At Enable Independent, IFA's in Bishop's Storford, we realise that financial services are a highly complex subject, and bearing this in mind we always try to explain financial planning in a straight forward way, so we thought we would give you a bite size explanation about annuities.
There are two basic types of annuities, deferred and immediate:
• Deferred – this means that your money will be invested for a period of time until you are already to begin withdrawing money from it, normally in retirement.
• Immediate – this like the name implies, means that you can receive payment from your annuity soon after your initial investment, for example you might consider buying an annuity if you are approaching retirement age.
At some stage deferred annuity can also be converted into an immediate annuity if your circumstances change and you decide to access your payment straight away.
Within the two categories, the annuities can be either be fixed or variable, depending on whether the payout is a fixed sum, or tied to the performance of the overall market or group of investments, or you can also opt for a combination of the two.
When thinking about taking out an annuity or any other type of financial product, make sure you check out commissions, some insurance brokers can charge as much as 10% for an annuity.
If you decide to pull out money within the first several years after your purchase you could have to pay high charges.
If you take out an annuity you will not have to pay tax on the withdrawals, but if you already pay tax on your income, you will still need to pay tax on any money you invest into the insurance product.
Planning for your future is probably one of the most important things you will do in your life, so it is important to get the right advice. At Enable Independent, we offer planning at any stage of your life, from planning for a family, to paying for your children’s university/weddings, as well as retirement and wealth planning. We make sure all of our fees are transparent, and we will also provide you with a vast selection of products from across the market place.
The individual and group pensions market is an ever changing world, with new legislation being brought out on a regular basis, it is difficult to keep track of what options are available with regard to your retirement planning. Hopefully within this section of our website we can explain many of these options in plain simple language and help you plan for your future. This information is purely intended as guidance and therefore if you require any specific advice please contact us directly for independent financial advice.
Wednesday, 24 April 2013
Can an Annuity be used as part of my pension plan?
With all this news of Annuities this week, Enable Independent, IFA’s in Bishop’s Stortford have decided to give a bit more information about what it actually is, and how it can be accessed and what are the implications.
Basically an annuity is an insurance product which pays out an income, which can be used as part of a retirement strategy. If you are looking to access a steady stream of income in your retirement, then this could be used as part of your overall pension plan.
An annuity works by making an investment in the annuity, it then makes payments out on a future date or dates. How the annuity is eventually paid out depends on your individual needs, it can be paid monthly, quarterly, annually or as one lump sum payment.
Like any investment, the size of your payment into the policy, and the duration of payments effects how much you will receive. If you take out a guaranteed payout - fixed annuity or payout stream, is determined by the performance of the annuity’s underlying investments.
Investing in an annuity can be useful as part of an overall pension plan, but it is important to understand that with a annuity comes high expenses, so it would not be advisable to invest just in an annuity.
It would be a good idea to contact an IFA, like Enable Independent, before making any long-term investment choices, to discuss your own individual retirement needs. The individual and group pensions market is an ever changing world, with new legislation being brought out on a regular basis, it is difficult to keep track of what options are available with regard to your retirement planning. Hopefully within this section of our website we can explain many of these options in plain simple language and help you plan for your future. This information is purely intended as guidance and therefore if you require any specific advice please contact us directly for independent financial advice.
Basically an annuity is an insurance product which pays out an income, which can be used as part of a retirement strategy. If you are looking to access a steady stream of income in your retirement, then this could be used as part of your overall pension plan.
An annuity works by making an investment in the annuity, it then makes payments out on a future date or dates. How the annuity is eventually paid out depends on your individual needs, it can be paid monthly, quarterly, annually or as one lump sum payment.
Like any investment, the size of your payment into the policy, and the duration of payments effects how much you will receive. If you take out a guaranteed payout - fixed annuity or payout stream, is determined by the performance of the annuity’s underlying investments.
Investing in an annuity can be useful as part of an overall pension plan, but it is important to understand that with a annuity comes high expenses, so it would not be advisable to invest just in an annuity.
It would be a good idea to contact an IFA, like Enable Independent, before making any long-term investment choices, to discuss your own individual retirement needs. The individual and group pensions market is an ever changing world, with new legislation being brought out on a regular basis, it is difficult to keep track of what options are available with regard to your retirement planning. Hopefully within this section of our website we can explain many of these options in plain simple language and help you plan for your future. This information is purely intended as guidance and therefore if you require any specific advice please contact us directly for independent financial advice.
