Enable, IFA's in Bishop's Stortford realise why it is important to start Life Planning when you are young, as it will give you more choices later on. By thinking about Life Planning early will help you to focus on making financial changes where you can to enable you to achieve what you would like to in your life, whether it’s saving up to buy a nice car, buying a home or a second home, or what ever you want to achieve. That’s the great thing about Life Planning it’s flexible and it can grow and change with your needs.
When looking at Life Planning Enable can look at the small changes you could make to your life style now. Here are some examples of some of the things we will cover during our life plan:
• Cutting down on expenses - By buying a free sat box, you could save yourself over £180, after your initial investment in the first year and then £240 from there after, over 20 years that would give you an extra £4,800.
• Reducing and combining your utility supplier could also save you thousands over several years.
• If you have a goal in mind we can help you with investments and savings to enable you to achieve this goal.
• Getting yourself through University with the least amount of debt at the end of your studying, or putting in place a plan to enable you to pay back the debt in the best possible way to meet your lifestyle.
We will help you to get into good habits early on, which will make the difference to how much money you and life choices later on.
For an initial consultation, please call one of our IFA’s in Bishop’s Stortford, and we will be able to offer you advice on every aspect of your life planning.
Wednesday, 19 December 2012
Life planning – is a flexible approach to financial planning
Enable, IFA's in Bishop's Stortford are aware that since the recession of 2008-2009, most of us are now considering working forever, rather than life planning which can help you to achieve what you want to have or do in life, but it doesn’t have to be this way.
Life planning offers a flexible approach, unlike traditional financial planning it helps you to save for things you really want or want to achieve, and with a bit of planning might be more possible than you think.
Traditional Financial Planning was about figures and money, only taking into consideration how much you earn, to work out how to maintain a desired lifestyle. This then enabled Financial Planners to produce a plan that would help you reach that magic number that would allow you to retire.
However life planning will help you to achieve what you would like to do, whether it’s starting a new career path or paying for your children’s university, Enable IFA’s will help you to make a flexible life plan. A plan that will grow and adapt to your changing needs as you go through life. If you would like more information on how you can create your life plan, then give one of our specialist IFA’s in Bishop’s Stortford a call on 01279 755950.
Other related stories:
Why it's important to start your life planning early on?
Life planning offers a flexible approach, unlike traditional financial planning it helps you to save for things you really want or want to achieve, and with a bit of planning might be more possible than you think.
Traditional Financial Planning was about figures and money, only taking into consideration how much you earn, to work out how to maintain a desired lifestyle. This then enabled Financial Planners to produce a plan that would help you reach that magic number that would allow you to retire.
However life planning will help you to achieve what you would like to do, whether it’s starting a new career path or paying for your children’s university, Enable IFA’s will help you to make a flexible life plan. A plan that will grow and adapt to your changing needs as you go through life. If you would like more information on how you can create your life plan, then give one of our specialist IFA’s in Bishop’s Stortford a call on 01279 755950.
Other related stories:
Why it's important to start your life planning early on?
Shop Price Inflation Slows...
Good news as inflation slowed in September from 1.1% in August, however food inflation remained unchanged at 3.1% in September, according to the British Retail Consortium.
Stephen Robertson, BRC Director General, stated “Falling prices for non-food goods and stable food inflation are slowing overall shop price rises.
“Food inflation remains at a two-year low for the third month running despite inflationary pressures building up in the supply chain from rises in global commodities such as wheat and soya beans.”
“These shop price figures show retailers are holding back much of the impact as they battle it out for every bit of spending available from hard-up customers. Promotions, including multi-buy offers, fuel coupons and price matching are commonplace and helping to keep grocery bills down while non-food prices have now been cheaper than a year ago for eight months in a row as prices of furniture, electricals and clothing are cut to generate sales.”
Stephen Robertson, BRC Director General, stated “Falling prices for non-food goods and stable food inflation are slowing overall shop price rises.
“Food inflation remains at a two-year low for the third month running despite inflationary pressures building up in the supply chain from rises in global commodities such as wheat and soya beans.”
“These shop price figures show retailers are holding back much of the impact as they battle it out for every bit of spending available from hard-up customers. Promotions, including multi-buy offers, fuel coupons and price matching are commonplace and helping to keep grocery bills down while non-food prices have now been cheaper than a year ago for eight months in a row as prices of furniture, electricals and clothing are cut to generate sales.”
Tuesday, 11 December 2012
New car sales up 12% in October
Good news on the motoring front as October saw UK new car registrations rise by 12.1% to a total of 151,250 and Ford’s renowned model the Fiesta maintaining its long-held position as the UK’s best-selling car, selling 8,058 units in October, for a year-to-date tally of 97,000, helping Ford to 13.7% of the market.
These buoyant figures announced by the Society of Motor Manufacturers and Traders (SMMT) bring the 2012 sales total to 1,771,861 cars so far, which itself is a 5% increase on the previous year. The SMMT, hopefully, believe that 2012 will see a total of 2 million units sold, against their July forecast of 1.97 million.
The effects of austerity have impacted on the buying habits of the UK motorist with more people looking for smaller, more fuel efficient cars and those attracting the lower annual road taxes.
The ‘Mini’ segment of the market grew by a massive 52% across the year and the even smaller ‘Superminis’ segment grew by 5%. So between them, these segments account for 40% of the marketplace.
There was also a marked increase in people buying alternatively fuelled vehicles (AFVs) with interest shown in fully electric and hybrid/electric models. This segment of the market saw growth so far in 2012 of 13%, although it still represents only a tiny 1.5% of the market.
Much of this interest could be attributed to the fact that under the government’s ‘Green’ initiatives, these cars attract no annual road tax and their users do not have to pay local congestion charges.
Very good news then for the UK, although across the wider European market, most manufacturers have seen retrenchment in sales, with Ford reporting their lowest sales in the region for 20 years.
These buoyant figures announced by the Society of Motor Manufacturers and Traders (SMMT) bring the 2012 sales total to 1,771,861 cars so far, which itself is a 5% increase on the previous year. The SMMT, hopefully, believe that 2012 will see a total of 2 million units sold, against their July forecast of 1.97 million.
The effects of austerity have impacted on the buying habits of the UK motorist with more people looking for smaller, more fuel efficient cars and those attracting the lower annual road taxes.
The ‘Mini’ segment of the market grew by a massive 52% across the year and the even smaller ‘Superminis’ segment grew by 5%. So between them, these segments account for 40% of the marketplace.
There was also a marked increase in people buying alternatively fuelled vehicles (AFVs) with interest shown in fully electric and hybrid/electric models. This segment of the market saw growth so far in 2012 of 13%, although it still represents only a tiny 1.5% of the market.
Much of this interest could be attributed to the fact that under the government’s ‘Green’ initiatives, these cars attract no annual road tax and their users do not have to pay local congestion charges.
Very good news then for the UK, although across the wider European market, most manufacturers have seen retrenchment in sales, with Ford reporting their lowest sales in the region for 20 years.
Latest market news....
Positive sentiment from the eurozone, with Greece receiving the promise of its hoped for bail-out funds, saw the London FTSE100 gain 1.45% to close the month on 5,866.8 and the wider FTSE250 finishing on 12,034.2 for a more modest rise of 0.83%. In mainland Europe, the Eurostoxx 50 likewise gained 2.86% to finish at 2,575.25.
With the American Presidential elections successfully put to bed, with Mr Obama being returned for a second term, he now has to turn his attention to the possible fiscal cliff threatening the USA’s government finances, the Dow Jones therefore marked time, finishing November on 13,025.58, down a modest 0.54%. The Nasdaq faired a little better, closing on 3,010.24 up 1.11%.
The Japanese Nikkei 225 had a strong month, recording a 5.8% gain to close on 9,446.01. As always, the foreign exchanges tracked the global political and fiscal situation carefully with UK sterling closing at US$1.60, little change on the month, whilst against the Euro it finished the month at €1.23, down 1.6%, reflecting the better sentiment seen regarding the southern European sovereign debt issues. The Euro itself finished the month at US$1.30.
Oil saw little change in November with the Brent Crude benchmark ending at $109.51 up a marginal 0.75%. Gold had a volatile trading month with the precious metal dipping to $1,705.63 at one point, only to bounce back to finish November on $1,742.05, for an eventual monthly gain of 1.9%.
Marekets: (Data compiled by The Outsourced Marketing Department)
Surprise choice for new Bank of England Governor...
In a surprise announcement by the Chancellor of the Exchequer, George Osborne, Mr. Mark Carney has been named as the new Governor of the Bank of England.
He will be taking over from Sir Mervyn King in June 2013. His tenure will be for a period five years, at a salary of over £600,000 a year. Mr Carney is 47 years old and has both strong academic and business credentials. Educated at Harvard and Oxford, he is currently the Governor of the Bank of Canada where he has been in place for the last 5 years, successfully steering the Canadian economy through the recent global financial crisis. He is also the Chairman of the global Financial Stability Board.
Prior to that he spent 13 years with the investment bank Goldman Sachs and boasts close links to the UK, having a British born wife, with his two children holding joint Canadian and UK citizenship.
Sir Mervyn King said of the appointment that he represented: “a new generation of leadership for the Bank of England, and is an outstanding choice to succeed me.” Given that the position of Governor is one of the most crucial positions to manage the UK economy, Mr Osborne reporting to Parliament said that he would bring the: “strong leadership and external experience the Bank needs”
He went on to add that Mr Carney was recognised as “the outstanding central banker of his generation” and that as Governor of the Bank of Canada he was “acknowledged to have weathered the economic storm better than any other major Western economy.” In acceptance of his new role, Mr Carney said he was: “honoured to accept this important and demanding role” at a “critical time for the British, European and global economies.”
This is part of our monthly economic review is intended to provide background to recent developments in investment markets as well as to give an indication of how some key issues could impact in the future. It is not intended that individual investment decisions should be taken based on this information; we are always ready to discuss your individual requirements.
Tuesday, 4 December 2012
EU draft proposals branded as ‘wild and hopelessly naïve’ by the market…
EU Politician proposals to treat the sovereign of debts of their countries as a special case subject to credit rating reviews, has been branded ‘wild’ and ‘hopelessly naïve’ by the market.
Draft rules to hinder credit rating agencies from having a negative impact of downgrading countries, include restricting them from issuing updates on sovereign debt to three pre-agreed dates a year.
Georg Grodzki, head of credit research at Legal & General Investment Management, said the restrictions could have the opposite effect: “The rules are hopelessly naïve, and it doesn’t do the European Union’s reputation any good in global financial markets.
I’m disappointed that politicians show such little understanding about how markets work and what credit opinions are about.”
Martin O’Donovan, deputy policy and technical director at the UK’s Association of Corporate Treasurers, said that “We could end up with a false market developing.”
If you have any concerns about any of your investments in the EU, then why not give your local independent financial advisors a call, and we will work through to achieve the best option for you.
If you are looking for a place in the sun, Ibiza could be the next hot spot
Enable Independent have become aware that homes in the Vista Alegra gated community are selling like hot cakes, after the word has got around that there has not been a single burglary in the past five years.
‘Whether the threat of burglary is real or perceived, affluent house hunters place great importance on security,’ said Daniel Chavarria Waschke, managing director of Balearics Sotheby's International Realty.
Plots currently range from a 1,000 m2 to in excess of 11,000 m2, with permission to build a property of up to 40% of the plots size, prices range from €450 to €1,200 per m2. With all of the Villas being integrated into the landscape.
Properties can offer spacious bedrooms, ample living rooms and vast expanses of glass to view the surrounding countryside, as well as natural ventilation and solar energy. Local Developer Fernando Corominas stated: ‘Most in demand right now is a very large frontline sea property but, however large, we try to conceal the home within the landscape,’ said Corominas.
If you are looking to finance a holiday home, then why not come and talk to your local financial advisors, we will be able to cherry pick from the best mortgages in the market place.
‘Whether the threat of burglary is real or perceived, affluent house hunters place great importance on security,’ said Daniel Chavarria Waschke, managing director of Balearics Sotheby's International Realty.
Plots currently range from a 1,000 m2 to in excess of 11,000 m2, with permission to build a property of up to 40% of the plots size, prices range from €450 to €1,200 per m2. With all of the Villas being integrated into the landscape.
Properties can offer spacious bedrooms, ample living rooms and vast expanses of glass to view the surrounding countryside, as well as natural ventilation and solar energy. Local Developer Fernando Corominas stated: ‘Most in demand right now is a very large frontline sea property but, however large, we try to conceal the home within the landscape,’ said Corominas.
If you are looking to finance a holiday home, then why not come and talk to your local financial advisors, we will be able to cherry pick from the best mortgages in the market place.
UK property prices unchanged
Enable Independent Advisor's in Bishop's Stortford were not suprised that UK property prices remain the same in November, according to the Nationwide Building Society.
The average price of a typical home is now worth £163,853, which are just under 1.2% below the level of this time last year, price inflation has remained negative for nine months.
Nationwide predict that house prices will continue to stay flat throughout 2013, but they will at least remain stable.
Robert Gardner, Nationwide’s main economist stated that the key to the housing market, will be the UK’s ability to provide more jobs, and as competition for jobs remains fierce enables employers to keep down pressure on wage growth.
The average price of a typical home is now worth £163,853, which are just under 1.2% below the level of this time last year, price inflation has remained negative for nine months.
Nationwide predict that house prices will continue to stay flat throughout 2013, but they will at least remain stable.
Robert Gardner, Nationwide’s main economist stated that the key to the housing market, will be the UK’s ability to provide more jobs, and as competition for jobs remains fierce enables employers to keep down pressure on wage growth.
Tuesday, 27 November 2012
Active or Passive investment?
