Lifetime Isa for the under 40s?

Back in March 2016 George Osbourne launched a plan for younger workers to no longer have to choose between saving for a home or for retirement, as he revealed a new Lifetime Isa with a bonus of up to £1,000 a year. The new Lifetime Isa - which can be invested in stocks and shares or cash savings – launches this April to help people, aged 18 to 40 get a foot on the housing ladder, without hindering their efforts to put aside money for their pension.

Savers to this Isa can tap into their bonus pot to use some or all of the money to buy their first home, or wait until they are 60 to withdraw cash and their bonus tax-free. Savers can put in up to £4,000 a year to qualify from a maximum government bonus of £1,000 - contributions will get this 25 per cent top-up every year until age 50. This is a £1 bonus for every £4 that you save. The bonus will be paid on some or all money taken out to buy a first home, or after the age of 60.

Money taken out of the Lifetime Isa before age 60 for anything other than a first home will lose the government bonus, all interest or stock market growth delivered by that element, and face a 5 per cent charge. But the annual Lifetime Isa allowance falls within the new total £20,000 Isa umbrella.  If you are a younger saver and want to find out more Enables experienced Independent Financial Advisors in Bishops Stortford are happy to help.

http://www.thisismoney.co.uk/money/pensions/article-3494870/Budget-2016-Lifetime-Isa-1k-year-bonus-save-pensions-homes.html

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 it about buy to let?

For most financial planning Enable’s IFAs in bishops Stortford would recommend some property investments. The rapid growth in popularity of buy-to-let in recent years, fuelled in part by the failings of the pensions industry has maybe got a bit out of control and the government has been trying to curb it with the introduction of the 3% levy on stamp duty in April 2016. But the fact is that many investors remain attracted by the high yields in some parts of the country, low void periods and potential for capital growth that BTL offers.

Instead of steering clear of the market, many private landlords continue to add to their property portfolios, as reflected by the increase in the amount BTL investors borrowed to invest in property last year. The volume of BTL mortgages increased by 3% last year compared with figures for 2015, according to data released by the Council of Mortgage Lenders (CML).“2016 could have been a potentially destabilising year of regulatory and political change, but the mortgage market has been resilient and adaptable,” said Paul Smee, director general of the CML.

With interest rates at a record low level, competition among mortgage providers, somewhat unsurprisingly, continues to hot up, with lenders shaving percentage points off their buy-to-let mortgage rates in an effort to entice BTL landlords acquiring new properties through their doors.
 “The buy-to-let market is booming. With over 100 more deals available compared to a year ago and the average fixed rate on buy-to-let falling from 3.65% to 3.34% in 12 months, it’s easy to see how lenders have an appetite for new business,” said Rachel Springall, finance expert at Moneyfacts. Enables IFAs might not suggest a BTL property for you but there are other ways to tap into the property markets that we are happy to talk you though.

https://www.estateagenttoday.co.uk/features/2017/2/buy-to-let-mortgages-what-opportunities-and-challenges-lie-ahead

Innovative Isas offering 12% tax-free returns?

Enable’s experienced IFA’s in Bishops Stortford have had much sympathy with Britain’s savers for a long time. Many are desperate to find ways to give their finances a boost and recently a new type of Isa offering returns of up to 12% or perhaps even 20% in future has arrived. But are rates like this simply too good to be true?

Some experts are predicting that this will be the year that a new tax-free account for peer-to-peer lending and crowd funding will shake up the savings market and bring some much-needed better news on returns. Peer-to-peer websites match borrowers (individuals or companies) with investors or lenders. They cut out the banks by putting people with money to lend in touch with those who want to borrow. This results in a so-called “innovative finance” Isa they have been around since last April, but it is only now that there are some accounts to choose between.

The selection however is still very limited, with few well-known names because many of the biggest players in the peer-to-peer lending sector are still awaiting the final go-ahead that they need in order to offer them. It is looking increasingly likely that many of these companies will end up missing out on the 2016-17 Isa season because they won’t get their full approval from the City regulator in time they are also clarity much more risky as an investment but it will be interesting to see how things develop.  But is worth remembering it is Isa time and during the current tax year you can save up to £15,240 in one type of Isa or split the allowance across two or all three types and from this April, the total amount you can save each year into all Isas will increase to £20,000.

https://www.theguardian.com/money/2017/feb/18/innovative-finance-isa-tax-free-high-returns-risky


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

Win a £75 bouquet for your Mum this Mother's Day

Enable Independent Financial Advisors in association with Margaret Kay Flowers and Wines of Bishop's Stortford are giving you the chance to win a beautiful £75 bouquet for your Mum this Mother's Day. Simply LIKE and SHARE the relevant Facebook post in order to be in with a chance to win a Margaret Kay bouquet. T's and C's do a apply, see below.

