How climate change can affect your pension?

Many are worried about climate change and Enable's experienced IFA's in Bishop's Stortford are concerned that the legally binding agreement struck by world leaders in Paris earlier this year, to dramatically reduce greenhouse gas emissions, may have serious implications for pensioners, invested in “carbon-intensive” companies.

Analysts say that more than three-quarters of the world’s known coal, oil and gas reserves will have to stay in the ground if the planet is to have any chance of meeting the target to limit global warming to between 1.5C and 2C.  Since fossil-fuel companies are valued on their reserves, leaving them in the ground is not best for profits and share prices. It is also likely that other heavy carbon producers such as energy providers, steel-makers and meat farmers will be affected by as hefty financial penalties.

But across the globe “carbon-intensive” companies are behaving as if it’s “business as usual”, when perhaps they should be telling investors some of the threats now facing them. This approach is completely untenable, say pension funds and law firms. “Business as usual is not an option for very carbon-intensive companies,” said Stephanie Maier, the head of responsible strategy and research at Aviva, who manage £267bn of investments. She also speaks for the Institutional Investors Group on Climate Change, a coalition of 120 financial institutions managing nearly £10trn of funds in nine countries. Perhaps we all need to reconsider what is going on behind the scenes and investigate big business preparations for a lower-carbon future.

Source: The Independent

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.
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More pension changes afoot

Enable's IFA's in Bishop's Stortford are here to help you to make the best of any changes to pensions and after years of speculation, it looks as if Chancellor George Osborne may  this year on Wednesday 16th March (date of the next budget) reduce higher-rate tax relief for pension contributions or maybe do away with it altogether.

At the moment, taxpayers earn tax relief on their pension contributions at their highest personal marginal rate of tax; basic-rate (20%) taxpayers, a £100 pension contribution costs just £80 after £20 of tax relief,  higher-rate (40%) taxpayers, a net £60 is needed to make a £100 contribution, with £40 in tax relief, additional-rate (45%) taxpayers, the net figure falls to £55, plus £45 in tax relief.

The speculation is that the Treasury want to end pension tax relief at the 20%, 40% and 45% rates, replacing it with a universal tax relief at a single, flat rate.  If there is change surely the bottom rate has to be higher than 20% and lower than 40%.  May have quoted 33% as the middle ground.  This would of course mean that 40% and 45% taxpayers will be worse off, as they will lose valuable tax relief. But if tax relief rises from 20% to, say, 33% it will benefit 20% taxpayers

If you're a basic-rate taxpayer or non-taxpayer, then it might make sense to sit await developments, maybe even delaying contributions but if you are a higher or additional rate payer you might want to bring contributions earlier. Enable's IFA’s can help you work it out.

Source: The Independent

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.
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Over charging Ltd companies

Many in later life turn to property to support their retirement and Enable's IFA's in Bishop's Stortford know that diversification of your assets is always a good thing over time. Some have turned their letting investments into more of a business of late and there is some debate as to whether the market will stop lenders overcharging buy-to-let limited companies.

One specialist buy-to-let lender says some mainstream mortgage companies are over-charging borrowers who have become limited companies in order to minimise their liability as a result of Chancellor George Osborne’s tax changes. The commercial director of one loans company recently announced that its own Limited Company BTL mortgage would be priced at the same rate as the rest of its core range of mortgages.  They say it would not be right to expect borrowers to stump up additional fees just because they have taken the up until-now more unusual step of incorporating to support being a landlord.

Simon Bayley says "certain lenders are charging up to £100 extra for this product over their core range, when the risk is no different. [They’re] effectively asking landlords to pay any tax saving from using a limited liability company structure to the lender instead”  “The intermediary community is far too canny to go on selecting lenders who decide on this kind of pricing model. ... I am sure that market forces will dictate that this kind of overpricing will quickly disappear".

Source: Property Investor Today

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.
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Working out Stamp Duty on Shared ownership

Stamp duty and the changes that occur with it may mean it is worth taking advice before you buy form experienced financial advisors like Enable’s IFAs in Bishop's Stortford. With Shared ownership you may well have to pay Stamp Duty Land Tax (SDLT) when you buy a property through a scheme run by an approved public body, like a housing association or a housing trust, a development corporation or the local housing authority.

