Mortgage rates at record low

Britain's second-biggest mutual lender, Yorkshire Building Society, has recently revealed a mortgage at 0.98pc. It is the lowest rate ever offered and the deal is the cheapest nationally-available rate to anyone re-mortgaging.  The way it works is that it offers a "discounted rate" which tracks the lender's standard variable rate, currently 4.74pc, at a 3.76pc discount when  the lender's standard variable rate falls or rises, the rate will also move down or up in line. As with other low rate mortgage’s these arrangements often come with large fees,  £1,495 for the Yorkshire Building Society and early repayment during the discounted period incurs a 1pc charge.

During this year mortgage rates have been falling rapidly with the Bank Rate cut in August continuing to fuel this pattern. The Yorkshire building society is one of several lenders which have dropped their rates for high-value borrowing recently it’s available for borrowing of up to £5m.

Barclays also recently reduced its rate for mortgages between £1m and £3m from 1.85pc to 1.49pc, fixed for two years. Santander cut its five-year fixed rate to 2.09pc from 2.59pc in September for those borrowing between £250,000 and £3m.  According to comparison site Moneyfacts, the average two-year fixed mortgage rate is now at 2.34pc, down from 2.67pc this time last year.

David Hollingworth, of London and Country, said that this option would be more attractive to those borrowing a larger amount. But he added. "You've got to be careful not to be purely drawn to the fee, and you also have to keep in mind that this is linked to standard variable rate.” Enables IFAs in Bishops Stortford can help you find the right mortgage to suite your needs.

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

http://www.telegraph.co.uk/personal-banking/mortgages/lowest-ever-mortgage-rate-of-098pc/

Issued by: Enable Independent Financial Life Planners • 
25c North Street, Bishops Stortford, Herts CM23 2LD • Telephone: 01279 755950 - Fax: 01279 657339
Enable Independent Financial Life Planners is a trading style of Enable Independent Limited is authorised and regulated by the Financial Conduct Authority.
It is important always to seek independent financial advice before making any decision regarding your finances. If you would like any assistance, please contact us.
NOTHING CONTAINED IN THE ARTICLES SHOULD BE CONSIDERED AS GIVING INDIVIDUAL FINANCIAL ADVICE 

Are you Mortgage Ready?

Despite the current UK housing crisis there may come a time when a mortgage is in your sights. If that is something you are focused on Enables IFA’s in Bishops Stortford can only encourage you to be as mortgage ready as possible so when the time finally comes, you will be in a much stronger position and your mortgage will hopefully be processed much more quickly.

One of the key things your mortgage lender will do when you apply for a mortgage is an affordability test.  They are looking to see if your finances are in order and ultimately decide if you are trustworthy enough to lend money to. A real part of the test is looking at your income verses your expenditure, so it is important that you not only keep your finances in order but are also able to show that you are capable of keeping your finances in order.

So things like paying your bills on time as well as making sure any bills you have are all registered to your current address, so everything is easy to trace will help prove you are reliable and financially independent. Continuous employment is important ideally for at least six months. This will give evidence that you have a regular, stable income coming in every month, and there is less chance of your employment being terminated.  If regular savings can be traced on your bank statements, this can be good to show where the money for your deposit has come from, but it can also prove to your lender that if you are able to save say £500 a month, for instance, then this is money could go towards paying off any mortgage you have. Enable’s IFAs in Bishops Stortford can try and help you find the right mortgage at the right time.

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

Source: https://www.mortgageadvicebureau.com/news/HowtoGetMortgageReady/1212

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

COMMERCIAL PROPERTY UPDATE

Following the Brexit vote, even though over a third of commercial property deals were either abandoned or renegotiated, some investors – particularly those from Asia and the Middle East – have identified a buying opportunity.

The near 10% devaluation of Sterling following the vote has spurred foreign investors into the market. One example being a consortium of Saudi Arabian and UK investors bidding $1.3 billion for the prestigious ‘Grosvenor House’ hotel in London.

