Life planning is flexible approach to making sure that you can adapt your income around what you would like to achieve throughout your life, although there are no guarantees, it can offer great rewards if managed correctly. With more that a fifth of over 55’s now have to dip into funds they have previously planned to leave behind, this type of adaptable planning has never been so important.
A new report by Aviva Real Retirement shows that a quarter of over 75’s and 21% of those people aged 55 and over, has given a cash loan to family member, rather than leaving them an inheritance. Not only is money have to be left to other family members, inflation, diminished returns on investments and pensions, has also meant that more and more pensioners are having to re-mortgage or dip into savings to make up for the short fall.
People aged between 55 and 64 years of age are the least optimistic about being able to leave larger inheritance, compared to their parents, because in some cases it would have been completely gifted by the time they die. However according to the new research, half of the people questioned were confident that they would be able to leave more to their beneficiaries than their parents did.
Most of the people surveyed stated that their greatest asset was their property. Clive Bolton from Aviva stated: "It is not just the older generation who have seen their financial realities change, but also younger family members who often need support to access the property ladder or raise children of their own.
"For some over-55s the desire to leave an inheritance plays second fiddle to more urgent financial priorities, and even those who are financially secure are often tempted to share their wealth during retirement rather than wait to leave an inheritance."
If you would like some independent financial advice, no matter what age you are, then why not contact Enable Independent, our flexible approach to life planning, could help you to achieve your goals of retiring early, buying a second home abroad, putting your kids through university, or anything else you would like to achieve throughout your life time.
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 Conduct 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, 29 May 2013
Stamp duty, is it choking the UK housing market?
Enable Independent, Independent Financial Advisors in Bishop’s Stortford were not surprised to see that stamp duty could be having a negative impact on the housing market according to a new report by HomeOwners Alliance.
Stamp duty, which has risen more than seven times the rate of inflation since the mid 90’s, now averages at £6,000 per purchase in the UK. The new ‘Help to Buy’ scheme due to be introduced in 2014, is going to be undermined if the government don’t look at tackling high stamp duty tax.
Based on figures from 1995-1996 the average stamp duty bill would have taken a buyer eight days worth of earnings to pay off, it would now take the average home owner 11 weeks to pay off the large bill.
Stamp duty thresholds bands which were introduced by the coalition are split into three bands, with homes less than £125,000 having a 1% charge, homes between £125,000 and £250,000 are taxed at 3% and homes more than £500,000 are up to 7% above that figure. These bands need to be increased as the their has been 140% rise in house prices since the figures were initially set.
Despite the slow down in the housing market in certain areas in the UK since 2007, the government still earns an average £7bn a year of tax from the housing market, which is more than they earn from the tobacco industry.
The HOA wants to see thresholds increased, and first-time buyers to be exempt from paying stamp duty. Paula Higgins, chief executive of the HomeOwners Alliance, stated: "The overwhelming majority of people want to own their own home, and the government says it wants to help them. But the reality is that its 'home tax' is taxing their aspirations to death."
If you are looking at buying a home and need some independent advice, then why not give Enable Independent call, as we can give you independent advice from the best way to save for stamp duty to accessing some of the best mortgage rates available in the market place.
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 Conduct 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.
Stamp duty, which has risen more than seven times the rate of inflation since the mid 90’s, now averages at £6,000 per purchase in the UK. The new ‘Help to Buy’ scheme due to be introduced in 2014, is going to be undermined if the government don’t look at tackling high stamp duty tax.
Based on figures from 1995-1996 the average stamp duty bill would have taken a buyer eight days worth of earnings to pay off, it would now take the average home owner 11 weeks to pay off the large bill.
Stamp duty thresholds bands which were introduced by the coalition are split into three bands, with homes less than £125,000 having a 1% charge, homes between £125,000 and £250,000 are taxed at 3% and homes more than £500,000 are up to 7% above that figure. These bands need to be increased as the their has been 140% rise in house prices since the figures were initially set.
Despite the slow down in the housing market in certain areas in the UK since 2007, the government still earns an average £7bn a year of tax from the housing market, which is more than they earn from the tobacco industry.
The HOA wants to see thresholds increased, and first-time buyers to be exempt from paying stamp duty. Paula Higgins, chief executive of the HomeOwners Alliance, stated: "The overwhelming majority of people want to own their own home, and the government says it wants to help them. But the reality is that its 'home tax' is taxing their aspirations to death."
If you are looking at buying a home and need some independent advice, then why not give Enable Independent call, as we can give you independent advice from the best way to save for stamp duty to accessing some of the best mortgage rates available in the market place.
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 Conduct 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.
10 ways to help you manage your finances….