The Annuity Exchange to launch new on-line annuity directory…
Enable Independent, Independent Financial Advisers in Bishop’s Stortford were pleased to see that more clarity will be brought into accessing annuities, as news this week revealed that The Annuity Exchange, software specialists, will be creating an on-line annuity directory of brokers.
Annuity software specialist The Annuity Exchange has been selected to build and run an online directory of UK retirement income brokers. It is hoped that this portal will make it easier for people wanting to shop around for an annuity adviser or non-advised broking service.
The website will enable people to search based on the size of their fund, and will ensure clarity between whether an adviser is independent or restricted, they will also be able to see the amount of charges they will have to pay and the location.
The new service will be provided free of charge and the Members of the Pension Income Choice Association will be paying to develop this new service.
Hargreaves Lansdown head of pensions research and Pica chairman Tom McPhail says: “In Pica’s manifesto we committed to introduce a new, specialist directory for those people looking to find an intermediary to help them secure a great annuity deal.
“The appointment of The Annuity Exchange follows a comprehensive tender process and now means we are able to move towards launching the directory to investors in the near future.”
The Annuity Exchange chairman Stuart Bayliss stated: “The new intermediary directory will provide a powerful service for people who do not have an existing intermediary.
“Choosing an annuity is a once in a lifetime decision and getting it wrong can cost people thousands of pounds over their retirement. The directory unlocks access to professionals that can help to demystify what can for many be a complex area.”
If you are looking into investing into an annuity, or just simply worried about not having any pension funds in place for your future, then why not contact one of our Independent advisors, at Enable Independent, Bishop’s Stortford, we make sure we give you advice from across the market, finding a policy which suits your individual needs.
The individual and group pensions market is an ever changing world, with new legislation being brought out on a regular basis, it is difficult to keep track of what options are available with regard to your retirement planning. Hopefully within this section of our website we can explain many of these options in plain simple language and help you plan for your future. This information is purely intended as guidance and therefore if you require any specific advice please contact us directly for independent financial advice.
Annuity software specialist The Annuity Exchange has been selected to build and run an online directory of UK retirement income brokers. It is hoped that this portal will make it easier for people wanting to shop around for an annuity adviser or non-advised broking service.
The website will enable people to search based on the size of their fund, and will ensure clarity between whether an adviser is independent or restricted, they will also be able to see the amount of charges they will have to pay and the location.
The new service will be provided free of charge and the Members of the Pension Income Choice Association will be paying to develop this new service.
Hargreaves Lansdown head of pensions research and Pica chairman Tom McPhail says: “In Pica’s manifesto we committed to introduce a new, specialist directory for those people looking to find an intermediary to help them secure a great annuity deal.
“The appointment of The Annuity Exchange follows a comprehensive tender process and now means we are able to move towards launching the directory to investors in the near future.”
The Annuity Exchange chairman Stuart Bayliss stated: “The new intermediary directory will provide a powerful service for people who do not have an existing intermediary.
“Choosing an annuity is a once in a lifetime decision and getting it wrong can cost people thousands of pounds over their retirement. The directory unlocks access to professionals that can help to demystify what can for many be a complex area.”
If you are looking into investing into an annuity, or just simply worried about not having any pension funds in place for your future, then why not contact one of our Independent advisors, at Enable Independent, Bishop’s Stortford, we make sure we give you advice from across the market, finding a policy which suits your individual needs.
The individual and group pensions market is an ever changing world, with new legislation being brought out on a regular basis, it is difficult to keep track of what options are available with regard to your retirement planning. Hopefully within this section of our website we can explain many of these options in plain simple language and help you plan for your future. This information is purely intended as guidance and therefore if you require any specific advice please contact us directly for independent financial advice.
Wednesday, 17 April 2013
Mortgage applications rise by 25% according to the latest index…
Enable Independent, IFA's in Bishop's Stortford have noted that despite the news that property lending has been falling over the past few moth, the latest quarterly figures from the National Mortgage Index show that there was an increase of 25% in mortgage activity during the past three months.
A mixture of purchase and re-mortgages were up during the past quarter of 2013, compared with the final quarter of 2012.
The latest figures from the National Mortgage index uses data from over 500 brokers and 800 estate agents, revealing that the strongest area is in the purchase activity. With the total mortgage activity for March being 22% higher this March compared to the same time last year. This is due to there being mortgage products to choose from, with approximately 9,269 being available in March, more than any other time, since November 2011.