Terms and Conditions:

1. There will be only one winner of the £75 bouquet and no money equivalent will be offered 2. The winner will need to LIKE and SHARE the Mother's Day post in order to enter 3. The Entrant will need to live within a 20 miles radius of Bishop's Stortford 4. All entrants will need to be 18 or over 5. The winner will be announced on the Facebook page on Wednesday 22 March 6. All names will be put into a hat and drawn at random. 7. No members or employees of Enable Independent Ltd will be eligible to enter. 8. Entrants will need to provide their full name and address - so they will need to be able to receive direct messages through FB.

Small business red tape

A recent survey of 500 SME’s has revealed that that hurdles like HR compliance, health and safety demands and pension admin are stopping owners from growing their enterprise. On average these and other administrative tasks take an average of 10 hours out of the working week.

James Kinsella, co-founder of Instantprint, says, ‘We all know how it feels to fight the clock. There are only so many hours in the day to get everything done and SMEs are feeling the squeeze.

‘It’s interesting to see from the research that, while factors such as admin and staff management have an impact on productivity, it is the management of our hours, minutes and seconds that have the biggest effect on the running of a successful enterprise.’

One in ten business owners has less than an hour a week earmarked for business growth, while eight per cent say they struggle to find any time at all. A third of business owners could use a hand managing their finances to save time, while 22 per cent feel that responding to customer service concerns could be streamlined. A quarter of business owners believe they could improve the efficiency of their SME by hiring more staff, while one in ten want to automate the invoicing process to cut down on financial management. Enable’s experiences Independent financial Advisors know that it is always a fine balance dividing up your working week as an SME.  We are happy to help individuals and their businesses manage their financial plans if we can.

http://smallbusiness.co.uk/battling-red-tape-growth-2536799/

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

Moving gridlock

If you are trying to move you might be having trouble at the moment with the high stamp duty and a lack of supply meaning that the number of people moving house has fallen for the first time since 2011.  The figures, produced by Lloyds Bank suggest the drop coming after four consecutive years of growth suggests that fewer "second-time buyers" can afford to move to a larger property, and that older people are not downsizing.

Former Conservative Chancellor Lord Lawson recently described the stamp duty as a tax on mobility calling for Chancellor Philip Hammond to reduce it in the Budget, due to take place on 8th March.

It was the former Chancellor George Osborne who reformed the tax at the end of 2014, meaning that anyone buying a home worth more than £937,000 would have to pay a higher tax bill. The average cost of moving has also increased reaching  £11,000, with rising stamp duty costs, estate agents' and conveyancing fees.

But Lloyds figures seem to show that first-time-buyer numbers are actually up 7pc, suggesting that the slowing housing market is largely down to homeowners who are unable to move up the housing ladder. Andrew Mason, the  banks' mortgages director, said: "Whilst higher prices will have lifted equity levels for many current owners, the low availability of the ’right type‘ of homes for those looking to move up the housing ladder may have constrained market activity. "Just 2.6pc of the housing stock is currently classified as retirement housing. According to estate agent Knight Frank

If you are looking to downsize or move on Enables IFAs can help talk it through.

http://www.telegraph.co.uk/personal-banking/mortgages/housing-gridlock-homemover-numbers-fall-first-time-since-2011/

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 

Where to Save?

Enable’s IFAs know that the pain for savers appears to be never-ending. Recent figures from the Bank of England show that the rates for your average instant-access accounts have fallen to 0.15pc, so it’s hardly surprising that NS&I have also cut their rates including Premium Bonds.

But despite premium bonds prize money being cut from May 2017 from the rate for someone with average luck falling from 1.25pc to 1.15pc it still remain one of Britain's most popular savings vehicles, in which £66.7bn is invested. The complex way in which monthly prizes are distributed, with two £1m jackpots per month, and more than 2m £25 prizes paid, it means the odds of winning with any £1 bond are tricky to calculate but in total, 2,224,513 prizes of all values are currently paid per month. Dropping only slightly to 2,219,493 this May making the odds of any £1 bond winning any prize of any value will remain roughly one in 30,000.