You can also choose how you want to pay your SDLT, you can make a one-off payment based on the market value of the property or you can choose to pay your SDLT in stages. Market value election or a one off payment means you submit a return and pay at the residential rate and the value is worked out on the total market value of the property even if you’re only buying a share. HMRC give the example of if “You buy a 50% share of a property with a market value of £140,000.  You have to pay SDLT of £300 (0% on £125,000 and 2% on £15,000).You don’t have to pay any more after this, even if you buy a bigger share in the property at a later stage.

You make your first SDLT payment on the price you pay for the lease (the ‘lease premium’) if it’s above the threshold. You may have to pay extra SDLT if the total rent over the life the lease (known as the ‘net present value’) is more than £125,000. It is not simple but Enable’s IFAs in Bishop's Stortford can help you work it all out.

Source: Gov.UK

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.
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What does Leasehold mean?

If you are just starting off in the world of trying to buy a home, Enable’s experienced IFAs of Bishop's Stortford know getting to grips with all the terms can be a bit overwhelming. In England and Wales the vast majority of flats are owned through a leasehold, this includes everything from new-build properties, converted houses from 1960's, tower blocks, to Victorian conversions.

When you buy a leasehold property, what you are actually buying is a legal right (a lease) which gives you effective ownership of the property for a given period of time usually the time is days on the lease. The lease on your property may have been granted (to the original owner of the flat) for a period of 99 or 125 years. But the key question for any new leaseholder is, how much remains on the lease, as of right now?  No two leases are the same, so it's essential that you, or a solicitor on your behalf, read and understand the contents of your particular lease.

With a leasehold property, it's important to understand what you do & don’t own; you don’t own the plot of land the flat sits on, you don’t own the ‘fabric’ of the building, e.g. roof, external walls etc. What you do own however is the internal space, fittings, floor and walls. The Landlord or Freeholder owns and maintains the outer building & grounds on your behalf - a service you will almost certainly pay for via a service charge. If you are considering purchasing a leasehold Enable’s IFAs in Bishop's Stortford can help you think it through.

Source: Property Today

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.
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UK property set to top the agenda for investors in 2016

Getting the right balance of your assets is something Enable’s experienced IFAs in Bishops Stortford are concerned to achieve for their clients. According to predictions from real estate advisors Savills the income producing potential of various property asset classes is expected to be top of investors’ agendas in 2016.

The Savills report says that annual house price growth stood at just 3.9% at the end of October, with annual housing transactions appearing to have peaked at 1.2 million per year so the forecast for 2016 is 5% for average UK house prices. The mainstream market is of course more dependent on what happens to the cost of borrowing.  ‘Capacity exists for short term price growth if rate rises are delayed further, but rising interest rates will squeeze affordability, making house price growth dependent on earnings and the pace of economic growth,’ the report says.

It adds that attractive commuter towns will also continue to offer good medium term price growth on property, particularly where travel times are shortened by rail improvements and demand for private rented accommodation will continue to rise. The restriction in tax relief and additional 3% stamp duty charge for buy to let landlords may result in rising private rents and shift investor focus towards higher yielding sectors of the market, particularly key regional cities, it suggests. ‘Good quality refurbished office space in the UK’s top seven major cities will experience stronger than average rental growth, reaching levels recently seen for similar assets in London,’ says Mark Ridley, chief executive officer, Savills UK and Europe.

Source: Property Wire

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.
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Insurance cover for the family

If you have a family or other dependents Enable’s IFAs are here to help you make sure you have the right protection or cover for yourself I you are the main breadwinner. If you are trying to work out how much cover you need the most common rule of thumb is for the cover to provide roughly 10 times the annual income of the highest earner till kids have finished full-time education

This is of course just a rule of thumb and you can decide for yourself what is best for you and your family but there are a few other things you might want to take into consideration as you try and make the decision. Any cover should aim to be able to pay off any outstanding debts especially the mortgage if you have a separate policy. It is a good idea to think through the immediate outgoings that your dependents may need to pay for without you some like to look at future spending you would have wanted to make, e.g., supporting your children through university.  There are also additional expenses that your untimely death may trigger i.e. funeral costs.

Ten times your income may seem like a lot of money but it is important to remember that inflation will mean the value of any payout could be a lot less in10 years' time.  Surviving dependents don't have to pay any income tax on this kind of insurance but it does count as part of your estate so if your total assets are above the inheritance tax (IHT) threshold, they will have to pay 40%. If you want to talk though the kind of protection your family might need Enable’s IFAs are here to help.

