Why use an IFA rather than a bank to get financial advice?

If you are looking for independent financial advice then it is best to seek out an Independent financial Advisor, rather than going to your local bank, because an IFA is unbiased and will be able to offer you a whole range of products which best suit your needs, and a bank will only be able to offer you a limited amount of products that they may have on offer at that time.

An IFA will are obliged to give ‘the best advice’ available, whereas a bank normally only have restricted financial advisors, who have ‘restricted’ status which means that they can only give advice on a limited range of products.

Dealing with various complex financial products, can be very tricky so it’s best to get it right. Common areas where an IFA can help you make a decision are:

Endowments – talking about you’re your IFA to work through the best options is worthwhile. Also they can check to see if you are eligible to complain about one which has been mis-sold. If you are thinking about cashing in a sizeable endowment then the complexities could be enormous.

Annuities – with recent changes being made to the auto-enroll pension system, it’s worth checking to make sure you are in the correct scheme.

Investments – this can involve assessing risk and trying to second-guess the markets. An IFA will enable you to pick out some good investment possibilities.

Mortgages – this is a huge financial transaction, make sure you contact a financial advisor who specialise in Mortgages like Enable.

Protection – these include life assurance, critical illness and income protection. These products can be very complex so it is best to talk to an IFA.

If you need help with any financial decisions, and would like a company who have transparent fees and will give you unbiased help, then why not get in contact with our team of IFA's at Enable Independent, IFA’s in Bishop’s Stortford.

Investment – Alpine resorts reservations are up…

If you are looking to invest in a foreign property in 2013, then Enable Independent IFA's in Bishop's Stortford can help you to find the next property hot spot and finance to go with it.

Some of the other main cities like Berlin, Paris, London, are predicted to be property hot spots for 2013, however since the recent snowfall in the Alpes, people are starting to invest again in ski property, especially in France. The Alpine resorts still offer an attractive package of affordability and accessibility.

This year the winter season also looks as though it will achieve record snowfall as visitor and hotel reservations are up on the previous season.

The new build market in the Alpes has almost dried up, so attention is starting to be focused on older property in the ski resorts, and because of the added hassle of renovation, these are normally on the market for 20% less than a new build.  Jeremy Rollason, Managing Director of Alpine homes commented: ‘New Year brings fresh snow and fresh buyers. At the beginning of 2012 and last year’s ski season, we spoke of rising stock markets and the January effect. That is to say, the FTSE 100 index had increased 5.5% in January and historically, stock markets are more likely to end on a high when there are positive gains in January,’

‘The FTSE 100 index did indeed end in positive territory in 2012, rising 4.4% on the year. We asked at the time, whether there could be any correlation to the ski property market and 2012 was a good year for the ski property market,’ he explained.

 ‘Activity has increased significantly. We have made four sales in both Austria and Switzerland so far in January. Resorts include Zell am See and Turracher Höhe in Austria and The Four Valleys in Switzerland. Prices range from €330,000 in Austria up to Chf2 million in Switzerland,’ said Rollason.
‘Buyers are however also active in the higher price bracket, typically Chf5 million to Chf15 million, but there is a dearth of buyers above this point,’ he added.

Rollanson has also reported that property viewing are up by 33% from the same time last year, with February being even busier, the snow fall has helped tourist number which in return has increased property prices, although he did give an air of caution: ‘However, levels of activity and sale volumes do not necessarily equate to increased sales prices. Many vendors remain firmly implanted in a pre crisis vacuum of market denial. Some still need to realise that alpine property prices took a dip in the period 2008 to 2010, stabilised in 2011, and only in certain cases, have they started rising again,’

If you are looking at investing in foreign property or a buy-to-let property then why not give our team, at Enable Independent a call on: 01279 755950.

House prices continue to rise throughout 2012, according to latest index…

House prices will continue to rise according to homeowners in eleven regions across the UK. Markit who questioned 1,500 homeowners in a House Price Sentiment Index (HPSI) said that his is the first time that people have thought the price of their home will rise for more than two years.

Property owners in London who have seen their properties continue to rise over the past few years, are among the homeowners who believe they will see an increase in the price of their property over the next 12 months, followed by those in the South East and Wales.

