 February 2014) was the result of a detailed analysis of the annuity market, and precedes a full market study on Retirement Income by the FCA over the coming months. Call us now if you need advice on your pension or annuity 0845 094 2970

A recent report looking at people who have just started a family has found that 47% of parents have no life cover, 76% of parents have no critical illness cover and nearly two-thirds of people with life insurance admit they have not updated their level of cover following a change in their personal circumstances.

Are you one of these people?

It used to be that transferring a current account from one bank to another could take up to 30 days. Under new rules that recently
came into force, however it will take only seven working days and the new bank will do all the legwork – from notifying the old
bank to transferring existing standing orders and direct debits.

After the changeover, any payments to or from the old account will be automatically forwarded to the new account for 13 months. Above all, the new rules are designed to make customers feel
more comfortable about switching.

Research from Prudential has suggested that approximately £229m a year is being unnecessarily kept by the tax man because more than 182,500 people have not claimed the correct tax relief on pension contributions.

Their findings reveal that 26% of UK employees who pay higher rate tax (on income over £41,450) did not claim higher rate relief on pension contributions.

Given that tax relief is one of the main reasons why you would invest in a pension it is staggering that so many people may be missing out.

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