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

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

How will inflation affect the house price index?

Inflation is difficult to predict but Enable’s IFA’s in Bishop’s Stortford know it is important to keep it in sight for any financial planning. Former RICS residential chairman and London estate agent Jeremy Leaf, has recently said that in his opinion inflation has taken over from Brexit as “the biggest threat to affordability and confidence in the housing market.” His statement comes after the announcement that inflation had leapt to 1.6 per cent, the highest for 18 months in a bigger rise than had been expected. “If the cost of everything is going up, people feel poorer and less inclined to take on further debt. With the housing market it always comes down to confidence and if people see bad news, they tend to overreact, sit on their hands and do nothing” warns Leaf.

The comments were made soon after the Office for National Statistics released its figures for house price rises in the year to November suggesting that they have risen by an average of 6.7 per cent in the year to November, across the UK, which was up from 6.4 per cent a month earlier. Making the average UK house price £218,000 in November 2016 some £14,000 higher than in November 2015 and £2,000 higher than October. As is usual the biggest rises were seen in England, where prices increased 7.2 per cent in the 12 months to the end of November making the England average price is £234,000.  Leaf says, “the house price index findings are not too surprising because ... they are a little bit historic. We expect to see some moderation in price growth in future as we have already seen on the ground in the past month or so. Shortage of stock and increased nervousness is showing itself in only slightly higher prices and lower activity.” If you are trying to make plans for housing we are always happy to talk you through your options and Enable in Bishops Stortford.

https://www.estateagenttoday.co.uk/breaking-news/2017/1/inflation-bigger-problem-for-housing-market-than-brexit-claims-top-agent

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

Mortgage lending in 2016 was fairly resilient but what next?

Enable’s IFA’s in Bishop’s Stortford know that 2016 was weighed down by uncertainty but towards the end of the year mortgage lending increased and even though the outlook for lending to home buyers is less bullish at the moment than it was a year ago, according to the latest report from the Council of Mortgage Lenders (CML,) the market is still proving to be resilient.

Paul Smee, director general of the CML said ‘November lending reflected stable market conditions. Overall, 2016 did not match recent years in terms of house purchase lending growth, but lending remained resilient through regulatory and political change and aspirations for home ownership remain strong in the UK,’  In the report it was recorded that overall home owners borrowed £11 billion in November 2016, up 5% month on month and 2% year on year. A breakdown of the figures indicates that first time buyers borrowed £4.7 billion, up 4% on October and 9% on November last year while home movers borrowed £6.3 billion, up 7% on a month ago but down 5% compared to a year ago.  Alongside this remortgage activity reached £5.8 billion, down 5% on October but up 14% compared to a year ago while landlords borrowed £3.2 billion, up 10% month on month but down 9% year on year.

‘Our forecasts for 2017 may be less bullish than a year ago, as economic uncertainty weighs on the market, but we still predict 1.2 million transactions and a slight increase in gross lending to £248 billion,’ said Smee. Peter Williams, executive director of the Intermediary Mortgage Lenders Association (IMLA), agreed that the market is showing signs of stability in the face of wider uncertainty but there will be winners and losers. If you want to make sure you have the best mortgage in place for you Enable’s experienced IFA’s are here to help.

http://www.propertywire.com/news/uk/home-lending-uk-remained-resilient-2016-outlook-2017-less-bullish/


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

Business mortgages

Enable’s experienced IFA’s in Bishops Stortford help many individuals with their personal financial planning and many clients also manage small or medium sized businesses that sometimes form part of the plan. It is interesting to note that recently business mortgage enquiries for SMEs more than doubled on the same period from last year, according to data form the National Association of Commercial Finance Brokers (NACFB).

This increase in commercial mortgage enquiries follows the NACFB’s annual results which revealed that £5.2 billion of commercial mortgage business was written in the year ending 30th June 2016, up by more than half (55 per cent) on the previous year. Many of the applicants they say came from a range of businesses such as restaurants, bars and other consumer-facing enterprises, that could be seen as a renewed vote of confidence for the high street, inevitably London powered the growth with nearly two thirds of enquiries (64 per cent) coming from the capital.

Paul Goodman, chairman of the NACFB says that appetite for commercial mortgage finance is a good indicator of small business confidence as it shows firms are confident enough to commit to the long term. ‘Last month we saw a huge uplift in enquiries from a variety of businesses – ranging from publicans and smaller retailers to hairdressers and restaurants – so it’s starting to feel like the SME community has got over any Brexit-related nerves,’ he adds. ‘While some of those businesses will also be looking to avoid steep commercial rents, especially in the capital, the confidence to take out a commercial mortgage bodes well for the future.’

