A life insurance policy in trust is a legal arrangement that keeps a life insurance pay out separate from the valuation of your estate (property, money and possessions) after you die. Here we take a look at some main points to consider when deciding whether to write your life insurance in trust.

The logistics

A trust is a legal entity that allows you to put aside assets for your chosen beneficiary or beneficiaries. A solicitor or insurance provider can arrange to place your policy in trust. You can nominate one or more trustees to manage the trust until the beneficiary is ready to inherit. The trustee(s), ideally a solicitor or close friend, is responsible for ensuring the money set aside goes to the correct people after you have passed away. Trust deeds are agreed and signed by all parties, setting out the terms of the trust.

Trusts can be inflexible

You can set up either an absolute or a discretionary trust, the main difference being flexibility. With an absolute trust, they are fixed, so making any changes is not permitted. With a discretionary arrangement you don’t need to specify: beneficiaries at the outset, how much will be received and when it will be received. You can also add other trustees to discretionary trust once it’s set up.

It can be risky to amend a trust - there have been instances when people have invalidated their life insurance, after making changes to the policy in trust.

Minimising Inheritance Tax (IHT)

One of the prime motivators to people putting life insurance in trust is to mitigate IHT. Normally, a life insurance pay-out is considered as part of your estate, which will be liable to IHT on anything exceeding the £325,000 threshold (taxed at 40%). When you write your life insurance in trust, you are in effect, ring-fencing the pay out, so it won’t be included in the value of your estate, therefore protecting it from IHT and leaving more for your loved ones.

Greater control, expedience and options

Writing your life insurance policy in trust gives you more control over the pay-out. This is very important if you aren’t married or in a civil partnership; otherwise, your intended recipient may miss out. Pay outs from a trust can be paid quickly because there is no need to wait for probate to come through. If you have existing life insurance policies, you can transfer these into trust, but you would need to take advice on this first.

Seek advice

There could be tax implications if you move a life insurance policy into trust, for example IHT may be charged if, within 7 years prior to dying, a policyholder changes the person who’s named as a beneficiary on a life policy held in trust. If you are unsure whether to write your life insurance in trust, talk to us. We can guide you through the pros and cons considering your circumstances.

As with all insurance policies, conditions and exclusions will apply.

HM Revenue and Customs practice and the law relating to taxation are complex and subject to individual circumstances and changes which cannot be foreseen.

Purchasing a property can be a busy, stressful time and it can seem like there are a million things to remember. Some things however, are more important to remember than others – for example, getting the right insurance in place at the right time.

Many people believe that they only need to take out buildings insurance once they move into their new home. However, this is not the case. It can come as a surprise to find out that, in most cases, the responsibility for insuring the property becomes the buyer’s as soon as contracts are exchanged.

Avoid stress, get prepared
Exchange - Once contracts have been exchanged, you’re committed to the purchase and can't back out without forfeiting your deposit.

Insure - If the property is damaged or destroyed between exchange and completion, you’re still contractually bound to complete the purchase and will immediately face hefty costs to repair your brand-new home.

Relax - To avoid stress and guarantee peace of mind, researching your options in advance and taking out insurance on the day contracts are exchanged is very important.

Getting the right policy
Buildings insurance covers the cost of repairing or rebuilding your property in the event of damage. It covers the structure of the property, as well as outbuildings such as garages and sheds and fences, and external items such as pipes, cables and drains. It doesn’t cover possessions and furniture inside your home – you will need a separate contents insurance policy for this.

How much you pay for buildings insurance will depend on the rebuild value of your new home. This should not be confused with the property’s current asking price. It is how much it would cost to completely rebuild your home from scratch. There are tools available to help you calculate the rebuild value of your home, including a special calculator on the Association of British Insurers’ website.

Here to help
We can help you find he most suitable buildings insurance policy for your circumstances, giving you one less thing to worry about. We can also advise on any additional cover you may need and get everything in place by the time you exchange.

As with all insurance policies, conditions and exclusions will apply

KEY TAKEAWAYS

• Many house buyers are surprised to find out that they need buildings insurance in place as soon as contracts are exchanged, not from when they move in.
• Exchanging contracts means you’re committed to the purchase and are legally obliged to continue even if the building is damaged before completion.
• Buildings insurance covers the structure of the property, outbuildings and external features like pipes, drains and cables. It should not be confused with contents insurance, which covers possessions, furniture etc.
• Your buildings insurance quote will be based on your new home’s rebuild value, i.e. what it would cost to rebuild it from scratch.
• Let our advisers assist you in finding the ideal buildings insurance policy for you.

During the past few months, millions of businesses have been forced to shut temporarily, with employees furloughed or working from home under very difficult circumstances.

With various business sectors reopening in July, many have suffered significant financial damage due to lockdown. For some businesses, productivity has been lost due to illness and self-isolation, while others have lost key personnel or shareholders, leaving a question mark hanging over their future.

Don’t leave your business vulnerable
It is likely that your business would at least experience some financial difficulties if key stakeholders were to fall ill or die.

When thinking about whether you should take out business protection insurance, ask yourself: “Would your business survive if something were to happen to you, your co-owners or senior employees?”

If the answer is no, then you would probably greatly benefit from taking out this specialist insurance. Below, we’ve outlined two of the most common types of business protection.

Share protection insurance
Even if a business has multiple owners, the death of just one of them could throw the business into turmoil. If no share protection policy is in place, then the deceased owner’s share in the business may pass to a family member, meaning that the remaining owners could lose control of part (or even all) of the business.

Share protection is essentially a life insurance policy that covers you for the value of your share in the business, with the payout providing your co-owners with the necessary funds to buy your shares back.

Key person insurance
A ‘key person’ can be defined as an employee with specialist knowledge, experience and skills who contributes to the financial success of a business.

If you were to lose a highly-trained employee, who carries out unique functions within your business, it could have a detrimental impact on your income and profits.

Meanwhile, you are likely to use up time and resources you can’t afford in training up or recruiting a replacement. A payout from key person insurance could enable your business to avoid financial hardship and give you breathing space to find a replacement at your own pace.

Seek advice
There are many other types of protection insurance available, such as business loan protection and relevant life plans, so it’s advisable to seek guidance from a professional to ensure you choose the policy that works best for you and your business. If you would like to know more, please get in touch.

Key Takeaways

• Millions of businesses have suffered financially during the coronavirus pandemic
• Some have lost their owners or key personnel to the disease
• Business protection insurance can help protect your business from financial damage if a key stakeholder were to die or become seriously ill
• Two of the most popular kinds of business protection are share protection insurance and key person insurance
• Payouts from both types of insurance can help keep a business going when the unexpected happens
• Other types of business protection include business loan protection and relevant life cover
• Contact us to discuss your business protection needs

Insurance brokers have reported an increase in enquiries about income protection cover since the pandemic outbreak, with people concerned about becoming ill and being unable to continue working, or worried about losing their jobs.

Income protection explained
Income protection policies provide a monthly payment (payable after a waiting period) to help replace your income if you are unable to work because of an accident, illness or involuntary redundancy. Short-term income protection policies will pay out for a fixed amount of time (typically six months or a year), whereas long-term income protection policies are designed to replace your income (up to a maximum of around 60% before tax) until retirement age, death or for a specified period of time.

Am I covered for COVID-19 under my existing policy?
Policyholders who took their policies out before the outbreak should be covered under the existing terms and conditions, for both short-term and long-term income protection.

Fortunately, most people who get the virus have mild symptoms or recover quickly, usually within a few weeks. Because most income protection policies have a waiting period before money is paid out and also a minimum claim period of 30 days, you are unlikely to be able to claim under the sickness element of your policy.

However, if you are an existing policyholder who had unemployment cover included in the policy and you are made redundant, you should be able to make a claim for enforced redundancy.

Can I take out a new income protection policy now?
It is still possible for new customers to purchase accident and sickness cover, although you should be aware that pre-existing medical conditions will be excluded and insurers may have changed their terms for new customers.

However, the situation is not the same for unemployment cover, with brokers reporting that cover is unavailable for new customers, both as a standalone policy and under ASU (Accident Sickness and Unemployment) policies.

Managing existing policies
The good news is that you can renew your short-term and long-term income protection policies, although the terms may change at renewal.

Furthermore, some insurers are offering three-month payment breaks for those who are unable to pay their premiums at the moment.

Here to help
It’s important to remember that all protection cover should be bought for the short, medium and long term and should be tailor made to suit your own circumstances, rather than just opting for the cheapest premium.

As with all insurance policies, conditions and exclusions will apply.

Key takeaways

• Insurance brokers have reported an increase in enquiries about income protection cover since the outbreak
• Income protection policies provide a monthly payment (payable after a waiting period) to help replace your income if you are unable to work because of an accident, illness or redundancy
• Short-term and long-term income protection is available
• Exiting policyholders should be covered under the exiting terms and conditions
• People with mild COVID-19 symptoms are unlikely to be able to claim due to a waiting period and minimum claim period
• Existing policyholders with unemployment cover, who are made redundant, should be able to claim
• New customers can purchase accident and sickness cover, but unemployment is currently unavailable
• You can renew existing policies, although terms may differ
• Some insurers are offering premium payment breaks

We can advise on existing policies and find the most suitable cover for new customers

Buying a home takes careful preparation and planning. As well as finding a property you like, you need to get your finances in good order before lenders review them and assess your ability to make repayments on your loan.

Save up

During the recent lockdown, many lenders pulled their ‘high loan-to-value (LTV)’ products which typically only require a deposit of 5% or 10% (often first-time buyers) to take out a mortgage. The good news is that lenders are returning to the high LTV market, but you may need to act quickly to secure the deals. This is where we can help as we have our finger on the pulse.

Save as much as you can towards a deposit. Open a dedicated savings or investment account and make sure it’s paying a competitive interest rate.

Check your credit score

Even if you’re remortgaging or moving up the housing ladder your credit history will be important. A good credit rating can help you secure a better mortgage deal, with a lower interest rate.

The general rule is the higher the score the better, and the more likely you’ll be accepted for a mortgage or other credit. If you’re looking to take out a mortgage or remortgage, check your credit score regularly. You can usually get a simple overview for free and it pays to check with several different sources. Credit Karma, Equifax, clear Score and Experian all offer a service to help you understand your rating.

If you find it is lower than expected there are ways to improve it:

• Pay more than your minimum payments on credit cards
• Bring your overdraft down
• Close unused credit accounts
• Register for the electoral roll

Budgeting

It’s important to review your income and outgoings. If you have accounts, memberships or subscriptions that you no longer use, it makes sense to close them down.