Apart from in December last year, when lending fell by 1%, Enable are pleased to see that consumer choice has been improved every month since the FLS (Funding for Lending Bank Scheme) was launched in August 2012.
Over the past few years there has been a shortage of options for both first time buyers, and those people wanting to increase into a larger home. Lenders have been reluctant to loan, and those people wanting to buy have been forced to either borrow large deposits from the bank of Mum and Dad (which has also been drying up) or to take out high-rate mortgages. However since the announcement of the Help to Buy scheme, we should see the house market open up to a larger amount of consumers.
If you are looking for an Independent Financial Advisor, who can give you a choice of mortgages from across the market place, then why not give Enable Independent a call, we will be able to advise you on all the mortgages available to you.
A mixture of purchase and re-mortgages were up during the past quarter of 2013, compared with the final quarter of 2012.
The latest figures from the National Mortgage index uses data from over 500 brokers and 800 estate agents, revealing that the strongest area is in the purchase activity. With the total mortgage activity for March being 22% higher this March compared to the same time last year. This is due to there being mortgage products to choose from, with approximately 9,269 being available in March, more than any other time, since November 2011.
Apart from in December last year, when lending fell by 1%, Enable are pleased to see that consumer choice has been improved every month since the FLS (Funding for Lending Bank Scheme) was launched in August 2012.
Over the past few years there has been a shortage of options for both first time buyers, and those people wanting to increase into a larger home. Lenders have been reluctant to loan, and those people wanting to buy have been forced to either borrow large deposits from the bank of Mum and Dad (which has also been drying up) or to take out high-rate mortgages. However since the announcement of the Help to Buy scheme, we should see the house market open up to a larger amount of consumers.
If you are looking for an Independent Financial Advisor, who can give you a choice of mortgages from across the market place, then why not give Enable Independent a call, we will be able to advise you on all the mortgages available to you.
Mixed events over the past week...
Enable Independent, IFA’s in Bishop’s Stortford noted that it has been a real mixed set of events in the news over the past week.
News that our first female Prime Minister Margaret Thatcher had died, seems to have torn the Nation apart, creating a camp of those supporters and those opposing the changes she made to England during her time in government between 1979 and 1990.
The IMF has downgraded Global predicted growth for 2013, with the exception of Japan who is expected to see growth of 1.4% this year and 1.6% in 2014. The IMF has predicted shrinkage in the Eurozone of 0.3%, despite a Germany experiencing 0.6% growth.
The latest news is that new figures released show that unemployment has risen to 2.56 million in the UK over the past quarter.
However the consumer price index from the ONS has show that it has remained unchanged at 2.8% in March.
The housing market is also predicted to increase in Southern areas of the UK, with a further rise predicted once the Help to Buy scheme comes into place later this year.
If you are looking to get some independent advice on your current financial situation, then why not give Enable a call, we are independent which means we will give you unbiased advice.
News that our first female Prime Minister Margaret Thatcher had died, seems to have torn the Nation apart, creating a camp of those supporters and those opposing the changes she made to England during her time in government between 1979 and 1990.
The IMF has downgraded Global predicted growth for 2013, with the exception of Japan who is expected to see growth of 1.4% this year and 1.6% in 2014. The IMF has predicted shrinkage in the Eurozone of 0.3%, despite a Germany experiencing 0.6% growth.
The latest news is that new figures released show that unemployment has risen to 2.56 million in the UK over the past quarter.
However the consumer price index from the ONS has show that it has remained unchanged at 2.8% in March.
The housing market is also predicted to increase in Southern areas of the UK, with a further rise predicted once the Help to Buy scheme comes into place later this year.
If you are looking to get some independent advice on your current financial situation, then why not give Enable a call, we are independent which means we will give you unbiased advice.
First 45 housing projects for the Build to rent Fund announced...
Enable Independent, financial advisors in Bishop's Stortford noted that the Housing Minister, Mark Prisk has announced the first 45 housing projects to be built under the £1bn Build to rent fund, providing about 8,000 to 10,000 new homes in the private rental sector by 2015.
The government has already announced that 1/3 of the projects will be based in the boroughs of London, but the government at this point is unable to give any further details, and we are expected to see some more information released today.