The biggest falls in the number of prizes apply to the £25,000, £10,000 and £5,000 bands. The very smallest prizes of £25 increase from 2.1m to 2.2m. But security is the main draw of NS&I, and the main benefit of Premium Bonds, all the money invested in NS&I is 100pc protected by the Government, and bonds can be cashed at any time. However, many cite the chance to win big is what draws savers into Premium Bonds specifically but there's really is no guarantee, it’s a lottery you could win nothing at all and inflation could be eroding your cash. It's probably best to think of them as a flutter rather than aa savings account. But if you want some help finding better returns Enable’s IFAs are happy help you look at your options.

http://www.telegraph.co.uk/personal-banking/savings/premium-bond-prize-cuts-may-2017-odds-winning/

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

Caution in the UK housing market?

Political and economic uncertainty is likely to dominate the UK for a while and Enable’s IFA’s in believe this will continue bring caution to the housing market. Property transactions have been slowing and house purchases remain significantly down there is no doubt that this is partly due to the ongoing lack of housing supply but there are also many other factors at play.

UK house prices grew at their weakest annual rate in more than a year in January, as figures released by mortgage lender Nationwide revealed recently that annual growth edged down from 4.5% in December to 4.3% in January, making it the weakest house prices have been since November 2015.

“January’s icy weather was mirrored by a chill in the housing market. But though the national average price of a home fell by a few hundred Pounds, momentum remains.”said Jonathan Hopper, managing director of Garrington Property Finders. “The annual rate of price inflation is virtually the same as it was at this time last year, and six months on from the Brexit earthquake, the market has settled into its familiar pattern of steady growth.“ But the days of double-digit price rises are gone, and while the market fundamentals are strong enough to drive further growth this year, progress will be sedate rather than stellar.”He continued: “With the prospect of an interest rate rise – and of the cost of living rising faster than people’s wages – back on the horizon, caution will become a dominant force in 2017. If you are looking to get into housing this year Enable’s IFAs can help you look at your options.

https://www.propertyinvestortoday.co.uk/breaking-news/2017/2/caution-to-dominate-uk-housing-market-in-2017



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

Inequality in the family?

Enable’s IFA’s see many families who are concerned about he financial inequalities between the older generation and young families. The wealth gap between old and young may already be a well documented phenomenon in the UK but it could be set to grow even faster than expected say The Resolution Foundation.  They are concerned that higher inflation alongside persistently low interest rates and stagnant wages are going to widen the existing inequality between retired and working-age people.

Housing is by far the over riding factor in all of this but some families are adjusting, with older members increasingly likely to raise capital to give to children and grandchildren. The average income after housing costs for those aged between 25 and 34 dipped most heavily during the financial crisis, falling to a 10-year low of £18,891 in 2012; while the average income for over-65s rose sharply and is expected to increase to £22,387 this year making it on average almost £2,000 more than young workers.

According to investment company Hargreaves Lansdown, 62pc of Millennials (born between 80s and 90s) feel they are “financially unlucky”. But “baby boomers”, (born in 50s and 60s) know how lucky they are: 72pc feel their generation has been fortunate. New records are being set for the amount of equity released from homes. Last year £2.15bn was released by 27,563 people, according to the Equity Release Council and much of this borrowing comes from owners’ desire to help family, with almost half (44pc) used to help children or grandchildren, according to provider Key Retirement.

http://www.telegraph.co.uk/money/consumer-affairs/new-family-tax-older-family-members-paying-young/

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

Why is the cost of investing falling?

Enable’s experienced IFA’s have seen the cost of investing fall dramatically over the past decade. For many sound financial planning involves talking through your options with experts as well as using technology to reduce costs and increase transparency.

Funds that used to be run by people are now largely automated and run by complex algorithms simply overseen by humans. The daily rebalancing of a typical “passive” fund that tracks the market is now almost entirely autonomous. “Active” managers, who select shares rather than follow the market however also use technology much more. For both active and passive managers, the actual process of investing has also become more efficient. And these benefits are saving investors significant amounts too.

Alongside efficiency there is more and more of a push for active fund managers to be more transparent about the fees they charge. Investors can now easily compare funds’ fees and performance online, and a recent FCA report concluded that active fund fees were too opaque and tended to “cluster” around price points. It suggested that managers should be using an “all-in” fee to make it even easier to compare costs. With more focus on fees and the under performance of many active funds there has been a move towards low-cost “passive” investment. As more money flows into passive funds, the economies of scale grow meaning that they continue to get cheaper.