Meanwhile, the Abu Dhabi Financial Group, already holding a portfolio of £2 billion in London, has said it is looking for further sites.

Will Fulton, Chief Executive of FTSE 250 company UK Commercial Property Trust, which owns commercial property across the UK, was reported to have commented that although the vote to leave the EU had destabilised the market, an increase in foreign buyers seeking UK property was evident.

He remains confident that the occupational market for commercial property is strong, of 16 leasing transactions the company had in the pipeline prior to June 23, 14 were still proceeding.

Record high but Brexit spoils the party

Commercial property has achieved a record high, although Brexit uncertainty has muddied the waters, according to the Investment Property Forum (IPF). They report that the sector has risen by nearly 50% since its nadir, seen following the recession in 2009, with a valuation of £871 billion, an increase of around 11%. The amount of stock in the sector actually fell in 2015, so any increase in overall value came from price increases achieved.

The former highest valuation that the IPF put on the market was £865 billion, ten years ago in 2006.

Stamp duty on commercial property – gauging the potential impact

The recently released Q2 2016 UK Commercial Property Market Survey from the Royal Institution of Chartered Surveyors questioned respondents on their views regarding the potential impact of the changes made to stamp duty in the March 2016 budget, when a new marginal system was introduced.

Across the UK, 57% of respondents felt the change is likely to have little impact on transaction volumes and 24% believe it could lead to a reduction in volumes. Only a small number anticipate a resulting boost in transactions (4% of respondents), with 15% of respondents unsure.

In London, 43% of respondents felt the new regime would result in a reduction in transactions, with 42% believing the impact will be minimal.

 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 

Don't confuse your life insurance policies

Enable’s IFAs in Bishop’s Stortford find that insurance can be one of those issues that’s overlooked in financial planning.  But it is an invaluable tool for offering some financial peace of mind in more than one set of circumstances.  Level Term life insurance is perhaps the most common and most fundamental form of insurance for protecting your dependents but it is just one type of life insurance, others that do different jobs are also available.

Another form of insurance; Mortgage decreasing term insurance is a form of cover that pays out to pay off your mortgage should you die within a set term. As your mortgage debt decreases over time, the amount it pays out will also decreases, because of this feature it can also be called 'decreasing term assurance'.  This also makes it a cheaper form of life insurance than level term life assurance as the insurer would usually find themselves paying a lot less on average to cover these terms. Although it has to be remembered that it does not leave a lump sum for your dependants so that they can cover any other debts and cope with on going spending as a level term life insurance policy would.

Whole of life insurance is another form of insurance which is often but not always an investment-linked life insurance policy it is mainly used to mitigate inheritance tax. With this insurance the amount paid out should be able to cover the inheritance tax bill on death, these policies clearly run out when you die, instead of after a fixed time. If you need help making sure you have the right insurance policies in place Enable’s IFAs in Bishops Stortford can 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.
NOTHING CONTAINED IN THE ARTICLES SHOULD BE CONSIDERED AS GIVING INDIVIDUAL FINANCIAL ADVICE 

Do you know where you are with you NI?

Enable’s IFAs of Bishop’s Stortford regularly help people plan for their retirement. Financial planning for your later years is essential so it is striking to see that according to research by one pension provider 8 out of 10 Britons don't know how many years of National Insurance (NI) contributions are needed to qualify for the full welfare payment.

It would also seem that a third of people have no idea that a career break could harm their state pension payments. With so many new pension opportunities and regulations it is important to know that under the new state pension, introduced in April, workers must have made at least 35 years of NI contributions to receive the full pay-out, currently £155.65 a week. (This is 5 more years of contributions than previously required.)