The kind of questions our experienced financial advisors at Enable would be asking might help you decide if you would prefer an actively managed fund or a passively managed fund.
If you want a fund that performs in line with a particular stock market index then a tracker will do this for you. But we know the indexes have not been at their best recently so you might want a fund that will potentially outperform the market if so you will need to look at actively managed funds and all that goes with them especially the charges.
Then you need to ask yourself how confident are you that you can pick an actively managed fund that will perform better than the stock market remembering that most will under perform their benchmark. Choosing a fund that will outperform its benchmark (and so do better than a tracker) requires investment know-how. If you have the time and are prepared to spend it monitoring your investment maybe it is for you.. With less time on your hands a tracker will move in line with its benchmark (the index/market it tracks).
Another thing to ask yourself is if you want to invest in specialist funds such as those which invest in emerging markets, smaller companies or specialist areas such as technology, healthcare and energy? These are areas where the specialist knowledge of a fund manager who is actively seeking out new investment opportunities can produce added value. Enable’s experienced IFA’s can help you talk this through.
If you want a fund that performs in line with a particular stock market index then a tracker will do this for you. But we know the indexes have not been at their best recently so you might want a fund that will potentially outperform the market if so you will need to look at actively managed funds and all that goes with them especially the charges.
Then you need to ask yourself how confident are you that you can pick an actively managed fund that will perform better than the stock market remembering that most will under perform their benchmark. Choosing a fund that will outperform its benchmark (and so do better than a tracker) requires investment know-how. If you have the time and are prepared to spend it monitoring your investment maybe it is for you.. With less time on your hands a tracker will move in line with its benchmark (the index/market it tracks).
Another thing to ask yourself is if you want to invest in specialist funds such as those which invest in emerging markets, smaller companies or specialist areas such as technology, healthcare and energy? These are areas where the specialist knowledge of a fund manager who is actively seeking out new investment opportunities can produce added value. Enable’s experienced IFA’s can help you talk this through.
Investment Choices
There are several factors to consider when comparing actively and passively managed investment funds but investment charges need to be close to the top. At Enable our IFA’s can fully explain any charges relating to an investment. Charges are often much higher for actively managed funds than passive funds as there is more work involved. Actively managed funds not only have higher management fees but they also trade more frequently which means more dealing charges. These funds can easily charge twice as much as passive funds even if they don't perform as well or they make a loss.
You might say higher charges would be justified if an actively managed fund outperformed a passively managed one. But this often is not always the case and once charges are taken into consideration, many tracker funds produce better returns than actively managed funds. However, some actively managed funds perform considerably better than the stock market and can offer real added value. Once you've decided which asset class/sector/stock market you want to invest in, picking a passive fund is simple. But actively managed funds add another layer to your investment decisions. You need to look at what funds are in that sector, and then choose which fund/fund manager you think will do best.
There are more actively managed funds than passive funds hence the greater choice but too much choice is not always a good thing. Why not let our experienced IFA’s at Enable help make some of those decisions a little bit easier.
You might say higher charges would be justified if an actively managed fund outperformed a passively managed one. But this often is not always the case and once charges are taken into consideration, many tracker funds produce better returns than actively managed funds. However, some actively managed funds perform considerably better than the stock market and can offer real added value. Once you've decided which asset class/sector/stock market you want to invest in, picking a passive fund is simple. But actively managed funds add another layer to your investment decisions. You need to look at what funds are in that sector, and then choose which fund/fund manager you think will do best.
There are more actively managed funds than passive funds hence the greater choice but too much choice is not always a good thing. Why not let our experienced IFA’s at Enable help make some of those decisions a little bit easier.
What are actively and passively managed funds?
Enable are independent financial advisors who like to help people make the most of their money. Choosing how to invest from the literally thousands of investment funds is half the battle. Whether you want a UK, specialist, tracker or exchange traded fund (ETF), deciding whether to invest in an actively or passively managed fund can help narrow down the choice.
Active management is when an investment fund is actively managed by a professional fund manager. The fund manager decides on the asset allocation of the fund, as well as when and what investments to buy and sell (subject to the fund's rules and stated objectives). The fund manager's decisions will be based on research and they even visit the companies they are thinking of investing in sometimes. The fund manager can target specific areas that are outperforming their sector or that may appeal to investors with specific interests, the funds aim is to outperform the stock market or investment sector they invest in.
Passive management on the other hand is when an investment fund tracks a particular market or index such as the FTSE All Share index. The fund is managed by buying shares in most or all of the companies which make up a particular index. The aim is to replicate, rather than outperform, the performance of that index. Passively managed funds include tracker funds and exchange traded funds (ETFs). At Enable of Bishop’s Stortford our IFA’s can help you look more closely at how to manage your funds.
Active management is when an investment fund is actively managed by a professional fund manager. The fund manager decides on the asset allocation of the fund, as well as when and what investments to buy and sell (subject to the fund's rules and stated objectives). The fund manager's decisions will be based on research and they even visit the companies they are thinking of investing in sometimes. The fund manager can target specific areas that are outperforming their sector or that may appeal to investors with specific interests, the funds aim is to outperform the stock market or investment sector they invest in.
Passive management on the other hand is when an investment fund tracks a particular market or index such as the FTSE All Share index. The fund is managed by buying shares in most or all of the companies which make up a particular index. The aim is to replicate, rather than outperform, the performance of that index. Passively managed funds include tracker funds and exchange traded funds (ETFs). At Enable of Bishop’s Stortford our IFA’s can help you look more closely at how to manage your funds.
Monday, 19 November 2012
Families start to spend again...
After months of belt tightening and keeping their purse strings taut, UK consumers have lifted their heads above the trenches.
Two surveys, looking at disposable incomes and consumer spending
respectively, have recently been released by Deloitte and Markit. Whilst Deloitte’s Consumer Tracker saw worries about disposable income dip by 10% in the last year (from 43% of respondents to 33%), Markit said October saw the “least marked” deterioration in household finances for two years; and that consumer confidence was at its best since Q3 in 2011 and that should lead “to a likely upturn in consumer activity.” Markit reported that although household budgets remained under stress, given that we have seen lower inflation figures published in October, together with a marked improvement in the employment figures, their economists believe that should result in increased consumer spending across the next twelve months. This should further add to the anticipated 0.7% growth seen in spending in Q3 2012.
They added: “Household finances were supported by a near stabilisation of employment income in October, alongside a reduced squeeze on cash availability.”
Although 29% of their respondents said that their household budgets had deteriorated and only 7% said they had improved, this still signaled: “a much weaker squeeze on households’ financial well-being than had been the case for around the past two years.”
At the same time the chief economist of Deloitte was quoted as saying: “The Consumer Tracker points to a reduction in the stress on the household, with consumers more positive about their income and employment and working hard to balance the books by reducing their levels of debt.”
Given that consumer spending is responsible for about 60% of economic output in the UK - which has been depressed since 2010, because of unemployment, pay rates below the rate of inflation, and a £1.5 trillion household debt burden – any increase seen here is very good news and should continue to impact positively on the forthcoming GDP figures due in 2013.
Enable Independent Financial Life Planners is a trading style of Enable Independent Limited is authorised and regulated by the Financial Services Authority. It is important always to seek independent financial advice before making any decision regarding your finances. If you would like any assistance, please contact us.
NOTHING CONTAINED IN THE ARTICLES SHOULD BE CONSIDERED AS GIVING INDIVIDUAL FINANCIAL ADVICE.
Two surveys, looking at disposable incomes and consumer spending
respectively, have recently been released by Deloitte and Markit. Whilst Deloitte’s Consumer Tracker saw worries about disposable income dip by 10% in the last year (from 43% of respondents to 33%), Markit said October saw the “least marked” deterioration in household finances for two years; and that consumer confidence was at its best since Q3 in 2011 and that should lead “to a likely upturn in consumer activity.” Markit reported that although household budgets remained under stress, given that we have seen lower inflation figures published in October, together with a marked improvement in the employment figures, their economists believe that should result in increased consumer spending across the next twelve months. This should further add to the anticipated 0.7% growth seen in spending in Q3 2012.
They added: “Household finances were supported by a near stabilisation of employment income in October, alongside a reduced squeeze on cash availability.”
Although 29% of their respondents said that their household budgets had deteriorated and only 7% said they had improved, this still signaled: “a much weaker squeeze on households’ financial well-being than had been the case for around the past two years.”
At the same time the chief economist of Deloitte was quoted as saying: “The Consumer Tracker points to a reduction in the stress on the household, with consumers more positive about their income and employment and working hard to balance the books by reducing their levels of debt.”
Given that consumer spending is responsible for about 60% of economic output in the UK - which has been depressed since 2010, because of unemployment, pay rates below the rate of inflation, and a £1.5 trillion household debt burden – any increase seen here is very good news and should continue to impact positively on the forthcoming GDP figures due in 2013.
Enable Independent Financial Life Planners is a trading style of Enable Independent Limited is authorised and regulated by the Financial Services Authority. It is important always to seek independent financial advice before making any decision regarding your finances. If you would like any assistance, please contact us.
NOTHING CONTAINED IN THE ARTICLES SHOULD BE CONSIDERED AS GIVING INDIVIDUAL FINANCIAL ADVICE.
Good news as UK disposable income rises
Further encouraging signs were seen in the latest figures released by the Office for National Statistics (ONS) that showed average real household income* rise by £69 to £4,510 in the April – June Quarter of 2012.
This represents an increase of 1.6% from the previous quarter and is the highest figure since the fourth quarter of 2010. Given that real household incomes were at their lowest level for five years at the end of 2011, this boost will, hopefully, contribute to the anticipated bounce in the UK economy during Q4 2012 and into 2013 through an increase in consumer spending.
With the latest inflation figures (CPI at 2.2%) reducing as well, this should ease the burden on household income, even though their actual expenditure has held relatively unchanged during the same period, falling by £7 (0.2%) over the period.
One of the negative effects of lower inflation figures, however, is that those on benefits will be receiving increases of less than half they did last year, as any annual increase
Household savings have also increased to £18.2bn, an increase from the previously reported £16bn. This reflects the emphasis many households have placed upon reducing their debt burden.
There were, of course, major regional variations in these figures. Annual real household income reported saw the richest area - London - recording a figure of £20,238 with inner London west heading the pack at £33,323 and the poorest region - the North East – reporting a figure of £13,329, with the city of Nottingham reporting the lowest figure of only £10,702. Across the whole of the UK the annual average was £15,709.
*Real household income is defined as wages and salaries (both employed and self-employed), pension receipts, state benefits, interest on savings, and dividend income.
Enable Independent Financial Life Planners is a trading style of Enable Independent Limited is authorised and regulated by the Financial Services Authority. It is important always to seek independent financial advice before making any decision regarding your finances. If you would like any assistance, please contact us.
NOTHING CONTAINED IN THE ARTICLES SHOULD BE CONSIDERED AS GIVING INDIVIDUAL FINANCIAL ADVICE.
This represents an increase of 1.6% from the previous quarter and is the highest figure since the fourth quarter of 2010. Given that real household incomes were at their lowest level for five years at the end of 2011, this boost will, hopefully, contribute to the anticipated bounce in the UK economy during Q4 2012 and into 2013 through an increase in consumer spending.
With the latest inflation figures (CPI at 2.2%) reducing as well, this should ease the burden on household income, even though their actual expenditure has held relatively unchanged during the same period, falling by £7 (0.2%) over the period.
One of the negative effects of lower inflation figures, however, is that those on benefits will be receiving increases of less than half they did last year, as any annual increase
Household savings have also increased to £18.2bn, an increase from the previously reported £16bn. This reflects the emphasis many households have placed upon reducing their debt burden.
There were, of course, major regional variations in these figures. Annual real household income reported saw the richest area - London - recording a figure of £20,238 with inner London west heading the pack at £33,323 and the poorest region - the North East – reporting a figure of £13,329, with the city of Nottingham reporting the lowest figure of only £10,702. Across the whole of the UK the annual average was £15,709.
*Real household income is defined as wages and salaries (both employed and self-employed), pension receipts, state benefits, interest on savings, and dividend income.
Enable Independent Financial Life Planners is a trading style of Enable Independent Limited is authorised and regulated by the Financial Services Authority. It is important always to seek independent financial advice before making any decision regarding your finances. If you would like any assistance, please contact us.
NOTHING CONTAINED IN THE ARTICLES SHOULD BE CONSIDERED AS GIVING INDIVIDUAL FINANCIAL ADVICE.
It is official – the end of recession
The Office for National Statistics (ONS) announced late in October that the UK economy grew by 1.0% in Q3 2012, thus ending the nine month recession. This is
above the estimates of most economists who predicted a growth figure of 0.6% to be announced.
One of the major factors in this turn-around was the London Olympics, which
according to the ONS added 0.2% to the gross domestic product (GDP) figure from July to September.
Whilst this is very good news, the economy remains below the level of output seen before 2008, at the start of the financial crisis.
They also commented that the economy contracted by 6.4% between the start of 2008 and mid 2009, but has since recovered nearly half of that amount.
This quarter’s figures were also boosted, in comparison with the previous quarter, where we had additional public holidays to celebrate the Queen’s Diamond Jubilee and exceptionally bad weather, which dampened growth in this
period.
George Osborne, the Chancellor, commenting on these results on October 25th said: “There is still a long way to go, but these figures show we are on the right track. “Yesterday’s weak data from the Eurozone were a reminder that we still face many economic challenges at home and abroad.”
Given that these figures from the ONS are their initial estimate, it should be borne in mind that they can be revised higher, as happened in the last two quarters, or possibly lower in the ensuing weeks.
