Enable’s IFAs in Bishop’s Stortford once again notice that following comments by Prince Charles -that pension fund managers are letting savers down by focusing on the short term- research by Evercore Pan-Asset has argued that the median passive fund has outperformed its active counterpart in 13 of the 14 most popular sectors over the past five years i.e. passive investment is better for the investor over the long term. It also claimed that the average performance gap between passive and active funds was 6.5 percentage points, blaming this on the impact of higher management charges and poor stock selection from active funds.
Many commentators expect the rise of passive products to continue as the end investor becomes increasingly cost conscious and options mature with the launch of more products like ETF’s. Head of retail at Artemis Richard Pursglove however argues that “active managers could stand to benefit as passive solutions become more popular”. “The more and more funds that flow into the passive side of our industry, in some ways the easier it is for active managers to outperform and the more opportunities this creates. With no active fund management industry, you don’t have a market,” he says. He also says there is an element of cyclicality behind the recent move to passives, as investors look to gain exposure to a rising stock market. This is likely to change, however, when the market hits its next stumbling block and passive funds, unlike active managers, fail to anticipate it.”
The passive v active debate is set to run and run and Enable’s IFAs are here to try and help you make sense of it all.
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, 31 October 2013
Capping Pension fees,,,
Bishop’s Stortford’s IFAs at Enable are keen to make sure people are aware of the management fees they pay for their pensions. With the onset of auto enrolment meaning that over the next five years, all workers aged between 22 and state retirement age who earn at least 9,440 pounds a year will be enrolled into a private pension scheme selected by their employer, unless they are already in a scheme or they opt out.
The average annual fee for these schemes is 0.51% of assets under management, but more than 150,000 people are in schemes where the fees exceed 1%, the government said. "Enough is enough on charges. People need to know they are getting value for money when they save into a pension and not being ripped off," pensions minister Steve Webb said.
Among the options are blanket fee caps of 0.75%or 1%, and allowing fees above 0.75% only when an employer seeks a special exemption, he said. Reducing an annual fee from 1.5% to 0.75% would give someone who saved 100 pounds a month for 46 years an extra 100,000 pounds at retirement.
The Association of British Insurers reacted cautiously saying it was worried that a formal cap might encourage some pension funds to raise charges up to that level. Other experts expressed concern that the campaign for lower charges deflected attention from a push to improve the overall quality of pension provisions and may lead to a proliferation of "basic" products which failed to meet the needs of savers. "A charge cap only looks at what people are paying and not at what they are getting for their money ... At Enable our IFAs will happily address what you are getting for your money in your pension pot.
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.
The average annual fee for these schemes is 0.51% of assets under management, but more than 150,000 people are in schemes where the fees exceed 1%, the government said. "Enough is enough on charges. People need to know they are getting value for money when they save into a pension and not being ripped off," pensions minister Steve Webb said.
Among the options are blanket fee caps of 0.75%or 1%, and allowing fees above 0.75% only when an employer seeks a special exemption, he said. Reducing an annual fee from 1.5% to 0.75% would give someone who saved 100 pounds a month for 46 years an extra 100,000 pounds at retirement.
The Association of British Insurers reacted cautiously saying it was worried that a formal cap might encourage some pension funds to raise charges up to that level. Other experts expressed concern that the campaign for lower charges deflected attention from a push to improve the overall quality of pension provisions and may lead to a proliferation of "basic" products which failed to meet the needs of savers. "A charge cap only looks at what people are paying and not at what they are getting for their money ... At Enable our IFAs will happily address what you are getting for your money in your pension pot.
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.
Cambridge Festival of Ideas
Enable’s IFAs in Bishop’s Stortford are always keen to look at any emerging financial ideas so it was interesting to see that the growing importance of credit unions was raised at a Cambridge Festival of Ideas lecture.
Dr Paul Jones, of Liverpool John Moores University, spoke about the history of the credit union sector and how the operating models of credit unions have changed over the years. Of course credit unions are not a new idea it is just they went into decline as the profile of high street banks rose. Credit unions are small non-profit financial organisations set up by members with something in common to benefit their community. That common factor may be living in the same town, working in the same industry (eg, the Police Credit Union) or belonging to a particular trade union. Roughly 500 credit unions cover the UK offering savings and loans to their members. Most now offer current accounts, and a few even offer mortgages. Almost a million Brits are members.