Women can be particularly at risk of not having paid the full number of years as 6 in 10 women have taken a career break of at least a year at some point in their life.  Another thing many people don't realise is that there are some steps, such as claiming child benefit that can mitigate the impact of fewer years of NI contributions. Kate Smith, head of pensions at Aegon UK, said: “The fact that 80 per cent of people don’t understand the potential implications of career breaks on their state pension just highlights the sheer scale of the task ahead to properly educate people about the new state pension.” An inquiry by the Commons Work and Pensions Committee earlier this year found just weeks before the introduction of the new state pension many people were left "unprepared and confused". If you want to make sure you are prepared and not confused about your pension provision Enable’s IFAs in Bishops Stortford are here to help.

Source: http://www.express.co.uk/finance/personalfinance/701094/state-pension-confusion-over-national-insurance-contributions

 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  

Inheritance Tax reforms

After the news of the billionaire landowner the Duke of Westminster’s death, Enables IFA’s in Bishops Stortford have followed the news that his 25 year old son will inherit the family estate and a £9bn fortune making him the third wealthiest landowner in Britain and 68th wealthiest person in the world, according to Forbes. At the heart of this fortune is the 300-year-old Grosvenor estate in London, which began in 1677 as 500 acres of land including Mayfair and Belgravia and including Eaton Square, built close to Buckingham Palace and the Houses of Parliament during the housing boom that followed the Napoleonic wars.

The Grosvenor property firm is probably the largest property management company in the UK by value. And if the Grosvenor estate had been liable for 40% inheritance tax, the amount owed to the Treasury would have been close to the government’s entire death duty taxation for the last financial year. Britain’s generous trust law however ensure that many of the country’s largest fortunes are largely kept intact.

“The benefits of trusts are that they don’t form part of somebody’s estate,” says Ian Dyall, of Towry.  Instead of one-off taxation, trusts are subject to charges every 10 years from the anniversary of their creation. Known as the inheritance tax periodic charge, it can amount to 6% of the funds held. Pressure groups have been calling on the government to publish a new central register of trusts, which names their beneficiaries and settlors. They want an obligation to publish annual accounts for those collections of assets deemed to have public interest.

George Hodgson, interim chief executive of the Society of Trust and Estate Practitioners, on the other hand has argued for central registers to remain private because many beneficiaries are children or vulnerable adults and protect businesses. “An awful lot of trusts are used to hold family businesses, be they farms or manufacturing businesses. Successive governments have decided that is in the best interests of the economy and therefore the public at large.” Having an estate to pass on can be a tricky business but Enable’s IFAs in Bishops Stortford can help you make the best of your inheritance options.

Sources:
https://www.landlordtoday.co.uk/breaking-news/2016/8/25-year-old-man-to-inherit-9bn-buy-to-let-portfolio
https://www.theguardian.com/business/2016/aug/11/duke-westminster-hugh-grosvenor-inheritance-tax-reform
https://www.theguardian.com/money/2016/aug/11/inheritance-tax-why-the-new-duke-of-westminster-will-not-pay-billions

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  

Bank of England interest rates cut to 0.25%

What does it mean for your mortgage?  Enable’s IFAs in bishops Stortford know that a mortgage is without doubt the biggest debt taken on by the majority of households in the UK. Its estimated 11.1 million households have one and the average amount still left to pay on each home loan is £116,000, according to the Council for Mortgage Lenders.

Mortgage holders who will see an immediate benefit from the cut are those people who have bank rate tracker mortgages, as their loans have an interest rate that goes up or down in direct relation to the Bank of England's decision. One in five mortgage holders have this type of loan.

But nearly a third of mortgage holders (29%) have home loans that are on the standard variable rate which is also the default option after a fixed term has run its course and these borrowers will be in the hands of the lender. Some mortgage providers may pass on cuts in full, some may decide on a partial cut, whilst others may make no change at all given the historical low levels of interest rates. However the Bank of England’s governor Mark Carney has said banks have "no excuse" not to pass on the cut to households.