However, David Kern, chief economist of the British Chambers of Commerce added: “The 1.0% GDP figure for the third quarter is affected by distortions in the second quarter due to the Jubilee and Olympic ticket sales. Compared to a year earlier, the figures show that the economy is stagnant.”
Enable Independent Financial Life Planners is a trading style of Enable Independent Limited is authorised and regulated by the Financial Services Authority. It is important always to seek independent financial advice before making any decision regarding your finances. If you would like any assistance, please contact us.
NOTHING CONTAINED IN THE ARTICLES SHOULD BE CONSIDERED AS GIVING INDIVIDUAL FINANCIAL ADVICE.
above the estimates of most economists who predicted a growth figure of 0.6% to be announced.
One of the major factors in this turn-around was the London Olympics, which
according to the ONS added 0.2% to the gross domestic product (GDP) figure from July to September.
Whilst this is very good news, the economy remains below the level of output seen before 2008, at the start of the financial crisis.
They also commented that the economy contracted by 6.4% between the start of 2008 and mid 2009, but has since recovered nearly half of that amount.
This quarter’s figures were also boosted, in comparison with the previous quarter, where we had additional public holidays to celebrate the Queen’s Diamond Jubilee and exceptionally bad weather, which dampened growth in this
period.
George Osborne, the Chancellor, commenting on these results on October 25th said: “There is still a long way to go, but these figures show we are on the right track. “Yesterday’s weak data from the Eurozone were a reminder that we still face many economic challenges at home and abroad.”
Given that these figures from the ONS are their initial estimate, it should be borne in mind that they can be revised higher, as happened in the last two quarters, or possibly lower in the ensuing weeks.
However, David Kern, chief economist of the British Chambers of Commerce added: “The 1.0% GDP figure for the third quarter is affected by distortions in the second quarter due to the Jubilee and Olympic ticket sales. Compared to a year earlier, the figures show that the economy is stagnant.”
Enable Independent Financial Life Planners is a trading style of Enable Independent Limited is authorised and regulated by the Financial Services Authority. It is important always to seek independent financial advice before making any decision regarding your finances. If you would like any assistance, please contact us.
NOTHING CONTAINED IN THE ARTICLES SHOULD BE CONSIDERED AS GIVING INDIVIDUAL FINANCIAL ADVICE.
Wednesday, 14 November 2012
Credit is no longer so easy...
As a parent another important lesson you can pass on to your family is managing credit. Enable’s experienced IFA’s know that being able to access and manage credit is vital to financial success. Understanding how it works can help you help them.
Most lenders go through two main credit reference agencies for information on your financial past – Equifax) and Experian , they compile credit histories from a number of sources, including the electoral roll, county court judgments and how effectively past debts have been paid. Every time a new form of credit is opened it will leave an electronic footprint on your record. The decision to turn borrowers down for credit isn't made be Experian or Equifax but by the lenders, based on their own criteria.
So if you want to be credit worthy these are some of the best things to make sure you have done;
• Get on the electoral roll.
• Don't make too many applications for credit in a rush – and that includes things like mobile phone contracts. Space out applications.
• Show lenders you're a responsible borrower by borrowing and paying it back. It might mean taking a credit card with a very high interest rate, spend small amounts and then keep clearing the balance.
• Do everything in your power to keep up all agreed repayments ask for smaller repayments if you're finding it impossible.
• Joint finance done with someone with a bad rating will affect your rating. If you split, write and tell the debt agencies.
Most lenders go through two main credit reference agencies for information on your financial past – Equifax) and Experian , they compile credit histories from a number of sources, including the electoral roll, county court judgments and how effectively past debts have been paid. Every time a new form of credit is opened it will leave an electronic footprint on your record. The decision to turn borrowers down for credit isn't made be Experian or Equifax but by the lenders, based on their own criteria.
So if you want to be credit worthy these are some of the best things to make sure you have done;
• Get on the electoral roll.
• Don't make too many applications for credit in a rush – and that includes things like mobile phone contracts. Space out applications.
• Show lenders you're a responsible borrower by borrowing and paying it back. It might mean taking a credit card with a very high interest rate, spend small amounts and then keep clearing the balance.
• Do everything in your power to keep up all agreed repayments ask for smaller repayments if you're finding it impossible.
• Joint finance done with someone with a bad rating will affect your rating. If you split, write and tell the debt agencies.
The Essential Annuity Check list...
Experienced Independent Financial Advisors at Enable know that there are several options to consider when buying your annuity and these will affect the income you and your spouse will receive for the rest of your lives so it is important to take time and consider your options thoroughly maybe with the help of an IFA.
These are the kind of considerations you should bear in mind:
■ Single or joint life: you can choose between a policy that simply pays an income during your lifetime, or continues to pay out to your spouse or partner after your death.
■ Level: an annuity that pays the same fixed amount every year.
■ Escalating: an annuity that rises every year, either in line with inflation or a set percentage, typically 3%.
■ Investment-linked: an annuity that makes payments at a level that changes depending on the performance of various underlying financial investments.
■ Smoker: the annuity is available only to smokers – although not to couples where only one is a smoker.
■ No guarantee: your income dies with you (unless you have a joint-life annuity).
■ Five- or 10-year guarantee: if you die soon after retiring, your estate will continue to get your full income for five or 10 years after you retire.
■ Enhanced/impaired: some providers will pay a higher income if your lifestyle, previous occupation, or illnesses or conditions are likely to mean you have shorter life expectancy.
The simplest annuity - a single life, level contract - will generally pay the highest income.
Still unsure? Then why don't you pop in for a chat.
These are the kind of considerations you should bear in mind:
■ Single or joint life: you can choose between a policy that simply pays an income during your lifetime, or continues to pay out to your spouse or partner after your death.
■ Level: an annuity that pays the same fixed amount every year.
■ Escalating: an annuity that rises every year, either in line with inflation or a set percentage, typically 3%.
■ Investment-linked: an annuity that makes payments at a level that changes depending on the performance of various underlying financial investments.
■ Smoker: the annuity is available only to smokers – although not to couples where only one is a smoker.
■ No guarantee: your income dies with you (unless you have a joint-life annuity).
■ Five- or 10-year guarantee: if you die soon after retiring, your estate will continue to get your full income for five or 10 years after you retire.
■ Enhanced/impaired: some providers will pay a higher income if your lifestyle, previous occupation, or illnesses or conditions are likely to mean you have shorter life expectancy.
The simplest annuity - a single life, level contract - will generally pay the highest income.
Still unsure? Then why don't you pop in for a chat.
Think about shopping around for Annuities?
If you are at that time of life when you are looking at buying your annuity talking it through with Enables IFA’s might make all the difference. Annuity Direct says 85% of its clients end up with a better income by shopping around rather than buying an annuity from their pension provider.
One of the things you might not expect to find is that you might be able to get a much higher income if you suffer from particular medical condition, this entitles you to buy an "enhanced" or "impaired life" annuity from a specialist provider such as Partnership or Just Retirement. Shopping around can achieve incomes on average 20% higher.
Some insurers plan to stop using gender in their pricing calculations even before the new rules come into force: the Prudential will switch on 12 November, while Aviva is expected to adopt unisex rates ahead of 21 December. Under recent rules pension providers now have to identify whether a client qualifies for an enhanced annuity and tell you where to buy one if they don’t themselves provide the service. However, these rules to not extend to members of certain occupational schemes – group personal pensions and defined contribution schemes set up in trust. If you are a member of this type of scheme, the provider has no obligation to offer you anything but its own annuities.
If you are trying to decided on your annuity and maybe have an underlying medical condition Enable’s IFA’s would be happy to listen to your requirements and try and match your needs.
One of the things you might not expect to find is that you might be able to get a much higher income if you suffer from particular medical condition, this entitles you to buy an "enhanced" or "impaired life" annuity from a specialist provider such as Partnership or Just Retirement. Shopping around can achieve incomes on average 20% higher.
Some insurers plan to stop using gender in their pricing calculations even before the new rules come into force: the Prudential will switch on 12 November, while Aviva is expected to adopt unisex rates ahead of 21 December. Under recent rules pension providers now have to identify whether a client qualifies for an enhanced annuity and tell you where to buy one if they don’t themselves provide the service. However, these rules to not extend to members of certain occupational schemes – group personal pensions and defined contribution schemes set up in trust. If you are a member of this type of scheme, the provider has no obligation to offer you anything but its own annuities.
If you are trying to decided on your annuity and maybe have an underlying medical condition Enable’s IFA’s would be happy to listen to your requirements and try and match your needs.
Thursday, 8 November 2012
Sorting your Annuity, you might have to act quickly
If you are a man and aged 55 or more and planning to retire in the near future you need to get your skates on before new rules to be implemented in December could mean you receive less retirement income from your pension savings.
Men have on average received about 4% more income from their annuities than women, because women tend to live longer. But the EU gender directive, which comes into force on 21 December, will stop insurance companies using the sex of a pension policyholder to determine the income the policyholder receives when they cash in their savings and buy an annuity. Insurers have said they will rely more heavily on other criteria, to underwrite annuities, including the type of work a policyholder has done and whether they suffer certain medical conditions.
For men, the move means a sharp drop in annuity rates, building on a gradual decline over the past few years. This means that men planning to draw their retirement income in the near future should consider bringing their plans forward to take advantage of differential rates. "Ideally, they should ask for a quote now, then repeat that process every 14 days," he says. "If they see the rate they are offered beginning to fall, it's a sign they should act very quickly to buy their annuity."
It is still best not to rush into anything before checking, IFA Enable can help you make sure you are doing what is best for the whole of your retirement portfolio.
Men have on average received about 4% more income from their annuities than women, because women tend to live longer. But the EU gender directive, which comes into force on 21 December, will stop insurance companies using the sex of a pension policyholder to determine the income the policyholder receives when they cash in their savings and buy an annuity. Insurers have said they will rely more heavily on other criteria, to underwrite annuities, including the type of work a policyholder has done and whether they suffer certain medical conditions.
For men, the move means a sharp drop in annuity rates, building on a gradual decline over the past few years. This means that men planning to draw their retirement income in the near future should consider bringing their plans forward to take advantage of differential rates. "Ideally, they should ask for a quote now, then repeat that process every 14 days," he says. "If they see the rate they are offered beginning to fall, it's a sign they should act very quickly to buy their annuity."
It is still best not to rush into anything before checking, IFA Enable can help you make sure you are doing what is best for the whole of your retirement portfolio.
What you need to know about womens pensions...
Several recent reports have suggested women have been hit hardest by the economic downturn, with high unemployment rates and the loss of some benefits, causing women to neglect saving into a pension.The average monthly saving among women has fallen from £130 to £95 since 2011, while the average for men has risen from £174 to £185. A 30-year-old woman who continues saving at the same rate will retire on a pension pot almost £30,000 smaller than a male the same age.
Scottish Widows found women were undertaking long-term savings outside pensions, although the amount put aside has fallen. Women who are saving put aside £203.21 a month on average, down from £227 in previous years, and 29% are saving on a regular basis.
Lynn Graves, of Scottish Widows, said: "The recession has had a major impact on people's attitudes to managing their finances, as the message to 'live within your means' has been hammered home. While women are right to focus on making sure their debts are manageable, other sacrifices may need to be made to ensure retirement plannning is in place. "There is clearly a demand for greater financial support and financial education to help people get the balance right between managing debt payments and taking a realistic approach to long term savings."
Dr Ros Altmann, director-general of Saga, said the figures showed women were "still very much second-class citizens" when it came to pensions. Enable’s Independent Financial Advisors can help women of every age plan their savings.
Scottish Widows found women were undertaking long-term savings outside pensions, although the amount put aside has fallen. Women who are saving put aside £203.21 a month on average, down from £227 in previous years, and 29% are saving on a regular basis.
Lynn Graves, of Scottish Widows, said: "The recession has had a major impact on people's attitudes to managing their finances, as the message to 'live within your means' has been hammered home. While women are right to focus on making sure their debts are manageable, other sacrifices may need to be made to ensure retirement plannning is in place. "There is clearly a demand for greater financial support and financial education to help people get the balance right between managing debt payments and taking a realistic approach to long term savings."
Dr Ros Altmann, director-general of Saga, said the figures showed women were "still very much second-class citizens" when it came to pensions. Enable’s Independent Financial Advisors can help women of every age plan their savings.
Guaranteeing a mortgage
Independent Financial Advisor's Enable have been helping many families where the child's income is insufficient to allow them to purchase a first home. Another way to support your children is by using your own income to boost what can be borrowed. This can be done by acting as a "guarantor" or opting to take out a joint mortgage.
One of the providers of mortgages Woolwich, currently allows the parent to be named jointly on the mortgage, but this doesn't mean the parent has to be a joint owner of the property. This helps sidestep any potential capital gains tax issues. The option is available on all Woolwich's core mortgage rates. The Mortgage Works offers specific deals for guarantors, some on a "limited liability" basis – where the parent guarantees just the top-up amount required above what the child could borrow.
Lenders however typically refuse to lend to parents who will be over 70 or 75 at the end of the mortgage term. You may be able to borrow over a shorter term, but this will push up the cost. Parents need to understand that they are offering additional security, which will be at risk if their offspring defaults on the mortgage. If you are over 70 and have a lot of equity in your home, you could consider releasing some but, lenders have tightened their policies since the downturn, which can affect what parents can borrow." Enable’s IFA’s will be able to help you find the right deal to help your family.'
One of the providers of mortgages Woolwich, currently allows the parent to be named jointly on the mortgage, but this doesn't mean the parent has to be a joint owner of the property. This helps sidestep any potential capital gains tax issues. The option is available on all Woolwich's core mortgage rates. The Mortgage Works offers specific deals for guarantors, some on a "limited liability" basis – where the parent guarantees just the top-up amount required above what the child could borrow.