Some households think that the value of their property has reduced over the past month, but say they have done so at the slowest rate since 2010. 8.5% of homeowners said that they feel as though their homes have risen over the past month, while 11.7% said they felt as though the value of their home had decreased, giving a HPSI reading of 48.4. If this figure is under 50 it shows that prices are falling and if the figure is over 50 it shows they are rising.

This figure o f 48.4% is up from 47.6 from last month, and is also the highest reading since June 2010. Since the creation of the HPSI, the index has been a clear indicator of house trends. This index bases its findings on household sentiment rather than historical evidence or mortgage market evidence.

Grainne Gilmore, head of the UK residential research as Knight Frank commented: ‘The optimism over house prices seen at the start of the year has strengthened sharply this month, with households now more upbeat about the outlook for house prices than at any time since June 2010.  Households in every region expect prices to rise, reflecting a real change in outlook across the country,’

‘The data suggests that households have brushed off the rather gloomy economic news, and instead have been buoyed by positive signals emanating from the mortgage market in recent weeks, with lending rates falling sharply and lending to new buyers picking up. Indeed the HPSI readings show that mortgage borrowers are among those who are most optimistic about house prices. Likewise, the outlook of those aged between 35 and 44 has becoming much more positive, and it is these buyers, who will typically be buying their first or second property, who are set to benefit from the looser mortgage lending conditions,’ she explained.

‘There are hopes that the Bank of England’s Funding for Lending scheme will further boost lending this year, and signals from the new Bank of England Governor that the base rate may be kept on hold for a prolonged period will only help those trying to climb onto the property ladder,’ she added.

If you are looking at buying a home then why not contact Enable Independent, as we are independent which means that we can choose a mortgage that best suits your needs. For more information give one of our team a call today on: 01279 755950.

Readers might also be interest in these related posts:

House sales and mortgage availability rise... 

95% LTV Mortgages, Government discuss new scheme…

 

 

Pensions – auto-enroll needs to be clear…

Enable Independent were pleased to see that the Government is considering removing requirements for employers to enroll people who have had a lifetime allowance protections in place. As people who have a lifetime allowance ‘fixed protection’ could face huge tax bills if their employers accidentally enroll them into a pension scheme.

The reason this will happen is because their fixed protection will become void if they make any additional contributions, and any pension savings would be taxed at 55%.

They Government are going to discuss making the auto-enrollment scheme easier for employers to understand the rules. As well as allowing people to permanently opt out of schemes rather than being enrolled after three years.

The Government is considering removing the requirement for employers to automatically enroll people who have lifetime allowance protections in place. The idea will be floated in a consultation next month outlining ways to simplify auto-enrollment rules for employers.

However if you are in a defined contribution scheme and have not got a lifetime allowance in place then you will be able to get tax relief as a percentage of your earnings. This means that money that would have previously gone to into tax will now go into your pension. Under the new pension changes the government has set a minimum percentage that has to be contributed in total, these contributions will come from you, your employer and from the tax relief and will be worked out as a percentage of your earnings.

If you need help working out what these changes mean to you, or are worried about your lifetime allowance protection then contact Enable, Independent Financial Advisor's in Bishop's Stortford.

Readers might also be interested in: How much will be paid into my pension pot under the auto-enroll scheme?

Need help planning for your future care? We discuss the new £75K LTC cap

At Enable Independent we help people to plan for each stage of their lives, and one very important aspect of this is Estate Planning, preparing ourselves and our families for the costs we might have to pay if we end up having to receive expensive care in our old age. So new plans to introduce a cap on of £75,00 on long-term care costs funded by the Government is a step in the right direction.

The new plan is set to be introduced in April 2017, will not include accommodation or food costs. As well as the increased cap the government will also increase the asset threshold which people do not receive means-tested help from the Government from £23,250 to £123,000.

The new scheme will be funded partly by extending the freeze on the inheritance tax threshold at £325.00, or up to £650,000 for couples.

These new measures the Government states are proving that despite the tough economic times, that they are determined to get behind the everyone who has worked hard for what they have. However critics argue that the plans do not include people who are already in care, and that it is a scheme for some and not all.

If you are concerned about planning your old age, from investments, pensions and Estate Planning, then why not call one of your Bishop's Stortford Independent financial advisors, and we will help you to create your own tailor made plan to suit you.