Almost half (46%) of all mortgage holders are on fixed-rate mortgages and they will see no change in their mortgage rate. However, if their mortgage term is up soon, they may find they pay less if or when they sign up to a new one. Fixed mortgage rates on new deals have been falling even when there was no change to the Bank rate. An increasing number of people have signed up to longer term fixed rate deals for up to 10 years. If you need to renew or review your mortgage Enables IFA’s in Bishops Stortford are happy to help.

YOUR HOME COULD BE AT RISK IF YOU DO NOT KEEP UP YOUR MORTGAGE REPAYMENTS

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.
NOTHING CONTAINED IN THE ARTICLES SHOULD BE CONSIDERED AS GIVING INDIVIDUAL FINANCIAL ADVICE 

Stamp Duty Surcharge Figures Released

Enable’s IFAs in Bishops Stortford know that many have turned to Buy-to-Let to help bolster pensions and lifestyle expenses. With the introduction of a higher Stamp Duty on a second home being introduced recently the real impact is just coming to light with the first figures from HM Revenue & Customs (HMRC) following the 1st April Stamp Duty surcharge for buy-to-let landlords and second homebuyers being released recently.

The figures might be able to help you decide if the buy to let market if for you. The number of property sales worth less than £250,000 was 6% higher in Q2 than the previous quarter, and 8% higher than in the same period last year. The amount of transactions worth between £250,000-£500,000 in Q2 was 2% lower than Q1, but 12% higher than in Q2 2015. HMRC’s data also shows that there were 9% fewer transactions worth over £500,000 in Q2 than the previous quarter, but 18% more than in the same quarter last year. The estimated Stamp Duty yield for Q2 2016 was £1,977m from residential transactions and £724m from non-residential transactions. This is 13% higher than the previous quarter, and 28% higher than Q2 2015.

Andrew Bridges The Managing Director of estate agent Stirling Ackroyd said: “The volume of properties sold keeps growing, and it’s at the lower end of the market where momentum is at its highest. It may be too early to call, but it seems the Government’s changes aren’t off-putting buyers from snapping up those additional properties.” If you are wondering if a second property is for you Enable’s IFAs can talk you through the options.

Source: Landlord News


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 to protect yourself from financial fraud...

At a time of so much uncertainty having to deal with fraud could be the final straw and Enable’s IFA’s in Bishops Stortford want to help their clients protect themselves by being well informed.  You are likely to have heard of identity fraud where criminals manage to get hold of personal information about you so they can try and open accounts in your name, set up a mobile phone contract, or try and order other goods using a false name or in the worst case scenario empty a person’s current account.

Investment fraud is another thing to look out for - this is usually where potential savers are contacted by phone or email to invest in 'unbeatable opportunities' and with high yields 'guaranteed'. These kinds of false investment are often offered in high-risk unregulated products like art or diamonds. If it looks too good to be true it probably is.

The methods used by criminals tend to involve acquiring details taken from information freely available online like addresses and dates of birth posted on social media.  Sometimes all that is needed to open an account in that person's name birthdate and address. So don’t post such details on line.

Phishing is another trick criminal use, where people are tricked into clicking on links in emails or texts they often make them look as if they are from an official source, such as Revenue & Customs, a popular shop or someone you know.  Clicking on such links can download 'malware' on to your computer or phone, this is software that lets the robbers see account numbers and passwords that have been used on that device. So make sure you only download links from sources you are really sure of.
Source: Money Matters


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 

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

Mortgage controls to continue

The Bank of England Enable’s experienced IFA’s in Bishops Stortford notice is preparing for some new mortgage controls in a bid to dampen what it worries is the potential volatility of the buy to let sector. Jefferies investment consultancy has written to investors saying: “More Buy to Let lending controls may be on the cards” in the form of more stringent testing of affordability when landlords apply for loans.