Lenders however typically refuse to lend to parents who will be over 70 or 75 at the end of the mortgage term. You may be able to borrow over a shorter term, but this will push up the cost. Parents need to understand that they are offering additional security, which will be at risk if their offspring defaults on the mortgage. If you are over 70 and have a lot of equity in your home, you could consider releasing some but, lenders have tightened their policies since the downturn, which can affect what parents can borrow." Enable’s IFA’s will be able to help you find the right deal to help your family.'
Wednesday, 31 October 2012
Family Offset Mortgage
Another way of using your saving to help younger members of your family get on the property ladder is through a "family offset" mortgage. These deals allow you to retain ownership of the money that you put up for a deposit. "The advantage is that the savings remain in the name of the parents and can revert to them at a later date. But parents give up any return on the cash in favour of helping the child," said David Hollingworth of London & Country Mortgages.
IFA’s at Enable of Bishops Stortford could more fully explain this kind of deal, where you put your cash into a linked savings account and the money acts as a deposit and will lower the monthly mortgage repayment, as interest is charged only on the balance remaining. For example, Yorkshire and Market Harborough building societies allow the parent to deposit cash that reduces the interest charged on the child's mortgage. Marsden Building Society offers a slightly different approach, enabling the buyer to borrow 100pc of the purchase price, subject to 20pc being deposited in the linked account. A charge is placed over that cash.
Some offset deals allow borrowers to set up more than one linked account, so both parents can contribute but don't need to pool their money formally. However, you must be prepared to lock up your money for years; you will not be able to get your hands on it until the mortgage is worth 75pc of the property value.
IFA’s at Enable of Bishops Stortford could more fully explain this kind of deal, where you put your cash into a linked savings account and the money acts as a deposit and will lower the monthly mortgage repayment, as interest is charged only on the balance remaining. For example, Yorkshire and Market Harborough building societies allow the parent to deposit cash that reduces the interest charged on the child's mortgage. Marsden Building Society offers a slightly different approach, enabling the buyer to borrow 100pc of the purchase price, subject to 20pc being deposited in the linked account. A charge is placed over that cash.
Some offset deals allow borrowers to set up more than one linked account, so both parents can contribute but don't need to pool their money formally. However, you must be prepared to lock up your money for years; you will not be able to get your hands on it until the mortgage is worth 75pc of the property value.
Downsizing payouts
A survey conducted by Lloyds TSB recently found that Just over half of home owners they surveyed who are planning to move house in the next three years said they plan to downsize, compared with just over a fifth (22pc) who are looking to trade up to somewhere bigger.
63pc of those looking to downsize are aged over 55, more than a quarter are aged between 46 and 55 and around 5pc are aged between 36 and 45. 33pc of potential downsizers saying they need to move to reduce their household bills and 37pc saying they would like to free up some equity. Three in 10 of those planning to trade down said they were doing so to boost their retirement income.
Trading down from a detached home to a bungalow could produce an average windfall of just over £97,000 across the UK. Meanwhile, someone downsizing from a detached home to a semi-detached property across the UK could gain just over £120,000 on average, a 46pc increase on the £82,412 typical windfall in 2002.
Stephen Noakes, mortgage director for Lloyds TSB, said: "Downsizers are now playing a key role in the housing market and, as the study shows, we are starting to see home owners on different stages of the property ladder considering it a sensible option as more and more families are looking at ways to save money." Whatever stage of the housing cycle you are facing Enable’s IFA’s can help you find the best financing deals to suit the needs of your family.
63pc of those looking to downsize are aged over 55, more than a quarter are aged between 46 and 55 and around 5pc are aged between 36 and 45. 33pc of potential downsizers saying they need to move to reduce their household bills and 37pc saying they would like to free up some equity. Three in 10 of those planning to trade down said they were doing so to boost their retirement income.
Trading down from a detached home to a bungalow could produce an average windfall of just over £97,000 across the UK. Meanwhile, someone downsizing from a detached home to a semi-detached property across the UK could gain just over £120,000 on average, a 46pc increase on the £82,412 typical windfall in 2002.
Stephen Noakes, mortgage director for Lloyds TSB, said: "Downsizers are now playing a key role in the housing market and, as the study shows, we are starting to see home owners on different stages of the property ladder considering it a sensible option as more and more families are looking at ways to save money." Whatever stage of the housing cycle you are facing Enable’s IFA’s can help you find the best financing deals to suit the needs of your family.
The bank of Mum and Dad is being kept busy...
It has been in the news a lot recently that the bank of Mum and Dad are being kept pretty busy. As experienced IFA’s at Enable of Bishops Stortford we see a lot of first-time buyers relying on the bank of mum and dad to get them on the property ladder. They are not alone according to recent research, the financial assistance provided by parents helped 100,000 buyers get their first home between 2008 and 2011.
The report, by HSBC and the Centre for Economics & Business Research, estimated that without this help house sales worth £5.3bn would never have taken place. Before the credit crisis most first-time buyers were able to borrow 100pc of their property's value. Most lenders at the moment are asking for a 10pc deposit, so those who can afford to put down a larger deposit would qualify for a far wider range of mortgage deals at lower interest rates. So at Enable we are able to help parents or grandparents who want to help younger members of their family get on the property ladder to find the right deals and make significant savings for the family.
For parents who have enough savings to help their offspring but don't want simply to hand over a cheque, there are a number of mortgage schemes that can help. Lenders have also devised a number of products aimed at parents who want to help but don't have surplus funds sitting around. Enable’s experienced Independent Financial advisors can talk you through your options.
The report, by HSBC and the Centre for Economics & Business Research, estimated that without this help house sales worth £5.3bn would never have taken place. Before the credit crisis most first-time buyers were able to borrow 100pc of their property's value. Most lenders at the moment are asking for a 10pc deposit, so those who can afford to put down a larger deposit would qualify for a far wider range of mortgage deals at lower interest rates. So at Enable we are able to help parents or grandparents who want to help younger members of their family get on the property ladder to find the right deals and make significant savings for the family.
For parents who have enough savings to help their offspring but don't want simply to hand over a cheque, there are a number of mortgage schemes that can help. Lenders have also devised a number of products aimed at parents who want to help but don't have surplus funds sitting around. Enable’s experienced Independent Financial advisors can talk you through your options.
Monday, 22 October 2012
Make sure your address is right for credit
County court judgments (CCJs), defaulted payments and bankruptcy orders leave a black mark against your name when trying to secure credit. But sometimes a genuine mistake has been made and needs to be put right, unfortunately it is not as easy as you may think. Banks take the credit ratings companies' word as gospel. Likewise, they trust the banks' word over yours. So if one gets something wrong, it is often the consumer who is left in the dark.
A frequent problem is if the address on your credit file does not match your address. This is often a problem if your house has a name, has a number and a letter, or is one of a number of flats converted from an older house. Find out how your local council lists your address and follow its lead. It is likely that most banks would use the same style that is on the electoral roll.
Experian say if you don't submit your address as Royal Mail lists it then it will not match up. In this case, contact Royal Mail on 0845 6011 110.
However, if you disagree with information on your credit report then you need to contact the credit rating company directly. But this can be a frustrating experience, since most complaints have to be sent by e-mail or by letter. Enables experienced IFA’s like to help you get all the details right first time to make sure you get the deals you need.
A frequent problem is if the address on your credit file does not match your address. This is often a problem if your house has a name, has a number and a letter, or is one of a number of flats converted from an older house. Find out how your local council lists your address and follow its lead. It is likely that most banks would use the same style that is on the electoral roll.
Experian say if you don't submit your address as Royal Mail lists it then it will not match up. In this case, contact Royal Mail on 0845 6011 110.
However, if you disagree with information on your credit report then you need to contact the credit rating company directly. But this can be a frustrating experience, since most complaints have to be sent by e-mail or by letter. Enables experienced IFA’s like to help you get all the details right first time to make sure you get the deals you need.
Tesco Bank Mortgage News
Enable of Bishop’s Stortford note with interest that the cheapest mortgage deals to hit the high street in years have recently been announced. Tesco has a two-year fixed-rate deal is priced at just 1.99pc. The supermarket bank said it was government funding that had enabled it to offer such a low deal. This “Funding for Lending” scheme was initially designed to help boost mortgage lending for first-time buyers.
As our experienced IFA’s at Enable would expect the Tesco deal is only available to those who have at least a 40pc deposit (or 40pc equity for those re-mortgaging). You don’t have to analyse the vast data or sources from its Clubcard scheme to know that this really isn’t the profile of your average first-time buyer.
It’s not the only bank that is using the funding to improve the mortgage deals available to those who already have sizeable equity in their home. As Sylvia Waycott from Moneyfacts pointed out: these borrowers already have access to cheap and plentiful lending. For those looking to borrow 90pc of their property – or less that are struggling – to date neither the availability of such home loans, nor their price has significantly improved.
There are huge amount of deals out there with varying criteria. If you want to be improving your current mortgage deal Enables IFA’s can help you find the best options. If you are a first time buyer we can help you cut to the chase and avoid frustration and disappointment.
As our experienced IFA’s at Enable would expect the Tesco deal is only available to those who have at least a 40pc deposit (or 40pc equity for those re-mortgaging). You don’t have to analyse the vast data or sources from its Clubcard scheme to know that this really isn’t the profile of your average first-time buyer.
It’s not the only bank that is using the funding to improve the mortgage deals available to those who already have sizeable equity in their home. As Sylvia Waycott from Moneyfacts pointed out: these borrowers already have access to cheap and plentiful lending. For those looking to borrow 90pc of their property – or less that are struggling – to date neither the availability of such home loans, nor their price has significantly improved.
There are huge amount of deals out there with varying criteria. If you want to be improving your current mortgage deal Enables IFA’s can help you find the best options. If you are a first time buyer we can help you cut to the chase and avoid frustration and disappointment.
First time buyers
Our independent financial advisors at Enable are specialists in finding the right borrowing to match your needs. We all know times are hard for first time buyers and that typically they are putting aside £248 a month towards their goal according to a new report by the Yorkshire Building Society. That means it could take them more than eight years to raise a 20pc deposit.
At Enable our experienced IFA’s know lenders have toughened their borrowing criteria in recent months, and more than one in 10 would-be buyers told Yorkshire's survey that they were worried about being accepted by a lender. The report found that, even with compound interest, those saving into a typical easy access account with an interest rate of 1.25pc would need eight years and six months to raise the typical deposit needed of just over £26,000.
Some 7pc of potential buyers plan to go to their parents for extra help, while 4pc said they are hoping an inheritance would plug their deposit gaps. Almost a fifth of first-time buyers who had bought a home in the last year told the study they had had help from the "bank of mum and dad" with their deposit, compared with 13pc of people who had bought a property five years ago.
However, someone who consistently shopped around to get a better rate of interest could cut the length of time it would take to save up, especially if you have the help of experienced IFA’s like Enable of Bishop's Stortford.
At Enable our experienced IFA’s know lenders have toughened their borrowing criteria in recent months, and more than one in 10 would-be buyers told Yorkshire's survey that they were worried about being accepted by a lender. The report found that, even with compound interest, those saving into a typical easy access account with an interest rate of 1.25pc would need eight years and six months to raise the typical deposit needed of just over £26,000.
Some 7pc of potential buyers plan to go to their parents for extra help, while 4pc said they are hoping an inheritance would plug their deposit gaps. Almost a fifth of first-time buyers who had bought a home in the last year told the study they had had help from the "bank of mum and dad" with their deposit, compared with 13pc of people who had bought a property five years ago.
However, someone who consistently shopped around to get a better rate of interest could cut the length of time it would take to save up, especially if you have the help of experienced IFA’s like Enable of Bishop's Stortford.
Wednesday, 17 October 2012
Children in Debt
Enable's Independent Financial Advisors know that many parents want to be able to help their children financially at the moment and lots of grown up children are still living at home. One of the problems that can arise is that young people living at your address might be terrible at paying their bills. This should not affect your credit rating however.
Contrary to popular belief, there is no such thing as an address with a bad credit history. Since 2004, credit reference agencies have changed the way they handle your details. Frequently, if someone with a similar name lives at your address, then a second stage of identification will have to be completed. The old information, dating back to before 1993, listing addresses with bad scores, has been wiped from the system. Credit scores are done specifically on your name, address and bank details. If someone else in your property has a particularly bad credit score, then it will not affect yours. However, it is worth checking to make sure their details have not accidentally slipped on to your record.
If a lender refuses you credit, it must say why. Under the Data Protection Act, if you are refused credit, and scoring was used to help the lender decide, you can ask for a review of your application.
This gives you the chance to review your rating and see where it may need improving. Alternatively, it gives you the chance to point out mistakes that may be on your record.
Contrary to popular belief, there is no such thing as an address with a bad credit history. Since 2004, credit reference agencies have changed the way they handle your details. Frequently, if someone with a similar name lives at your address, then a second stage of identification will have to be completed. The old information, dating back to before 1993, listing addresses with bad scores, has been wiped from the system. Credit scores are done specifically on your name, address and bank details. If someone else in your property has a particularly bad credit score, then it will not affect yours. However, it is worth checking to make sure their details have not accidentally slipped on to your record.
If a lender refuses you credit, it must say why. Under the Data Protection Act, if you are refused credit, and scoring was used to help the lender decide, you can ask for a review of your application.
This gives you the chance to review your rating and see where it may need improving. Alternatively, it gives you the chance to point out mistakes that may be on your record.