Yet, Credit Unions are not just for those struggling financially. They also appeal to those who want to bank ethically and benefit their community. Some larger credit unions, such as the police union or the big Glasgow credit union, offer products that can beat mainstream finance.
Dr Jones said: “It is a sign of the growing importance of credit unions within British society that the topic is included in the University of Cambridge’s Festival of Ideas. Enable Independent Financial Advisors will always try and access any financial solutions available, to help their clients with their financial planning.
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, 24 October 2013
Investing time in financial planning
Whatever stage of life you are at it is always an option to talk to Independent Financial Advisors like Enable to help you feel in charge of your financial situation. Customers often report that having a plan at least puts their mind at rest even though we all know that the world changes around us at an ever increasing rate.
One of the areas our IFA’s at Enable of Bishops Stortford have notices is attitudes and approaches to inheritance. For most people inheritance will be inextricably linked with property ownership. As The Smith Institute pointed out: “Many homeowners still want to pass down the equity in their homes to children rather than releasing it to spend on things such as home improvements.” But as life expectancy and the cost of living both go up it might become harder and harder to not to use any of the money tied up in property.
“However, attitudes seem to be shifting with the younger generations more likely to see housing equity as an investment for retirement.” says The Smith Institute and Enables IFAs can see that reflected in peoples financial planning. The younger generation are being forced to shoulder more financial responsibility for later life, in particular with respect to income and care needs. If the state continues to withdraw its support for later years the younger generation really need to see the benefits of investing time in financial planning. Enable’s IFA’s in Bishop’s Stortford are happy to help you plan whatever your age.
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.
One of the areas our IFA’s at Enable of Bishops Stortford have notices is attitudes and approaches to inheritance. For most people inheritance will be inextricably linked with property ownership. As The Smith Institute pointed out: “Many homeowners still want to pass down the equity in their homes to children rather than releasing it to spend on things such as home improvements.” But as life expectancy and the cost of living both go up it might become harder and harder to not to use any of the money tied up in property.
“However, attitudes seem to be shifting with the younger generations more likely to see housing equity as an investment for retirement.” says The Smith Institute and Enables IFAs can see that reflected in peoples financial planning. The younger generation are being forced to shoulder more financial responsibility for later life, in particular with respect to income and care needs. If the state continues to withdraw its support for later years the younger generation really need to see the benefits of investing time in financial planning. Enable’s IFA’s in Bishop’s Stortford are happy to help you plan whatever your age.
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.
Financial Planning for Care
Last year, those reaching age 65 across the UK had assets worth around £100bn. Our experienced Independent Financial Advisors at Enable in Bishop’s Stortford know that many of those billions will be converted into income in the next few years as people want to enjoy their lives but much of the rest will ultimately spent on care or passed on as inheritance.
Providing for Care in later life is poorly understood by many but health is extremely important to think about because, while retirement may reduce work stress, there is evidence that giving up work can lead to adverse longer-term effects, perhaps due to reduced physical activity and social interaction. At Enable our IFA’s can see for themselves that may people are living longer but healthy life expectancy has not increased as rapidly. This means many more people spend many more of their retirement years in poorer health, which can have a huge impact on both the cost and standard of living.
Care however is hard to plan for – not just because the whole structure of social care is currently under review and set for reform and will probably have to reform again and again. About one in three older people require care in later life so, although the odds are against it happening to us, we should not be surprised if it does. Enables experienced Independent Financial Advisors are used to talking through difficult financial planning like this – having a plan is a real step in the right direction.
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.
Dreaming of early retirement?
Enable’s independent Financial Advisors in Bishops Stortford often find themselves chatting to people about the possibility of early retirement. In your twenties and thirties it is easier to ignore retirement planning, but in your forties and fifties the daily grind can feel more and more just that. Enables IFA’s often hear people say they want to enjoy life “while they still have all their own teeth”. People want to travel the world, when they are healthy and in the prime of life, visiting those hard-to-pronounce countries they’ve always talked about and sampling the finest local fare.