Prospective lenders will also look at the debt you currently have, including whether your current account is in credit. If you have any savings, it makes sense to pay off loans and credit cards but be sure to leave yourself enough saved to cover emergencies.

Support from families

Research carried out suggests the bank of Mum and Dad or even the bank of Gran and Grandad will help to buy 175,000 homes during 2020 by lending or giving you cash to help with a deposit or acting as a guarantor.

Get some good advice

As qualified and professional mortgage advisers we know what a good deal looks like, we know the market and we’ll do the hard work for you

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.

It's all too easy for us to put our head in the sand when it comes to thinking about our protection requirements. People tend to find it challenging to engage with the topic as it involves thinking of negative potential scenarios. In reality, this is the reason to put it to the top of your ‘to-do list’. Life is hopefully rosy but being prepared for any eventuality is truly priceless.

One important type of protection worth serious consideration is accident and injury cover. Life’s an adventure, we don’t always know what’s waiting for us around the corner and if the unexpected happens, you deserve the peace of mind that you’ve got things covered financially.

• You can take out cover from the age of 18 to 60, without any health questions.
• The cost of your policy will remain the same, even if you make a claim or as you get older.
• Policies pay a fixed amount of money for specific injuries, depending on the level of cover.

Flexible cover, tailored to your needs
We can advise you accident and injury cover for your circumstances that provides financial support covering a range of accidental injuries, from a broken bone, to one that could seriously impact your life.

The flexibility of cover available is one of the major benefits, in addition to the ability to choose the level of cover that is tailored to your individual requirements and lifestyle; and suits your budget.

Core cover includes broken bones, accidental death and permanent injury, permanent disability, funeral benefits and UK hospital stays.

Some policies give you optional cover add-ons like protecting your children, active lifestyle cover and healthcare cover, for those who may be at particular risk of contracting certain illnesses, such as those who work in the healthcare sector.

With accident cover you can make multiple injury claims and your policy will continue to protect you in the future.

The last few months have provided the perfect opportunity to take stock of your finances and protection cover; you may be thinking about reducing your outgoings, but protection policies can provide a lifeline when you need it most.

For a cost-effective way to look after yourself and your loved ones, so you’re ready for the unexpected, we can help ensure all of your protection needs are covered. Then you can enjoy life, unclouded by concerns of what might happen if you’re ill, injured or need to spend time in hospital.

As with all insurance policies, conditions and exclusions will apply

Both the funeral and accidental death benefit once paid out, will end the plan.

Age restrictions apply on child cover

KEY TAKEAWAYS

• It's all too easy for us to put our head in the sand when it comes to thinking about our protection requirements
• Being prepared for any eventuality is truly priceless
• One important type of protection worth serious consideration is accident and injury cover
• Should the unexpected happen, you deserve the peace of mind that you’ve got things covered
• Providing financial support, covering a range of accidental injuries, we can advise you on the right accident and injury cover for your circumstances
• The flexibility of cover available is one of the benefits
• You can choose the level of cover that is tailored to your requirements, lifestyle and budget

For a cost-effective way to look after yourself and your loved ones, so you’re ready for the unexpected, we can help ensure all of your protection needs are covered.

How does it work?

• Those who have not yet had a payment holiday will be eligible for payment holidays of 6 months in total.
• Those who currently have a payment holiday will be eligible to top up to 6 months in total.
• Those who have previously had payment deferrals of less than 6 months will be able to top up, as long as total deferrals don’t exceed 6 months. This includes those receiving tailored support and those who are behind on payments.
• Borrowers who have already had 6 months of payment holiday will not be eligible for a further payment holiday. Firms will provide tailored support appropriate to their circumstances. This may include the option to defer further payments.

The FCA has also confirmed that no one should have their home repossessed without their agreement until after 31 January 2021.

Interest only
Borrowers with an interest-only (or part-and-part mortgages) that matures between 20 March 2020 and 31 October 2021 can delay the repayment of capital until 31 October 2021, providing they continue to make interest payments.

Tailored Support
Some lenders have offered tailored support to borrowers. Lenders will discuss your individual circumstances to support to customers in a way that reflects the uncertainties and challenges many customers will be experiencing due to coronavirus.

Who to talk to
You should try to maintain your mortgage payments if you can afford to do so. If you want to apply for or extend an existing payment holiday, it is crucial that you speak to your lender. You must not stop making mortgage payments without speaking to your lender first as this could adversely affect your credit.

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE

• Forecasts from the Office for Budget Responsibility (OBR) show the economy will contract by 11.3% this year
• It may take until the end of 2022 for the economy to return to its pre-pandemic size
• GDP will grow by 5.5% next year, 6.6% in 2022, 2.3% in 2023, 1.7% in 2024 and 1.8% in 2025
• The budget deficit will be £394bn this year
• Borrowing will remain at £164bn next year
• Pay rises for the public sector will be paused next year (There will be an exemption for more than 1 million nurses and doctors in the NHS)
• National living wage will be increased to £8.91 an hour, and extended to over-21s
• Overall unemployment is expected to peak next year at 7.5%
• Day-to-day departmental spending will rise in real terms by 3.8%
• The government will match EU funding for regional development after Brexit
• The core health budget will grow by £6.6bn
• The schools budget will increase by £2.2bn
• The government will cut the overseas aid budget to 0.5% in 2021
• Investment in infrastructure will total £100bn next year.

Official bodies are warning consumers of an increase in scams designed to prey on people’s coronavirus fears.

Statistics from Action Fraud reveal that over £16m was lost to online shopping fraud during lockdown. In some scams consumers purchased goods online that never arrived. Others targeted animal lovers who lost nearly £300k in just two months after putting down deposits on non-existent pets advertised online.

Get scam savvy
Being familiar with the most common scams is essential to recognizing the danger signs. Recently, UK Finance released a list of the most common scams relating to COVID-19.

Financial support scams

Victims report receiving official-looking emails purporting to be from government departments or local authorities, offering financial assistance in the form of grants or ‘COVID-19 relief funds’. These emails contain links to websites encouraging victims to enter their personal and financial details. Other examples include emails offering a ‘council tax reduction’ as well as scams targeted at Universal Credit recipients.

Health scams
These scams prey on victims’ fear of contracting COVID-19. They include fake Test and Trace emails informing the victim they’ve been in contact with somebody with COVID-19, containing links leading to websites that steal the victims’ personal and financial details, as well as fake adverts for PPE.

Lockdown scams
These scams include fake emails that look like they are from TV Licensing or an online streaming provider, informing victims that they need to update their payment details. Other fraudsters are using online dating websites to take advantage of isolated people and manipulate them into handing over cash, while some are tricking victims with fake investment opportunities.

Stop and think
Spot the warning signs - If you’re contacted out of the blue, if the investment risks are downplayed, or they are using pressurised selling tactics which offer a bonus or discount, it should set off alarm bells. And if the offer is ‘one time only’ or you’re asked not to share the details of the ‘opportunity’, there is a high risk of a scam

Check the Financial Services Register – register.fca.org.uk or 0800 111 6768 – If an individual or company is not on the register it’s probably a scam

A good rule of thumb, with all scams if it’s too good to be true, it probably is.
If you think you are being targeted by a scam hang up the call, delete the email, rip up the letter. If you think you have been the victim of a scam already contact action fraud, the UK's national fraud and cybercrime reporting centre, immediately on 03001232040.

To find out more about how to protect yourself from financial scams visit

• FCA ScamSmart fca.org.uk/scamsmart
• Take Five takefive-stopfraud.org.uk/
• Pension Wise pensionwise.gov.uk/en
• The Pension Advisory Service pensionsadvisoryservice.org.uk/

Key Takeways

• Coronavirus-related scams and fraud have greatly increased during lockdown.
• Being familiar with the most common scams can help you avoid them
• Some scams are offering financial assistance in the form of grants or council tax reductions, tricking victims into sharing their personal and financial details
• Others are taking advantage of people’s health fears through fake Track and Trace emails or PPE adverts
• Others purport to be from TV Licensing or online streaming providers urgently requiring victims to ‘update their payment details’
• Stop and think – is it too good to be true? Then it probably is. If you’re unsure, talk to us first.

Your home is likely to be the most expensive purchase you’ll ever make so it’s important to insure it properly. Having the right type of cover in place means your property will be protected for a range of incidents, from burglary to a burst pipe.

Buildings insurance explained
Buildings insurance covers the permanent fixtures and fittings of a property, such as baths and toilets, fitted kitchens, and even decorations such as wallpaper. It may also provide cover for your garage, greenhouse or garden shed, but policies vary so it’s important to check the small print to be sure.

Although buildings insurance is not a legal requirement, if you own your home, most mortgage lenders will insist you have cover in place, so it should be considered essential.

Contents insurance explained
Contents insurance is designed to protect your belongings against loss or damage. As a general rule, it will cover anything that can be taken with you if you move home, such as kitchen appliances, bedding, furniture and valuables.

It can be difficult to assess exactly how much contents insurance you need, but a simple way to do so is to go through each room and add up everything you would need to replace in the event of a claim.

There is no legal requirement to have contents insurance but is certainly worth buying to ensure you are not left out of pocket if you lose or damage any of your personal possessions. It can often be combined with buildings insurance.

Cover for renters
If you rent your home, it will be your landlord’s responsibility to arrange buildings insurance for the property, so you will not need to take out your own policy. However, if you want to ensure your belongings are protected, contents insurance can be a sensible purchase.

Check for exclusions
As with any insurance policy, it is important to check for any exclusions that may apply. These will vary depending on the insurer but can include general wear and tear or damage that happens gradually over time, such as damp or rot.

Contents insurance will usually have a single item limit which means any belongings worth more than this, such as musical instruments or jewellery, may need to be named separately on the policy. You may also have to pay extra to add personal possessions cover to your policy to ensure your belongings are protected when they are taken outside the home.

Key Takeaways

• Your home is likely to be the most expensive purchase you’ll ever make, it’s important to insure it properly
• Having the right type of cover in place means your property will be protected for a range of scenarios
• Buildings insurance covers the permanent fixtures and fittings of a property
• Although not a legal requirement, if you own your home, most mortgage lenders will insist you have cover in place
• Contents insurance is designed to protect your belongings against loss or damage
• It is certainly worth buying contents cover to ensure you are not left out of pocket if you lose or damage any personal possessions
• If you rent your home, you will want to ensure your belongings are protected - contents insurance can be a sensible purchase
• If you’re not sure which type of cover is right for you or you would like to know more about the different types of home insurance, we can help.

When James and Allison first started renting together, they were determined it would be a temporary move.

Fresh out of university, they turned their attention immediately to homeownership, putting away as much of their money as their rent and living costs would allow.