Personal Credit score
Enable's Independent Financial Advisors can help you work with your personal credit scores to make the most of your potential borrowing. Your basic credit score tells you very little and is pretty useless but it will be a number that indicates whether you are a good or bad payer of bills. For example, with Equifax, a score below 299 is very poor, 300-349 is poor, 350-399 is fair, 400-474 is good and above 475 is excellent. To get a better indication of how you can improve your credit score, you need to take out a more detailed credit report.
Many people complain they have never applied for any credit - and therefore had no credit problems – but have been rejected. The credit industry feels more comfortable dealing with people who have a track record of paying off credit so you do actually have more chance of making a successful application if, you have taken out a mortgage or loan previously.
Some basic ways of making sure you improve your credit rating involve making sure all your debts are registered to your correct name and current address. You should close credit cards you don't need and ensure there are no other mistakes on your file, such as other people's debts or payments.
One of the more alternative ways of boosting your rating includes taking store cards and paying off the balances on a regular basis. Opening a variety of accounts will speed up the process, but be sure to clear balances regularly to avoid sky-high interest charges.
Many people complain they have never applied for any credit - and therefore had no credit problems – but have been rejected. The credit industry feels more comfortable dealing with people who have a track record of paying off credit so you do actually have more chance of making a successful application if, you have taken out a mortgage or loan previously.
Some basic ways of making sure you improve your credit rating involve making sure all your debts are registered to your correct name and current address. You should close credit cards you don't need and ensure there are no other mistakes on your file, such as other people's debts or payments.
One of the more alternative ways of boosting your rating includes taking store cards and paying off the balances on a regular basis. Opening a variety of accounts will speed up the process, but be sure to clear balances regularly to avoid sky-high interest charges.
Getting Credit right
Independent Financial Advisors at Enable in Bishops Stortford see it as part of their role to help people find the right credit arrangements for the right parts of their financial journey through life. So it is with interest we note that for the first time in three years it is cheaper for European banks to access the credit markets than it is for the region's investment-grade corporates – “a dynamic that bodes well for the provision of credit to the wider economy”, say US bank Morgan Stanley in a report published recently.
How can this help us you might ask? The US bank said: "Not only can this help reduce systemic risk and if sustained over time ease the pace of deleveraging – it clearly can help wholesale banks’ business models." "This is fundamentally a good direction of travel and speaks to the dramatic reduction in perceived tail risks by ECB activity (first Long Term Refinancing Operation and then Outright Monetary Transactions), even if the central case for the economy looks poor."
In particular, it pointed to increased issuance from 'national champion' banks in Italy, France and Spain, but also some Yankee issuance from organisations like BNP Paribas, BVA and Crédit Agricole.
"This is not to say we are becoming blasé. The tenor of some of the deals we know is short. Second, banks are still and will continue to deleverage: senior bank funding issuance is down 25% this year." Said Morgan Stanley.
How can this help us you might ask? The US bank said: "Not only can this help reduce systemic risk and if sustained over time ease the pace of deleveraging – it clearly can help wholesale banks’ business models." "This is fundamentally a good direction of travel and speaks to the dramatic reduction in perceived tail risks by ECB activity (first Long Term Refinancing Operation and then Outright Monetary Transactions), even if the central case for the economy looks poor."
In particular, it pointed to increased issuance from 'national champion' banks in Italy, France and Spain, but also some Yankee issuance from organisations like BNP Paribas, BVA and Crédit Agricole.
"This is not to say we are becoming blasé. The tenor of some of the deals we know is short. Second, banks are still and will continue to deleverage: senior bank funding issuance is down 25% this year." Said Morgan Stanley.
Wednesday, 10 October 2012
Jobs (Source: The Office for National Statistics)
The latest unemployment rate in the UK continues to throw up anomalies against the poor Gross Domestic Product (GDP) figures recently released for Q2 2012.
Unemployment has continued to fall, confounding many market analysts, with the number of fulltime workers increasing by 102,000 on the previous quarter, up 0.5%. This represents the best figures since April 2009. Part-time workers also increased by 134,000 to a total of 8.12 million; this is the highest figure recorded since records began in 1992.
Overall, the unemployment rate for the three months to July 2012 was 8.1%, which is a reduction of 0.1% amounting to 2.59 million people. The flip side to these figures is that 71.2% of the workforce is currently in employment.
Those unemployed for over one year has increased by 22,000 from the previous quarter to 904,000, the highest figure since the quarter ending March 1996.
The youth jobs market (those between 16-24 years old) improved slightly in the three months to July 2012 with an additional 58,000 finding employment, but there remained 1.02 million of those unemployed representing 21.6%.
Those unemployed claiming Job Seekers Allowance also fell by 15,000 to 1.57 million between July and August 2012.
The disparity seen between the private and public sectors continues with private sector employment increasing by 471,000 from March 2012 to 23.9 million, whilst the public sector saw a decline of 235,000 people to 5.66 million.
Redundancies fell by 13,000 from the quarter ending April 2012 and down 20,000 from a year earlier. Therefore the redundancy rate was 5.7 per 1,000 employees, again down 0.5 on the previous quarter and 0.8 on the year earlier.
Total pay saw an increase of 1.5% with average total pay (including bonuses) being £471 per week. Average regular pay (excluding bonuses) was recorded at £443 per week.
So in brief…
Unemployment continues to fall
All eyes still on the Eurozone...
Unemployment has continued to fall, confounding many market analysts, with the number of fulltime workers increasing by 102,000 on the previous quarter, up 0.5%. This represents the best figures since April 2009. Part-time workers also increased by 134,000 to a total of 8.12 million; this is the highest figure recorded since records began in 1992.
Overall, the unemployment rate for the three months to July 2012 was 8.1%, which is a reduction of 0.1% amounting to 2.59 million people. The flip side to these figures is that 71.2% of the workforce is currently in employment.
Those unemployed for over one year has increased by 22,000 from the previous quarter to 904,000, the highest figure since the quarter ending March 1996.
The youth jobs market (those between 16-24 years old) improved slightly in the three months to July 2012 with an additional 58,000 finding employment, but there remained 1.02 million of those unemployed representing 21.6%.
Those unemployed claiming Job Seekers Allowance also fell by 15,000 to 1.57 million between July and August 2012.
The disparity seen between the private and public sectors continues with private sector employment increasing by 471,000 from March 2012 to 23.9 million, whilst the public sector saw a decline of 235,000 people to 5.66 million.
Redundancies fell by 13,000 from the quarter ending April 2012 and down 20,000 from a year earlier. Therefore the redundancy rate was 5.7 per 1,000 employees, again down 0.5 on the previous quarter and 0.8 on the year earlier.
Total pay saw an increase of 1.5% with average total pay (including bonuses) being £471 per week. Average regular pay (excluding bonuses) was recorded at £443 per week.
So in brief…
Unemployment continues to fall
All eyes still on the Eurozone...
Latest Market news: (Data compiled by The Outsourced Marketing Department)
With the equity markets still closely following developments in the Eurozone, the mixed messages coming out of Spain and Germany resulted in a lively monthly session.
The UK’s FTSE100 had gained over 3.5% at the mid-point in the month
to stand at 5,915.5, however, the Spanish economy’s continuing weakness coupled with the prospect of them having to request a bail-out from the EU, meant it fell back later to end the month on 5,742.1, up only a modest 0.54%. It now sits at -11.94% against its long term trend. The FTSE250 fared a little better gaining 2.84% on the month and finishing at 11,734.1. The AIM also did well closing September on 705.76 or up 3.66%.
American markets remained more resilient with the Dow Jones closing on 13,437.13 up 2.65% and the Nasdaq up 1.61% at 3,116.23. Mirroring the movements of the FTSE100 the Eurostoxx50 closed relatively flat at 2,454.26 or up 0.56%. In Japan the Nikkei ended the month on 8,870.16 to show a rise of 0.34%.
Currencies also followed the Eurozone news with sterling finishing at $1.61, up a modest 1.5% against the greenback and at €1.252 against the euro, a dip of 0.87%. The euro itself ended the session on $1.29 against the US$.
Gold continued to glitter, with bullish sentiment and forecasts for the precious metal pushing the price up again for the fourth straight month, finishing September on $1,772.04. This represents a 15.7% appreciation so far this calendar year, but is still below its September 2011 peak of $1,921.
On the oil markets Brent Crude saw little change during the month ending on $112.39.
Enable's monthly economic review is intended to provide background to recent developments in investment markets as well as to give an indication of how some key issues could impact in the future.
It is not intended that individual investment decisions should be taken based on this information; we are always ready to discuss your individual requirements.
The UK’s FTSE100 had gained over 3.5% at the mid-point in the month
to stand at 5,915.5, however, the Spanish economy’s continuing weakness coupled with the prospect of them having to request a bail-out from the EU, meant it fell back later to end the month on 5,742.1, up only a modest 0.54%. It now sits at -11.94% against its long term trend. The FTSE250 fared a little better gaining 2.84% on the month and finishing at 11,734.1. The AIM also did well closing September on 705.76 or up 3.66%.
American markets remained more resilient with the Dow Jones closing on 13,437.13 up 2.65% and the Nasdaq up 1.61% at 3,116.23. Mirroring the movements of the FTSE100 the Eurostoxx50 closed relatively flat at 2,454.26 or up 0.56%. In Japan the Nikkei ended the month on 8,870.16 to show a rise of 0.34%.
Currencies also followed the Eurozone news with sterling finishing at $1.61, up a modest 1.5% against the greenback and at €1.252 against the euro, a dip of 0.87%. The euro itself ended the session on $1.29 against the US$.
Gold continued to glitter, with bullish sentiment and forecasts for the precious metal pushing the price up again for the fourth straight month, finishing September on $1,772.04. This represents a 15.7% appreciation so far this calendar year, but is still below its September 2011 peak of $1,921.
On the oil markets Brent Crude saw little change during the month ending on $112.39.
Enable's monthly economic review is intended to provide background to recent developments in investment markets as well as to give an indication of how some key issues could impact in the future.
It is not intended that individual investment decisions should be taken based on this information; we are always ready to discuss your individual requirements.
We are saving more, especially the women
In the latest survey from National Savings and Investments (NS&I) it is reported that we are saving more as a nation, although still not as much as we did in the winter of 2011/12.
We are now saving 7.17% of our disposable income each month or £90 in real terms. This is an increase from the 7.08% recorded in the previous quarter.
It is interesting to note that the 25-34 year olds lead the way by saving significantly more than the average, at £103 a month or 8%, which is itself an increase from the previously reported 7.24% for this group. Also, women appear more thrifty than men in this respect, with women saving 7.65% of income against the men’s average of only 6.82%.
One of the factors affecting these results is that over 50% of women appear to set savings goals on a regular basis and feel rewarded when these are met. Men are less likely to use this strategy, as only 41% reported doing so.
Other statistics emerging from the report are that the Scots save 7.35% or £95 a month and the Welsh 7.7% or £87 in real terms, due to lower average wages in this region.
The NS&I Retail Customer Director, John Prout, was quoted as saying: “It is encouraging to see this improvement in over recent months, and it’s particularly good to see such motivation from younger people. Setting goals is an effective way to get into a regular savings habit. Not only do they encourage people to save, they provide a real sense of achievement once a goal has been reached.”
Enable's monthly economic review is intended to provide background to recent developments in investment markets as well as to give an indication of how some key issues could impact in the future.
It is not intended that individual investment decisions should be taken based on this information; we are always ready to discuss your individual requirements.
We are now saving 7.17% of our disposable income each month or £90 in real terms. This is an increase from the 7.08% recorded in the previous quarter.
It is interesting to note that the 25-34 year olds lead the way by saving significantly more than the average, at £103 a month or 8%, which is itself an increase from the previously reported 7.24% for this group. Also, women appear more thrifty than men in this respect, with women saving 7.65% of income against the men’s average of only 6.82%.
One of the factors affecting these results is that over 50% of women appear to set savings goals on a regular basis and feel rewarded when these are met. Men are less likely to use this strategy, as only 41% reported doing so.
Other statistics emerging from the report are that the Scots save 7.35% or £95 a month and the Welsh 7.7% or £87 in real terms, due to lower average wages in this region.
The NS&I Retail Customer Director, John Prout, was quoted as saying: “It is encouraging to see this improvement in over recent months, and it’s particularly good to see such motivation from younger people. Setting goals is an effective way to get into a regular savings habit. Not only do they encourage people to save, they provide a real sense of achievement once a goal has been reached.”
Enable's monthly economic review is intended to provide background to recent developments in investment markets as well as to give an indication of how some key issues could impact in the future.
It is not intended that individual investment decisions should be taken based on this information; we are always ready to discuss your individual requirements.
UK funding for business is now on course
In a two-pronged initiative the coalition government has announced the creation of a new ‘British Business Bank’; an entity that will initially be funded with £1bn of taxpayers’ money and, hopefully, a larger private sector contribution in due course.
The brief for this Business Bank will be to offer funding to small and medium-sized businesses and “get behind” good firms who are currently struggling to
receive financing from the high street banks.
It is hoped that the Business Bank will operate via the existing lenders and start
disbursing funds within 18 months. It has not been made clear, however, exactly where the state funding will come from and we will have to wait until the Chancellor’s autumn statement on December 5th for the details.
Any disbursements will be in the form of equity stakes or guarantees; therefore, they will sit on the balance sheet of the recipient businesses and not be reclaimed by the government. Vince Cable, the business secretary, stated that
there is, however, a chance they could generate a return for the taxpayer in the long run.
The second string to this initiative is the previously announced Funding for Lending scheme (FLS), which is also designed to make cheaper loans available to businesses and individual entrepreneurs.