A recent Financial Stability Report says the Bank is not going to look favourably on any relaxation of the lending criteria being offered by mortgage companies, such as reducing the size of deposits or income requirements. "The committee remains alert to the rapid growth of the UK buy-to-let market, and potential developments in underwriting standards as the sector could pose a risk to broader financial stability," the Bank of England says in its report.  Lending to landlords has been a key factor in the mortgage market in the past two years and some reports suggest it is now close to its pre-crisis peak.

In the first nine months of 2015, buy-to-let lending rose by 10 per cent and last year regulations limiting the number of owner-occupier mortgages worth more than 4.5 times the borrower's income and implementing stress tests on the borrower's ability to repay came in but these rules do not apply to buy to let. “The Bank of England reports that Buy to Let investors are often subject to less stringent affordability tests than owner occupiers. Affordability is typically tested by ensuring that rental income exceeds 125 per cent of loan interest, assuming mortgage rates in the range of five to six per cent, whereas owner occupier’s affordability is typically tested at seven per cent” says Jefferies.

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: Letting agent today

Life Insurance...

If you have a family and are the major bread winner Enable’s IFA’s in Bishop’s Stortford agree that it is a sobering statistic that around one child in 30 loses a parent before they grow up. The grief and trauma can all too often be compounded by a loss of income causing financial crisis for the family.  Luckily life insurance is widely available and one of the cheapest ways to protect your family's finances if the unthinkable happens.

But it can be easy to pay £1,000s more than you need to over the life of the policy if you are not careful so it is wise to work out if life insurance is right for you, but also how to get it the cheapest way. There are also lots of different types of life insurance to protect an array of different things some protect a mortgage others all your dependents, while some can provide a way to mitigate inheritance tax. But the main insurance every parent, partner, or person with dependent needs to consider is called 'level term' life insurance or assurance.

With level term insurance you insure something that may happen, while you assure something that will happen. Sadly death is assured for all of us at some time, but "will you die within a set time?" is what  insurance is interested in. Level term life insurance pays out a set amount if you die within a fixed term and the pay-out doesn't vary regardless of when you die during the term.  If you are looking to make sure you have the right insurance Enable’s IFA’s in Bishop’s Stortford 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 – Money Saving Expert

Early UK rate rise?

Enable’s IFA’s in Bishop’s Stortford note that once again the Bank of England has held UK interest rates at the record low of 0.5%. Forecasts for the first change in interest rates since 2009 have again been pushed further into the future, as the outlook for global growth had weakened, which was depressing the risk of inflation. UK interest rates have now remained on hold for six-and-a-half years.

The Bank of England said, "the outlook for global growth has weakened since August."It blamed emerging market economies for that weakness, saying growth in those regions had "slowed markedly." While the Bank expects inflation to rise above its 2% target in two years, it says that risks "lie slightly to the downside" during that time period meaning inflation may not rise as quickly as the Bank forecasts.

BBC economics editor Robert Preston said, “Mark Carney gave what many would see as a bum steer in July that interest rates would be going up around the turn of the year. The implication was unambiguous: we should prepare for the end of the era of near-zero interest rates that has prevailed since early 2009.”

Other economists are saying that the latest reports indicate that the Bank of England remains relaxed over an interest rate rise. "That magic first rate rise has been kicked into the long grass once again. Only a few months ago, the Bank was saying that inflation wasn't picking up because of the low oil price. Now it's emerging markets. You have to wonder what their next reason will be," said Paul Diggle from Aberdeen Asset Management.

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 - BBC news

Loosing track of your savings

Enable’s IFA’s in Bishop’s Stortford know that many of us spend significant amounts of our lives trying to build up savings so it seems extraordinary that some savers lose track of finances after retirement according to the research for Fidelity Worldwide Investment.

The findings were drawn from a survey of more than 1,000 people, roughly two-thirds of those who were retired and a third who were still working in a full or part-time capacity. Those surveyed had some form of retirement savings on top of a state pension, although their money was not necessarily held in a pension scheme. Clearly the people surveyed had been interested in saving but it seems, as the research suggests, that savers are more likely to lose track of their finances once they are in retirement. One in five (20%) people aged over 55 who were still working did not know the value of their pension savings, this increased to 30% among those who had retired.