Since the global financial crises hit in 2008, it has been harder for the working individual to keep ahead of bills and finance, so at Enable Independent we have put together a list of financial information that will hopefully help you to manage your finances.
1. Need some extra money and have a spare room which you could rent out? You could earn up to £4,250 a year tax free by taking in a lodger. According to new research 7 out of 10 homeowners have unused spare rooms, try websites like SpareRoom or Flatshare if you would like to find out more information.
2. Credit cards – the average rate of a credit card is 18.9%, but there are plenty on the market which offer 0% for transfers, or less, so if you are stuck paying a high rate of interest then consider transferring your balance over to another credit card which offers a lower rate, you could check out a credit card comparison website such as www.comparethemarket.com. However comparison sites do not always offer the best rates on the market, so make sure you do some research before entering into a credit agreement.
3. Do you know what your credit rating is? A bad credit rating would make it difficult for you to apply for the best rates when applying for a loan or credit card. It’s easy, and relatively inexpensive to find out what your credit rating is, you can get credit references from Experian, Equifax or Callcredit. If you have a low credit rating, you can then start to tackle any problems by approaching the various companies or problems listed, this could be as simple as not registering your address with your local authority.
4. Planning on going abroad? Then rather than drawing money on a credit card from an ATM, which can be expensive, order in advance and you could benefit from 0% commission, and have the money either delivered to your door or the airport. If you would like to draw money from an ATM then ask your bank who their international partners are, as you could save money on the price of drawing out money. For example if you draw out money from Barclays from an ATM you will normally pay a charge of £1.50 plus the exchange rate commission, but if you use one of their partners such as BNP you will not need to pay the charge of £1.50.
Take a photocopy of your passport, just incase it gets stolen, and make sure you write the number of your bank on separate piece of paper, and keep it in a place other than your wallet or purse, just incase you need to contact them urgently.
5. How long would you be able to survive if you couldn’t work? Ideally you would have a six months buffer, but the average person has just 19 days worth of savings. Consider looking at how you could protect yourself if you couldn't work.
6. Save money by using an ISA – 2013 – 2014 the full allowance is £11,520. If you need individual advice on the different types of ISA's then you could contact an IFA.
7. Consider taking out income protection if you fall ill or can’t work. Statuary sick pay in the UK is £86.70 per week, although the average household spends £483 per week (based on 2012 figures), so you might need to consider taking out an insurance to make up the difference. You will need to make sure you can afford the repayments on any policy you take out.
8. Motor insurance – if you add your partner to your policy you could pay less, as statistics show that motorists who have another named partner on their policy are less likely to have an accident.
9. Check out your home insurance policy before the renewal date, make sure that all doors and windows have proper security locking devices, as if you have a break in, and these do not conform to the specifications within your policy you might not be insured.
10. Make a list of when all of your direct debits and bank payments go out, so that you can make sure you don’t got overdrawn at any point. By arranging an arranged overdraft in advance could avoid high costs of going overdrawn, however you need to bear in mind that an overdraft facility can be withdrawn by the bank at any time, without prior notice.
These are just a few pointers of how you can manage your finances, if you would like a more specific plan, or would like us to go through and help you to save money, then why not give one of our experts a call.
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 Conduct 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.
1. Need some extra money and have a spare room which you could rent out? You could earn up to £4,250 a year tax free by taking in a lodger. According to new research 7 out of 10 homeowners have unused spare rooms, try websites like SpareRoom or Flatshare if you would like to find out more information.
2. Credit cards – the average rate of a credit card is 18.9%, but there are plenty on the market which offer 0% for transfers, or less, so if you are stuck paying a high rate of interest then consider transferring your balance over to another credit card which offers a lower rate, you could check out a credit card comparison website such as www.comparethemarket.com. However comparison sites do not always offer the best rates on the market, so make sure you do some research before entering into a credit agreement.
3. Do you know what your credit rating is? A bad credit rating would make it difficult for you to apply for the best rates when applying for a loan or credit card. It’s easy, and relatively inexpensive to find out what your credit rating is, you can get credit references from Experian, Equifax or Callcredit. If you have a low credit rating, you can then start to tackle any problems by approaching the various companies or problems listed, this could be as simple as not registering your address with your local authority.
4. Planning on going abroad? Then rather than drawing money on a credit card from an ATM, which can be expensive, order in advance and you could benefit from 0% commission, and have the money either delivered to your door or the airport. If you would like to draw money from an ATM then ask your bank who their international partners are, as you could save money on the price of drawing out money. For example if you draw out money from Barclays from an ATM you will normally pay a charge of £1.50 plus the exchange rate commission, but if you use one of their partners such as BNP you will not need to pay the charge of £1.50.