In an announcement in late September, five of the largest banks in the UK have agreed to participate in this scheme, which means that thirteen banks and building societies have now signed up. Together they will represent 73% of the
lending market, worth approximately £1.2 trillion. Only HSBC has declined to take part, as it states that it does not require the additional funding.
The participating banks and building societies will be able to borrow 5% of their loan books straight away and increase this percentage if certain criteria are met.
They will be charged a minimal 0.25% interest on these funds, provided that they increase their overall lending as a result. Should they decrease their lending, then they will be charged 1.5% by the by the Bank of England.
The UK taxpayer and the Bank of England will be covered against any possible losses, as the borrowing banks and institutions will have to lodge collateral with the Bank of a higher value than the loans offered.
Given their current lending figures, this could result in an additional £60bn being made available from the Bank of England for them to lend on to businesses at more competitive rates. news on inflation front SME’s get funding window
The Bank of England’s executive director for markets, Paul Fisher, commenting on this announcement said a: “significant number” of additional building societies and banks were considering joining the scheme. He went on to add: “I am confident that the FLS will help the supply of credit.
Before its introduction, it was more likely than not that the stock of credit would contract further over the next 18 months.”
The brief for this Business Bank will be to offer funding to small and medium-sized businesses and “get behind” good firms who are currently struggling to
receive financing from the high street banks.
It is hoped that the Business Bank will operate via the existing lenders and start
disbursing funds within 18 months. It has not been made clear, however, exactly where the state funding will come from and we will have to wait until the Chancellor’s autumn statement on December 5th for the details.
Any disbursements will be in the form of equity stakes or guarantees; therefore, they will sit on the balance sheet of the recipient businesses and not be reclaimed by the government. Vince Cable, the business secretary, stated that
there is, however, a chance they could generate a return for the taxpayer in the long run.
The second string to this initiative is the previously announced Funding for Lending scheme (FLS), which is also designed to make cheaper loans available to businesses and individual entrepreneurs.
In an announcement in late September, five of the largest banks in the UK have agreed to participate in this scheme, which means that thirteen banks and building societies have now signed up. Together they will represent 73% of the
lending market, worth approximately £1.2 trillion. Only HSBC has declined to take part, as it states that it does not require the additional funding.
The participating banks and building societies will be able to borrow 5% of their loan books straight away and increase this percentage if certain criteria are met.
They will be charged a minimal 0.25% interest on these funds, provided that they increase their overall lending as a result. Should they decrease their lending, then they will be charged 1.5% by the by the Bank of England.
The UK taxpayer and the Bank of England will be covered against any possible losses, as the borrowing banks and institutions will have to lodge collateral with the Bank of a higher value than the loans offered.
Given their current lending figures, this could result in an additional £60bn being made available from the Bank of England for them to lend on to businesses at more competitive rates. news on inflation front SME’s get funding window
The Bank of England’s executive director for markets, Paul Fisher, commenting on this announcement said a: “significant number” of additional building societies and banks were considering joining the scheme. He went on to add: “I am confident that the FLS will help the supply of credit.
Before its introduction, it was more likely than not that the stock of credit would contract further over the next 18 months.”
Inflation dipped in August
Inflation dipped in August continuing a positive trend, UK price rises were trimmed in August, compared to the previous month, according to the Office for National Statistics (ONS).
Both the Consumer Prices Index (CPI) and the Retail Prices Index (RPI) – which also includes housing costs – measures fell during the month, with the CPI change dipping to 2.5% in August, against 2.6% recorded in the previous month and the RPI movement showing a drop to 2.9% from 3.2% in July.
The ONS stated that factors behind the fall in the CPI were smaller rises in gas prices and furniture costs. Whilst reporting this data, the ONS also said that they will be consulting on possible changes to their RPI calculation methods between the 8th of October and the 30th of November this year.
Given that CPI inflation peaked at 5.2% in September 2011, these new figures are good news for consumers, the Bank of England, who have been set a target of 2%, and the Government. The expected drop in demand in the UK economy should result in inflation continuing to decline towards this 2% target in the short term.
This said, the ONS did warn that there remain a few factors that may put upward pressure on prices. Mr Richard Campbell, an ONS director, was quoted as saying:
“Some of the utility companies are talking about price increases in the next few months, while there have been reports of poor harvests in many parts of the world, which could possibly have an impact on food prices.
“Finally, if the oil price continues to go up, we expect that to feed through to petrol and diesel prices.”
With the UK economy having contracted over the past three quarters and the Bank of England’s additional Quantitative Easing (QE) programme worrying analysts that it would stoke inflationary pressure, these lower CPI and RPI figures eased their concerns in this regard.
Our monthly economic review is intended to provide background to recent developments in investment markets as well as to give an indication of how some key issues could impact in the future.
It is not intended that individual investment decisions should be taken based on this information; we are always ready to discuss your individual requirements.
Both the Consumer Prices Index (CPI) and the Retail Prices Index (RPI) – which also includes housing costs – measures fell during the month, with the CPI change dipping to 2.5% in August, against 2.6% recorded in the previous month and the RPI movement showing a drop to 2.9% from 3.2% in July.
The ONS stated that factors behind the fall in the CPI were smaller rises in gas prices and furniture costs. Whilst reporting this data, the ONS also said that they will be consulting on possible changes to their RPI calculation methods between the 8th of October and the 30th of November this year.
Given that CPI inflation peaked at 5.2% in September 2011, these new figures are good news for consumers, the Bank of England, who have been set a target of 2%, and the Government. The expected drop in demand in the UK economy should result in inflation continuing to decline towards this 2% target in the short term.
This said, the ONS did warn that there remain a few factors that may put upward pressure on prices. Mr Richard Campbell, an ONS director, was quoted as saying:
“Some of the utility companies are talking about price increases in the next few months, while there have been reports of poor harvests in many parts of the world, which could possibly have an impact on food prices.
“Finally, if the oil price continues to go up, we expect that to feed through to petrol and diesel prices.”
With the UK economy having contracted over the past three quarters and the Bank of England’s additional Quantitative Easing (QE) programme worrying analysts that it would stoke inflationary pressure, these lower CPI and RPI figures eased their concerns in this regard.
Our monthly economic review is intended to provide background to recent developments in investment markets as well as to give an indication of how some key issues could impact in the future.
It is not intended that individual investment decisions should be taken based on this information; we are always ready to discuss your individual requirements.
Tuesday, 2 October 2012
Cashback cards...
Enable’s Independent Financial Advisors know that looking after the pennies really does help you look after the pounds, every little helps along the way with Financial planning. Even if living costs were not high and likely to rise, we would always encourage UK household to be a little more creative when it comes to their finances.
In an ideal world you should always pay off your credit card balance every month and if you do pay off your credit card balance in full every month, you should maybe consider taking advantage of one of the many cards which reward you for your spending. Recently there has been the launch of several generous cash back and reward credit cards which offer loyalty points or a monetary bonus every time you buy something using the card.
Some cards offer points which can be redeemed against flights, while others provide points which you can use to get money off your shopping at certain shops. Alternatively you can simply opt for a cashback card, and get a percentage of everything you spend knocked off your balance. Certain cards will pay you the same amount of cashback regardless of where you are shopping, whereas other cards offer different cashback rates depending on where you use the card.
These cards are a no-brainer if you clear your balance without fail every month, as you are effectively getting something for nothing. Creative financial advice from Enable of Bishop’s Stortford is what our IFA’s are all about.
What is the cost of credit?
Once the kids have left home, even got that university education and hopefully an interesting job in their chosen field then it’s the dreaded deposit for their first home. Enable’s Independent Financial Advisors come across many families who are trying to support their children get that firs foot on the ladder but it’s wise to help the children have as much of an understanding of financial planning a s possible.
Ironically for many youngsters the lack of credit history can be a bit of a stumbling block. They may even have healthy finances and you might have always been in the black but if they have never had their own phone contact or paid a utility bill or used a credit card they may have little or no credit history. Never having had a credit history makes you a poorer candidate for a mortgage than someone who has three credit cards and pays the minimum amount each month.
Banks want to see they repayments can be managed overtime before they take the risk and loan money particularly on first properties so it is important to build up a credit history. So as well as saving to support your children experienced IFA's like those at Enable would also suggest allowing your children to build up a credit history with their won bank account that manages sensible and regular payments say on phones or credit cards. Learning about credit history is an invaluable life lesson to teach them alongside how to manage their finances.
Ironically for many youngsters the lack of credit history can be a bit of a stumbling block. They may even have healthy finances and you might have always been in the black but if they have never had their own phone contact or paid a utility bill or used a credit card they may have little or no credit history. Never having had a credit history makes you a poorer candidate for a mortgage than someone who has three credit cards and pays the minimum amount each month.
Banks want to see they repayments can be managed overtime before they take the risk and loan money particularly on first properties so it is important to build up a credit history. So as well as saving to support your children experienced IFA's like those at Enable would also suggest allowing your children to build up a credit history with their won bank account that manages sensible and regular payments say on phones or credit cards. Learning about credit history is an invaluable life lesson to teach them alongside how to manage their finances.
So how much does it cost to bring up a child?
Apparently the current average cost of raising a child till their 21st birthday no stands at more than £218, 000. Try doubling let alone trebling that sum and it can seem a bit daunting. Independent Financial Advisors Enable are experts in helping you make the most of your earnings and savings, putting in place financial plans to help you cope with the stresses and strains of family life.
It would seem childcare and education are the biggest cost to parents according to LV’s Cost Of a Child Survey. Childcare coming in at £71780 and education at £62 099. IFA's like Enable can help you plan for managing these costs but one of the first things you should do when starting a family is make sure you are receiving any of the benefits you are entitled to. Child benefit for example is for parents with dependents up to 16 or until the age of 20 if in fulltime education. It is about £20 a week for your fist and slightly less for subsequent children, although every child will be entitled to some benefit. But remember families earning more than £50,000 p.a will not be entitled to the full amount and those on £60,000 or more will stop getting any child benefit in 2013.
Whether or not your family is entitled to child benefit Enable's Independent Financial Advisors can try and help you get maximum benefit from you finances for your family.
It would seem childcare and education are the biggest cost to parents according to LV’s Cost Of a Child Survey. Childcare coming in at £71780 and education at £62 099. IFA's like Enable can help you plan for managing these costs but one of the first things you should do when starting a family is make sure you are receiving any of the benefits you are entitled to. Child benefit for example is for parents with dependents up to 16 or until the age of 20 if in fulltime education. It is about £20 a week for your fist and slightly less for subsequent children, although every child will be entitled to some benefit. But remember families earning more than £50,000 p.a will not be entitled to the full amount and those on £60,000 or more will stop getting any child benefit in 2013.
Whether or not your family is entitled to child benefit Enable's Independent Financial Advisors can try and help you get maximum benefit from you finances for your family.
Monday, 24 September 2012
Trusts and IHT
Inheritance Tax (IHT) is commonly understood as the tax paid on an estate when an individual dies. However, it can also apply to certain lifetime transfers and there is a separate regime that applies to assets held in certain types of trust.
A trust is a legal arrangement where one or more “trustees” are made legally responsible for holding assets (for example land, money, buildings, or other investments) that have been placed (“settled”) in trust for the benefit of one or more “beneficiaries”.
There are three main occasions when IHT may be charged on arrangements involving most types of trust: when an individual settles assets in a trust, an IHT charge, commonly referred to as an ’entry charge’, is levied. Tax is charged at a rate of 20% on the chargeable value of the assets transferred into trust that is in excess of the IHT nil-rate band, when a trust reaches each ten-year anniversary from when it was set up a periodic charge is levied. This can be up to 6% of the chargeable value of the property in the trust, and when assets are transferred out of a trust, or the trust comes to an end an exit charge effectively ensures that a proportionate IHT charge is imposed on assets that would not be subject to tax at the next periodic charge.
Sorting out some of the implications of trusts and IHT can be confusing and complicated which is why you might want to turn to experienced IFAs like those at Enable of Bishops Stortford.
A trust is a legal arrangement where one or more “trustees” are made legally responsible for holding assets (for example land, money, buildings, or other investments) that have been placed (“settled”) in trust for the benefit of one or more “beneficiaries”.
There are three main occasions when IHT may be charged on arrangements involving most types of trust: when an individual settles assets in a trust, an IHT charge, commonly referred to as an ’entry charge’, is levied. Tax is charged at a rate of 20% on the chargeable value of the assets transferred into trust that is in excess of the IHT nil-rate band, when a trust reaches each ten-year anniversary from when it was set up a periodic charge is levied. This can be up to 6% of the chargeable value of the property in the trust, and when assets are transferred out of a trust, or the trust comes to an end an exit charge effectively ensures that a proportionate IHT charge is imposed on assets that would not be subject to tax at the next periodic charge.
Sorting out some of the implications of trusts and IHT can be confusing and complicated which is why you might want to turn to experienced IFAs like those at Enable of Bishops Stortford.
Financial planning - married couples and civil partners
Enable’s Independent Financial Advisors like to know about the people they help to plan for financially. So much of our financial planning is about taking care of our families or spouses and making sure we make the most of our assets and income. So planning with your spouse to make the most of your assets comes as no surprise.
There have always been advantages for married couples in financial planning but relatively new inheritance tax rules have come into place for married couples and civil partners who are now allowed to pass their possessions and assets to each other tax-free. This is something experienced Independent financial advisors like those at Enable of Bishop’s Stortford would be able to help you with.
Since October 2007, the surviving partner is now allowed to use both tax-free allowances (providing one wasn’t used at the first death). Meaning married couples and Civil Partners can boost their IHT-free allowance by claiming any ‘nil-rate band’ their deceased partner has not used. The allowance currently stands at £325,000 per person. So it means that if the first partner has made no use of their nil-rate band (by leaving everything to their spouse, for example), the second partner effectively has a double allowance of £650,000. If the first partner used part of their allowance, the unused proportion is carried over to the second - and applied at the current rate. At Enable we would be happy to help you think through your financial planning to make sure it benefits the whole family.