95% LTV Mortgages, Government discuss new scheme…

Enable Independent are pleased to see that the Treasury is in the process of holding talks with the main lenders and trade bodies to see how mortgage indemnity guarantees can be used to enable would-be- buyers access to 95 per cent LTV (loan-to-value) mortgages, to buy any type of property. 

Last March, the Government launched the NewBuy, MIG (mortgage indemnity guarantee) scheme, offering 95 per cent LTV mortgages for new builds, as a way of giving a boost to the economy and the construction industry. The NewBuy, MIG scheme has been underwritten by both the government and the housebuilder.

Three large lenders, NatWest, Nationwide and Barclays launched products for the NewBuy scheme, including NatWest who offered a two-year fix at 4.29% at 95% LTV with a £499 fee, and a five-year fix at 4.99% at 95% LTV with a £499 fee.

However the scheme has proved too restrictive for people wanting to buy anything other than a new property, so nearly one year on from its launch, the Treasury is now looking into ways in which mortgage insurance could be used to solve the problem, of people accessing 95% LTV mortgages for other properties.

One of the main problem facing new or first-time buyers is the amount of money needed to put down to buy a house, there have been several articles covering topics such as ‘Are Britons becoming a Nation of renters?’ Home ownership in the past for many young people has become a distant dream. Recent figures show that there has been a huge rise in private renting over the past few years, from 9% of households to 15%.

A Treasury spokeswoman stated: “We have said that we will do more to help families who can afford a mortgage, but are unable to raise a large deposit, to buy their own homes. We are continuing to look at what can be done and will provide further details in due course.”

If you are struggling to get a mortgage, and need help in finding ways to put aside enough funds, then why not contact your local Independent Financial Advisors, we have all of the knowledge to help you to plan your future to become a home owner, as well as access to the entire mortgage place.

Good news as employment falls in the UK

Unemployment in the UK fell by 37,000 in the three months to November 2012, according to the latest statistics released by the Office for National Statistics (ONS).


This means that the jobless total stood at 2.49 million. Representing a fall of 7.7% in the period, unemployment was at its lowest level for 18 months.

As always, there was wide variation between the regions, with the North East reporting a jobless rate of 9.1%, whilst the South West showed only 5.5% unemployed.

The ONS also report that there were 494,000 the highest number recorded since 2008. At the same time, they reported that there were 29.7 million people in employment, which itself is a record high.

However, youth unemployment (those aged between 16-24 years) rose slightly for the first time since last summer, with 957,000 jobless, an increase of 1,000.

Commenting on these figures, Mark Beatson, chief economist of the Chartered Institute of Personnel and Development (CIPD) said this was: “a continuing cause of concern.”

“The number of unemployed 18-24 year olds has increased whereas unemployment in age groups 25-64 has fallen. If this trend continues we risk a permanent scar on the labour market,”

He went on to add: “It is in employers’ interests to build their future skills base by recruiting the next generation of workers.”

Many economic commentators remain baffled by the fact that the number of unemployed continues to fall, even though the UK’s economy has been very sluggish. They expected to see Q4’s GDP figures record a contraction and ONS data duly obliged, showing a 0.3% dip.

A caveat to these encouraging figures is the fact that we have seen a number of high street retailers go to the wall in Q1 2013; with Comet, Jessops, Blockbuster and HMV entering administration, with the inevitable large-scale job losses to come in the short term.

Issued by: Enable Independent Financial Life Planners
25c North Street, Bishops Stortford, Herts CM23 2LD 

Telephone: 01279 755950 - Fax: 01279 657339
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.

No change on inflation front...

Whilst stubbornly remaining above the Bank of England’s target level of 2%, which has been the case since November 2009, the UK Consumer Prices Index (CPI) remained at 2.7% in December for the third month in a row.

Figures released by the Office for National Statistics (ONS) cited an increase in both gas and electricity prices as the culprit, with gas rising by 3.9% and electricity by 5.2% compared to the same month in 2011. Also non-alcoholic drink and food prices rose by 3.8%. However, these rises were offset by a fall in air travel costs, down by 6.8%, and motor fuel, which fell by 0.2%.