Allison had always been careful with my money and imagined with both of them saving they would be able to get a foot on the property ladder sooner rather than later.

Along came COVID

Fast forward six years with a budget of £250,000 and a carefully scrimped and saved £25,000 deposit and the couple finally started house hunting.

Then along came 2020. A global pandemic, the closure of the property market, a failing economy and widespread job losses. James, a hotel manager, was placed on furlough. Allison was fortunately able to work from home. With government support and the hope that the situation would be temporary, the couple remained optimistic.

Mortgage lenders took a more cautious approach, however. In the months that followed, news that lenders were pulling hundreds of mortgage products for buyers with 5% and 10% deposits was widely reported in the media.

The struggle to find a mortgage

Just before lockdown hit, James and Allison had managed to secure a mortgage in principle with a 10% deposit. Now, like many others, they faced being denied a mortgage despite having an agreement in principle. Through no fault of their own, they found themselves thousands short on their deposit

Difficult, but not impossible

Reporting shows first-time buyers are set to lose their ‘share-of-sales stronghold’ by the end of the year, James and Allison are far from alone in their experiences. And, while 56% of first-time buyers under the age of 35 have received financial assistance from the Bank of Mum and Dad, not everyone is in the same position.

Getting a mortgage may still be possible for the many despite the difficulties in the market. That’s where we come in. We can help people like James and Allison to get a grip on their finances and find a mortgage that suits their circumstances. We’re here to consider all the options available to you.

Latest news

Boris Johnson recently announced his intention to develop plans to allow more low deposit mortgages to be made available. Ministers are scoping plans to allow more mortgages to be offered with a 5% deposit. We will keep you up to date with developments.

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.

Key takeaways

• Unfortunately, the COVID-19 pandemic caused many lenders to pull products for buyers with smaller deposits, meaning they may now struggle to get a mortgage despite obtaining an agreement in principle
• With a shortfall of thousands of pounds many face having to wait several more years before they can achieve their dream of homeownership
• We help people like you to manage their finances and consider all the options available, taking them one step further on their path to homeownership.

Has the pandemic caused you to worry more than usual about your finances? Well, you’re not alone…
With 47% of respondents to a global survey stating they are less well-off now compared to before the pandemic and 24% worried about job security, it’s clear that the virus is continuing to wreak havoc on our financial – and mental health.
The kids are… not alright

And it’s not just adults who are feeling the pressure – our kids are picking up on it too. According to a monthly study of children’s mental health symptoms during the pandemic, children from poorer households were more likely to be unhappy or worried, or show behaviour such as clinginess or restlessness, between March and October 2020 when compared with other children.

How can I support my child?
Tempting as it is to try and protect children from your money worries, a keyway of allaying their fears is to actually get them involved with the household finances – after all, we tend to fear what we don’t understand. Research shows that children who are exposed to conversations about money and financial responsibility are more confident and tend to do better with money as adults³. So, here are some top tips to get your kids on the path to financial success.

Our top tips:

• Regular pocket money – whether it’s £1 or £10 per week, giving children their own money to manage can help foster positive conversations about budgeting, saving and spending
• Reward hard work – offering cash in exchange for household chores is an excellent way to teach children the value of money, i.e., it is something to be earned through work
• Involve them in household spending decisions – whether you’re doing the weekly grocery shop or looking for a new broadband deal, challenge the kids to find better deals! As an incentive, you could even offer them a percentage of whatever savings they make
• Play a board game! – there are plenty of board games that can help kids learn about key financial concepts in a fun way. From Payday, which introduces the concepts of budgeting and living expenses, to Monopoly, which helps kids learn about financial negotiation and dealing with taxes, there are plenty of educational games out there
• Think out loud – talking through any money-related decisions with your children will help them learn by example. Did you just choose a supermarket-own washing up liquid instead of a well-known brand on the weekly shop? Tell them why!

And how can we support you?
Our advisers understand how thinly parents are stretched now. That’s where we come in. Let us shoulder some of the burden so you can concentrate on looking after your family. We can help you explore the available options to get your finances back on track so you – and the kids – can feel positive.

Key takeaways

• Many UK adults are concerned about their finances and job security
• Recent studies show that our children are picking up on our money worries during lockdown
• Teaching kids about money and getting them involved in the household finances is a key way of addressing their concerns
• Ways of doing this include paying them for household chores, involving them in household spending decisions and even playing boardgames like Payday or Monopoly
• We understand how stressed many parents are at the moment, so let us help you with your finances so you can concentrate on looking after your family.

Wherever you go, you’d be hard pressed to find a house without at least a little bit of clutter.

From the kids’ old teddies (well, they might want Ed the Ted for their own children, you see) to receipts from the 1980s (they might take it back after 40 years), attics and basements across the UK are full of what optimists might call ‘keepsakes’ and what others would probably call ‘junk’.

But is it always? If Flog It or Cash in the Attic are anything to go by, our houses are literal gold mines of undiscovered treasures, just waiting to be found amongst the everyday bric-a-brac.

What could your attic hold?

Over the years, some truly priceless artefacts have been uncovered in the homes of unwitting residents. Here’s a list of some of the oddest – and most valuable.

An ‘old box’ that was more than it seemed
A battered looking wooden box, used as a TV stand by an elderly gentleman, was discovered upon his death when his house was being cleared out. This unassuming item turned out to be an ancient Japanese Mazarin Chest, and is valued at a staggering £6.3m.

Rare rugby memorabilia

A treasure trove of extremely rare rugby kit and memorabilia from the turn of the 20th century (including an England shirt from the first ever game in Twickenham in 1910) was found languishing in a dusty box by the great grandson of rugby player and WWI hero Charlie Pritchard. The priceless items are currently on loan to the World Rugby Museum in Twickenham.

Priceless Indian artefacts

The ancestors of a British army officer were amazed to discover a cache of Indian arms taken from a Sultan’s palace at the turn of the 19th century. Wrapped in newspaper and discovered in a dusty Berkshire attic, the weapons, including an ornate, gold-encrusted sword and a gun believed to be the one fired by the ‘Tiger of Mysore’ himself in his final stand against the British in 1799, are expected to fetch millions at auction.

Time for a clear out?

If you’re feeling galvanised into a spring (or winter) clean, then be careful what you chuck out! You too could be sitting on a valuable treasure.

Don’t be underinsured

Have you reviewed your home contents insurance policy and make sure you’re covered for everything you own – including the contents of your attic and basement.

Get in touch with us and we can help find a contents insurance policy that suits your needs. In the meantime – we’re off to watch Antiques Roadshow!

Key takeaways

• You’d be hard pressed to find a UK household without a little clutter
• While you may think it’s junk, some people have found extremely valuable items languishing in attics and basements
• Recent finds include a £6.3m ancient Japanese chest that was being used as a TV stand, valuable rugby memorabilia from the turn of the 20^th century and priceless weapons taken from an Indian sultan’s palace
• So, don’t be too eager to chuck away your knick-knacks – who knows how much they’re worth!
• With that in mind, make sure your home insurance policy is adequate and accounts for ALL your contents – including the stuff in your attic.

They chatted about making a Will a few times, but somehow life always got in the way. Until one day, 10 years later, Pete got a call that would change his life forever. Knocked down by a car while crossing the road, Tom had tragically passed away.

The intestacy trap
Grieving for the loss of his partner, Pete then found out that, due to the UK’s intestacy laws, he wasn’t entitled to inherit any of Tom’s property, financial assets or belongings, unless they were jointly owned. Despite Pete knowing that Tom had loved him and would want him to inherit, the absence of a Will meant that none of that mattered.

Thankfully, Pete and Tom had owned their property as joint tenants, meaning Tom’s share automatically passed to Pete according to the rights of survivorship. However, without children or any surviving parents or siblings, the remainder of Tom’s assets ended up being passed on to a distant uncle with whom Tom didn’t have any contact.

Now, Pete faces a battle to pay his bills and mortgages without Tom’s savings and investments, life insurance policy and even the car that Tom owned but they both used.

How a Will could have helped
Had Tom got around to writing a Will, he would have been able to specify exactly who would receive what from his estate, including his savings, investments, car and other belongings. In addition to writing a Will, Tom could have made his wishes known, by nominating beneficiaries to his pension and writing life policies under trust. By taking these steps, Pete would have been given the extra financial support he now so desperately needs.

As it stands, Pete still has the legal right to claim against Tom’s estate as they had been cohabiting for more than two years - but this will be a costly and time-consuming process and a positive outcome isn’t guaranteed. If Tom had a Will, this added stress could have been avoided.

Don’t put it off
With cohabiting couple families growing faster than married couple and lone parent families, it’s clear that more people are choosing not to get married, just like Tom and Pete. However, there’s a catch. Cohabiting couples have none of the legal protections afforded by marriage, meaning that a Will is one way to ensure your partner inherits according to your wishes. Despite this, research shows three in five UK adults do not have one.

Let us help
Don’t let what happened to Pete, happen to you. Speak to a solicitor or Will writing expert to make sure your loved ones are protected.

The Will writing service promoted here is not part of the Openwork offering and is offered in our own right.

Openwork Limited accept no responsibility for this aspect of our business.

Will writing is not regulated by the Financial Conduct Authority

Key takeaways

• Tom and Pete thought they had a lifetime together – so they never got around to writing a Will
• When Tom was tragically killed in a car accident, Pete was left with a share in the property they jointly owned, but little else
• Intestacy laws saw the remainder of his estate passed to a distant uncle Tom had never liked and didn’t see
• Now, Pete faces a battle to pay the bills and mortgage on his own
• A Will would have allowed Tom to record his wishes and ensure Pete was protected
• Cohabiting couples are a fast-growing family type, and many mistakenly believe they have the same rights as married couples
• Writing a Will is easy to put off - three in five UK adults do not have one
• Get in touch and we can take you through the Will writing process and ensure your loved ones are financially protected.

Let’s be honest, on the morning of 21 October few of us were waiting with bated breath as the latest UK inflation stats were revealed. But, for millions of people, that moment was significant.

That’s because the September (Consumer Price Index) CPI inflation figure forms part of the government’s ‘triple lock’ formula used to determine the forthcoming rise in the level of State Pensions.

Triple lock
The triple-lock safeguard was introduced by the Conservative-Liberal Democrat coalition in 2010 and aims to ensure that the value of the State Pension is not eroded by inflation. The three-pronged guarantee states that, each year, the State Pension will increase by whichever rate is higher out of: September’s CPI inflation; July’s average earnings growth, or 2.5%.