There have always been advantages for married couples in financial planning but relatively new inheritance tax rules have come into place for married couples and civil partners who are now allowed to pass their possessions and assets to each other tax-free. This is something experienced Independent financial advisors like those at Enable of Bishop’s Stortford would be able to help you with.
Since October 2007, the surviving partner is now allowed to use both tax-free allowances (providing one wasn’t used at the first death). Meaning married couples and Civil Partners can boost their IHT-free allowance by claiming any ‘nil-rate band’ their deceased partner has not used. The allowance currently stands at £325,000 per person. So it means that if the first partner has made no use of their nil-rate band (by leaving everything to their spouse, for example), the second partner effectively has a double allowance of £650,000. If the first partner used part of their allowance, the unused proportion is carried over to the second - and applied at the current rate. At Enable we would be happy to help you think through your financial planning to make sure it benefits the whole family.
IHT explaining the basics
Inheritance Tax (IHT) is commonly
understood as the tax paid on an estate when an individual dies. However, it
can also apply to certain lifetime transfers and there is a separate regime
that applies to assets held in certain types of trust.
A trust is a legal arrangement where one or
more “trustees” are made legally responsible for holding assets (for example
land, money, buildings, or other investments) that have been placed (“settled”)
in trust for the benefit of one or more “beneficiaries”.
There are three main occasions when IHT may
be charged on arrangements involving most types of trust: when an individual
settles assets in a trust, an IHT charge, commonly referred to as an ’entry
charge’, is levied. Tax is charged at a rate of 20% on the chargeable value of
the assets transferred into trust that is in excess of the IHT nil-rate band,
when a trust reaches each ten-year anniversary from when it was set up a
periodic charge is levied. This can be up to 6% of the chargeable value of the
property in the trust, and when assets are transferred out of a trust, or the
trust comes to an end an exit charge effectively ensures that a proportionate
IHT charge is imposed on assets that would not be subject to tax at the next
periodic charge.
Sorting out some of the implications of
trusts and IHT can be confusing and complicated which is why you might want to
turn to experienced IFAs like those at Enable of Bishops Stortford.
Tuesday, 18 September 2012
Poor inheritance tax costs the UK taxpayer billions
A recent report reveals that UK taxpayers will pay £1.3bn this year 'due to poor inheritance tax (IHT) planning'. 'With the IHT threshold frozen for another three years, it is important to make sure your financial affairs are in order to protect your loved ones after you’ve gone. Enables Independent Financial advisors are here to help every step of the way. There are 5 main ways to manage your Inheritance tax liability. Enable will look at the options in more detail over the next few weeks.
1. Claim a partner’s unused IHT allowance
Married couples and Civil Partners can boost their IHT-free allowance by claiming any ‘nil-rate band’ their deceased partner has not used.
2. Reduce your estate by making tax-free lifetime gifts
Gifts made during your lifetime can reduce the size of your estate substantially, but there is a limit to how much you can give away tax-free in a single year.
3. Reduce your estate by making potentially exempt transfers
Larger lifetime gifts may escape IHT but only if you live for seven years after making them. Known as potentially exempt transfers (PETs), they are added back into your estate if they ‘fail’.
4. Insure against inheritance tax
If you think your heirs might be faced with IHT, you can take out a whole of life insurance policy to cover the likely bill.
5. Make gifts to charity
Gifts to charity reduce the size of your taxable estate. From April 2012, they can also reduce the rate of IHT your heirs have to pay.
1. Claim a partner’s unused IHT allowance
Married couples and Civil Partners can boost their IHT-free allowance by claiming any ‘nil-rate band’ their deceased partner has not used.
2. Reduce your estate by making tax-free lifetime gifts
Gifts made during your lifetime can reduce the size of your estate substantially, but there is a limit to how much you can give away tax-free in a single year.
3. Reduce your estate by making potentially exempt transfers
Larger lifetime gifts may escape IHT but only if you live for seven years after making them. Known as potentially exempt transfers (PETs), they are added back into your estate if they ‘fail’.
4. Insure against inheritance tax
If you think your heirs might be faced with IHT, you can take out a whole of life insurance policy to cover the likely bill.
5. Make gifts to charity
Gifts to charity reduce the size of your taxable estate. From April 2012, they can also reduce the rate of IHT your heirs have to pay.
Are you paying for the wedding?...Legal fees for church weddings
One of the other things our experienced Independent Financial Advisors at Enable have seen over the years is that fathers save for is their daughters weddings and there is no doubt that the choices made about the wedding day can make a huge impact on the cost. Bringing your experience to bear on the financial arrangements is vital.
A church wedding might make the day that bit more personal and special but it might not have to cost a small fortune. There is a relatively small legal fee for marrying in a church. The current minimum is £322 for weddings taking place in 2012, which includes all legal necessities. This figure is based on a couple living at the same address and marrying outside their own parish.
It includes:
the fee set by law payable to the church: £262
your marriage certificate: £4
having your banns read at the home church: £22
having your banns read at the church where you will marry: £22
your banns certificate: £12
Total legal fee: £322
This is set by the Church of England nationally. It may vary slightly for you depending on your circumstances. It is always a good idea to work out all these costs with the Vicar early on so that you know what to expect on your final bill. It is good practice for the church to provide you with an itemised bill before your wedding so that you can see exactly what you will be paying for. Remember flowers Organists and Bell ringing will probably be extras
A church wedding might make the day that bit more personal and special but it might not have to cost a small fortune. There is a relatively small legal fee for marrying in a church. The current minimum is £322 for weddings taking place in 2012, which includes all legal necessities. This figure is based on a couple living at the same address and marrying outside their own parish.
It includes:
the fee set by law payable to the church: £262
your marriage certificate: £4
having your banns read at the home church: £22
having your banns read at the church where you will marry: £22
your banns certificate: £12
Total legal fee: £322
This is set by the Church of England nationally. It may vary slightly for you depending on your circumstances. It is always a good idea to work out all these costs with the Vicar early on so that you know what to expect on your final bill. It is good practice for the church to provide you with an itemised bill before your wedding so that you can see exactly what you will be paying for. Remember flowers Organists and Bell ringing will probably be extras
Second Step on the property ladder?
Enable's Independent Financial Advisors understand that a home to live and grow in is vital to well being. But making that step up from a first-time buyer to a second home has risen almost threefold in the last decade. And in our experience parents like to help their children take steps forward.
A resent, Lloyds TSB report found the price difference between a typical first-time buyer flat and the semi-detached home desired by many "second steppers" has risen from £14,000 10 years ago to almost £41,000.Researchers said nearly half of first-time buyers live in flats, which average £148,502 in value. The typical price for a semi-detached house, the type of property often favoured by second steppers, stands at £189,312, meaning they face a 27% premium to trade up.Second steppers in the South East face the biggest percentage premium at 52%, equating to almost £85,000 to make the jump to their second home.
Stephen Noakes, Lloyds TSB mortgage director, said: "Second steppers face a number of tough challenges and in many ways have been the hardest hit by the subdued housing market, so it is unsurprising that they are struggling to fund the gap needed to trade up to their preferred second home. Parents have long been helping to fund their children's first home but many are now having to provide further support as they move up the ladder."
Enables Independent Financial Advisors can help you or your children to plan for your next big step with mortgage and savings advice.
A resent, Lloyds TSB report found the price difference between a typical first-time buyer flat and the semi-detached home desired by many "second steppers" has risen from £14,000 10 years ago to almost £41,000.Researchers said nearly half of first-time buyers live in flats, which average £148,502 in value. The typical price for a semi-detached house, the type of property often favoured by second steppers, stands at £189,312, meaning they face a 27% premium to trade up.Second steppers in the South East face the biggest percentage premium at 52%, equating to almost £85,000 to make the jump to their second home.
Stephen Noakes, Lloyds TSB mortgage director, said: "Second steppers face a number of tough challenges and in many ways have been the hardest hit by the subdued housing market, so it is unsurprising that they are struggling to fund the gap needed to trade up to their preferred second home. Parents have long been helping to fund their children's first home but many are now having to provide further support as they move up the ladder."
Enables Independent Financial Advisors can help you or your children to plan for your next big step with mortgage and savings advice.
Wednesday, 12 September 2012
China backing global recovery
China will pursue steady policies and seek to boost domestic demand, said Chinese President Hu Jintao to try and maintain economic growth to support a global recovery, he was speaking ahead of the start of the Asia-Pacific Economic Co-operation (Apec) summit in the Russian port city of Vladivostok.
All countries in the region, he said, shared a responsibility to maintain peace and stability. "The world economy today is recovering slowly, and there are still some destabilising factors and uncertainties," President Hu told businessmen in a speech before the summit. "The underlying impact of the international financial crisis is far from over. "We will work to maintain the balance between keeping steady and robust growth, adjusting the economic structure and managing inflation expectations. We will boost domestic demand and maintain steady and robust growth as well as basic price stability."
US Secretary of State Hillary Clinton also urged countries in the region to lift more barriers to free trade in the Pacific. American officials say they would welcome a more active Russian role in the region. "Fostering a balanced and stable economy is a challenge too sweeping and complex for countries to approach in isolation," Mrs Clinton said. "If we do this right, globalisation can become a race to the top, with rising standards of living and more broadly shared prosperity."
Experienced Independent Financial Advisors at Enable know how important it is to keep abreast of global trends to enable more broadly shared prosperity and manage wealth effectively.
Asset management in the news
Cambridgeshire IFA’s Enable can help with all forms of asset management, sometimes it is interesting to note what other individuals and institutions are up to. Over the summer, the London Borough of Camden invested 5% of its assets, or about £40-£50m, with BlueCrest Capital Management in a fund-of-hedge-funds. BlueCrest’s brief is to invest the money in at least four underlying hedge funds, and outperform cash with a lower level of volatility than the stockmarket. Camden is now also considering investing another £50m with Brevan Howard, which came a “close second” to BlueCrest in a recent hedge-funds tender exercise, according to council documents.
Also over the summer, seven local authorities – the county councils of Norfolk, Buckinghamshire, Cambridgeshire, Derbyshire, Lincolnshire and Northamptonshire, along with the London Borough of Croydon – announced the results of their first-ever joint tender for actuarial firms. They added five firms – Aon Hewitt, Barnett Waddingham, Hymans Robertson, KPMG and Mercer – to a permanent shortlist, from which the participating pension funds will now pick candidates any time they want to re-tender their actuarial services contracts.
The seven funds, which oversee pensions assets of about £11bn between them, are shortly to announce further joint-searches for investment consultants and for custodian banks. However, according to Nicola Marks, head of the £2.2bn Norfolk fund, it is unlikely the process will ever be used for investment managers, as there are too many companies and too much variability in the services they offer.
Independent Financial Advice at a more personal level, can be accessed through Enable’s IFA’s to help you manage your assets most effectively.
Also over the summer, seven local authorities – the county councils of Norfolk, Buckinghamshire, Cambridgeshire, Derbyshire, Lincolnshire and Northamptonshire, along with the London Borough of Croydon – announced the results of their first-ever joint tender for actuarial firms. They added five firms – Aon Hewitt, Barnett Waddingham, Hymans Robertson, KPMG and Mercer – to a permanent shortlist, from which the participating pension funds will now pick candidates any time they want to re-tender their actuarial services contracts.
The seven funds, which oversee pensions assets of about £11bn between them, are shortly to announce further joint-searches for investment consultants and for custodian banks. However, according to Nicola Marks, head of the £2.2bn Norfolk fund, it is unlikely the process will ever be used for investment managers, as there are too many companies and too much variability in the services they offer.
Independent Financial Advice at a more personal level, can be accessed through Enable’s IFA’s to help you manage your assets most effectively.
Eurozone - how the markets are responding...
With the focus back on the Eurozone and the markets
responding. Experienced Independent Financial Advisors Enable know it can be a
worrying time. It’s interesting to see that when EU officials are doing their
utmost to make banks slim their balance sheets, analysts have done the
unthinkable and imagined what life would be like if European banks merged into
a megabank.
The analysts at research provider CreditSights created the
megabank by combining the most recent quarterly accounts of 22 banks:
Commerzbank, Royal Bank of Scotland, HSBC, Lloyds Banking Group, Societe
Generale, Danske Bank, Svenska Handelsbanken, Credit Agricole, BNP Paribas,
Barclays, Banco Comercial Portugues, Banco Bilbao Vizcaya Argentaria, ING,
Intesa Sanpaolo, UniCredit, Banco Santander, Credit Suisse Group, UBS, Nordea,
SEB and Deutsche Bank.
The gargantuan beast would have a balance sheet of some
€23.7 trillion with gross loans of €9.2 trillion at the end of June this year. CreditSights estimated that Megabank
would account for about 50% of the European banking sector, making it a “good
proxy for the sector [that] illustrates trends across the region's banking
industry”.
Wednesday, 5 September 2012
Getting the technology right
In the wake of the IT meltdown at the RBS group on 19 June during routine maintenance of the RBS computer system, the Treasury Select Committee is calling on banks to check their IT systems.
The error caused automated batch processing software to malfunction and although this was quickly fixed, the bank was left with a backlog of data to process. Many RBS, NatWest and Ulster Bank customers found that their account balances had failed to update and some customers were unable to access funds, including wages, while payments failed to go through. RBS and NatWest customers experienced difficulties for around two weeks, while the problems took even longer to be resolved at Ulster Bank.