The Build to Rent Fund originally received £200 million of funding, however it was soon realised that the fund wasn’t enough to stimulate growth in the construction industry, so the government have now increased it to £1bn.
Prisk stated: “We have seen overwhelming demand for the fund, and it’s become clear that there is a real appetite for rental investment. We want to support that, which is why we’ve made a £1bn budget boost to the fund.
“Now, these new projects will help us map this almost uncharted market, bringing in new blood to improve rental quality and choice, and building the new homes that this country wants and needs.”
The Build to rent fund has been welcomed in London, with the Mayor, Boris Johnson stating: “With London’s population expanding at record pace, we need to build around a million new homes in the next 25 years to meet demand and avert a possible housing crisis. Increasing supply in the private rented sector has a massive part to play in this.”
The first to be approved are:
A2 Dominion Housing
Blackswan Property
Bouygues Development
Bovis Homes
Broomleigh Regeneration
Carillion-Igloo
Carpenter Investments
CCURV LLP
Chestnut Homes
Clearstorm
Climate Energy Homes
Countryside x 2
Crest Nicholson
CS Capital Partners
Derwentside Homes
Evenbrook Capital
Genesis Housing Association
Geronimo
Granger
Greenwich Peninsula
Housing Solutions
Hurst Street
Inland Homes
Keepmoat
Kier Project Investment
YH Residential
Lendlease
Lovell Partnerships
LPC Living
Mill Group
Mount Anvil
Muse Developments
Network Housing Group
Notting Hill Housing
Orbit Homes 2020
Persimmon Homes
PlaceFirst
Plus Dane
Quintain Estates
Regeneration
Relta
South Yorkshire Housing Association
Taylor Wimpey
The government has already announced that 1/3 of the projects will be based in the boroughs of London, but the government at this point is unable to give any further details, and we are expected to see some more information released today.
The Build to Rent Fund originally received £200 million of funding, however it was soon realised that the fund wasn’t enough to stimulate growth in the construction industry, so the government have now increased it to £1bn.
Prisk stated: “We have seen overwhelming demand for the fund, and it’s become clear that there is a real appetite for rental investment. We want to support that, which is why we’ve made a £1bn budget boost to the fund.
“Now, these new projects will help us map this almost uncharted market, bringing in new blood to improve rental quality and choice, and building the new homes that this country wants and needs.”
The Build to rent fund has been welcomed in London, with the Mayor, Boris Johnson stating: “With London’s population expanding at record pace, we need to build around a million new homes in the next 25 years to meet demand and avert a possible housing crisis. Increasing supply in the private rented sector has a massive part to play in this.”
The first to be approved are:
A2 Dominion Housing
Blackswan Property
Bouygues Development
Bovis Homes
Broomleigh Regeneration
Carillion-Igloo
Carpenter Investments
CCURV LLP
Chestnut Homes
Clearstorm
Climate Energy Homes
Countryside x 2
Crest Nicholson
CS Capital Partners
Derwentside Homes
Evenbrook Capital
Genesis Housing Association
Geronimo
Granger
Greenwich Peninsula
Housing Solutions
Hurst Street
Inland Homes
Keepmoat
Kier Project Investment
YH Residential
Lendlease
Lovell Partnerships
LPC Living
Mill Group
Mount Anvil
Muse Developments
Network Housing Group
Notting Hill Housing
Orbit Homes 2020
Persimmon Homes
PlaceFirst
Plus Dane
Quintain Estates
Regeneration
Relta
South Yorkshire Housing Association
Taylor Wimpey
Friday, 12 April 2013
First-time buyers support the property market
In a recent report, The Council of Mortgage Lenders (CML) said the market was “more favourable” for the first-time borrower. It was disclosed that 42% of home loans in January this year were to those first-time buyers.
This high percentage has been maintained for the last three months and represents a higher percentage than the average rate for this type of borrower for the last ten years.
Typically, first-time buyers have made up approximately 33% of the market place over the past ten years; however, prior to 2002 that figure was 50%.
Whilst mortgage lending in the UK in January was down on December 2012, it was
higher by 11% than in January 2012. There were 38,300 transactions in the first month of this year.
One of the major factors in this increase in lending is the effect that the coalition government’s Funding for Lending Scheme (FLS) has had on the marketplace. This scheme has made cheap funds available to lenders and mortgage providers and has managed to push down borrowing costs for the first-time buyer and also increased competition in the lending market. As a result of this, lenders are scrambling to attract business and reducing the rates and margins they offer borrowers.