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

http://smallbusiness.co.uk/smes-unprepared-brexit-turbulence-2535512/

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

When can you draw your pension?

Making sure you have your pension in place is all part of the financial planning Enable’s IFA’s in Bishop’s Stortford like to offer.  Despite the recent confirmation of the triple lock on state pensions the government might still be preparing to increase the official state pension age to 70 for millions of people currently in their 20s. Documents produced by the Department for Work and Pensions (DWP)  indicating a “more aggressive” timetable on state pension age (SPA) increases than previously planned are being compiled according to  Steve Webb.

The current official SPA for people in their 20s is 68, though under the existing schedule it could be expected to rise to 69. The SPA is the youngest age someone can start receiving their state pension, and is due to rise to 66 between 2018 and 2020, to 67 between 2026 and 2028, and then to 68 between 2044 and 2046. Webb, a former pension’s minister who is now director of policy at mutual insurer Royal London, said: “The previous policy strikes a fair balance between expecting people to work longer and allowing people to enjoy a decent retirement.” “If the government is planning to force tens of millions of people to work to 68, 69 or even 70, then it should be transparent about its plans. This would be a huge shift and should be properly debated, not buried in a technical document seen only by specialists,” said Webb.

A DWP spokesperson said: “This work forms part of our research ahead of the first state pension age review. It’s important we have a clear understanding of how the current system is working for pensioners before we undertake the review.” If you want to make sure your pension is in place or encourage your children to put a pension in place Enable’s IFAs can help you look at the options.

https://www.theguardian.com/money/2016/nov/28/pension-age-may-be-about-to-rise-again-says-former-minister

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

Unheard of mortgage deals

Enable’s IFA’s in Bishop’s Stortford have helped many arrange their mortgages and until recently a 1.5% mortgage deal was virtually unheard of. But currently there are already two-year fixed deal at less than 1.5 per cent out there and some mortgage experts think there may be room for even lower rates. Ray Boulger of the independent mortgage consultant John Charcol believes that “falling gilt yields could result in a drop in fixed-rate mortgage pricing.”

Gilt yields represent the rate of interest paid on government bonds. Their rates in turn affect so-called swap rates, the cost of getting fixed-term funding on the money markets for lenders. Lenders are then using that fixed-term funding to be able to offer fixed-rate mortgages to consumers. So if gilt yields fall, swap rates will fall, meaning it will be cheaper for lenders to get funding, which should, in theory, lead to cheaper loans for us all.

Recently the UK 10-year benchmark gilt yield fell to an all-time low of 1.3 per cent and the five-year gilt yield fell to 0.67 per cent and the two-year to 0.3 per cent. Essentially the yield on both five- and 10-year gilts has fallen by nearly 40 basis points in the past month. “Yields have fallen so fast that mortgage lenders are now well behind the curve with their fixed-rate pricing, leaving scope for some significant rate cuts on fixed rates,” said Boulger, however, “Although this is good news in the short term for anyone wanting a new mortgage, the rapidly increasing global problems remain a major concern and could lead to lenders reassessing their appetite to lend in the medium term,” he warned. Enable’s IFAs can help you find the right mortgage at the right rates for you.

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

http://www.independent.co.uk/money/how-low-can-they-go-home-loans-edge-towards-1-a6877621.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

Anything for savers in the Autumn Statement?

Enables’ experienced IFA’s in Bishop’s Stortford know that savers have been having a tough time and things do not look as if they are going to change radically but The new Chancellor of the Exchequer, Philip Hammond, in his first Autumn statement seemed to be acknowledging this.

For savers the Autumn Statement confirmed, as had already been announced, that the annual Isa allowance will rise to £20,000 in April next year. In addition a new savings bond launched by the Government will allow anyone over the age of 16 will be able to deposit between £100 and £3,000 in it. The bond will be open for a year and savers are expected to receive interest of 2.2pc on up to £3,000. The "Investment Guaranteed Growth Bond", launched through National Savings & Investments, will offer a "market-leading" rate, said the Chancellor. Details will be announced when the bond is launched in the spring, but the Government expects it to offer that interest rate for a term of three years.