And, as September’s CPI was 0.5% and July’s previously announced earnings growth was 1.0%, next year’s State Pension is set to rise by 2.5%, the minimum amount allowed by the legislation. As a result, from April 2021, pensioners on the ‘old’ basic State Pension will see weekly payments increase by £3.40 to £137.65, while the full ‘new’ single-tier State Pension will rise by £4.40 to £179.60.

Don’t rely solely on it
The actual amount of State Pension retirees receive is also dependent on their National Insurance record. To qualify for any State Pension, you need at least 10 years’ worth of contributions, while to obtain the maximum amount, 35 qualifying years are required. This means the amount pensioners receive can vary significantly with some not entitled to any State Pension at all.

Additionally, experts have stressed that, even if you do qualify for the full State Pension, this on its own is not enough to retire on. Indeed, analysis shows that, on average, retirees require more than twice the maximum State Pension to enjoy a comfortable retirement.

Plan, plan, plan
In other words, people need to build up a sizeable nest egg which can be used to supplement any State Pension payments, if they wish to retire in relative comfort. Personal pensions are the most common way of doing this, largely because of their favourable tax treatment, but other investments, such as ISAs, can also be used to accumulate retirement funds.

The key is careful planning. And, as retirement planning is never a case of ‘one size fits all’, it’s vitally important to obtain expert advice to ensure any plans are tailored to meet your specific needs. If you’re worried about how you might survive on the State Pension and need help creating a well-structured retirement plan, then we can assist – we’re only a phone call away.

An ISA is a medium to long term investment, which aims to increase the value of the money you invest for growth or income or both.

The value of your investments and any income from them can fall as well as rise. You may not get back the amount you invested.

Key takeaways

• Few of us were waiting with bated breath for September’s inflation rate
• But the figure was significant as it forms part of the ‘triple lock’ used to determine State Pension rises
• The triple-lock means payments increase by the greater of: September’s CPI inflation; July’s average earnings growth, or 2.5%
• From April 2021, the State Pension will rise by 2.5% (the minimum amount allowed) with the ‘new’ full weekly payment increasing by £4.40 to £179.60
• Not all pensioners receive this maximum amount though
• Experts say even those that do will not have enough to live on – retirees typically need more than twice that amount to retire in comfort
• People therefore need to build up a sizeable nest egg to supplement State Pension payments and this requires careful planning
• We can help you create a well-structured retirement plan.

The coronavirus outbreak is having a widespread impact across all aspects of our financial life, with many people finding their income reduced. At times like this it can be challenging to stay focused. No matter what age you are, now is not the time to neglect your pension. Try your very best to keep your pension planning and contributions on track – don’t allow the pandemic to cast a cloud over your long-term plans.

It’s never too early to start saving into a pension…
You should start saving for retirement as soon as possible, as the sooner you begin, the longer your savings have to grow. Other financial challenges can make this difficult but investing regular amounts in a pension throughout your working life gives you the best chance of enjoying a prosperous retirement.

…but better late than never
Don’t think it’s too late to start saving for your retirement. The favourable tax treatment pensions enjoy and their potential for investment growth, means any contributions you make later in life can still make a huge difference to your standard of living in retirement.

Take control of your retirement
When you reach 55, it’s important to carefully consider what you can do with your pension pot. For instance, you could keep your savings invested, take a cash lump sum, draw a flexible income (drawdown), buy a fixed income (an annuity), or a combination of these. While this flexibility may enable you to retire earlier or semi-retire, it’s vital you take full control of your retirement options at this stage. This should include seeking advice to discuss the pros and cons of the different avenues available to you.

Know your numbers
You can contribute as much as you like into your pension, but there is a limit on the amount of tax relief you will receive each year. The Annual Allowance is currently £40,000, or 100% of your earnings, whichever is lower. You can, however, carry forward unused allowances from the past three years, provided you were a pension scheme member during those years.

For the 2020-21 tax year the Tapered Annual Allowance limits altered. The Threshold Adjusted Income limit is £200,000 and the Adjusted Income Limit is £240,000. If your income plus pension contributions exceeds the Adjusted Income Limit, your Annual Allowance is reduced by £1 of every £2 you are over the Adjusted Income Limit. A Lifetime Allowance also places a limit on the amount you can hold across all your pension funds without having to pay extra tax when you withdraw money. This limit is currently £1,073,100.

Get good advice
Retirement planning is never a case of ‘one size fits all’. It is vital you obtain sound financial advice tailored to your individual needs. We offer advice and help with all aspects of pensions and retirement planning, whether you’re just starting out and want help choosing the most appropriate pension products, or you’re approaching the stage of life when you need to utilise your pension pot and want to know the most efficient way to access your funds. We are here to help.

The value of investments and any income from them can fall as well as rise and you may not get back the original amount invested.

HM Revenue and Customs practice and the law relating to taxation are complex and subject to individual circumstances and changes which cannot be foreseen.

Estimates suggest that well over one million borrowers have lapsed onto their lender’s default standard variable rate (SVR). Has this happened to you? If so, now could be the perfect time to consider a remortgage, to get your finances in good shape for the year ahead.

Do you know your mortgage rate?
If your current tracker, fixed rate, or discount mortgage deal has ended, you are likely to be switched onto your lender’s SVR and could be paying way over the odds, perhaps without even realising. It has been found that borrowers on an SVR could save an average of £1,602 a year, that’s over £133 every month!

Sound familiar?
Even with a potentially sizeable saving to be made by remortgaging, it’s surprising how many people just stick with their SVR. Why is that?

“I didn’t realise my mortgage deal had ended” - your lender should have let you know, but always remember to make a note of the end date of a new mortgage deal so you don’t forget.

“My lender contacted me, but I didn’t understand”- mortgage jargon can be confusing, but it pays to check out important mortgage correspondence.

“It’s too much hard work to find a new deal”- it’s true that the mortgage market can be bewildering as there are so many deals to choose from. That’s where we can get involved – to help find you a suitable deal. You can then choose what to do with any savings made!

Time to remortgage?
It’s important to regularly review your mortgage. Particularly now, when mortgage rates are at record low levels, it makes sense to consider your options to see if you can get a more cost-effective mortgage deal.

Are you still covered?
If you’re thinking of changing your mortgage, remember to review your protection policies at the same time - especially if you don’t already have cover in place, or your circumstances have changed since you last reviewed your cover.

To discuss your remortgaging options and to see if you could save money, please get in touch. Rest assured we are here to help if you have any questions about your mortgage or your protection requirements.

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE

Key takeaways

• There may be well over one million borrowers who have lapsed onto their lender’s default standard variable rate (SVR)
• Borrowers on an SVR could save an average of £1,602 a year
• People give various reasons for sticking with their SVR
• Mortgage rates are at record lows, so it makes sense to shop around
• Remember to review your protection policies at the same time

Nudge theory was popularized in 2008 by behavioural economist Richard Thaler and legal scholar Cass Sunstein. In simple terms it is about making it easier for people to make a certain decision that is ultimately in their own self-interest.

Day-to-day
In the short term there are some financial nudges you can do to apply nudge theory to your own finances.

Put your decisions into context – During lockdown, local or national (or whatever COVID-19 throws at us next) do you really need to buy another plant, candle or pair of joggers.

Set simple and clear goals – A single goal like save £6,000 for a car is much easier to achieve than multiple goals like save for a home, car, and holiday.

Make it easier to do the things you should do (and hard to do the things you shouldn’t) – Putting small barriers in the way of everyday things, like not allowing your browser to remember your PayPal password, makes it harder to spend money and you may ultimately decide not to.

Don’t ignore information and the facts – check your budget, bank statements and accounts regularly.

Long-term
Do you like going on holiday, eating out and enjoying your hobbies? If so, it’s likely your ‘future self’ will too. Far from sitting in an armchair in your carpet slippers and a tartan blanket, it’s much more likely that your future self (who is, after all, still you) will want to enjoy their retirement in style.

So, what’s the dream? Well, according to research from Aviva, almost half of people want to travel when they retire, while taking up a new hobby and helping their children and grandchildren out financially come second and third on the list – all suggesting that people want to live their lives to the fullest in their later years. Unfortunately, translating the dream into reality is where it falls apart for some – 23% of people think their retirement is likely to be a financial struggle.

Living the dream
A study has hit on a novel solution to the problem – ‘nudges’. In other words, by making small behavioural adjustments to your spending habits, you could enjoy an additional £7,000 every year in retirement income.

The key lies in encouraging young people to imagine themselves in the future, rather than viewing their ‘future self’ as a different person.

Understandably, a lot of young people are focusing on their current financial priorities – after all, we’re in the midst of a global pandemic. But that doesn’t mean your future financial needs have gone away. So, rather than thinking of your ‘future self’ as a stranger, treat your pension like a gift you’re giving yourself – you just can’t open it yet!

Get nudging
COVID-19 hasn’t given us many silver linings but reduced living expenses due to remote working and the closure of bars, restaurants and other leisure and hospitality businesses could provide a welcome boost to our savings.

Similarly, you could save around £40 a month by keeping going with the home workouts, like the 72% of people who say they have no plans on going back to the gym. In addition, many kids’ clubs have yet to start back up following lockdown, so parents could be making big savings here, too.

Save on subscriptions
Foregoing the latest iPhone could also save you a hefty sum. Keeping your existing handset instead, and switching to a SIM-only deal, could help you move some welcome funds into the pension pot.

Or, you could divert an average £39 per month in wasted subscriptions into your pension. Unused gym memberships, phone contracts and subscriptions to online video streaming services are all common culprits, according to research.

Expert ‘nudgers’ at your service
If you need a ‘nudge’ from us to help boost your retirement income, we’re just a phone call away.

The value of investments and any income from them can fall as well as rise and you may not get back the original amount invested.

Key takeaways

• Almost two million younger people could increase their retirement income by an extra £7,000 a year through a series of small behavioural ‘nudges’
• Young people need to picture their ‘future self’ and actively start thinking about their future
• Many people prefer holding onto their money for more immediate priorities such as buying a home, rather than saving for someone they perceive as a stranger
• There are several simple changes or sacrifices you can make to help boost your retirement pot, including using any savings you’ve made by no longer commuting
• Cancelling your gym membership, switching to a SIM-only deal for your mobile phone and reviewing your digital TV package can also free up funds for your pension pot
• We can advise you on your different pension options to help you make the right decision.

As we entered the new year with further lockdowns and history making world events, the hope of spring hangs in the air, an enticing prospect, this year, more than ever. While we’re waiting for the green shoots of spring to emerge, why not use the time effectively by getting your finances in order before the end of the tax year?