Source: Money Saving Expert

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.
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Should I top up my state pension?

Enable’s IFAs in Bishop’s Stortford are here to help people prepare for retirement and since last October the Department for Work and Pensions (DWP) has been offering millions of people the chance to get a higher income in retirement, through topping up their state pensions a scheme that has become known as Class 3A.

The idea was set up so that anyone who is already receiving a state pension, or is due to receive one before 6 April 2016 meaning that if they are men are eligible if they were born before 6 April 1951 and if they are women are eligible if they were born before 6 April 1953 to be compensated, as they will not be eligible for the new - and more generous - flat-rate state pension, which starts in April 2016. The maximum you can get is £1,300 a year, or £25 a week. This will be paid on top of the current state pension of £115 a week. How much you pay for that income depends on your age. For example, if you are 65, that £25 income would cost you £22,250. That is a one-off payment, which you will not get back.

However, if you are 80 it would only cost you £13,600. You can choose to buy a smaller amount. The top-up payments will rise with inflation, as measured by the Consumer Prices Index (CPI). Spouses or civil partners will, in most cases, be able to inherit some of the payments. They will get between 50% and 100% of the cash. The rules for passing on the payments are the same as they are with the additional state pension. If you want to find out if you are eligible Enable’s IFAs in Bishops Stortford are happy to talk you through your pension options.

Source : Department of Work and Pensions

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.
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Pension fund withdrawals

Enable’s IFA’s regularly discuss the new pension freedoms with clients and more and more retirement experts are suggesting that the way people are accessing their pension freedoms is "very worrying".  City regulator figures indicate that 120,969 people who cashed in a pension fund between July and September of 2015 took out all the money and only 58,021 people used the money to buy themselves an income, said the Financial Conduct Authority (FCA).

The FCA figures showed that 13% of people taking money out of their funds bought an annuity between July and September.  However of those who bought and annuity 64% were sticking with their existing provider, rather than shopping around to get the best deal. In this respect, "market competition appears not to be working", said Tom McPhail. John Perks, managing director of retirement solutions at insurance company LV= described the figures as "extremely worrying". "This means most retirees are missing out on getting the most from their retirement savings," he said. In addition many people are failing to take advantage of so-called Guaranteed Annuity Rates (GARs) pensions typically promise to pay out an income of as much as 10% a year of the value of the pot,
but 68% of those who could have qualified for a GAR, had they waited until they were old enough to claim it, did not do so.

Although of those people taking an income from their funds, 84% were taking a yield of less than 4% - considered to be a sensible estimate to stop money running out. However, more than 24,000 took an income worth more than 10% of their savings, a level that is considered unsustainable in the long run.  It is important to remember that taking money from a pension pot after the age of 55 only allows 25% of it to be taken tax free, the rest is subject to income tax.

Source: BBC




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.
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Global investors increase real estate assets in portfolios

Enables IFAs in Bishop’s Stortford can see why, according to new research from Global Investor Outlook (GIO) for 2016, half of global investors plan to increase their real estate allocations within multi-asset portfolios moving more money into real estate next year.

The global property company says that combined with relatively low levels of debt compared with the previous market peaks, this flood of capital would further cement a long term climate of stability for global real estate returns. And the GIO for 2016 also found that despite a reduced appetite for risk, debt would play a greater role in the market next year. They found that 75% of UK based investors would use debt compared with 65% in 2013.

According to Richard Divall, head of cross border capital markets at Colliers International,
‘An ageing population is maintaining the pressure on institutional pension and insurance funds to achieve yields that match long term liabilities. With better regulated debt markets and new macro-prudential tools, we see core property assets, globally, being stripped away from the broader real estate market to become more aligned to bond like financial instrument,’
Madeleine McDougall, head of institutional clients at Lloyds Bank Commercial Real Estate and chairman of CREFC Europe, pointed out that there has been a fundamental reshaping of property debt over the last five years creating a more stable environment and a greater number of participants sharing risk. Peter Cosmetatos, chief executive officer of the Commercial Real Estate Finance Council Europe, said that after two years of a borrowers’ market, a new equilibrium has emerged since the summer, with margins stabilising or even ticking up.”