For savers using 'drawdown' pensions however there is some less welcome news, the annual allowance for saving into a pension for those who have started to "draw down" their pension savings will be cut to £4,000 from £10,000.  The official documents said: "The Government does not consider that earners aged 55 and over should be able to enjoy double pension tax relief, such as relief on recycled pension savings, but does wish to offer scope for those who have needed to access their savings to subsequently rebuild them. The Government will consult on the detail."

http://www.telegraph.co.uk/tax/news/autumn-statement-2016-will-better-worse/

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

Historical events and the markets

Enable’s IFA’s in Bishop’s Stortford know keeping up with the markets is a challenge but with some recent British company results some are considering it a good time to consider raising UK equities allocations in some portfolios.  A key factor of which such an argument is built on is the lower level the pound has settled at globally.  This automatically makes all sales made overseas by British companies more valuable when converted into home currency. The other side of the coin, in terms of the benefits a lower pound can bring is making UK goods and services more competitively priced relative to rival offerings from other countries, which helps lift market share.

According to the November FTSE 350 ‘Profit Watch’ report from The Share Centre, the pound is trading at a 185 year low on a trade-weighted basis. Most forecasts have sterling staying lower than its pre-referendum level for a considerable time, and therefore overseas earnings are likely to make a bigger impact on company profits for some time to come. The  effect of this on company revenues has barely begun to hit home in results statements says the report due to the considerable time lag between making sales and company reporting. The Share Centre’s analysts say it will take a year or more to see the full effect.

In addition domestic economic indicators have remained relatively robust since the EU referendum, so even domestic facing companies which do not benefit from the weaker pound could deliver good numbers next few years. One good recent example comes from housebuilder Taylor Wimpey which saw its shares jump over 3% as it reported a healthy order book and upgraded profit forecasts. 

Enable’s IFA’s are always happy to talk through your investment strategies.

http://www.portfolio-adviser.com/news/1032602/pa-analysis-topping-uk-equities


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

Planning to pass on your wealth

Enable’s experienced IFA’s in Bishop’s Stortford regularly discuss how to pass wealth on to the next generation with their clients. A major new study from leading economic think-thank the Centre for Economic and Business Research (Cebr) and wealth manager Brewin Dolphin has found that “adults under 44-years-old are failing to save for the short or long term.” Meanwhile, pensioners’ incomes are rising faster than the typical income for the working population due to generous final-salary pensions and the small matter of property ownership worth £1.3 trillion.

Many of the older generation hope to be able to pass on some wealth and almost 80 per cent of over-55s who plan to support their families financially expect to simply leave all or part of their assets through their will. However willing the older generations maybe to pass on their wealth, they're simply not interested in doing it right now.

The push for a redistribution of wealth has been raised before, including controversial proposals to encourage older homeowners to downsize. But this latest study suggests, that gifting and investing one "silver pound" today could end up being worth three times as much to grandchildren as inheriting a one off lump sum later thanks to the effects of compound interest and investment returns.  “The harsh reality this country faces is that the outgoing Baby Boomer generation will be the last to enjoy a comfortable retirement unless urgent action is taken now,” says Liz Alley, divisional director of financial planning at Brewin Dolphin. “We are calling for older people to fundamentally rethink how and when they pass on their wealth to younger relatives. The solutions we are proposing today are based on earlier and regular gifting as part of a strategic financial plan, rather than focusing on a one-off inheritance. This could help set grandchildren up for life as well as reduce inheritance tax.” If you want to look at how you plan to pass on your wealth Enable’s IFA’s can help.

http://www.independent.co.uk/money/could-baby-boomers-be-the-answer-to-the-nations-savings-woes-a7393281.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

Firework insurance - is your home insured?

Bonfire Night this year falls on a Saturday and many of us will be planning a fireworks party but Enables experienced IFAs in Bishops Stortford recommend checking your home insurance policy carefully if you are a home fireworks display enthusiast.  It is always sensible to make sure any accidents at a bonfire party don’t happen but you wouldn’t want them burning a hole in your pocket as well.

According to insurer esure, about 2.8 million people a year plan to hold a bonfire party at home but research from Churchill Home Insurance reveals almost two million British homes have been damaged as a result of a firework, with each incident costing an average of £307 to put right. An Allianz representative said: "Most household buildings and contents policies will provide cover if your property or possessions are damaged by a bonfire or a stray firework. However, people with a non-standard property, such as a home with a thatched roof, may have additional restrictions on their policies and policyholders should check with their insurance company."

It will also be in the small print of most household policies there will be a ''duty of care'' clause, essentially it would mean that you would have to prove you took proper precautions when lighting a fire or setting off fireworks. Claims would be affected, for example, if you used petrol to light your fire, or set off fireworks too close to your property.