The tax year ends on 5 April 2021, which is Easter Monday this year, so don’t wait until the last minute to double-check you’ve taken advantage of all the tax-efficient allowances available to you. To avoid a last-minute Easter rush, we’re on hand to get you organised with all aspects of your end of tax year planning. Here’s a reminder of some of your main tax planning opportunities:

Pensions

— The current Annual Allowance is £40,000 (for every £2 of adjusted income over £240,000, an individual’s Annual Allowance is reduced by £1. The minimum Annual Allowance is £4,000
— The Lifetime Allowance places a limit on the amount you can hold across all your pension funds without having to pay extra tax when you withdraw money. The limit is currently £1,073,100

Tax efficient investments

— Individual Savings Accounts (ISAs) – maximum annual contribution of £20,000 per adult (stocks and shares, and cash options available, maximum allowance not to be exceeded)
— Junior Individual Savings Allowances (JISAs) – maximum annual contribution of £9,000 per child (stocks and shares, and cash options available, maximum allowance not to be exceeded)
— Enterprise Investment Schemes (EISs) – maximum investment of £2,000,000, relief on investments in certain unquoted trading companies, up to £1m per annum (or £2m as long as at least £1m of this is invested in knowledge intensive companies)
— Venture Capital Trusts (VCTs) – maximum annual investment of £200,000, relief on investment in certain qualifying companies

Making Inheritance Tax-free gifts

— Each financial year you can make gifts of up to £3,000 (in total, not per recipient) and if you don’t use this in one tax year, you can carry over any leftover allowance to the next year (some other exempted/ small gifts allowable)
— To reduce the amount of IHT payable, many families consider giving their assets away during their lifetime. These are called ‘potentially exempt transfers.’ For these gifts not to be counted as part of your estate on death, you must outlive the gift by seven years
— If you have enough income to maintain your usual standard of living, you can make gifts from your surplus income.
Advice is essential as strict criteria apply

Using Capital Gains Tax allowances

— Annual exemption of £12,300 per person, £6,150 for trusts – currently under review, correct at time of publication.

The value of investments can go down as well as up and you may not get back the full amount you invested. The past is not a guide to future performance and past performance may not necessarily be repeated.

An ISA is a medium to long term investment, which aims to increase the value of the money you invest for growth or income or both. The value of your investments and any income from them can fall as well as rise. You may not get back the amount you invested.

Past performance is not a reliable indicator of future performance and should not be relied upon.

Due to the high-risk nature of these products (EISs and VCTs) they will not be suitable for everyone.

HM Revenue and Customs practice and the law relating to taxation are complex and subject to individual circumstances and changes which cannot be foreseen.

Key Takeaways

• Why not take on a lockdown project and get your finances in order before the end of the tax year?
• We’re on hand to help you get organised
• The tax year ends on 5 April 2021, which falls on Easter Monday this year
• Pensions - The current Annual Allowance is £40,000, the Lifetime Allowance is £1,073,100
• ISA allowance is £20,000
• JISA allowance is £9,000
• · EIS maximum investment is £2,000,000, VCT maximum investment is £200,000
• Inheritance Tax – gifts of up to £3,000 per tax year, consider potentially exempt transfers and gifts from income
• Capital Gains Tax allowance is £12,300 per person

An Individual Savings Account (ISA) is a tax wrapper for your money. There are two main types available depending on the level of risk you’re prepared to take:

• Cash ISA
• Stocks and shares ISA

If you’re 16 or older you can have a Cash ISA, whereas Stocks and Shares ISAs are aimed at 18s and over. In both cases you’ll need to be a UK resident to be eligible.

The ISA was launched by then-Chancellor, Gordon Brown, on 6 April 1999, as successor to the TESSA (Tax-Exempt Savings Account) and PEP (Personal Equity Plan) and has now reached the grand age of 21.

When the ISA was launched, the annual subscription allowance was £3,000 into a cash ISA or £7,000 into a stocks and shares ISA. The overall allowance has risen steadily over the years to reach a generous £20,000 in the 2020-21 tax year.

A first route into investment
Junior ISAs (JISAs) were introduced on 1 November 2011 and can be opened by parents or a guardian with parental responsibility, for a child from the minute they are born. Once opened, anyone can pay into the JISA, but a crucial point to note is that the child is not able to access the cash until they reach the age of 18. In the Budget earlier this year, the JISA annual allowance was increased by almost double to £9,000 per child per tax year.

Popularity
Over the 21-year timespan, ISAs have proved to be a popular investment choice for many; the most recently available government figures, which are for 2018-19, show that around 11.2 million adult ISA accounts and around 954,000 JISAs were subscribed to in the 2018-19 tax year, with new investments totalling around £67.6bn and £974m, respectively.

Long-term investing pays
Looking at some figures from a recent hypothetical example, if you had been in a position to be able to invest your full ISA allowance for each of the past 21 years (a total of £226,560) and this had been invested in the FTSE All-Share Index, your total investment would be worth more than £307,000 as at 6 April 2020. However, you should be aware that this figure excludes any charges or fees and past performance is not a guide to the future.

Regular investing also pays
If you can’t afford to invest the full £20,000, don’t be deterred. Figures from the same hypothetical example, show that an investment of £100 a month invested in the FTSE All-Share Index over 21 years (a total of £25,200), would be worth over £39,000 at at 6 April 2020, before charges and fees, taking into account the large market-hit from the pandemic this spring.

The value of investments can go down as well as up and you may not get back the full amount you invested.

The past is not a guide to future performance and past performance may not necessarily be repeated.

Key Takeways

• Individual Savings Account (ISA) was launched on 6 April 1999 and is now 21!
• ISAs have developed over the years, the annual allowance is currently £20,000
• Junior Individual Savings Accounts (JISAs) can be a good first route into investing
• JISAs can be opened by a parent or grandparent and anyone can contribute
• The child can’t access the cash in a JISA until they are 18
• The JISA annual allowance was raised to £9,000 in the March Budget
• 11.2 million ISAs and 954,000 JISAs were subscribed to in the 2018-19 tax year, representing investments of £67.6bn and £974m respectively
• Hypothetical examples show the benefits of long term and regular investing, but charges need to be taken into account
• Past performance is no guide to the future.

To the casual observer, the first Budget of 2021 appeared to have been fully revealed before the Chancellor even reached the despatch box. The relentless flow of pre-Budget rumours, kite-flying and red herrings makes it is all the more important to forget what was said before 12.30 on 3 March and concentrate on what Rishi Sunak did deliver in his speech.

The real – as opposed to rumoured – announcements included:

• The main rate of corporation tax will be increased to 25% from April 2023 for companies with profits of at least £250,000. At the same time, a small profits rate of 19% will be introduced for companies with profits below £50,000.
• For two years from April 2021, companies investing in qualifying new plant and machinery assets will benefit from a 130% first-year capital allowance.
• The coronavirus job retention scheme (CJRS) will be extended in full until the end of June 2021 and then phased out over the following three months.
• The self-employed income support scheme will also be extended at its current level with a fourth grant covering the period February to April. A fifth grant will cover following three months, but this will be at a lower level for those who have seen less than a 30% drop in turnover. Eligibility for the SEISS will be extended to include those who became self-employed in 2019/20.
• The personal allowance and higher rate threshold will rise to £12,570 and £50,270 for 2021/22 and will then be frozen for the next four years.
• The capital gains tax annual exemption, the inheritance tax rate nil rate band and the lifetime allowance will all be frozen at their current levels until April 2026.
• The business rates holiday for retail, hospitality and leisure businesses will be extended for three months and then reduced to a 66% relief until the end of March 2022.
• The temporary 5% VAT rate for hospitality, hotel and holiday accommodation and admission to certain attractions will be extended to the end of September 2021 and then replaced by a 12.5% rate until 31 March 2022.
• The exemption from stamp duty land tax on the first £500,000 of residential property value will be extended to 30 June and then replaced by a £250,000 exemption until 30 September 2021.
• A new residential mortgage guarantee scheme will run from April 2021 to December 2022, aimed at increasing availability of 91%-95% loan-to-value mortgages. The maximum property value will be £600,000 and mortgages must be arranged on a repayment basis.
• Fuel duty was frozen again this year, alongside alcohol duties which are frozen for the second year running.

If you are nearing retirement, you may have been particularly worried about the impact of recent market volatility on your pension assets and perhaps you are reassessing your retirement plans. There are several things to consider if you are planning to retire, which will depend very much on your own circumstances.

Since pensions freedoms were introduced in 2015, there are many more options available to retirees. Sudden retirements used to be the norm. People would stop work completely one day and be fully retired the next, perhaps receiving a regular income from an annuity. It is now possible to take a more gradual journey into retirement - making use of this flexibility in how you draw funds could be sensible in times of uncertainty.

Consider your timescales
If your planned retirement is 5 to 10 years away, there is a reasonable time for your savings to recover from the recent market volatility, but you should still take action:

• Review your retirement age.
• Consider increasing your pension contributions.
• Talk to us about your attitude to risk and appropriate fund switches.

If you have less than five years to retirement, your pension pot may not have been exposed to market volatility as much as you think. You may have benefited from a lifestyle option on your pension which is designed to ‘lock in’ investment growth as you approach retirement, by switching funds to less risky assets. This option is not suitable for everyone, particularly if you intend to keep your pension pot invested and use income drawdown to give you an income in retirement.

If you are retiring this year and your pension pot has taken a hit, you could consider delaying retirement until markets recover, but this may not be an option for everyone.

Advice is key
One of the biggest risks in uncertain times is to act in haste and make rash decisions.

Getting financial advice is crucial in making the right decision. We can help you consider all your options, including reviewing whether any other assets could be used to provide an income, so that your pension stays untouched.

The value of investments and any income from them can fall as well as rise and you may not get back the original amount invested.

KEY TAKEAWAYS

• If you are nearing retirement you may be worried about recent market volatility on your pension assets
• Advice will depend on your own circumstances
• Pensions freedoms have introduced more options, including a gradual step into retirement
• Timescales are important but options should be reviewed at each stage
• If retirement is 5 to 10 years away - review your pension ages, funds and consider increasing contributions
• If retirement is less than five years away – you may be locked into a lifestyle approach
• Advice is crucial if your only option is to retire this year and your pension pot has taken a hit
• Don’t act in haste – talk to us for advice.

The current tax year ends on 5 April 2021, so now’s a good time to make sure your finances are in order and book an annual review with your financial adviser. We’ve taken a look at some of the main allowances you’ll need to bear in mind as you prepare for the end of the tax year.

ISAs
An ISA is a tax-free wrapper in which you can hold various types of savings and investments. There are different types and the amount you can place in them without being charged tax (the tax-free allowance) varies. You can spread your money across different types of ISAs, but you can’t exceed the maximum annual allowance of £20,000. It can’t be rolled over to next year, so if you don’t use it, you’ll lose it.

Which ISA is right for you?