Every bank should be checking its IT systems. The whole system needs to have confidence that such a failure cannot happen again. RBS has launched an investigation into the problems and will look at risk management, contingency planning and the impact of cost-saving measures.
RBS has set aside £125m to compensate customers for the problems they experienced as a result of the meltdown. Ulster Bank has said all customers who visited the bank between 19 June and 18 July and made a transaction will receive £20 to compensate them and is also refunding charges placed on people’s accounts in error and will reimburse “reasonable out-of-pocket expenses” incurred by its customers as a result of the disruption.
Independent Financial Advisors Enable of Bishop’s Stortford are glad to see government requiring action getting the technology right is vital in banking.
The error caused automated batch processing software to malfunction and although this was quickly fixed, the bank was left with a backlog of data to process. Many RBS, NatWest and Ulster Bank customers found that their account balances had failed to update and some customers were unable to access funds, including wages, while payments failed to go through. RBS and NatWest customers experienced difficulties for around two weeks, while the problems took even longer to be resolved at Ulster Bank.
Every bank should be checking its IT systems. The whole system needs to have confidence that such a failure cannot happen again. RBS has launched an investigation into the problems and will look at risk management, contingency planning and the impact of cost-saving measures.
RBS has set aside £125m to compensate customers for the problems they experienced as a result of the meltdown. Ulster Bank has said all customers who visited the bank between 19 June and 18 July and made a transaction will receive £20 to compensate them and is also refunding charges placed on people’s accounts in error and will reimburse “reasonable out-of-pocket expenses” incurred by its customers as a result of the disruption.
Independent Financial Advisors Enable of Bishop’s Stortford are glad to see government requiring action getting the technology right is vital in banking.
Safe as houses still...
Property is often part of any sensible financial planning. Despite the recession, the price of the average house in the UK increased to £164,729 in August, just 0.7 per cent lower than a year ago, their biggest jump since January 2010, says the Nationwide Building Society. Robert Gardner, Nationwide’s chief economist, said: “the fact that the annual pace of house price decline moderated to minus 0.7 per cent in August from minus 2.6 per cent the previous month provides evidence that conditions remain fairly stable. “This may be explained by the surprising resilience evident in the UK labour market, with further increases in employment in recent months, even though the UK economy has remained in recession.” The August price increase follows a 0.8 per cent fall in July.
Depending on your circumstances Enable’s IFA’s know that property investment can work. Earlier in the week Land Registry figures revealed an increase in London house prices to an all-time high in July. The average price of a house in London in July was £367,785, compared with £162,900 nationally. Demand remains strong for so-called trophy homes in exclusive areas of London, despite an increase in stamp duty to 7 per cent on properties worth £2 million or more. Prices soared by more than 16 per cent in Kensington & Chelsea over the year, while Westminster saw an increase of 14.4 per cent. The weakness of the pound and the country’s relative political and financial stability has made London properties attractive to overseas buyers.
Depending on your circumstances Enable’s IFA’s know that property investment can work. Earlier in the week Land Registry figures revealed an increase in London house prices to an all-time high in July. The average price of a house in London in July was £367,785, compared with £162,900 nationally. Demand remains strong for so-called trophy homes in exclusive areas of London, despite an increase in stamp duty to 7 per cent on properties worth £2 million or more. Prices soared by more than 16 per cent in Kensington & Chelsea over the year, while Westminster saw an increase of 14.4 per cent. The weakness of the pound and the country’s relative political and financial stability has made London properties attractive to overseas buyers.
Back to School
Counting the cost of bringing up baby in Bishop’s Stortford? Our Independent Financial Advisor's at Enable know it has always cost to have a family and can help you make sensible financial planning; savings and investments to help manage those costs. According to the Halifax the average cost of raising a child up to the age of 11 increased to £8,307 a year in 2011, the figure represents a 15 per cent increase over the last five years and means that it now costs more than £90,000 to raise a child to secondary school age.
It says inflation, as measured by the Retail Price Index, increased by 18 per cent over the past five years and parents now spend around 18 per cent, of their income on bringing up a child. Cost associated with education have increased by 24 per cent in the last five years, with uniforms, equipment, school lunches and school trips adding up to £849 in 2012. Child care costs have also increased, with nurseries and child-minding costs up by 22 per cent in 2011. Together, schooling and child care costs account for half of the total annual amount spent by parents on raising their children.
Spending on food and holidays fell in real terms, according to the study. In 2011 parents spent £889 feeding their children in 2011, an increase of 14 per cent from £780 in 2007, while the cost of holidays for children increased by 16 per cent to £740. Parents spent £513 on children’s clothing in 2011, 15 per cent less than in 2007.
It says inflation, as measured by the Retail Price Index, increased by 18 per cent over the past five years and parents now spend around 18 per cent, of their income on bringing up a child. Cost associated with education have increased by 24 per cent in the last five years, with uniforms, equipment, school lunches and school trips adding up to £849 in 2012. Child care costs have also increased, with nurseries and child-minding costs up by 22 per cent in 2011. Together, schooling and child care costs account for half of the total annual amount spent by parents on raising their children.
Spending on food and holidays fell in real terms, according to the study. In 2011 parents spent £889 feeding their children in 2011, an increase of 14 per cent from £780 in 2007, while the cost of holidays for children increased by 16 per cent to £740. Parents spent £513 on children’s clothing in 2011, 15 per cent less than in 2007.
Thursday, 30 August 2012
The cost of buying a home is at an all time low – state Halifax
Halifax stated this week that the average cost of buying a home has fallen to the lowest in 15 years. They state that a typical mortgage on a new home now costs an average of 25% of take-home pay, compared to a staggering 45% at the peak, before the credit crunch.
Lowering prices and lower interest rates they say are making buying a home much more affordable, with the greatest affordability being in parts of the UK where house prices have been affected the most, such as Northern Ireland. However in the South East, an average new home buyer will need to part with slightly more of their income, as lack of properties on the market, have kept prices much the same as before the credit crunch, and buyers are having to part with 32-35% of their income to finance their new home, which is still lower than 2007 when the average home buyer had to part with 56% of their income.
Buying a home is much cheaper than renting. If you are looking to buy your first home or would like to find out more about the mortgages we have on offer at Enable why not contact us on 01279 755950, our IFA's of Bishop's Stortford have access to the whole market place, and all of our fees are completely transparent.
Lowering prices and lower interest rates they say are making buying a home much more affordable, with the greatest affordability being in parts of the UK where house prices have been affected the most, such as Northern Ireland. However in the South East, an average new home buyer will need to part with slightly more of their income, as lack of properties on the market, have kept prices much the same as before the credit crunch, and buyers are having to part with 32-35% of their income to finance their new home, which is still lower than 2007 when the average home buyer had to part with 56% of their income.
Buying a home is much cheaper than renting. If you are looking to buy your first home or would like to find out more about the mortgages we have on offer at Enable why not contact us on 01279 755950, our IFA's of Bishop's Stortford have access to the whole market place, and all of our fees are completely transparent.
Clamp down on companies offering ‘no win, no claim’ on PPI’s
PPI, Payment Protection Insurance has been big news, with companies normally offering personal injury and industrial injury jumping on the PPI bandwagon, left right and centre. However this week the government has announced that as from 2013 the legal ombudsman will be responsible for complaints, meaning that consumers who have been provided poor customer service could be awarded compensation of up to £30,000.
The companies offering to make claims for miss-sold payment protection insurance, take a percentage of the compensation they receive on behalf of their customers, usually on a ‘no win, no claim’ basis, however their have been several claims that these companies have been asking for money up front and that they have been making false claims to customers.
The Ministry of Justice, MoJ’s annual report from 2011-2012, stated that it had cancelled or warned 400 claims firms in the year to March 2012, and that a staggering 93% of the complaints were about financial claims firms.
The new changes in 2013, which will be enforced by the CMRU, Claims Management Regulation Unit, will change the way in which these companies are regulated, getting rid of bad practice within the industry and protecting consumers. This is potentially great news for consumers.
The companies offering to make claims for miss-sold payment protection insurance, take a percentage of the compensation they receive on behalf of their customers, usually on a ‘no win, no claim’ basis, however their have been several claims that these companies have been asking for money up front and that they have been making false claims to customers.
The Ministry of Justice, MoJ’s annual report from 2011-2012, stated that it had cancelled or warned 400 claims firms in the year to March 2012, and that a staggering 93% of the complaints were about financial claims firms.
The new changes in 2013, which will be enforced by the CMRU, Claims Management Regulation Unit, will change the way in which these companies are regulated, getting rid of bad practice within the industry and protecting consumers. This is potentially great news for consumers.
Increasing wealth tax, will it drive out the rich?
There has
been much talk this week about the UK economy being hampered if the coalition
insists in pushing up tax for the rich, although it could be argued that most
rich are already contributing far more than other people to the country.
Hollande, France’s
new socialist President has also taken the same tact, to increase tax on the
rich, which has met fierce opposition. But the question remains, although we
have offered to lay out the ‘red carpet’ to France’s super rich, are we as a
country not driving out the rich too, but just in a lesser degree, as we have
already seen several hedge funds moving abroad.
George
Osborne, Chancellor expressed his concerns over the new plans during his visit
to Sunderland, where he stated: "I
am clear that the wealthy should pay more, which is why in the recent budget I
increased the tax on very expensive property transactions. But we also have to
be careful as a country we don't drive away the wealth creators and the
businesses that are going to lead our economic recovery."
Nick Clegg has already agreed to cut the top tax
rate from 50p to 45p and has since indicated that he intends to increase wealth tax, and we will see
no more increase on income tax in the UK for the time being. The coalition
sentiment is that by tax the richest in the country, with it’s proposed tax on
homes of £2 million and over would help the country pay off it’s deficit and
improve the economic situation for the long term. We will have to wait until
September to find out what the new proposed changes are going to be at their
party conference.
Wednesday, 22 August 2012
NHS tries to generate funds by selling our health system abroad
News this week that the NHS ‘brand’ could be sold abroad attracted immediate criticism from the Patients Association, who are concerned that with an already stretched health system, could result in specialist hospitals concentrating on getting money from abroad rather than concentrating on its UK customers.
NHS trusts, with world-wide reputation, such as Great Ormond Street, could establish overseas clinics, increasing the revenue generated for the NHS.
Anne Milton, the Health Minster stated: "This is good news for NHS patients, who will get better services at their local hospital as a result of the work the NHS is doing abroad and the extra investment that will generate," she said.
"This is also good news for the economy, which will benefit from the extra jobs and revenue created by our highly successful life sciences industries as they trade more across the globe.
"The NHS has a world class reputation and this exciting development will make the most of that to deliver real benefits for both patients and taxpayers."
However the proof is in the pudding, and it will be interesting to see whether tax payers will appreciate sending our most valuable specialist service abroad, and whether as the Health minister states will increase jobs and boost the economy.
NHS trusts, with world-wide reputation, such as Great Ormond Street, could establish overseas clinics, increasing the revenue generated for the NHS.
Anne Milton, the Health Minster stated: "This is good news for NHS patients, who will get better services at their local hospital as a result of the work the NHS is doing abroad and the extra investment that will generate," she said.
"This is also good news for the economy, which will benefit from the extra jobs and revenue created by our highly successful life sciences industries as they trade more across the globe.
"The NHS has a world class reputation and this exciting development will make the most of that to deliver real benefits for both patients and taxpayers."
However the proof is in the pudding, and it will be interesting to see whether tax payers will appreciate sending our most valuable specialist service abroad, and whether as the Health minister states will increase jobs and boost the economy.
Public Pensions – Armed forces forced to retire 5 years later…
News this week that
Armed forces could see their pension age rise from 55 to 60 under new
government plans, has caused concerns to army personnel.
The proposed changes
will affect all service personnel under the age of 45, this is part of the
government shake up to reduce the cost of public pensions.
Currently the armed
forces have two main pension sections, for those who started between 1975 and
2005 and those who joined after that date. However in both sections, the
retirement age was 55.
The government has stated
that pension rights accrued under the exiting schemes will be protected, and
the unique early retirement feature of the scheme will also remain. This is in
the form of a lower level pension, and a lump sum is paid to service personnel
with at least 18 years service, aged 40 or over. The length of time in service
will rise to 20 years.
David Marsh
secretary of the FPS stated: "This will mainly affect officers who tend to
join after university rather than the other ranks who join about the age of
20," said David Marsh, pensions secretary of the FPS.
However the
rest of the public sector pension ages are going to rise from 65 to 68, in line
with an increased life expectancy.
If you are in the armed forces and are concerned about the amount of pensions you will receive then get in touch with one of our IFA's.
If you are in the armed forces and are concerned about the amount of pensions you will receive then get in touch with one of our IFA's.
Which? states 'free' banking doesn't exist…
Which? the consumer group states that there are still
large variations in the cost of current account charging to consumers, and the
idea of ‘free’ doesn’t exist.
In its latest analysis of some of the main banks in
the UK, it stated that the UK banking system ‘shatters the myth’ of free
banking. Which? states the cost of going overdrawn without permission for two
days could cost customers as much as between £120-£900 per annum.
However the British banking system have retaliated
stating that the report is not correct as many customers could still access
free banking in the UK – well as long as they don’t go overdrawn.
Which? chief
executive Peter Vicary-Smith stated: "When some people are paying up to £900
a year in bank charges it completely shatters the myth that banking is free."
He added:
"It's a disgrace that the very people who bailed out the banks are being
asked to pay more for the most basic accounts, while the industry continues to
be rocked by scandals like PPI mis-selling, Libor rate-rigging and IT failures.
"Banks
must be far more transparent about their fees and charges so that people can
clearly see what they already pay."
If you are unsure about your financial situation why not get in touch, we will be able to give you a review of your financial circumstances.
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