It is also wise to have some idea of what the cover limits are on your policy. Any damage to a neighbour's property would be initially covered by the neighbour's insurance, but if the neighbour could show that you had been negligent in causing the damage, then would your policy cover it? Enables IFAs can help you make sure you have the right cover for you.

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 the young just bad at saving?

Enable’s IFA’s in Bishops Stortford where interest to see recently that “All age groups, including younger people, are saving more than they used to,” according to a comparison of 2004 and 2010 figures by the Grattan Institute.

There tends to be a lot of criticism of Generation Y for spending on luxury items, be it avocado on toast for breakfast, lattes, iPhones or another festival or weekend city breaks. The logic would seem simple, spend less on luxuries and save more of you hard earned cash. But the figures actually suggest millennials are saving more than they used to and are simply faced with increasingly difficult-to-afford house deposits.

As an indicator of housing affordability, the house price-to-income ratio, and the “deposit gap”, both remain much higher than they have been for the past few decades. The study also shows that younger people are now spending a greater proportion of their income on housing rather than other household expenditure categories, such as food, alcohol, or recreation. Interestingly, the same survey of spending habits found that younger people (defined as younger than 35) saved more per week than older people, even when comparing families with children. This may however be due to younger people living at home for longer but it still indicates Millennials have no issues with saving money.

You are never too young or too old to start saving and Enable’s IFAs in Bishops Stortford can help you make a plan for investing your hard earned savings.

Source: https://www.theguardian.com/news/datablog/2016/oct/18/are-millennials-actually-bad-at-saving-or-are-houses-just-unaffordable


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 buyer gap

Enable’s IFA’s in Bishops Stortford and Saffron Walden have seen the average age of a first time buyer in the UK go up and down but according to research from lender the Halifax the average age is now 30. This makes the average age of a first time buyer one year older than a decade ago and two years older than in 1983 when Halifax records began. The average age in London has risen by three years since 1983 from 29 to 32 and by four years in the South East from 28 to 32. In addition some new research reveals a seven year age gap between the youngest and oldest across the country.

The youngest first time buyers in southern England are in the East of England Waveney in Suffolk and Broadland in Norfolk with an average age of 28 in both areas. The analysis reveals a strong relationship between areas with relatively low average house prices with the youngest first time buyers. The research pointed out that the latest Halifax Generation Rent report found that non-home owners aged 20 to 45 would be prepared to save for around five and a half years for a deposit, while the average deposit paid by first time buyers increased by 13% in 2015 to £32,927. ‘With the youngest average first time buyer age dropping to 27 in some areas, this is a stark reminder of how early aspiring home owners should start thinking about what they will need to get onto the property ladder and what options they should consider in order to take their first step.’

If you are saving for your first property Enable’s IFAs can help you look at your options.

Your home could be at risk if you do not keep up your mortgage repayments


Source: http://www.propertywire.com/news/europe/seven-year-age-gap-revealed-youngest-oldest-first-time-uk-buyers/

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 are you pension pot fees?

Enable’s IFA's are always transparent about any fees that are charged for pensions they set up for clients. There has been much talk of excessive fees charged on pensions and millions of workers could have to delay the age when they retire by several years because they are paying steep fees on their pension fund, new research suggests. Cutting back fees by just 1.5 percentage points can mean the difference between being able to retire at 63 or 80, according to the new data.

A 55-year old worker has an average pension pot of £42,621 and is paying an average fee of 1.85 per cent, according to customer data analysed by advice firm Profile Financial. Many however do not realise they are paying high charges.  Profile Financials’ analysis of fees paid by its customers found those in new-style pension funds were paying 0.34 per cent, while 35-year-old and 45-year-old savers were paying 1.47 per cent on average and 55-year-olds were paying 1.85 per cent on average. Older workers tend to pay higher pension fees than younger staff, because the Government put a 0.75% cap on default fund charges under its auto-enrolment initiative.

Those who already have low fees will not be able to make great saving, and others may feel funds with higher fees still offer good value.  But the figures highlight how big an impact fees have on your pension pot over the years, and why it is crucial to find out what you are paying as well as their investment performance.

Source: http://www.thisismoney.co.uk/money/pensions/article-3802276/Rip-pension-charges-slogging-work-longer.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  

Avoiding financial scams

Enable’s IFA’s in Bishops Stortford and Saffron Walden know only too well how damaging falling victim to a financial scam can be. Falling victim to any type of fraud is a traumatic experience.  One of the best ways to combat this rising crime it to make sure people are forearmed with the knowledge to beat fraudsters at their own game.