Pensions
There’s a maximum amount you can put in your pension tax-free each year. The annual allowance for 2020/21 is £40,000 and includes:

• the total amount paid in to a defined contribution scheme in a tax year by you or anyone else (such as your employer); and
• any increase in a defined benefit scheme in a tax year.

You might be able to carry over your annual allowance from the last three years if you’ve not used all of it. Bear in mind that it may be lower than £40,000 if you have flexible access to your pension pot. You’ll also have a reduced (‘tapered’) annual allowance if:

• your ‘threshold income’ (your net income for the year) is more than £200,000; or
• your ‘adjusted income’ (which includes the value of all your employer’s pension contributions) is more than £240,000.

Capital gains tax
You’ll have to pay capital gains tax (CGT) on your overall gains if they go above your tax-free allowance – otherwise known as the annual exempt amount. The CGT annual exempt amount is £12,300, or £6,150 for trusts.

You may also be able to reduce your tax bill by deducting losses or claiming reliefs, but this depends on the asset, so make sure you ask your financial adviser for more information.

Inheritance tax
The rules surrounding inheritance tax (IHT) are really complicated and it’s important to seek financial advice before making any decisions. For example, you can give away assets or cash worth up to £3,000 a year and there will be no IHT to pay regardless of the total value of your estate when you die.

You can also give as many gifts of up to £250 to as many people as you want each year – although not to anyone who has already received a gift of your whole £3,000 annual exemption. To make use of this exemption, it’s important to keep accurate records.

To learn more about how to make the most of your money this tax year and for more information about your tax-free allowances, speak to your financial adviser.

HM Revenue and Customs practice and the law relating to taxation are complex and subject to individual circumstances and changes which cannot be foreseen.

The value of investments and any income from them can fall as well as rise and you may not get back the original amount invested.

Key Takeaways

• ISAs are a tax-efficient way to save or invest and there are different types available depending on your needs. Remember that if you don’t use your annual allowance, you lose it.
• You can put a certain amount towards your pension each year tax-free and you may be able to carry over leftover allowance if it’s not been used over the past three years.
• You may have to pay capital gains tax if your overall gains go over the annual exempt amount. The rules can be confusing so make sure you discuss any questions with your financial adviser at your annual review.

If you’re struggling to pay your bills due to the coronavirus crisis, the deadline to apply for a payment holiday is fast approaching

The coronavirus crisis has fundamentally changed the way we live, with lockdowns shutting down parts of the economy and forcing many businesses to close. Sadly many people have lost their jobs or been put on furlough, leaving them with less money to pay their bills.

If your household income has taken a hit due to the pandemic, it’s important to know you have options. You can still apply for a payment holiday from lenders but you’ll need to hurry – the deadline is Wednesday 31 March 2021.

Payment holidays are available for up to six months. Generally, providers will offer you a three-month payment freeze to start with, after which you can resume payments or ask to extend until you reach the six-month limit. If you still need help after a six-month payment holiday, your lenders should work with you to offer you additional support.

Payment holidays are available on a number of borrowing options and finance agreements, including:

• mortgages
• personal loans and credit cards
• insurance
• car finance

Mortgages

Many people have struggled to meet their mortgage repayments during the pandemic, with 1.8 million payment holidays taken at the height of the first UK lockdown. If you want to apply, remember you’ll still need to pay interest. If you can afford it, take a partial payment holiday so less interest builds up.

If you’ve already taken a six-month payment holiday, your mortgage provider may offer:

• another payment deferral
• another period of reduced payments
• an extension to your mortgage term
• a change to your mortgage type

Personal loans and credit cards
During the first lockdown, more than 1.7 million loans, credit cards and store cards were on payment holidays in the UK. While this number has since fallen, many people still need support. If you apply for a payment holiday on your loan or credit card, bear in mind that interest will continue to be charged.

If you find yourself in a similar situation after six months, your lender will need to provide extra support and may offer:

• another payment deferral
• another period of reduced payments
• to waive or reduce interest
• to agree a repayment plan
• to refinance your credit agreement

Insurance

Before you apply for a payment holiday on your insurance premiums, ask your provider to review your policy and see if there are any other more suitable and affordable options. If you do take a payment holiday and are still facing financial difficulties after six months, your insurer may offer to do the following:

• review your policy
• another payment referral
• another period of reduced payments
• waive or reduce interest
• agree a repayment plan

Car finance

Are you finding it a challenge to make your car, van or motorbike finance payments during the pandemic? If so, you’ll be able to take a payment holiday, but remember that interest will continue to be charged. Consider taking a partial payment holiday if you can to avoid paying extra interest. If you need more support after six months, your lender may offer to do the following:

• another payment deferral
• another period of reduced payments
• waive or reduce interest
• agree a repayment plan
• refinance your deal

If you still need support from lenders after six months, bear in mind that this may affect your credit report.

Hopefully the demand for payment holidays should keep falling as vaccines continue to be administered and the world gradually returns to normal, but it’s good to know that help is available now if you need it.

We can help you explore the available options so get in touch.

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT

Key Takeaway

• You can still apply for a payment holiday from lenders before the deadline on 31 March. Generally, you’ll be able to apply for a three-month payment holiday and can later extend for up to a total period of six months.
• Payment holidays are available for a number of borrowing options and finance agreements, including mortgages, personal loans and credit cards, insurance and car finance.
• If you still need help after six months, your lender should offer you additional support measures, which could include further payment deferrals or waiving interest payments.

Successful vaccination programmes are rolling out on both sides of the Atlantic, pointing to a brighter economic outlook.

The US and UK continued their rapid vaccine programmes to combat the coronavirus pandemic, while Europe lagged in its rollout, resulting in a resurgence of COVID-19 cases in some parts of the EU. As a result, the US and UK are likely to be able to reopen their broader economies sooner, while much of Europe still faces strict lockdowns.

Budget brings some relief
In his March Budget, Chancellor Rishi Sunak outlined stimulus measures to support businesses and workers through to the autumn. This much-needed spending foreshadows the largest hike in taxes for decades, with tax and spending decisions to total almost £60 billion in the 2021–22 fiscal year.

In addition, the government mapped out its plan for lifting lockdown restrictions and hopes to be in a position to remove all legal limits on social contact on 21 June. Pent-up demand is likely to push up the pace of economic growth for the rest of this year and in 2022.

US introduces new stimulus measures
In the US, Joe Biden’s $1.9 trillion stimulus passed through both houses of Congress in March. Under the legislation millions of Americans will receive one-off cheques for $1,400 and the unemployed will continue to receive $300-a-week top-ups until September. The OECD believes the stimulus will turbocharge the American economy and add a percentage point to global growth.

The US also leads the world in total coronavirus vaccines administered, suggesting the American economy is likely to begin its recovery process sooner than many other developed regions.

Inflation worries linger
Inflation worries hit bond markets, but the consensus is that any rise in inflation is most likely to be short lived. Government bond prices fell sharply (and yields increased), reflecting concerns about an increase in inflationary pressures as the global economy started to recover from the pandemic. Inflation is detrimental to bonds because it erodes the real value of the fixed interest rates they pay.

Investors are concerned about inflationary pressures as economies reopen, but we don’t expect the likely spike in consumer prices to persist. Inflation is likely to pick up as spending on services surges when lockdowns end, and government spending is another tailwind. But it’s likely to be a fleeting phenomenon and should not pose a longer-term challenge to fixed income markets.

Cyclical stocks are still attractive
Cyclical stocks remain in favour, as vaccines are administered and the economic outlook improves. Cyclicals like financial and energy stocks tend to perform well when the economy is expanding. But sectors that benefited during the height of the pandemic, such as tech, have fallen as prospects for the economy brighten.

This environment has benefited Europe’s stock market, which comprises fewer technology firms than America, and more cyclical companies such as banks and commodity firms. The broad rotation away from tech towards cyclicals looks likely to continue.

Big money in digital art
Commodity prices have risen this year, including copper and other metals used in electric vehicles, as well as oil. But gold lost some of its shine as a safe and steady investment, with its price falling steadily since the start of the year.

The Suez Canal was the scene of a stuck cargo vessel in March, blocking the vital shipping route for several days. Around 12% of the world’s trade happens via the Canal and it is thought that each day of the blockage halted billions of dollars in trade traffic.

In March, auction house Christie’s sold a digital piece of art by contemporary artist Beeple for $69.3 million – the latest example in the market for non-fungible tokens (NFTs). The artwork itself was composed as a single, unique and encrypted image file – the first sale of its kind by Christie’s, with bidding opening at $100. The eventual anonymous buyer paid for the work in Ether, a cryptocurrency.

Key takeaways

• The US and UK continued their rapid vaccine programmes to combat the coronavirus pandemic, while Europe lagged in its rollout.
• Investors are concerned about inflationary pressures as economies reopen, but we don’t expect the likely spike in consumer prices to persist.
• Cyclical stocks remain an attractive option for investment, as vaccines are administered and the economic outlook improves.

All you need to know about upcoming changes to the government’s Help to Buy equity loan scheme.

If you’re looking to buy your first home, you probably already know about the government’s Help to Buy equity loan scheme. It’s proved popular since launch in 2013, with almost 300,000 properties bought as part of the initiative so far. But some aspects of the scheme are changing later this year, and it’s important you understand whether you’ll still be eligible for help.

Are you eligible?
The new Help to Buy equity loan rules apply from April 2021 to March 2023. To qualify, you must:

• be a first-time buyer in England;
• have a deposit worth at least 5% of the property you’re looking to buy;
• borrow a minimum of 5% and up to a maximum of 20% (40% in London) of the full purchase price of a new-build home from the government; and
• buy the property from a homebuilder registered with the scheme.

What are the price caps?
The price of your home can’t exceed the maximum figure outlined by the government. These limits vary depending on where you’re looking to buy.

How does it work?
The total cost of buying your home will be covered by the government equity loan as well as your deposit and mortgage. The percentage you borrow from the government is based on the market value of your home when you buy it.

For example, if the property is worth £200,000, you might ask the government for a 20% equity loan (£40,000) to add to your 5% deposit (£10,000) and 75% mortgage (£150,000).

The loan is interest free for the first five years, and from the sixth year you’ll be charged interest at 1.75% each month. This rate increases every year after that in line with the consumer price index, plus 2%. You’ll continue to pay interest until you’ve fully repaid the loan.

You can repay all or part of the equity loan at any time, but a part payment must be a least 10% of what your home is worth at the time.

You’ll need to pay the equity loan back in full if you:

• reach the end of the equity loan term
• pay off your mortgage
• sell your home
• do not follow the terms set out in the equity loan contract

What if the value of my home changes?
The amount you have to pay back is based on the market value of the property when you choose to repay. If the market value of your home rises, so does the amount you owe on your equity loan – if it falls, the amount you owe also falls.