With base rates at an all-time low of 0.5%, as they have been now for over four years, this is an ideal time for first-time buyers to enter the property market.
Whilst this trend is encouraging news for first-time buyers, they still typically have to find deposits of 20% or more and until this financial barrier is reduced, many hopeful home-owners are going to be barred from the market. The Government’s new ‘Help to Buy’ scheme may be beneficial. UK property prices nationally rose by 1.0% over the past year, but there were, as usual, dramatic regional variations, with London prices rising by 7.1%, whist values in the North West declined by 4.2%.
This high percentage has been maintained for the last three months and represents a higher percentage than the average rate for this type of borrower for the last ten years.
Typically, first-time buyers have made up approximately 33% of the market place over the past ten years; however, prior to 2002 that figure was 50%.
Whilst mortgage lending in the UK in January was down on December 2012, it was
higher by 11% than in January 2012. There were 38,300 transactions in the first month of this year.
One of the major factors in this increase in lending is the effect that the coalition government’s Funding for Lending Scheme (FLS) has had on the marketplace. This scheme has made cheap funds available to lenders and mortgage providers and has managed to push down borrowing costs for the first-time buyer and also increased competition in the lending market. As a result of this, lenders are scrambling to attract business and reducing the rates and margins they offer borrowers.
With base rates at an all-time low of 0.5%, as they have been now for over four years, this is an ideal time for first-time buyers to enter the property market.
Whilst this trend is encouraging news for first-time buyers, they still typically have to find deposits of 20% or more and until this financial barrier is reduced, many hopeful home-owners are going to be barred from the market. The Government’s new ‘Help to Buy’ scheme may be beneficial. UK property prices nationally rose by 1.0% over the past year, but there were, as usual, dramatic regional variations, with London prices rising by 7.1%, whist values in the North West declined by 4.2%.
Readers might also be interested in: Government gives boost to housing market with Help to Buy scheme…
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.
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.
Government help for nuclear industry
With all but one of the UK’s 16 nuclear reactors to be de-commissioned by 2023, the Government will assist 35 research projects in nuclear technology, with funding of £18m, and at the same time create a “world-class” central resource of £15m to help UK companies “compete” more effectively in the nuclear energy sector and potentially create an additional 30,000 jobs.
Commenting on this, Business Secretary Vince Cable, said: “Nuclear power has the potential to play an increasing role in meeting the UK’s future energy needs. It is a source of low-carbon energy and can contribute to the UK’s energy mix and security of supply longer-term.”
It is estimated that over the next 20 years the building of new reactors globally will entail investment of £930bn and that over £250bn will be spent de-commissioning the older generation of reactors.
The Government’s 2011 plans to build new reactors at Hinkley Point, Oldbury, Sellafield, Sizewell, Hartlepool, Bradwell, and Wylfa, have run into problems, due to complex design delays and escalating costs. Dr Cable added: “This strategy – like those for offshore wind and oil and gas – will receive a more effective alignment and integration of energy and industrial policy to enable the UK to deliver competitive energy technologies in future, with significant input from UK-based industry.
“Part of industrial strategy is about supporting successful sectors. Today’s nuclear strategy is one of several sector strategies we will be developing between now and the summer in partnership with industry. And this is one of three that focuses on energy industries: the others being offshore wind and oil and gas.”
Any future development of new nuclear reactors will be reliant on Government guarantees of the price obtainable by the owner for electricity thus generated.
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.
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.
Wednesday, 3 April 2013
Markets: (Data compiled by The Outsourced Marketing Department)
Leading international equity markets ended March on a generally firm note, some having faltered mid-month as the banking crisis in Cyprus put Europe’s bailout mechanisms under pressure and raised questions about the safety of bank deposits elsewhere. In the UK, further tax cuts for business promised in the Budget were overshadowed by the Chancellor’s weaker economic growth and deficit reduction forecasts, though his ‘Help to Buy’ proposals boosted house builders’ shares.
Having exceeded 6,500, the FTSE 100 fell back, later recovering some ground to end the month 1.4% higher at 6,411.7. Meanwhile, The FTSE 250 put on 1.6% to close at 13,923.04 ahead of the Easter break. The AIM market, granted future freedom from stamp duty in the Budget, nevertheless lost 1.3%, ending on 731.11.