Take a photocopy of your passport, just incase it gets stolen, and make sure you write the number of your bank on separate piece of paper, and keep it in a place other than your wallet or purse, just incase you need to contact them urgently.
5. How long would you be able to survive if you couldn’t work? Ideally you would have a six months buffer, but the average person has just 19 days worth of savings. Consider looking at how you could protect yourself if you couldn't work.
6. Save money by using an ISA – 2013 – 2014 the full allowance is £11,520. If you need individual advice on the different types of ISA's then you could contact an IFA.
7. Consider taking out income protection if you fall ill or can’t work. Statuary sick pay in the UK is £86.70 per week, although the average household spends £483 per week (based on 2012 figures), so you might need to consider taking out an insurance to make up the difference. You will need to make sure you can afford the repayments on any policy you take out.
8. Motor insurance – if you add your partner to your policy you could pay less, as statistics show that motorists who have another named partner on their policy are less likely to have an accident.
9. Check out your home insurance policy before the renewal date, make sure that all doors and windows have proper security locking devices, as if you have a break in, and these do not conform to the specifications within your policy you might not be insured.
10. Make a list of when all of your direct debits and bank payments go out, so that you can make sure you don’t got overdrawn at any point. By arranging an arranged overdraft in advance could avoid high costs of going overdrawn, however you need to bear in mind that an overdraft facility can be withdrawn by the bank at any time, without prior notice.
These are just a few pointers of how you can manage your finances, if you would like a more specific plan, or would like us to go through and help you to save money, then why not give one of our experts a call.
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 Conduct 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.
Thursday, 23 May 2013
How to save up enough money to pay for your child’s University education…
Investing enough money to pay for our child’s future is quite often a high priority for many of our customers when considering life planning. The cost of tuition has soured this academic year, costing on average £9,000 in tuition fees, the average student will be left with about £24,000 of debt by the time they finish their degree.
Many parents dream of being able to support their children throughout their university education, but lack of proper advice when considering life planning, often leaves the pot lacking in necessary funds, and planning when the child is still young is vital to achieving a large enough pot for when they go to university. It is believed that the average pot now needed to go to university is £60,000, something for most of us would be unachievable without proper financial advice.
If you start investing £170, which is a lot of money for most and put it into a child’s building society account such as Halifax which offers an annual rate of 6%, it could give you £66,000 by the time your child goes into higher education, before deductions. However this amount each month would be too much investment for most parents.
If you invested half of your child benefit per week, it would give you a total of £40 per month, this would give you about £14,000 based on 5% interest over 18 years, but this wouldn’t be anywhere near enough to support your child. Another way to boost the pot would be to ask relatives, friends and so fourth to add money to the pot, and over time this would help to boost it, but it is a slightly risky approach. Proper advice from an IFA would be advisable, as they will give be able to give you a choice of investment strategies, including stock market-based investments that often produce higher returns than building societies.
It is never too early to start planning a strategy for paying your child’s further education fees, if you would like some independent advice on how you can build up enough money for child’s future, then why not get in touch with Enable Independent, we will be able to help you through each stage of life planning, ensuring you achieve what you want, not what you’re financial situation dictates.
Many parents dream of being able to support their children throughout their university education, but lack of proper advice when considering life planning, often leaves the pot lacking in necessary funds, and planning when the child is still young is vital to achieving a large enough pot for when they go to university. It is believed that the average pot now needed to go to university is £60,000, something for most of us would be unachievable without proper financial advice.
If you start investing £170, which is a lot of money for most and put it into a child’s building society account such as Halifax which offers an annual rate of 6%, it could give you £66,000 by the time your child goes into higher education, before deductions. However this amount each month would be too much investment for most parents.
If you invested half of your child benefit per week, it would give you a total of £40 per month, this would give you about £14,000 based on 5% interest over 18 years, but this wouldn’t be anywhere near enough to support your child. Another way to boost the pot would be to ask relatives, friends and so fourth to add money to the pot, and over time this would help to boost it, but it is a slightly risky approach. Proper advice from an IFA would be advisable, as they will give be able to give you a choice of investment strategies, including stock market-based investments that often produce higher returns than building societies.
It is never too early to start planning a strategy for paying your child’s further education fees, if you would like some independent advice on how you can build up enough money for child’s future, then why not get in touch with Enable Independent, we will be able to help you through each stage of life planning, ensuring you achieve what you want, not what you’re financial situation dictates.
'Help to Buy’ scheme - IMF states boosting demand but not supply…
The proposed ‘Help to Buy’ scheme seems to be causing quite a stir in the housing industry, home prices in some areas of the UK have already started to increase beyond expectation, in just the midst of the new deposit guarantee scheme due to be released until next year.