Surveys show that more than half of workers between the ages of 30 and 50 plan to retire before they're 60 but there's only one problem with this wishful thinking: Retiring early is easy, but making your money last is hard. Enable ‘s IFA’s know the problem with saving up for early retirement is that we tend not to think beyond those first few glorious years of good health and full bank accounts -- we don't do the long-term thinking. If the average male life expectancy is 75.2 and we retire at 55, then our savings and investments need to last for 20 years.
And what if we live even longer than average? Life can get more difficult during those last five or 10 years -- not to mention the ever-increasing costs of care. Enables IFA’s in Bishops’ Stortford can help bring an edge or reality to your retirement dreams.
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.
Surveys show that more than half of workers between the ages of 30 and 50 plan to retire before they're 60 but there's only one problem with this wishful thinking: Retiring early is easy, but making your money last is hard. Enable ‘s IFA’s know the problem with saving up for early retirement is that we tend not to think beyond those first few glorious years of good health and full bank accounts -- we don't do the long-term thinking. If the average male life expectancy is 75.2 and we retire at 55, then our savings and investments need to last for 20 years.
And what if we live even longer than average? Life can get more difficult during those last five or 10 years -- not to mention the ever-increasing costs of care. Enables IFA’s in Bishops’ Stortford can help bring an edge or reality to your retirement dreams.
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, 17 October 2013
Savings account vs Isa vs Pension?
Bishops Stortford IFAs Enable can help you take stock and plan for retirement. The following figures were compiled recently based on £100-a-month saving over 40 years, assuming growth of 5 per cent gross each year. Which we know is currently massively over optimistic.
Saving into a conventional savings account would be the most tax inefficient way to save of the three, but 40 per cent taxpayers would lose out most as they would be taxed more than basic rate taxpayers. It has been calculated that a 40 per cent taxpayer would be left with £91,945 after 40 years of saving into such an account, whereas a 20 per cent taxpayer would have £25,000 more - at £116,486.
Saving into a tax-free cash Isa takes the tax element out of the equation entirely, though given the current lack of decent interest rates on Isas, a 5 per cent growth averaging the next 40 years might seem overly optimistic. Nonetheless, was £100-a-month to be put into such an account over that time, then both basic and higher rate taxpayers would both be left with £148,856.
But it is with pension saving that 40 per cent taxpayers can really see a difference, as the tax relief contributions really accelerates saving levels, a 40 per cent taxpayers pension pot to £248,099 over the 40 years - and a 5 per cent growth rate is a much more reasonable expectation for a pension pot than for a cash Isa.
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.
Saving into a conventional savings account would be the most tax inefficient way to save of the three, but 40 per cent taxpayers would lose out most as they would be taxed more than basic rate taxpayers. It has been calculated that a 40 per cent taxpayer would be left with £91,945 after 40 years of saving into such an account, whereas a 20 per cent taxpayer would have £25,000 more - at £116,486.
Saving into a tax-free cash Isa takes the tax element out of the equation entirely, though given the current lack of decent interest rates on Isas, a 5 per cent growth averaging the next 40 years might seem overly optimistic. Nonetheless, was £100-a-month to be put into such an account over that time, then both basic and higher rate taxpayers would both be left with £148,856.
But it is with pension saving that 40 per cent taxpayers can really see a difference, as the tax relief contributions really accelerates saving levels, a 40 per cent taxpayers pension pot to £248,099 over the 40 years - and a 5 per cent growth rate is a much more reasonable expectation for a pension pot than for a cash Isa.
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.
Are you making the most of pension tax incentives?
Enable's Independent Financial advisors in Bishops Stortford know that about 400,000 people earlier this year were dragged into the 40% income tax band. If you were one of those people and you in the pre-retirement area and looking to take stock of your financial position maybe we can help.
Changes that came into force in April meant that people now pay the 40 per cent tax rate on income over £41,450, compared to £42,473 in 2012/13. But there is a silver lining , you should also be able to access the more generous 40 per cent top-up the Government provides on pension contributions, which could boost your pension pot by as much as £60,000. The way the tax relief works is by the Government providing a top up to your pension contributions, the level of which depends on what tax band you are in. So if you are a 20 per cent, basic rate taxpayer, the Government will give you 20p in the pound for money you put into your pension, if you make a £100 pension contribution it will actually only cost you £80
For someone paying 40 per cent you only pay £60 of a £100 contribution for an additional rate taxpayer, they would only pay £55 for the same contribution. Someone who just sneaks into the 40 per cent band - on £41,500 for example - could end up paying the rate on a marginal amount of income, but see a marked boost in their pension saving.