Buoyed by encouraging labour market prospects and other economic data, the US markets shrugged off Eurozone concerns and moved ahead purposefully, with the Dow Jones Industrial Average gaining another 3.7% to reach a record 14,578.54 and the Nasdaq adding 3.4%, at 3,267.52.
European bourses were naturally nervous about the problems in Cyprus, but stabilised towards the month-end, leaving the Eurostoxx 50 index a marginal 0.3% higher. In Tokyo, where the Bank of Japan has a new governor, the Nikkei index maintained the progress of recent months to finish another 7.25% higher, at 12,397.91. The Cyprus turmoil inevitably rubbed off on euro exchange rates. During March, the EU single currency weakened more than 2% against sterling and the US dollar, with closing rates of €1.19 and $1.28, respectively. Sterling firmed slightly against the greenback, to $1.52.
There was little net movement in oil prices over the month, with Brent crude closing just under two cents lower at $110.02. An otherwise lacklustre gold market was given afillip by the blow to confidence in bank deposits and the metal closed just over 1% higher at $1,599.30 a troy ounce.
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.
Having exceeded 6,500, the FTSE 100 fell back, later recovering some ground to end the month 1.4% higher at 6,411.7. Meanwhile, The FTSE 250 put on 1.6% to close at 13,923.04 ahead of the Easter break. The AIM market, granted future freedom from stamp duty in the Budget, nevertheless lost 1.3%, ending on 731.11.
Buoyed by encouraging labour market prospects and other economic data, the US markets shrugged off Eurozone concerns and moved ahead purposefully, with the Dow Jones Industrial Average gaining another 3.7% to reach a record 14,578.54 and the Nasdaq adding 3.4%, at 3,267.52.
European bourses were naturally nervous about the problems in Cyprus, but stabilised towards the month-end, leaving the Eurostoxx 50 index a marginal 0.3% higher. In Tokyo, where the Bank of Japan has a new governor, the Nikkei index maintained the progress of recent months to finish another 7.25% higher, at 12,397.91. The Cyprus turmoil inevitably rubbed off on euro exchange rates. During March, the EU single currency weakened more than 2% against sterling and the US dollar, with closing rates of €1.19 and $1.28, respectively. Sterling firmed slightly against the greenback, to $1.52.
There was little net movement in oil prices over the month, with Brent crude closing just under two cents lower at $110.02. An otherwise lacklustre gold market was given afillip by the blow to confidence in bank deposits and the metal closed just over 1% higher at $1,599.30 a troy ounce.
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.
New research shows that house prices could rise by £45,000 by 2018...
Enable Independent, financial advisors in Bishop's Stortford were interested in new research by the Centre for Economics and Business Research showing that average house prices in the UK are expected to increase by as much as £45,000 by 2018.
They have also said that next year they expect to see house prices to be 2.3% higher than in 2007. Cebr also predicts the average home price will be £222,000 this year, 1.4% higher than in 2012, but just under the peak achieved immediately prior to the global financial crises.
Many economists have predicted that the new Help to Buy scheme will increase house prices, before housing supply catches up with the new demand. The CML (Council of Mortgage Lenders) have already reported that homes loans in the UK had got off to the best start since the downturn in 2008. However it is difficult for economists to make an accurate prediction, until the details of the new HtB loans are disclosed later this year.
With rents working out more expensive than a mortgage, there has never been a better time for first-time buyers to consider entering the market. First-time buyers can also choose from some very favorable mortgage rates, benefiting from the new Help to Buy scheme, offering a 20% interest free loan to put towards a new home.
If you are looking at investing in a new home, then why not give one of our Independent Financial Advisors a call, and we will be able to help you to choose from mortgages from across the market place.
Readers might also be interested in:
Government gives boost to housing market with Help to Buy scheme…
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.
They have also said that next year they expect to see house prices to be 2.3% higher than in 2007. Cebr also predicts the average home price will be £222,000 this year, 1.4% higher than in 2012, but just under the peak achieved immediately prior to the global financial crises.
Many economists have predicted that the new Help to Buy scheme will increase house prices, before housing supply catches up with the new demand. The CML (Council of Mortgage Lenders) have already reported that homes loans in the UK had got off to the best start since the downturn in 2008. However it is difficult for economists to make an accurate prediction, until the details of the new HtB loans are disclosed later this year.