Some portfolios might have higher costs if they invest in niche assets such as hedge funds who might charge a management fee, plus a performance fee. If you want to make sure you have the right cost associated with your investments Enable’s IFAs are happy to talk it through.

http://www.telegraph.co.uk/investing/funds/four-reasons-cost-investments-falling/

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 there any gaps in your state pension contributions?

Enable’s IFA’s are keen to help anyone with their pension planning and despite the fact that a state pension may not be all you want to be relying on it is certainly a useful element of your retirement plan. But there have been changes in state pension provision and under the new “flat-rate” state pension you are required to have 35 years of full rate National Insurance contributions to receive the top rate, currently £155.65 a week.

It has recently come to light that thousands of people however would l not get the full amount if they have at some point been contracted out and paid a reduced rate of National Insurance. This set of circumstances is affecting s workplace “final salary” schemes and public sector workers such as teachers and nurses. But by filling in gaps in National Insurance records, you can dramatically boost state pension

But by making voluntary or “Class 3” lump sum payments you can fill in any missing years in your National Insurance record. It may mean you have to spend £4,000 to boost your state pension by £23,000 but hundreds of thousands of people are being urged to use a generous Government scheme to do just that. This guide published by Royal London, Britain’s biggest mutual company, explains how a single year of National Insurance can be purchased for around a lump sum of £733. This will boost state pension payments by around £230 a year for the rest of your life, totalling £4,600 in extra income over a typical 20-year retirement. Filing in five missing years using Class 3 contributions would cost you under £4,000 but generate nearly six times the outlay in extra state pension.

http://www.telegraph.co.uk/pensions-retirement/financial-planning/spend-4000-to-boost-your-state-pension-by-23000---heres-how/


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

First-time buyers surge

As independent financial advisors Enable like to be able to support first-time buyers to get their first foot on the property ladder.  Recently increasing numbers of first time buyers have been able to take up low cost mortgages in a slightly stalling property market to take their first stem into property suggests a recent report from the National Association of Estate Agents (NAEA).

The report says that in December 2016 first-time buyers made up almost a third of total sales which is not just a 10% increase on the previous month, but the highest number for the month of December in well over a decade. Overall, the sales agreed may have fallen despite the fact that the number of house hunters that actively registered to buy property rose to the highest level seen since 2003 but the number of properties listed for sale by estate agents in December was up slightly from November.

Mark Hayward, NAEA managing director said, “In November we saw a seasonal slowdown as typically it’s uncommon for people to buy and move close to Christmas. Yet, our December findings have completely bucked this seasonal trend,” He added: “With demand at an all-time December high and sales to first time buyers at their highest on record, 2016 closed on a positive note following several months of uncertainty.” If you are looking to try and get a foot on the housing market Enables IFAs can help you look at your overall financial planning as well as support finding the right mortgage options for you. 

https://www.propertyinvestortoday.co.uk/breaking-news/2017/1/record-numbers-acquiring-their-first-home


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

Wanting to fix your mortgage as a landlord?

Enable’s experienced IFA’s have many clients who have a buy to let property as part of their portfolio.  Despite the uncertainty that has been part of the post Brexit vote picture some mortgage offers might well be worth a look.  Barclays has recently unveiled its 10-year fix buy-to-let mortgage at 2.99% meaning private landlords are being offered an opportunity to secure low interest rates for a decade. The mortgage comes with a £2,000 fee but is not subject to strict rental income requirements because of the long time period of the loan.

On mortgage products with a term up to five years, the lender tends to require landlords to demonstrate that their rental income will cover their mortgage payment by a ratio of 145% if their mortgage rate went up to 5.5%. But there is a more flexible ‘affordability calculator’ on products that are five years or longer.  Jonathan Harris, director of mortgage broker Anderson Harris has said of the new buy-to-let product launched by Barclays’: “A 10-year fix for buy-to-let is unheard of and the result of changing circumstances for the sector. “What is exciting about this product is that the affordability calculator takes into account the applicant’s overall income and expenditure position - so massively benefits those applicants with strong incomes and limited commitments. “The upshot is that they can borrow more than previously - a welcome innovation to recent restrictive practices in the buy-to-let market.”

As with many mortgages there are often conditions and this product comes with a high exit charge of 5% if you need to sell or remortgage before the 10 years have passed.  If you are wanting to look into a mortgage for buying or renting we are happy to help.

Your home or rental property could be at risk if you do not keep up repayments.

https://www.landlordtoday.co.uk/breaking-news/2017/1/barclays-unveils-10-year-fix-buy-to-let-mortgage-at-2-99

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