Source: Property Wire

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.
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First time buyer numbers surprisingly buoyant

Enable’s IFAs in bishops Stortford can share the frustration of many with the shortage of homes to buy but recently a Halifax survey shows that the number of first time buyers is surprisingly buoyant.  They say the “number of first time buyers is estimated to have totalled 310,000 in 2015, virtually unchanged over the past year despite the average price of a first-time home having risen 10 per cent.”  The study also says that, “ the 310,000 figure for 2015 was a tiny 0.5 per cent below the 2014 level of 311,700 - it roughly retains the same dramatic growth from the 2011 figure of 193,700.”

The Halifax report maintains that the average price of a property purchased by first time buyers increased by 10 per cent in 2015 from £172,563 to £190,180 and that the average deposit paid by a first timer rose by 13 per cent. First time buyers accounted for 46 per cent of all house purchases made with a mortgage in 2015, the same as in 2014.

The average house price paid by first time buyers in most regions have of course benefited from the stamp duty changes announced in December 2014. If you are looking to find your first home to buy Enables experienced Independent financial advisors can try and help you find the best mortgage for you. It is important to remember that your home may be repossessed if you do not keep up repayments on your mortgage.

Source: Estate Agent Today

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

Women’s pensions campaign

Recently a campaign criticising ‘unfair’ increases in the state pension age for women born in the 1950s recently reached the 100,000 petition signatures needed for the matter to be debated in parliament. Enable’s IFAs in Bishop’s Stortford are often called on to advise about pensions and it was the 1995 Pensions Act first which first set out the incremental women’s state pension age (SPA) rise from 60 to 65 to equalise with men’s, but then the 2011 Pensions Act speeded up the women’s SPA so it would hit 65 by 2018 and both men and women would have a retirement age of 66 by 2020.  This would mean that some women would have to wait an extra 18 months to receive their state pension which seems unfair to many.

 

In its response to the SPA petition, the Department for Work and Pensions said it would not be revisiting the arrangements, and that all women affected have been directly contacted following the changes. ‘The policy decision to increase women’s SPA is designed to remove the inequality between men and women,’ the DWP said. ‘The cost of prolonging this inequality would be several billions of pounds. Parliament extensively debated the issue and listened to all arguments both for and against the acceleration of the timetable to remove this inequality. The decision was approved by Parliament in 2011 and there is no new evidence to consider.’ The 2014 Pensions Act does however provide for a six-yearly review to take into account up-to-date life expectancy data and the findings of an independently-led review. But in the meantime you may want to look at your pension options with Enables experienced IFAs in Bishops Stortford.

Source: City wire

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.
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Make sure you are clear about different types of life insurance

Enable’s Independent Financial Advisors in Bishop’s Stortford can help you make sure you are clear about the different types of life insurance on the market. Different types of life insurance have been designed to offer different types of protection to you and your family.

One of the least costly forms of insurance is called mortgage decreasing term insurance which is a type of cover that pays out to cover your mortgage if you die within a set term. As mortgage debt decreases over time, the amount it pays also decreases. This tends to be cheaper than level term life assurance as the insurer usually has to pay a lot less. However, if you were concerned to leave a lump sum for your dependants to cover any other debts and ongoing spending, a level term life insurance policy, which is more expensive, may be what you need.

Whole of life insurance tends to be investment-linked life insurance policies, which are often used to mitigate inheritance tax, as the amount paid should cover the inheritance tax bill on death, and the policy runs out when you die, instead of after a fixed time. Life insurance investments are investments operated through life insurers. If you are single and have no dependents then maybe you will be wondering whether you need life insurance but, if you do have dependents, such as a partner and/or children or anyone else who relies on your income, then you have to ask yourself: what would happen financially to the people you love if you died? It is a difficult question to deal with but Enable’s IFA's in Bishop's Stortford have experience of helping people making sure that they have the right cover.

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.
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What does Freehold mean?

If you are looking to buy a home for the first time Enable’s experienced IFA’s in Bishop’s Stortford know there can be a huge number of terms to get to grips with. Starting with the basics even the term freehold can be daunting – what does it mean? The vast majority of houses in the UK are owned on a freehold basis so if you own a house, you are the freeholder which means you own both the property and the land on which the property stands.

Currently a freehold is the strongest form of land/property ownership available in the UK and it means that the owner of a freehold property has complete and absolute ownership of the land, and all buildings on it. In addition there is no limited time of ownership of the land and the property unlike with leasehold property. Therefor the owner of a freehold property can do whatever they wish to with the property, as long as they make any changes in accordance with to local planning regulations.