The study found evidence to suggest that 13% of over-55s did not know how they were going to fund essential outgoings.  Over-55s in the Midlands were found to be the most out of touch with their retirement savings, with more than one in three (35%) saying they did not know how much their combined savings were worth. Nearly a third (31%) in Scotland and a similar proportion (30%) in Wales did not know the overall value of their pension savings. People in London were the most engaged with their pension savings, with almost four-fifths (78%) knowing the value of their pots.

It may be easy to slip in to apathy as you approach retirement feeling like you do not have too many resources and clearly saving more earlier is better but Enable’s IFA’s in Bishop’s Stortford may be able to help you make the best of what you have.

Source - AOL Press Association

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's the right time to pay off your mortgage?

For many paying off the mortgage is one of the things that Enable's IFA's in Bishop's Stortford  regularly see people aiming for so they can enjoy their later years.  But a study, by the Saga Equity Release Service, has recently  discovered that one in three people over the age of 50, and one in seven over the age of 70, still have a mortgage. And that on average those who still have a mortgage in their 70s will have £40,000 left to repay.

There can be lots of reasons for still having a mortgage to pay in your later years many over the years take out an interest only mortgage so at the end of the mortgage period are not in a positon to repay the debt some have tapped into the equity in their home over the years, in order to maintain a lifestyle that was maybe beyond their means hoping that house price rises would help wipe out their debt. And not everybody buys property when they are young, and gradually pays it off, life can end up being a bit more complicated and issues like unexpected debt and divorced can get in the way and mean some people have to start all over again.

The Saga research also found that a third of people over 50 had never tried to renegotiate their mortgage, so for some there could be serious savings to be made from shopping around for a cheaper deal. Enable’s IFA’s in Bishop’s Stortford might be able to help you find the right deal for you.

Remember your home could be at risk if you do not keep up your mortgage or re-mortgage repayments.

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 - Saga Equity Release Service

Are you confused about single tier pensions?

Enable's IFA's in Bishop's Stortford know that many of us hoped that a single tier pension would iron out confusion about state pensions and would offer a simple solution. A new study from Hymans Robertson suggests that it's not simple, and it's not that generous. They say that “in fact, most people will be worse off under the new system.”

Sue Waites, Partner at Hymans Robertson, said: "There's a widespread expectation that everyone who reaches state pension age from April 2016 will move from a basic state pension of £115 to a new flat rate of £151 per week. The reality is quite different. The transition to the new State pension brings many complications, particularly for those approaching State Pension Age. Some will be very surprised at how much they actually get."

The study suggests that fewer than half of those reaching the right age soon after 2016 will qualify. The number of people with fewer than 35 years of National Insurance contributions will be partly responsible for this. However, the big problem is the number of people who have opted out of the state second pension at some point in their career - which the government will reflect in lower state pension payments. Waites says anyone approaching their state pension age should contact the DWP, explaining: "Get in touch with the DWP to find out what you're likely to receive and avoid any unpleasant surprises."

If you want to make sure your retirement is a comfortable as you hope it will be Enable’s IFA’s in Bishop’s Stortford can help you look at the whole picture including your State pensions.

Source -Hymans Roberson

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 age should you plan to retire?

Enable’s IFA’s in Bishops Stortford often find themselves discussing when people would like to plan to retire. In recent years the government has steadily increased the state pension age to 68 and it could go higher. Pensions minister Steve Webb said “working past 65 will benefit individuals and the state, on the one hand giving people more time to build up sufficient pension funds, while keeping a lid on the bill for the state pension, which is expected to quadruple by the mid-2060s to £420 billion from £98 billion this year.”