The proposal for the ‘Help to Buy’ scheme, which is going to supersede the existing scheme FirstBuy for deposit loans for new build property, sent Barratt shares rising just after the announcement.
The new scheme is not only aimed at first-time buyers but will also give existing home owners the chance to tap into finance for a large deposit of 20% for a bigger loan, and it will be backed by £130bn of government funding.
However the ‘Help to Buy’ scheme has caused quite a bit of controversy. The IMF, The International Monetary Fund, have stated that the new scheme will boost demand, but not necessarily supply. A housing shortage continues to be a problem with the UK, so that even when people can access higher LTV mortgages, it might not necessarily mean that they will be able to get onto the property ladder.
Home building in the UK is at its lowest since the 1980’s, with many land owners keeping land so that it increases in value, but the government have said that they will try to make keeping hold of land less fiscally appealing. There is a huge amount of building land available in London, but landowners are reluctant to sell or develop it.
However Stuart Baseley, the executive chairman for the Home Builders Federation stated that: “At a time when government is looking to increase supply, the suggestion of a tax on land is flawed,” he said. “Generally when developers are holding permissioned land it is because the site is not viable or they are unable to secure development finance, so taxing it would make it even less likely to be developed.” He also indicated that the Office for Fair trading also could not back up these claims of unnecessary land holding.
If you are looking to buy a property or move up into a larger home and need some advice, then why not contact Enable Independent your approachable independent advisors. It’s our job to make sure that we keep up to date with the most recent changes to legislation and we have access to mortgages across the market place.
The proposal for the ‘Help to Buy’ scheme, which is going to supersede the existing scheme FirstBuy for deposit loans for new build property, sent Barratt shares rising just after the announcement.
The new scheme is not only aimed at first-time buyers but will also give existing home owners the chance to tap into finance for a large deposit of 20% for a bigger loan, and it will be backed by £130bn of government funding.
However the ‘Help to Buy’ scheme has caused quite a bit of controversy. The IMF, The International Monetary Fund, have stated that the new scheme will boost demand, but not necessarily supply. A housing shortage continues to be a problem with the UK, so that even when people can access higher LTV mortgages, it might not necessarily mean that they will be able to get onto the property ladder.
Home building in the UK is at its lowest since the 1980’s, with many land owners keeping land so that it increases in value, but the government have said that they will try to make keeping hold of land less fiscally appealing. There is a huge amount of building land available in London, but landowners are reluctant to sell or develop it.
However Stuart Baseley, the executive chairman for the Home Builders Federation stated that: “At a time when government is looking to increase supply, the suggestion of a tax on land is flawed,” he said. “Generally when developers are holding permissioned land it is because the site is not viable or they are unable to secure development finance, so taxing it would make it even less likely to be developed.” He also indicated that the Office for Fair trading also could not back up these claims of unnecessary land holding.
If you are looking to buy a property or move up into a larger home and need some advice, then why not contact Enable Independent your approachable independent advisors. It’s our job to make sure that we keep up to date with the most recent changes to legislation and we have access to mortgages across the market place.
Is the UK to avoid a triple-dip recession?
Enable Independent, Independent Financial Advisors in Bishop’s Stortford are pleased to see that it looks as though the UK economy is going to avoid going into a triple-dip recession. Distorted figures, negative media coverage, always make it difficult to predict, but apart from the UK losses in the North sea oil industry, it looks as though the UK economy might be in better shape than previously thought.
According to Ian McCafferty, a newly appointed MPC policy maker, he feels that the economy is improving, and that lending and tackling inflation are the most important considerations this year. He has also stated that economic growth will pick up pace later this year.
He said that he feels "hopeful for the UK economy through 2013 and into 2014". He continued to say that he expects to see modest improvement in GDP, as some of the negative factors that have been creating a stagnant economy have started to fade: "Overall, I am hopeful for a modest pickup in growth as some of the negative factors that have made the last couple of years so difficult start to fade, and as levels of confidence, so badly battered by the impact of the euro crisis, start to heal," he said.
Many leading economists, such as Stephen King, the chief global economist as HSBC, advised against throwing too much money into the economy to stimulate growth, stating that the economy was going in the right direction. Other prominent economists have said that the overall economic growth much stronger than the gloomy reports.
McCafferty stated: "If we adjust overall GDP growth for the sharp falls in construction and North Sea oil output, the rest of the economy – over 90% of GDP – grew by 1.2% last year. I do not wish to sound complacent; growth of even 1.2% across much of the economy is still at best a slow and difficult recovery. But it is also somewhat removed from the reports of semi-permanent, triple-dip recession."
But he did say that the outlook for inflation, which has been above the Bank's government-set target for years, was "more concerning" and that it is expected to "remain elevated for much of the next two years".