Alongside the rise in this kind of crime is the problem of the banks and police being under resources and therefore are struggling to cope, and in many cases the blame can end up with the person who fell victim, often ‘negligence’ is cited. Refunds from banks are becoming an increasingly grey area and they seem to get more and murkier, whether you're a victim of vishing, smishing or phishing.

There has been a flood of fraud in Britain in the past few years, some of it originates here, but some of it from gangs in areas such as Eastern Europe, Russia and the US. Last year, online fraud losses were up 64 per cent annually, reaching £133.5million according to Financial Fraud UK.  At the same time, phone banking fraud was up 92 per cent. A recent survey by Nationwide Building Society found that one in three people would be trusting enough to transfer cash to an unknown account if they were called by someone posing as their bank, showing a knowledge gap when it comes to fraud. The rise of this kind of fraud is not showing any signs of stopping and it is difficult to know what to do but at least when you hear about a new fraud, the tricks of the conmen can be revealed. 

This is Money has created a Beat the Scammers hub page. It might be worth your while reading up on it and telling your friends and relatives about.

http://www.thisismoney.co.uk/money/beatthescammers/article-3774226/Fight-rush-financial-scams-new-Beat-Scammers-page.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  

Pensions and property

Enable’s IFA’s in Bishop’s Stortford and Saffron Walden have long suggested that for long term financial planning, rather than putting all your eggs in one basket savers should have a balanced portfolio of investments, of which property of course should form a part.  In a speech delivered recently by the City watchdog's (FCA) boss, Andrew Bailey, cautioned the idea of investing too much of one’s retirement fund in property.

His comment seem to directly challenge some of the more recent calls made by Andy Haldane, the Bank of England's chief economist, who has suggested that property is a better option for funding retirement than a pension. Mr Haldane had previously also admitted he could not make "the remotest sense of pensions" because they are too complicated.

Fresh data reveals the property wealth of over 65s in Britain has surpassed £1 trillion for the first time.  Key Retirement’s Pensioner Property Index reveals pensioners who have paid off their mortgages have gained on average £19,120 tax-free in the past three months taking their property wealth to a new record high.  Jon Greer, a pension’s technical expert, at Old Mutual Wealth, says “Housing wealth can be an important part of the mix when it comes to retirement income. But treating your house as your pension is a major risk. “Putting all your eggs in one basket is never a good idea, particularly when you consider that unlocking value in property is not straightforward.

Interestingly Halifax data shows the average home has risen in value by 231pc over the past two decades, while ABI data shows a typical pension fund has made 211pc investment growth over the same period. Enable’s IFA's in Bishop's Stortford can try and help you get the balance right.

http://www.telegraph.co.uk/news/2016/09/16/city-watchdog-chief-warns-against-using-property-as-a-pension/

Should I Buy-to-let?

Enables’ IFA’s in bishops Stortford have been following the Buy-to-Let market post Brexit with interest. Some market analysis by Mortgage Brain has revealed recently that that the costs of buy-to-let mortgages have actually fallen by as much as 8% over the past six months. Meaning many buy-to-let landlords have been benefitting from the continuing reductions of mortgage costs, as lenders across the board have been shaving percentage points off their best deals in an effort to attract greater business from those buying or re-mortgaging property, including buy-to-let landlords.

Part of the analysis of Mortgage Brain’s latest product data shows that the cost of a five-year fixed buy-to-let loan with a 70% loan-to-value (LTV) is now 8% less than it was in March 2016. With the current rate of 2.8%, as of 1 September 2016 there is a potential annualised saving of £738 on a £150,000 mortgage.

Many economists are predicting that the Bank of England will announce another cut to the base rate in November taking it from 0.25% to just 0.1%. If that is the case then there is every chance that mortgage costs could fall even further in the closing months of 2016. Mark Lofthouse, CEO of Mortgage Brain said: “With further interest rate cuts predicted by the Bank of England it will be interesting to see what happens to mortgage rates and costs over the next few months.
“There’s no doubt though that on the whole borrowers and potential buy-to-let investors are in a great position to take advantage of the low rates and cost reductions that we’re seeing.” 

https://www.landlordtoday.co.uk/breaking-news/2016/9/buy-to-let-mortgage-costs-down-by-as-much-as-8

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