Rest assured we are here to help if you have any questions about Help to Buy mortgages

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE

Key takeaways

• The new Help to Buy equity loan scheme will be introduced in April 2021 for first-time buyers in England. You must have a deposit of at least 5% and you can borrow up to 20% of the property price from the government.
• The property you’re looking to buy must be within the price caps set by the government, which vary depending on the region – the highest cap is £600,000 in London.
• The total cost of buying your home will be covered by the government equity loan as well as your deposit and mortgage. The equity loan is interest free for the first five years.

Ethical and sustainable investing are both popular and it’s useful to understand the difference between the two approaches.

Investing in a responsible way is nothing new. It dates as far back as the 1700s, when religious groups such as the Quakers refused to support companies involved with the slave trade or other activities that conflicted with their values. Ethical funds started to appear in the UK in the late 1960s and early 1970s, which allowed people to invest in a way that reflected their personal values.

Ethical investing usually involves using your principles to filter out certain types of securities. For example, some ethical investors avoid sin stocks, which are companies that are involved or primarily deal with traditionally unethical or immoral activities, such as gambling, alcohol or firearms.

Businesses involved with the tobacco, mining and oil industries are other typical ones to avoid.

A sustainable approach
Investing sustainably is different to ethical investing because it involves considering a wider range of issues – from how companies are managed to the impact they have on the environment and the roles they play in society. Investors are embracing this approach because there’s mounting evidence to suggest these issues affect how companies perform over the long term too.

According to calculations made by the sustainable finance team at Danish bank Nordea, moving your pension savings to sustainable investment funds can be 27 times more efficient than four popular ways of reducing your carbon footprint that involve making lifestyle changes – taking shorter showers, flying less, travelling by train instead of by car, and eating less meat.

It makes good financial sense
Investing in well-managed companies that have a positive impact on society and the environment makes good financial sense. For example, if a company suffers reputational damage because it’s been involved in an oil spill, discovered to be treating its workers poorly or accused of corruption, its share price will probably suffer.

Meanwhile, companies that use energy efficiently, invest in training their employees and pay their executives reasonable bonuses are likely to outperform their competitors and return more value to shareholders. Over the long term, they are also better prepared to meet future strategic challenges and take advantage of new business opportunities.

Incorporating an ESG framework
One of the difficulties with sustainable investing is that there’s no standard definition of what it means. However, environmental, social and governance (ESG) factors provide a useful set of standards to assess potential investments:

• Environmental criteria look at how a company performs as a guardian for the environment, their impact on climate change or carbon emissions, water use or conservation efforts.
• Social criteria focus on a company’s ability to manage relationships with its employees, clients, suppliers and the local communities in which it operates.
• Governance examines a company’s leadership, shareholder rights, audits and internal controls, anti-corruption policies, board diversity, executive pay and human rights efforts, for example.

We believe that by incorporating these measures into our processes for selecting the fund managers we use to build portfolios, we can manage risk more effectively and improve returns. In addition, we expect all our investment managers to integrate analysis of ESG risk and rewards into their own investment processes too.

We only engage with those that are signatories to the United Nations Principles of Responsible Investing, the gold standard in the wealth management industry when it comes to incorporating ESG issues into investment practice. The Covid-19 pandemic has had such a

substantial impact on societies and economies around the world, and the relevance of integrating a responsible investment approach is greater now than ever before.

If you want to know more about sustainable or ethical investing visit omnisinvestments.com/about-us/environmental-social- and-governance or get in touch

The value of investments and any income from them can fall as well as rise and you may not get back the original amount invested.

Key takeaways

• Ethical investing usually involves avoiding companies that are engaged in activities that go against your principles, such as gambling, alcohol or firearms.
• Investing sustainably involves considering a wider range of issues – from how companies are managed to the impact they have on the environment and the roles they play in society.
• We incorporate ESG factors into our investment processes, and expect all our investment managers to integrate them too, as well as being signatories to the United Nations Principles of Responsible Investing.

Moving home can be a hectic and exciting time, but don’t forget about protection – taking out the appropriate policies can save you a lot of stress in the long term.

If you’ve just moved home or are about to, it probably feels like you’ve been caught up in a bit of a whirlwind over the past few months. With searching for a property during a pandemic, making the move before the stamp duty holiday ends and potentially getting caught up in the resulting conveyancing backlog, protection policies are probably not top of your priority list.

Yet it’s important to take the necessary precautions to ensure your new home and possessions are looked after – now more than ever. Here are some of the main types of protection you should be thinking about.

Mortgage protection
If you’re unable to work due to illness or injury or because you’ve lost your job, mortgage payment protection will cover the cost of your mortgage each month. These policies usually last for a year or until you return to work – whichever is soonest.

You can pick how much you want your policy to pay out each month, and this can include a buffer for other expenses, such as bills. It’s important to bear in mind though that providers usually set monthly limits of between £1,500 and £2,000. You won’t always be able to claim straight away, and there’s usually a waiting period of one or two months. The cost of mortgage protection will depend on:

• your salary;
• the size of your mortgage repayments;
• the type of policy you choose; and
• how soon you want to be covered.

Income protection
Income protection provides you with a regular income if you are unable to work due to illness or injury. There’s usually a minimum wait of four weeks before you can start receiving payments.

Buildings insurance
If you’ve got a mortgage, you’re likely to have buildings insurance to cover the cost of repairing damage or rebuilding the structure of your home if it’s damaged. But have you looked carefully through the policy and made sure that it definitely covers everything you need it to? Once you’ve moved, you may realise that your new home has a slightly more complex structure than you first realised, and it’s important to make sure your buildings insurance takes this into account. If you’re lucky enough to not have a mortgage, it’s still a sensible idea to invest in this type of insurance for peace of mind.

Contents insurance
If you’ve bought new furniture and gadgets for your home, you might need to review your contents insurance. This type of insurance covers the cost of replacing possessions in your home if they’re stolen, destroyed or damaged. It’s a good idea to double check which of your items are covered so that you’re not caught out if something does go wrong.

Act now
When you’re caught up in the excitement of moving, thinking about protection might be the last thing on your mind. But remember that your circumstances can change quickly and it’s important to make sure you’re prepared now in case things don’t go to plan in the future. For more information about protection and to talk about whether your current policies are right for your situation, speak to your financial adviser today.

Key takeaways

• If you’ve just moved or are about to, you’ll need to make sure your new home and possessions are looked after with the appropriate protection – it’s best to be prepared in case things don’t go to plan.
• It’s important to make sure you can still pay your mortgage if you’re unable to work due to illness or injury or if you lose your job. Mortgage and income protection can provide peace of mind if your circumstances change.
• It’s a good idea to check whether your buildings insurance covers everything it needs to when you move in. If you’ve bought new furniture and gadgets for your home, you’ll also need to review your contents insurance.

Putting your hard-earned cash into savings accounts may not be the most efficient way to make your money work for you.

If you’ve been placing your cash into a savings account over the past decade, you might be surprised to find that your money could now be worth less now than when you first put it away. According to research from AJ Bell, if you’d put £10,000 into a cash ISA 10 years ago, it would now be worth £9,772 even when accounting for interest.

So why is this? Inflation is currently outpacing interest rates, with the latest figures showing that it reached 0.7% in January. Meanwhile, the Bank of England (BoE) base rate has stayed at 0.1% since March 2020 and doesn’t look likely to rise any time soon.

The BoE base rate influences how much banks can charge people to borrow money or what they pay on savings. As a result, the current situation is bad news for savers as it reduces the spending power of their money. Yet it’s good news for some borrowers – for example, those with a fixed-rate mortgage benefit from inflation as it effectively reduces their debt.

What is inflation?
Inflation is the rate at which prices for goods and services increase, affecting what you can buy for your money. The most common estimate is the Consumer Prices Index (CPI) measured by the Office for National Statistics (ONS).

It looks at the prices of thousands of things people spend money on, from cinema tickets to bikes, computers and TVs. It’s important to remember that inflation is only an average rate that looks at certain products, so it affects households in different ways.

One of the BoE’s key roles is to ensure that inflation stays at a target of around 2%. So if inflation falls below this level, the BoE is likely to cut interest rates to lower the cost of borrowing and encourage spending.

What’s the alternative to cash?
If you’d used your whole cash ISA allowance each year and put in the maximum of £127,320 since 2011, it would now be effectively worth only £124,857, according to AJ Bell. Yet if you’d put the same amount into an average global stock market fund, it would now be worth £196,079 after accounting for inflation.

This means that if you’d started putting your money into a stocks and shares ISA at the same time, you’d be much better off than if you’d stuck with a cash ISA. Despite this, many people still hold onto their cash because of the security and convenience it offers. While it’s important to have access to some cash for your short-term needs, it makes sense to invest your money when thinking about the long term so you don’t lose out to inflation.

What about junior ISAs?
A junior ISA is a useful way to save or invest for a child under the age of 18. When they turns 18, the account can be converted to an adult ISA. There are two types available: a junior cash ISA or a junior
stocks and shares ISA. As with an adult cash ISA, putting the money into a junior cash ISA means it may not grow as quickly as inflation. Alternatively, the returns from a junior stocks and shares ISA
depend on the performance of the underlying investments.

So although investing does come with its own risks, you’re likely to achieve higher returns than if you leave your money in a cash savings account. If you’d like to find out more about investing, a financial adviser can talk you through your options and help you find the most appropriate solutions for your circumstances.

An ISA is a medium to long term investment, which aims to increase the value of the money you invest for growth or income or both. The value of your investments and any income from them can fall as well as rise.

The value of investments and any income from them can fall as well as rise and you may not get back the original amount invested.

Key takeaways

• Cash savers have lost out over the past decade as inflation is outpacing interest rates and reducing the spending power of their money.
• Inflation is the rate at which prices for goods and services increase, affecting what you can buy for your money. The most common estimate is the Consumer Prices Index (CPI) measured by the Office for National Statistics (ONS).
• Stocks and shares ISAs have performed much better than cash ISAs over the past 10 years. While investing has its own risks, you’re likely to achieve a better return in the long term compared with cash savings.

Lenders are now offering a government-backed 95% mortgage scheme to help more first-time buyers onto the property ladder.

The government is hoping to turn ‘generation rent’ into ‘generation buy’ with the help of a 5% mortgage deposit scheme launched on 19 April.

Following the outbreak of the coronavirus pandemic, many lenders withdrew low-deposit mortgages. In just under a year, the number of 95% mortgages available to first-time buyers fell from 391 to just three. It’s hoped the scheme will give lenders the confidence to offer low-deposit mortgages again by taking on some of the risks involved.