It will be interesting to see later today, if McCafferty predictions of avoiding a triple-trip recession are confirmed.
According to Ian McCafferty, a newly appointed MPC policy maker, he feels that the economy is improving, and that lending and tackling inflation are the most important considerations this year. He has also stated that economic growth will pick up pace later this year.
He said that he feels "hopeful for the UK economy through 2013 and into 2014". He continued to say that he expects to see modest improvement in GDP, as some of the negative factors that have been creating a stagnant economy have started to fade: "Overall, I am hopeful for a modest pickup in growth as some of the negative factors that have made the last couple of years so difficult start to fade, and as levels of confidence, so badly battered by the impact of the euro crisis, start to heal," he said.
Many leading economists, such as Stephen King, the chief global economist as HSBC, advised against throwing too much money into the economy to stimulate growth, stating that the economy was going in the right direction. Other prominent economists have said that the overall economic growth much stronger than the gloomy reports.
McCafferty stated: "If we adjust overall GDP growth for the sharp falls in construction and North Sea oil output, the rest of the economy – over 90% of GDP – grew by 1.2% last year. I do not wish to sound complacent; growth of even 1.2% across much of the economy is still at best a slow and difficult recovery. But it is also somewhat removed from the reports of semi-permanent, triple-dip recession."
But he did say that the outlook for inflation, which has been above the Bank's government-set target for years, was "more concerning" and that it is expected to "remain elevated for much of the next two years".
It will be interesting to see later today, if McCafferty predictions of avoiding a triple-trip recession are confirmed.
Wednesday, 15 May 2013
Funding for Lending Scheme extended
In a continuing effort to boost growth in the UK economy, the Bank of England’s (BoE) Monetary Policy Committee saw “merit” in extending their
Funding for Lending Scheme (FLS) for another year, out to 2015, as an alternative to expansion of its Quantitative Easing (QE) programme. This action was mooted by George Osborne, the Chancellor of the Exchequer, in his March budget speech.
Launched last August, and initially expected to finish in December 2014, the FLS has come into criticism, as it has so far failed to improve bank lending. Designed to encourage banks to lend – particularly to small to medium-sized enterprises (SMEs) - the banks were offered an extra £5 for every £1 they lent to these businesses. Now they will be able to borrow £10 in 2014 for every £1 they lend to SMEs in 2013.
In fact, the BoE’s own figures show that banks drew down £14bn from the FLS between August and December 2012, but surprisingly, lending from those banks to SMEs was lower than in the six months before the scheme was introduced.
This latest extension of the scheme will also see specialist finance houses embraced into the facility. At present these type of organisations offer over £20bn of working capital to SMEs each year. With interest rates, set by the BoE, at the historically low level of 0.5% for four years now, it is hoped that bank lending will improve in the short term.
The champions of UK business, the Confederation of British Industry’s (CBI) Director for Competitive Markets, Matthew Fell, said of this announcement: “Funding for Lending is only one piece of the finance jigsaw. Boosting firms’ confidence by raising awareness of the various funding schemes available is critical.”
However, Stephen Gifford, the Director of Economics at the CBI said: “With only a modest pick-up in growth expected, the possibility of further QE will remain a live issue.”
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 Conduct 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.
Funding for Lending Scheme (FLS) for another year, out to 2015, as an alternative to expansion of its Quantitative Easing (QE) programme. This action was mooted by George Osborne, the Chancellor of the Exchequer, in his March budget speech.
Launched last August, and initially expected to finish in December 2014, the FLS has come into criticism, as it has so far failed to improve bank lending. Designed to encourage banks to lend – particularly to small to medium-sized enterprises (SMEs) - the banks were offered an extra £5 for every £1 they lent to these businesses. Now they will be able to borrow £10 in 2014 for every £1 they lend to SMEs in 2013.
In fact, the BoE’s own figures show that banks drew down £14bn from the FLS between August and December 2012, but surprisingly, lending from those banks to SMEs was lower than in the six months before the scheme was introduced.
This latest extension of the scheme will also see specialist finance houses embraced into the facility. At present these type of organisations offer over £20bn of working capital to SMEs each year. With interest rates, set by the BoE, at the historically low level of 0.5% for four years now, it is hoped that bank lending will improve in the short term.
The champions of UK business, the Confederation of British Industry’s (CBI) Director for Competitive Markets, Matthew Fell, said of this announcement: “Funding for Lending is only one piece of the finance jigsaw. Boosting firms’ confidence by raising awareness of the various funding schemes available is critical.”
However, Stephen Gifford, the Director of Economics at the CBI said: “With only a modest pick-up in growth expected, the possibility of further QE will remain a live issue.”