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.
Changes that came into force in April meant that people now pay the 40 per cent tax rate on income over £41,450, compared to £42,473 in 2012/13. But there is a silver lining , you should also be able to access the more generous 40 per cent top-up the Government provides on pension contributions, which could boost your pension pot by as much as £60,000. The way the tax relief works is by the Government providing a top up to your pension contributions, the level of which depends on what tax band you are in. So if you are a 20 per cent, basic rate taxpayer, the Government will give you 20p in the pound for money you put into your pension, if you make a £100 pension contribution it will actually only cost you £80
For someone paying 40 per cent you only pay £60 of a £100 contribution for an additional rate taxpayer, they would only pay £55 for the same contribution. Someone who just sneaks into the 40 per cent band - on £41,500 for example - could end up paying the rate on a marginal amount of income, but see a marked boost in their pension saving.
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.
Turning 50 is time to take stock?
Getting older happens to us all and there are various watersheds along the way. Turning 50 is defiantly a point in life to step back and take a stock of where you are at and where you would like to be. Enable's Independent financial advisors in Bishops Stortford anticipate that there are three key stages where they can be of help as retirement approaches. More and more forward-thinking clients are asking for advice and we are encouraging them to look the key stages of pre-, at- and post-retirement.
Around the age of 50 is pre-retirement a time to ensure that later-life financial planning is under way. About this age you are old enough that retirement is beginning to look like a real prospect on the horizon but you are still young enough to have a few more years of earnings to divert into pensions or savings if necessary to build up your retirement funds. 50 is probably still way too soon to be making any hard-and-fast decisions about retirement but it is early enough for people to start really understanding the options and preparing the groundwork.
Independent Financial Advisors can play a crucial role here, arranging a visit to Enable, IFA’s in Bishop's Stortford at 50 is a bit like arranging a financial health check but it needs to act as more than just a financial check of what your current asset levels are and we can help you see it as the start of the retirement learning curve.
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.
Around the age of 50 is pre-retirement a time to ensure that later-life financial planning is under way. About this age you are old enough that retirement is beginning to look like a real prospect on the horizon but you are still young enough to have a few more years of earnings to divert into pensions or savings if necessary to build up your retirement funds. 50 is probably still way too soon to be making any hard-and-fast decisions about retirement but it is early enough for people to start really understanding the options and preparing the groundwork.
Independent Financial Advisors can play a crucial role here, arranging a visit to Enable, IFA’s in Bishop's Stortford at 50 is a bit like arranging a financial health check but it needs to act as more than just a financial check of what your current asset levels are and we can help you see it as the start of the retirement learning curve.
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, 3 October 2013
Equity Loan - Help to Buy
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Your home may be repossessed if you do not keep up repayments on your mortgage.
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.
There is a second option in the Help
to Buy Scheme called the equity loan. It is available on new build properties
only using a government equity loan of 20% of the purchase price plus a
traditional mortgage. Lenders will need to make suitable mortgage products available and due
to the short notice of the announcement products may not be available.
So with a Help to Buy Equity Loan,
the government loans you up to 20% of the cost of a new-build, so you only need
a 5% deposit and a 75% mortgage to make up the rest. The property will be in
your name, which means you can sell it at any time. However, as this is an
equity loan, you'll have to pay back the loan amount when you sell your home or
at the end of your mortgage period - whichever comes first.
The amount to be paid back is 20% of
the sale price. You won't be charged loan fees on the 20% equity loan for the
first 5 years of owning your home. In the 6th year you will be charged a fee of
1.75% of the loan's value, which will increase every year by the retail price
index plus 1%.
For Help to buys schemes
the home must be your only property and it is only available to British
citizens for properties in England. Borrowing is only available from
participating mortgage lenders our experienced IFA’s at Enable can help you
decide what is best for you
Your home may be repossessed if you do not keep up repayments on your mortgage.
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.
What is Help to Buy?
Essentially Help to Buy It is a government scheme designed to make getting on to, or moving up, the housing ladder more accessible. It was launched in April for those who wanted to buy a new build but did not have a big enough deposit.