Pensions expert Ros Altmann however suggests that working late into life even to 80 is unfeasible but that individuals should no longer expect to retire at 55 which is currently the earliest age at which pension funds can be accessed. On average people are actually retiring earlier than they did in the 1950’s. ‘In the 1950s, the average age of retirement for men was 67,’ says Altman. ‘At that time life expectancy was much lower than it is today, yet people are retiring earlier. This means that lifetime income is lower, especially as they often start work much later too, and they have less chance to save for a good later life income. ’It is only since the 1980s that ‘an expectation had developed that people should aspire to retire in their 50s’. ‘This is simply not sensible or sustainable, especially as life expectancy has risen significantly, general health has improved and the physical demands of most types of work have eased.’

Perhaps for younger generations the idea of a ‘retirement age’ will be an outdated concept with individual choice, and importantly economic means, determining when a person stops working. If you need help planning your pension Enables IFA’s in Bishop’s Stortford can help you look at the options.

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

Off shore bonds

If you are in the fortunate position to have more than one lump sum to invest and have the ability to defer paying tax on growth and withdrawals, you might have been wondering about offshore bonds and the benefits of “gross roll-up”.  Essentially this means gains are not subject to tax at source, apart from an element of withholding tax. So taxation is deferred until the bond is surrendered, in full or in part.

Another advantage of off shore bonds is 'top slicing relief’, which can in some circumstances reduce your higher-rate tax if there has been a gain at the time of a 'chargeable event. In the broadest of terms this means that the total gain made by the bond is divided by the number of years the investment has been held and referred to as the 'slice’. It is this that can then be added to your other income and tax is paid on it accordingly. If the slice was all within your basic-rate tax band, 20pc tax would be payable on the whole gain. If the whole slice is in the 40pc bracket, higher-rate tax would be payable on the whole gain. In cases where the slice crosses tax bands, the tax charged is a blended rate.

Off shore bonds may look attractive but before investing in them you should make use of your ISA and possibly pension allowances fully as an allowance is like an offshore bond, and ISA’s allow your funds to grow free of tax. Enable’s IFAs can help you find the best place for your savings.


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

Is a possible ISA pension a good idea?

Enable’s IFA's in Bishop's Stortford have spotted that the government is still thinking of tinkering with the structure of pensions as another consultation, we look at changes to tax relief offered on pension contributions and a more radical option to scrap pensions in favour of a pension-ISAs with a new tax regime.  Under the mooted plans pensions could be moved from the current system of taxation, as exempt-exempt-taxed (EET), which means contributions are tax-free and so is growth in the pension but withdrawals are taxed as income, to an ISA-style regime. ISA-style taxes are known as taxed-exempt-exempt (TEE): contributions are taxed but growth and withdrawals are tax-free.

At first glance it might look like a simplified way of taxing pension savings by doing it in the same way as ISAs are, but  Hugh Pemberton of the University of Bristol said over the long-term savers would lose out by up to 17%.  The main problem identified by Pemberton with the TEE system is the loss of compound interest on the tax relief paid.

Current Tax relief boosts pension contributions by the highest rate of income tax paid by the saver, so either by 20%, 40% or 45%, meaning more money is put in the pot at the outset. Then this tax relief is invested along with the rest of the contributions boosting the pot further. And the Investment returns made on existing returns is known as compounding – which Pemberton said “was described by Einstein as the eighth wonder of the world thanks to its ability to turn small sums of money into much larger sums over time.”


Issued by: Enable Independent Financial Life Planners 
25c North Street, Bishops Stortford, Herts CM23 2LD
Telephone: 01279 755950 - Fax: 01279 657339
 Enable Independent Financial Life Planners is a trading style of Enable Independent Limited is authorised and regulated by the Financial Conduct Authority.
It is important always to seek independent financial advice before making any decision regarding your finances. If you would like any assistance, please contact us.
NOTHING CONTAINED IN THE ARTICLES SHOULD BE CONSIDERED AS GIVING INDIVIDUAL FINANCIAL ADVICE