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 Conduct 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.
RICS says housing market shows ‘early signs’ of growth...
Whilst overall growth remained slow, The Royal Institution of Chartered Surveyors (RICS) reported in April that interest by potential buyers of new homes in England and Wales rose in March.
This interest has been attributed to the ‘Help to Buy‘ initiative announced in the recent Budget and an improvement in mortgage availability due to the Government’s ‘Funding for Lending’ scheme. The former offering a 20% equity share for new-build buyers who can raise an initial 5% deposit and the latter giving lenders – both banks and other mortgage providers – access to cheap funds, on the proviso that they then pass this rate reduction on in loans and mortgages to small businesses and home buyers.
RICS reported that sales per surveyor reached a three-year high in March; however, more members reported a fall in house prices generally, rather than a rise in the first quarter of the year.
Peter Bolton King, of RICS, was quoted as saying: “A buoyant, healthy property market is central to economic recovery and, whilst these are still very much early signs, it is encouraging that sales are beginning to pick up.”
These were all encouraging signs for the housing market; particularly with mortgage rates sitting at historical lows. However, concern was raised at the level of charges being made for them; with one market commentator estimating that average fees for mortgage approvals has risen by 8% since January, with an average of £1,522 being reported in April.
As a final caveat, the National Association of Estate Agents (NAEA) cautioned that first-time buyers should very carefully research, not only the location of any intended house purchase, but also the options available to them to finance the home on the most advantageous terms.
Inflation remains static...
The Office for National Statistics (ONS) reported that the Consumer Prices Index (CPI) remained at 2.8% in March; however, this is the highest level it has reached since May 2012.
They stated that whilst car insurance premiums, digital cameras, DVDs, and books, saw an increase in price in the month, these were offset by lower petrol and diesel fuel costs. Here petrol prices only rose by 2.2p a litre, whereas last year saw an increase of 3.3p a litre. Likewise, diesel prices rose by 1.9p a litre against a rise of 2.6p a year earlier.
Other factors were a slower increase in the price of furniture and a fall of 0.5% in the price of tobacco and alcoholic drinks.
Their report did, however, add that they saw a reduction in producer prices, with factory gate inflation rising by only 2%, which is the lowest level since July last year. This was mainly due to the largest annual fall in crude oil prices over that same period.
Meanwhile, the Bank of England stated that they believed UK inflation will go higher than 3% before the end of this year, due to a global increase in food prices and an anticipated increase in the domestic cost of gas and electricity.
They added that their forecasts saw inflation remaining above the officially targeted 2% until at least 2016.
It has now been above this level since 2009. With the CPI sitting at 2.8%, consumers’ spending power continues to be diminished, as the growth in average earnings is only 1.3%, which continues to dampen consumer demand.
Looking forward, there is hope that inflationary pressures will ease, as Brent Crude oil dipped below $100 a barrel this month. This is reflected in a reduction of about 2.5p in the price of a litre of unleaded petrol and supermarkets have reignited a price war at the pumps to try to attract motorists to their stores.
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 Conduct 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.
Other factors were a slower increase in the price of furniture and a fall of 0.5% in the price of tobacco and alcoholic drinks.
Their report did, however, add that they saw a reduction in producer prices, with factory gate inflation rising by only 2%, which is the lowest level since July last year. This was mainly due to the largest annual fall in crude oil prices over that same period.
Meanwhile, the Bank of England stated that they believed UK inflation will go higher than 3% before the end of this year, due to a global increase in food prices and an anticipated increase in the domestic cost of gas and electricity.
They added that their forecasts saw inflation remaining above the officially targeted 2% until at least 2016.
It has now been above this level since 2009. With the CPI sitting at 2.8%, consumers’ spending power continues to be diminished, as the growth in average earnings is only 1.3%, which continues to dampen consumer demand.
Looking forward, there is hope that inflationary pressures will ease, as Brent Crude oil dipped below $100 a barrel this month. This is reflected in a reduction of about 2.5p in the price of a litre of unleaded petrol and supermarkets have reignited a price war at the pumps to try to attract motorists to their stores.
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 Conduct 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.
Markets: (Data compiled by The Outsourced Marketing Department)
Most global equity markets remained on a watching brief in April with little movement. The FTSE100 saw a modest gain of 0.29% to finish the month on 6,430.1, just 2.37% below its long-term trend, whilst the wider FTSE250 closed April on 13,949.9, up 0.19%, and the AIM market at 706.22 to record its second month of decline.
The Dow Jones fared slightly better finishing at 14,839.8, to register a 1.79% gain, and the Nasdaq followed suit with a gain of 1.88% to close at 3,328.79.