Interestingly in the eyes of the law a ‘freehold’ is effectively your ownership of a plot of land, rather than the buildings you have on it. That is probably why the Government department your ownership is registered with is called HM Land Registry and your title deeds tend to contain a large scale map, with the boundary of your freehold land marked in red ink. In an ideal world anyone entering the property market would want to buy a freehold that gives you full ownership of the building and the land it is built on.

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.
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Start 2016 by sorting at least one financial worry

Stress comes in many forms, and financial anxiety is up there at the top of many people’s worries. Financial mistakes both real and imagined can get in the way of our well-being but action is the best cure for anxiety of any type and Enable's experienced Independent Financial Advisors can help you work through your options.

Many people worry about retirement and having enough of a pension to live on so one of the very best financial actions you can take to alleviate this stress is to start investing for retirement. It is so much better to start a pension when you are young and young people have been shown to be good at saving, but research suggests that Millennials are more likely to want to keep their retirement savings in cash, holding an average of 52 percent in that seemingly safe choice rather than in investments. But it has to be remembered that inflation steadily decreases the value of cash over time so this is really not the best way to save for the long term. If money you’ve saved is sitting in some kind of cash investment, why not look into a growth-oriented option by seeking some financial advice this year.

If you are struggling to work out how to fund your pension, your mortgage and your student loan why not make 2016 the year to cut back on shopping for things you don’t really need, and instead save for experiences you really want which includes not worrying. Enable’s IFAs in Bishops Stortford can help you address any  financial worries you may be struggling with.

Source: International Business Times

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  

Housing Supply crisis

If you are looking to buy a home in 2016 it is without doubt a difficult time but it is not impossible. According to the National Association of Estate Agents there are 10 buyers for each property for sale in the UK. “It’s very normal at this time of year that demand is high and supply is low. House hunters hoping to find their dream property in the New Year have registered interest with agents, whilst those hoping to sell are holding off putting their properties on the market before January. However, demand is outweighing supply so heavily now that it can’t solely be attributed to seasonality,’ said Mark Hayward, NAEA managing director.

After a promising period from July to October in which the number of sales made to first time buyers grew, in November the percentage of sales made to the group fell by 10%, showed the NAEA report. ‘The Government has made efforts to address the issue of supply and demand, with Osborne outlining plans to build 200,000 new starter homes in his Autumn Statement, but four fifths of our agents think it simply isn’t enough. It’s all very well planning to build houses, but we need to move to action and get and the bricks and mortar on the ground, if we’re to solve the crisis we’re faced with,’ says Hayward.

If you are working hard on finding a property that you can make your home being able to move quickly is vital so lining up the right mortgage to enable that purchase to go ahead is vital.  Enable’s Independent Financial Advisors are here to help you find the best possible mortgage to suite your circumstances.

Your home may be repossessed if you do not keep up repayments on your mortgage.

Source: Property Wire


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  

Rate rises in 2016?

Enables IFAs in Bishops Stortford know that for a range of financial decisions, particularly mortgages, the direction of travel for the Bank of England base Rate is vital.  Having sat at 0.5pc for more than six years it seems as if change could happen anytime but according to the markets the rate looks set to remain fixed well into 2017, maybe even longer. Despite the US central Bank the Federal Reserve having raised their rate for the first time in nearly a decade.

Money markets suggest the first rises might not be seen until December 2016 or January 2017 and the shift in these kinds of predictions have probably been based on various events that took place last year; the Black Monday stock market crash in August, which undermined confidence; the repeated delays in widely expected rises in rates in the US; the worse than hoped for UK economic growth and the return of UK deflation in September.

So what should you do about your mortgage? As the cost of fixed rate mortgages remain historically low compared with "trackers," especially if you have taken out a  longer-term loan it may seem like a fairly simple choice to protect your mortgage rate rises with a fixed rate.  Indeed some 90% of those buying and remortgaging are buying fixed rates say Industry figures. But the price of fixed rate mortgages could be about to rise. This is because "swap rates" - the rates at which lenders "buy" money for fixed periods on money markets rose sharply in early December. It might mean that some of best fixed rates on the market could start to be withdrawn. Enable’s IFAs in Bishops Stortford can talk though your mortgage options with you.

Your home may be repossessed if you do not keep up repayments on your mortgage.