Commenting on these figures, Phil Gooding, of the ONS was quoted as saying:”By far the largest upward effect comes from domestic gas and electricity. Here we saw the majority of the pre-announced price increases coming into the index for December.”

Responding to the disappointing data, the UK Treasury pointed out that inflation has nearly halved from its recent peak of 5.2% and that the government has helped households by increasing tax-free personal allowances and stopping the planned fuel duty increase that had been expected in January.

Meanwhile, the Retail Prices Index (RPI), which includes housing costs, increased slightly to 3.1% from its previous level of 3%. Compounding the effect this inflation has on the average household, pay growth remains stunted, as this is the fourth year in a row that the growth in pay has remained below the headline inflation rate.

Issued by: Enable Independent Financial Life Planners
25c North Street, Bishops Stortford, Herts CM23 2LD
Telephone: 01279 755950 - Fax: 01279 657339
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.

FTSE - experiences highest level for years..

Markets: (Data compiled by The Outsourced Marketing Department)

January saw a global recovery in equities, with the FTSE 100 seeing its best level for nearly four-and-a-half years, closing at 6,276.9, up 6.43% since the New Year and now only 4.19% under its long-term trend. The FTSE 250 was more impressive, rising 11.9% to finish at 13,847.1.

The Eurostoxx50 improved by 4.3%, closing at 2,749.27, whilst the FTSE All-World index flirted with its highest level since 2008, we also saw Asian markets improve.

Investor sentiment remained bullish in the UK, USA, China, and even in Germany, where recently the Eurozone crisis had dampened market enthusiasm. With the Euro currency now trading at around $1.37, its highest level since November 2011, sentiment has dramatically improved. Wall Street saw the Dow Jones end the month at 13,860.58, up 5.77% and the S&P 500 reaching a five-year high, with many of the constituent companies reporting better than expected earnings data.

With ultra-low interest rates continuing in the USA, Europe and Japan, fuelling the risk appetite of sophisticated investors, the more cautious players may be encouraged to join the party.

Indeed the Tokyo market saw the Nikkei rise by 7.15% to end January at 11,138.66, and reach a near three-year high. The currencies markets saw UK Sterling at $1.59 against the greenback and lower at €1.17 against the Euro. The Euro itself was worth $1.37 up 3.41% in the month and sitting at a fourteen month high.

Commodities were in demand with the Brent Crude benchmark for oil rising 4% to $115.55 and elsewhere copper rising 1.2%. Gold, however, moved little in the month, finishing at $1,664.63, off 0.67%.

Issued by: Enable Independent Financial Life Planners
25c North Street, Bishops Stortford, Herts CM23 2LD
Telephone: 01279 755950 - Fax: 01279 657339
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.

House sales and mortgage availability rise...

The UK housing market saw an increase in sales in late 2012, boosted by a strong increase in mortgage availability, enabling the number of first-time buyers to rise by 8% in November, to 21,700.

Reporting on these numbers, the Council of Mortgage Lenders (CML) also stated that the total level of new mortgages in November was up by 6%, to 52,700 buyers. This is an increase of 13% on the previous year and the highest number reported in a November since 2007.

Paul Smee, a director of the CML said: “Encouraging activity in the first-time buyer sector in November contributed to an uplift in house purchase lending, suggesting that the underlying trend for year-on-year increases should continue.”

He went on to add: “We expect the Funding for Lending scheme to continue to encourage a downward drift in interest rates.This may prompt an increase in remortgage activity as borrowers

seek to take advantage of lower rates.” 

Reinforcing this bullish sentiment, Barratt, one of the UK’s largest house builders, reported that their order book for 2012 was up 35% from the previous year and that: “Whilst the availability of mortgage finance remains the key constraint to industry growth, we have started to see some improvements coming through.

“Expectations are that mortgage lending should increase in 2013, supported by the Bank of England’s Funding for Lending Scheme.” Meanwhile, the Royal Institution of Chartered Surveyors (RICS) stated that, among those of their members who also operate as estate agents, more expect their sales to increase in the first quarter of 2013 than expect them to fall.

Reader might also be interested in: Good news for the housing market…

Issued by: Enable Independent Financial Life Planners
25c North Street, Bishops Stortford, Herts CM23 2LD
Telephone: 01279 755950 - Fax: 01279 657339
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.