Encouraged by the formation of a new coalition government in Italy, the Eurostoxx50 finished April well at 2,712.00 for a gain of 3.35% on the month.
Meanwhile, the Japanese market saw continuing buying interest, with possible carry trade activity, due to the massive boost to the money supply from central bank activity. The Nikkei leapt by 11.8% to close out the month
on 13,860.86. The index has now risen by 33.3% since the end of last year.
On the foreign exchanges, UK sterling appreciated slightly against the greenback to close on $1.55, up 1.9%, whilst it lost ground a little against the Euro, down 0.84% at €1.18.
The Euro also appreciated against the US$ by 3.13%, finishing April at $1.32.
The good news was that the oil price dipped by nearly 7% in the month, with the Brent Crude benchmark closing on $102.37, having dipped below the psychologically important $100 level at one point earlier in the month. Gold had an active month, with a major dip in the price to near $1,350 earlier in the month, but rallying to close at $1,471.35, registering a net 8% fall in the month.
The Dow Jones fared slightly better finishing at 14,839.8, to register a 1.79% gain, and the Nasdaq followed suit with a gain of 1.88% to close at 3,328.79.
Encouraged by the formation of a new coalition government in Italy, the Eurostoxx50 finished April well at 2,712.00 for a gain of 3.35% on the month.
Meanwhile, the Japanese market saw continuing buying interest, with possible carry trade activity, due to the massive boost to the money supply from central bank activity. The Nikkei leapt by 11.8% to close out the month
on 13,860.86. The index has now risen by 33.3% since the end of last year.
On the foreign exchanges, UK sterling appreciated slightly against the greenback to close on $1.55, up 1.9%, whilst it lost ground a little against the Euro, down 0.84% at €1.18.
The Euro also appreciated against the US$ by 3.13%, finishing April at $1.32.
The good news was that the oil price dipped by nearly 7% in the month, with the Brent Crude benchmark closing on $102.37, having dipped below the psychologically important $100 level at one point earlier in the month. Gold had an active month, with a major dip in the price to near $1,350 earlier in the month, but rallying to close at $1,471.35, registering a net 8% fall in the month.
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 Conduct 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 Conduct 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.
Friday, 10 May 2013
Triple-dip recession avoided by the UK economy
Whilst the figures, released this month from the Office for National Statistics (ONS), reflected a flat economy, they were better than many expected. The ONS also commented that there were no extraordinary contributing factors, such as the Olympics, to flatter these figures.
They added that the first quarter figure of 2013 had risen by 0.6% compared with the same period in 2012; this is its strongest performance since Q4 of 2011.
The service sector led the increase in productivity, with retail, hotels and restaurants performing well. The energy sector also contributed positively, with increased North Sea oil and gas production. Overall this sector saw growth of 0.6%.
Telecommunications and transport also contributed positively with growth of 1.4%.
On the negative side, construction, with a dip of 2.5%, and manufacturing also saw a decline in output to slightly dent the overall figures.
Given the negative comments made recently by the International Monetary Fund and a downgrading of the UK’s AAA credit rating by another of the agencies, George Osborne, the Chancellor of the Exchequer, said of the ONS announcement: “Today’s figures are an encouraging sign the economy is healing. Despite a tough economic backdrop, we are making progress. The deficit is down by a third, businesses have created over a million and a quarter new jobs, and interest rates are at record lows.
“We all know there are no easy answers to problems built up over many years, and I can’t promise the road ahead will always be smooth, but by continuing to confront our problems head on, Britain is recovering and we are building an economy fit for the future.”
As a caveat, UK economic output remains 2.6% below its pre-financial crisis level.
The service sector led the increase in productivity, with retail, hotels and restaurants performing well. The energy sector also contributed positively, with increased North Sea oil and gas production. Overall this sector saw growth of 0.6%.
Telecommunications and transport also contributed positively with growth of 1.4%.
On the negative side, construction, with a dip of 2.5%, and manufacturing also saw a decline in output to slightly dent the overall figures.
Given the negative comments made recently by the International Monetary Fund and a downgrading of the UK’s AAA credit rating by another of the agencies, George Osborne, the Chancellor of the Exchequer, said of the ONS announcement: “Today’s figures are an encouraging sign the economy is healing. Despite a tough economic backdrop, we are making progress. The deficit is down by a third, businesses have created over a million and a quarter new jobs, and interest rates are at record lows.
“We all know there are no easy answers to problems built up over many years, and I can’t promise the road ahead will always be smooth, but by continuing to confront our problems head on, Britain is recovering and we are building an economy fit for the future.”
As a caveat, UK economic output remains 2.6% below its pre-financial crisis level.
Tuesday, 7 May 2013
How to remortgage...