From October 2013, Help to Buy has been extended to make it possible to buy any property under £600,000 - be it a new build or pre-owned home - with just a 5% deposit. Help to buy operates in two ways. Primarily there is the Mortgage Guarantee scheme which is now available on both pre-owned and new builds with a standard mortgage of up to 95% of the purchase price. The Mortgage Guarantee scheme works very much in the same way as any standard mortgage, the process of applying and repaying the mortgage is the same. There is very little difference for the buyer other than the availability of more competitive interest rates for those with a minimum of 5% deposit, hopefully. Lenders will need to make suitable mortgage products available and due to the short notice of the announcement products may not be available.
The government makes this scheme possible by guaranteeing repayment of the mortgage to the lender, this will be dealt with behind the scenes by participating lenders. There will be no additional paperwork or charges for the buyer. But if you need help with the paperwork of setting up your mortgage and are looking for the best options Enable’s IFAs are here to help.
Your home may be repossessed if you do not keep up repayments on your mortgage.
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.
From October 2013, Help to Buy has been extended to make it possible to buy any property under £600,000 - be it a new build or pre-owned home - with just a 5% deposit. Help to buy operates in two ways. Primarily there is the Mortgage Guarantee scheme which is now available on both pre-owned and new builds with a standard mortgage of up to 95% of the purchase price. The Mortgage Guarantee scheme works very much in the same way as any standard mortgage, the process of applying and repaying the mortgage is the same. There is very little difference for the buyer other than the availability of more competitive interest rates for those with a minimum of 5% deposit, hopefully. Lenders will need to make suitable mortgage products available and due to the short notice of the announcement products may not be available.
The government makes this scheme possible by guaranteeing repayment of the mortgage to the lender, this will be dealt with behind the scenes by participating lenders. There will be no additional paperwork or charges for the buyer. But if you need help with the paperwork of setting up your mortgage and are looking for the best options Enable’s IFAs are here to help.
Your home may be repossessed if you do not keep up repayments on your mortgage.
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.
Cameron pushes Help to Buy forward
In Manchester this week Prime Minister David Cameron announced at the Conservative conference that the Help to Buy scheme designed to help people across the UK to take out 95% mortgages is being extended to cover older properties - three months earlier than planned. Lenders will need to make suitable mortgage products available and due to the short notice of the announcement products may not be available.
The PM rejected fears the Help to Buy scheme will fuel a housing bubble. He told the BBC's Andrew Marr show the market was "recovering from a very low base" and first-time buyers needed help to get on the housing ladder. "As prime minister I am not going to stand by while people's aspirations to get on the housing ladder are being trashed. "He added: "If we don't do this it will only be people with rich parents to help them who can get on the housing ladder - that is not fair, it is not right."
He rejected concerns of an unsustainable boom in house prices, particularly in the south-east of England and urged people to "trust" the Bank of England, which has been given an enhanced role in monitoring the effect of the scheme on prices.
Some mortgage-lenders, including the Halifax, RBS and Nat West, had already signed up to the scheme. Some of the UK's biggest lenders - HSBC, Santander, Nationwide and Barclays - have yet to decide. Enable of Bishop’s Stortford’s Independent Financial Advisors can help you find the best mortgage to meet your needs.
Your home may be repossessed if you do not keep up repayments on your mortgage.
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.
The PM rejected fears the Help to Buy scheme will fuel a housing bubble. He told the BBC's Andrew Marr show the market was "recovering from a very low base" and first-time buyers needed help to get on the housing ladder. "As prime minister I am not going to stand by while people's aspirations to get on the housing ladder are being trashed. "He added: "If we don't do this it will only be people with rich parents to help them who can get on the housing ladder - that is not fair, it is not right."
He rejected concerns of an unsustainable boom in house prices, particularly in the south-east of England and urged people to "trust" the Bank of England, which has been given an enhanced role in monitoring the effect of the scheme on prices.
Some mortgage-lenders, including the Halifax, RBS and Nat West, had already signed up to the scheme. Some of the UK's biggest lenders - HSBC, Santander, Nationwide and Barclays - have yet to decide. Enable of Bishop’s Stortford’s Independent Financial Advisors can help you find the best mortgage to meet your needs.
Your home may be repossessed if you do not keep up repayments on your mortgage.
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.
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