With rents working out more expensive than a mortgage, there has never been a better time for first-time buyers to consider entering the market. First-time buyers can also choose from some very favorable mortgage rates, benefiting from the new Help to Buy scheme, offering a 20% interest free loan to put towards a new home.
If you are looking at investing in a new home, then why not give one of our Independent Financial Advisors a call, and we will be able to help you to choose from mortgages from across the market place.
Readers might also be interested in:
Government gives boost to housing market with Help to Buy scheme…
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.
So what’s new in this year’s Budget…
An estimated 24.5 million people under the age of 65 will benefit from the increased lower rate tax allowance, which has been brought forward to 2104, this means that from 2014 people will have a tax allowance of £10,000.
The capital gains tax holiday is to be extended.
Also announced in this year’s budget was the Government’s plans to abolish stamp duty on shares traded in growth markets, but it will be interesting to see how much interest this will receive from retail investors.
As from 2014 the 0.5% stamp duty on share transaction in growth markets will be stopped. This has been introduced to encourage more investment growth in companies, and to create a capital injection into SME equity markets.
These new changes will hopefully increase investor interest, attracting direct investment into the UK’s small businesses, which will in turn have a positive effect on the UK economy.
Tax-free child care vouchers worth £1,200 per child and increased support for families with children on universal credit.
The main changes for business was the 20% reduction in corporation tax, this will be paid for by increasing the bank levy rate to 0.142% next year, also the ability for employers to offset £2,000 per annum against their employer National Insurance Contributions from April 2014. This will benefit about 450,000 small businesses in the UK.
Around 450,000 small businesses - one third of all employers - will pay no employer National Insurance at all after the introduction of Employment Allowance in April next year.
There will be a new limit on managed expenditure which includes welfare budget, debt interest and payments to EU.
The Chancellor also announced a 1p decrease in the cost of a pint of beer, scrapping previous plans to raise duty by 3p per pint, due to the 10,000 pub closures in the past 10 yeas. However, taxes are to be increased by 5.3% on spirits and wine, increasing it in some cases by about 40p a bottle of spirits.
The new Help To Buy scheme – a government backed loan for house purchase, will be backed by £30 billion of Government funding, for not only first-time buyers, but also for people wanting to move into a larger premises with a cap of £600,000. If you would like to find out more information about this scheme, then contact our IFA who will be able to inform you of the finer conditions within the scheme, such as not being able to draw down equity, or change the conditions of the mortgage.
Readers might also be interested in:
Government gives boost to housing market with Help to Buy scheme…
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The capital gains tax holiday is to be extended.
Also announced in this year’s budget was the Government’s plans to abolish stamp duty on shares traded in growth markets, but it will be interesting to see how much interest this will receive from retail investors.
As from 2014 the 0.5% stamp duty on share transaction in growth markets will be stopped. This has been introduced to encourage more investment growth in companies, and to create a capital injection into SME equity markets.
These new changes will hopefully increase investor interest, attracting direct investment into the UK’s small businesses, which will in turn have a positive effect on the UK economy.
Tax-free child care vouchers worth £1,200 per child and increased support for families with children on universal credit.
The main changes for business was the 20% reduction in corporation tax, this will be paid for by increasing the bank levy rate to 0.142% next year, also the ability for employers to offset £2,000 per annum against their employer National Insurance Contributions from April 2014. This will benefit about 450,000 small businesses in the UK.
Around 450,000 small businesses - one third of all employers - will pay no employer National Insurance at all after the introduction of Employment Allowance in April next year.
There will be a new limit on managed expenditure which includes welfare budget, debt interest and payments to EU.
The Chancellor also announced a 1p decrease in the cost of a pint of beer, scrapping previous plans to raise duty by 3p per pint, due to the 10,000 pub closures in the past 10 yeas. However, taxes are to be increased by 5.3% on spirits and wine, increasing it in some cases by about 40p a bottle of spirits.
The new Help To Buy scheme – a government backed loan for house purchase, will be backed by £30 billion of Government funding, for not only first-time buyers, but also for people wanting to move into a larger premises with a cap of £600,000. If you would like to find out more information about this scheme, then contact our IFA who will be able to inform you of the finer conditions within the scheme, such as not being able to draw down equity, or change the conditions of the mortgage.
Readers might also be interested in:
Government gives boost to housing market with Help to Buy scheme…
-->
Issued by: Enable Independent Financial LifePlanners
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.
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