If you are looking to expand your home, then you might need to finance it. One of the ways in which you could do this, is by considering remortgaging your home.
To remortgage your home you will need to take into consideration how much you are paying on your existing mortgage, and how much you will need to borrow to extend your house.
It is important at this stage to get a rough idea of how much the monthly repayments could be and add these to your monthly mortgage payments, to make sure that you can afford the increased costs of living in your home.
You will also need to consider any fees which might be involved when remortgaging your property, these figures will also need to be taken into account. The best thing to do at this stage would be to contact an Independent Financial Advisor, as they can access mortgages from across the market place.
Other reasons why you might also consider applying for a remortgage is so that you can to release some of the value build up in your property for other spending, or paying off debts.
By remortgaging you could find a cheaper deal and keep the payments the same so that you can be mortgage free sooner. You could also extend the term of your mortgage, to reduce your monthly payments, but be careful as this could end up costing you more in the long run.
If you are looking at applying for a remortgage, or would just like some Independent advice, then why not give one of our team of IFA’s a call.
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.
To remortgage your home you will need to take into consideration how much you are paying on your existing mortgage, and how much you will need to borrow to extend your house.
It is important at this stage to get a rough idea of how much the monthly repayments could be and add these to your monthly mortgage payments, to make sure that you can afford the increased costs of living in your home.
You will also need to consider any fees which might be involved when remortgaging your property, these figures will also need to be taken into account. The best thing to do at this stage would be to contact an Independent Financial Advisor, as they can access mortgages from across the market place.
Other reasons why you might also consider applying for a remortgage is so that you can to release some of the value build up in your property for other spending, or paying off debts.
By remortgaging you could find a cheaper deal and keep the payments the same so that you can be mortgage free sooner. You could also extend the term of your mortgage, to reduce your monthly payments, but be careful as this could end up costing you more in the long run.
If you are looking at applying for a remortgage, or would just like some Independent advice, then why not give one of our team of IFA’s a call.
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.
Adding extra space or an extension? You will need to make some considerations...
Enable Independent know that by extending your home by either adding and extension developing a roof space is a great way to add extra space and it could increase the value of your home.
Here are a few things you will need to take into consideration:
• If you are planning an extension you will need to get expert planning advice, as these change quite regularly, and will need to be followed.
• Make sure you check out your builder’s credentials, there are various websites such as www.ratedbuilders.com and Which also supply a list of good builders. Recommendations from friends and family can be useful too. The National Federation of Builders (NFB) will be able to give you a list of registered builders in your area.
• Remember do not only consider price, and try to get at least three quotations.
• Knowing what to add is also an important consideration, additional bathrooms are very desirable, a larger kitchen and in some urban areas a garage can add real value. The best thing to do would be to ask a couple of estate agents their advice before developing your property.
• Loft conversions are also a very popular way of extending your home, but these will probably also need planning permission.
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.
Here are a few things you will need to take into consideration:
• If you are planning an extension you will need to get expert planning advice, as these change quite regularly, and will need to be followed.
• Make sure you check out your builder’s credentials, there are various websites such as www.ratedbuilders.com and Which also supply a list of good builders. Recommendations from friends and family can be useful too. The National Federation of Builders (NFB) will be able to give you a list of registered builders in your area.
• Remember do not only consider price, and try to get at least three quotations.
• Knowing what to add is also an important consideration, additional bathrooms are very desirable, a larger kitchen and in some urban areas a garage can add real value. The best thing to do would be to ask a couple of estate agents their advice before developing your property.
• Loft conversions are also a very popular way of extending your home, but these will probably also need planning permission.
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.
Friday, 3 May 2013
Grand Designs LIve...
If you are looking for home inspiration this weekend, then why not visit Grand Designs live, at the Excell Centre in London from the 4th until the 12th of May.
As well as offering aspirational home ideas, the show is packed with live shows and ideas on how to build a home, and lovely items to fill it with.
Located in the heart of Grand Build, Ask An Expert sponsored by VELUX offers a unique service designed to answer all of your project and self-build questions.
This year Grand Designs has teamed up with the National Self Build Association (NaSBA) and the Department for Communities and Local Government (DCLG) to bring you the first ever National Self Build Week (NSBW) that will be launched at Grand Designs Live London.
As well as offering aspirational home ideas, the show is packed with live shows and ideas on how to build a home, and lovely items to fill it with.
Located in the heart of Grand Build, Ask An Expert sponsored by VELUX offers a unique service designed to answer all of your project and self-build questions.
This year Grand Designs has teamed up with the National Self Build Association (NaSBA) and the Department for Communities and Local Government (DCLG) to bring you the first ever National Self Build Week (NSBW) that will be launched at Grand Designs Live London.
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