Source: The Telegraph

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  

Buying a leasehold home

Enables’ IFA's inn Bishop's Stortford are always ready to discuss mortgage options for those wanting to buy their home. One factor that is coming back into play are leasehold properties and leasehold extensions. One conveyancing firm claims there has been a 140 per cent increase in the number of properties requiring leasehold extensions in just the past four years.



 A lease is a contract between the leaseholder and the landlord, and defines the responsibilities and obligations of both sides and states what you can expect from the landlord in terms of services. No two leases are the same. With a leasehold property, it's important to understand what you do and don’t own; you don’t own the plot of land the flat sits on, you don’t own the ‘fabric’ of the building, e.g. roof, external walls etc. You own the internal space, fittings, floor and walls.

In the height of the 1970s and 80s development boom a relatively high number of leases were created and are now getting ‘older’ while demand for leasehold properties is increasing as more first time buyers join the property ladder. “Buying a leasehold property, such as a flat, is often the only affordable option for a first time buyer. However, these transactions can often come with hidden surprises in the guise of short leases, ground rent arrears and sinking funds, making them more complicated and expensive than buyers realise” claims Doug Crawford, My Home Move chief executive.

“We estimate that thousands of properties will enter the market over the coming months with short leases, costing sellers tens of thousands of pounds to extend, resulting in additional delays to home movers and, in particular, first time buyers as they work to secure a mortgage. This added pressure, on an already over-extended housing market, could cause some real problems” he claims.

If you need any help checking out your leasehold contract why not get in touch with our team at Enable.

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  


Source: Estate Agent Today

Lucky Leister

Enables’ IFA's in Bishop's Stortford know that savers are still having trouble working out how to get any kind of return on near cash holdings. But maybe you could do worse than premium bonds. The January Premium bonds draw made history this year as for the first time there were two £1m Premium Bond jackpots won in the same city and the prize went to one man and one woman.

National Savings & Investments, which operates Premium Bonds, confirmed that are also the first residents of Leicester to become Premium Bond millionaires. NS&I said it had not even had winners from the same county before, let alone the same city or town. Nationwide there are around 900,000 unclaimed prizes says NS&I with a total value of over £40m, including dozens of £10,000 plus prizes so if you haven’t checked your bonds recently maybe you should.

Harold Maxmillan launched premium bonds in the 1956 budget they are a Government-backed savings institution, there is no guaranteed return and the bond's value does not go up with inflation, so you effectively buy into a lottery with a prize draw held every month.

But money invested in the bonds is 100pc protected by the Government, to a maximum investment of £50,000.  They advertise a “rate” of 1.35pc, which is what an individual with “average” luck can expect to receive in prizes over the course of a year. The odds of winning for each £1 bond number are 26,000 to one, and any prizes are exempt from both UK income tax and capital gains tax.

Some current accounts, Isas, fixed rate bonds and other products offer comparable rates at the moment but if you have cash to spare Enables’ IFAs can help you work out how to spread it around.

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 

Source: The Telegraph

Asian Markets

So the New Year global markets got off to a bit of a rocky start and Enables’ IFA's in Bishop's Stortford understand that historically investors have tended to view Asia as a bit of a niche market, rather than a core component of a global portfolio. Asia has undoubtedly been one of the most unpredictable regions. Yet despite this, it has delivered some of the strongest returns in the world over the past two decades. As a latent and untapped consumer market is emerging and companies mature, income opportunities are also increasing, while economic reform and low debt to GDP ratios continue to highlight Asia as a key global holding.

Long term growth potential has to be part of the picture. In the ten years to 31 July 2015, the MSCI Asia ex Japan index outperformed the MSCI World index by close to 40% and the UK’s FTSE All Share index by 50%. In many cases individual markets performed even better, with China, for example, delivering 248% over the same period, more than double the returns from major developed markets. Asia’s favourable demographics (65% of India’s population is under 35, for example) nascent industries and constantly evolving economic landscape translate to strong growth potential.

Asia also has a booming middle class it makes up more than 57% of global emerging markets’ middle class, and this group is expected to drive future growth in the region. In China, the world’s second largest economy, the government is now actively reorienting the economy toward domestic consumption, while in India middle-class consumption is expected to more than double to by 2018-19.

There is still plenty of difference but political and economic reform is inevitable. While there is volatility in the short term, most analysts agree that for China and India in particular have governments that are becoming increasingly market-friendly, which should support investment and growth in the long term. If you want to look at how to make the most of your investment Enable’s IFA's are here to help.

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 

Source: Market Views