What is the 5% deposit scheme?
First announced in this year’s Budget, the programme offers first-time buyers or current homeowners the chance to secure a 95% loan-to-value mortgage on homes worth up to £600,000. It’s available on both new-build and existing properties.

The government hopes the scheme will provide an affordable route to home ownership by helping people who may be renting but are unable to save for a deposit.

Buyers will still only be able to borrow in proportion to their income, typically a multiple of 4.5. As a result, the scheme will particularly benefit buyers in lower-value housing markets such as northern England and Scotland.

There are also a number of lenders offering 95% loan to value mortgages without using the government guarantee. With an ever increasing range of options to consider, speak to your financial adviser about the current range of 95% loan to value mortgages.

What’s the catch?

There are a few conditions that you’ll have to meet under the scheme. You’ll need to:

• Buy a property to live in – second homes and buy-to-let properties aren’t eligible.
• Apply for a repayment (not interest-only) mortgage
• Pass standard affordability checks, including a loan-to-income test and credit score assessment.

It’s worth considering the fact that the higher proportion of the property price you borrow, the higher the amount of interest you’ll repay on your mortgage. So it might be good to take a step back and figure out if you can save for a little longer and borrow less.

Speak to your financial adviser about how the 5% mortgage deposit scheme could help you get on the property ladder.

What does loan to value mean?
Loan to value is the percentage of the property value you’re loaned as a mortgage – in other words, the proportion you're borrowing. For example, if you have a 95% mortgage on a house worth £200,000, you would put down £10,000 (5%) of your own money as a deposit and borrow the rest (£190,000).

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE

Key takeaways

• The government is hoping to turn ‘generation rent’ into ‘generation buy’ with the help of a 5% mortgage deposit scheme.
• The programme offers first-time buyers or current homeowners the chance to secure a 95% loan-to-value mortgage on homes worth up to £600,000.
• Buyers will still only be able to borrow in proportion to their income, typically a multiple of 4.5.

The pandemic has reportedly created 6 million accidental savers, but what’s the best way to use this extra cash?

The effect of the lockdown on millions of bank accounts has been to boost savings for people whose incomes have remained the same but whose spending has dropped.

With the prospect of life returning to a new normal, it’s a chance to think about how to make the most of these savings and build on them too.

Where were savings made?
Working from home meant the cost of commuting was put on hold. Holidays were not booked, and the closure of restaurants, bars and entertainment venues cut spending in those areas, resulting in slightly healthier current accounts.

All this, the Bank of England estimates, resulted in over £125 billion saved in 2020. Its survey does note that only a fraction of this is likely to be spent by households, suggesting a cautious approach.

This is understandable given the drop in income for furloughed employees, the loss of income for the unemployed and an unstable job market.

How to invest your lockdown savings
Leaving your savings in a high-street bank account won’t build much interest. But there are options out there for those who want better returns on what they’ve saved:

• Invest in a stocks and shares ISA – not only will any dividends paid to you be tax-free, but any gains will also be exempt from capital gains tax.
• Contribute to your private pension – this comes with the benefit of tax relief status on your contribution if you’re a taxpayer.

Other ways to make the most of your savings
Aside from investing, there are some useful ways to use any extra money saved during lockdown:

• Pay down debt – if you have lingering debts, whether they’re credit cards or student loans, consider using your extra cash to help eliminate them for good.
• Mortgage overpayments – you could make regular overpayments on your mortgage, reducing its overall term length and the amount you owe on the loan. Check with your mortgage company about their terms and conditions relating to overpayments.
• Build an emergency fund – this fund should contain enough to cover the essentials for a month (like bills, food and your rent or mortgage payments) if anything were to happen affecting your income. Consider opening a separate bank account — easily accessible to you — to store your fund.

A great place to start with all of these options is to create a budget that tracks your income every month compared to your spending, allowing you to work out how much you can put aside.

Our trusted financial advisers are here to help you find the best ways to invest your money to make the most of your savings — whatever your situation.

The value of investments and any income from them can fall as well as rise and you may not get back the original amount invested.

Key takeaways

• Millions of us became accidental savers during lockdown as a result of a sharp drop in spending and incomes remaining the same.
• There are several ways to make the most of your savings, which build better returns compared to leaving your money in your bank account.
• Consider using your extra savings to pay down debt or put them into an emergency fund.

The combined economic effects of stimulus measures, inflation and increased spending all contributed to an eventful month.

In May, vaccine rollouts gathered pace and pandemic-based restrictions began to lift in many countries. However, a new wave of cases in India raised concerns worldwide.

Despite reports that the UK economy shrank in the first quarter compared with the previous three months, the level of employment increased, although it remains below pre-pandemic levels. Inflation doubled to 1.5% in April, and the next stage of reopening the country took place in May, with indoor dining allowed and air travel to a ‘green list’ of countries.

America saw its GDP grow by 1.6% in the first quarter, bringing it back almost to where it was before the coronavirus struck. Household spending on imported goods from China especially soared – perhaps as a result of stimulus checks and the reopening of services following the vaccine rollout implemented by the new Biden administration.

Inflation is picking up
With increased spending came the news that the US inflation rate soared to 4.2% in April, which is higher than expected, and cause for concern around supply, with bottlenecks pushing up costs for manufacturers and consumer prices. The stimulus checks are thought to account for some of the rise, and experts also believe a boom in consumer demand is behind it too.

The Federal Reserve’s position is that inflationary pressures are temporary, and policymakers believe it will fall back down towards the end of the year. It’s not seen as something that will force central banks to increase interest rates any time soon.

Commodity prices are rising
Commodity prices in May rose, with the price of iron ore and copper reaching record highs. Copper – seen as a bellwether for the global economy – rose to over $10,000 a tonne, surpassing the previous peak set in 2011 (during a commodities boom.) Demand for copper comes from China and the green transition in rich countries: it’s used in a range of industries, from electric vehicles to wind turbines and solar panels.

‘Dr Copper’ is closely watched in markets because of its ability to diagnose important shifts in the world economy. Plans for fiscal stimulus in America and Europe lean towards the ‘greening’ of economies, favour copper demand. As a pliable, cost-effective conductor of heat and electricity, copper is a vital input to green tech.

There is concern that a green energy bubble could form due to the large investment in the sector (like wind, solar or hydro industries.) These companies have stretched market valuations – and may not be earning as much as their share values suggest.

Bitcoin in freefall following Musk snub
The walk-back from Elon Musk in his support of Bitcoin, underlined concerns around the feasibility of cryptocurrencies as a stable investment. Musk – previously an outspoken supporter – announced his company Tesla would not be accepting Bitcoin as payment for its vehicles.

His retraction followed news of the environmental effects from the electricity used to mine the currency. The result was a huge drop in the value of Bitcoin (and other digital currencies) – which continued its plummet days after the announcement.

Key takeaways

• The US inflation rate soared to 4.2% in April, which is higher than expected.
• The rise in inflation is not seen as something that will force central banks to increase interest rates any time soon.
• Copper – seen as a bellwether for the global economy – rose to over $10,000 a tonne, surpassing the previous peak set in 2011.

Following the news that thousands more people are expected to pay the standard 40% inheritance tax this year because of the effects of the pandemic, we explore some of the ways to navigate the complexities of inheritance tax.

The complex laws around inheritance tax (IHT) caught many people off guard during the Covid-19 pandemic. Along with the often-sudden loss of a loved one came the issues arising from IHT on gifts passed down to children and grandchildren.

This tax year marks the latest in a series where the number of people being charged IHT on gifts has increased. Since 2009, beneficiaries have paid 40% IHT on estates worth more than £325,000.

Gift your way to less inheritance tax

• There are ways to avoid passing on a large IHT bill to your family, whether it’s through gifting or charitable donations:
• You can give away assets or cash worth up to £3,000 a year (known as the annual exemption) with no IHT to pay regardless of the total value of your estate when you die.
• You can give as many gifts of up to £250 to as many people as you want each year – although not to anyone who has already received a gift of your whole £3,000 annual exemption. To make use of this exemption, it’s important to keep accurate records.
• If you are married or in a civil partnership, you can pass on your entire estate to your surviving spouse, tax free, when you pass away. Things could become more complicated, however, if your spouse was born in a different country.
• If you give a gift – of any amount – and live for a further seven years after the gift has been given, the beneficiaries will not have to pay any IHT if you pass away after that seven-year period.
• Leaving money to a charity means it’s free of IHT and could cut the tax rate on the remaining amount in your estate.

Transferring to a trust or pension
Setting up a trust to transfer some of your estate into for the benefit of your grandchildren is another way to reduce the IHT liability on your assets. However, the trustees could still encounter some income or capital gains tax.

While it may not be the most obvious choice, setting up a pension for your children or grandchildren could be a tax-efficient option. The fund will transfer to them when they turn 18 but they won’t be able to access the money until they’re much older.

As with anything tax-related, the rules are especially complex when it comes to where your inheritance goes and how much your beneficiaries will end up receiving. That’s why it’s so important to speak with your financial adviser to review all your options and find the most efficient ways to pass on your wealth.

Inheritance tax facts
Following the Budget in March, it was announced that thresholds will remain the same for IHT until 2026:

• For single people, the threshold is £325,000.
• For those who are married or in a civil partnership, the threshold is £650,000.
• Couples can also pass on their assets (like an owned home) worth up to £1 million in total if they leave it to children or grandchildren.

To learn more about how to make the most of your money this tax year and for more information about inheritance tax and your tax-free allowances, speak to your financial adviser.

HM Revenue and Customs practice and the law relating to taxation are complex and subject to individual circumstances and changes which cannot be foreseen

Key takeaways

• The rise in deaths as a result of the pandemic has meant thousands more IHT payments.
• Following the Budget in March, thresholds will remain the same for IHT until 2026.
• It’s a good idea to explore ways to avoid passing on a large IHT bill to your family, such as gifting and charitable donations.

Insurance claims for accidental damage increased over the past year as more people worked from home, so it’s a good time to check your own coverage.

Figures from some of the country’s biggest insurance providers have shown a sharp rise in claims of accidental damage during the lockdown.

With many millions now working from home, the chances of accidents and damage to property have inevitably gone up. Halifax Home Insurance reported a rise of 35% for claims between July and September 2020 compared with the same period in 2019.

Types of accidents included damage to computers and other electrical items, broken windows and water leaks. With holidays cancelled, children home schooling and everyone staying in, appliances were used a lot more than normal, along with central heating systems.

Millions paid out in home insurance claims

One Insurance provider paid out £33 million in home insurance claims in 2020, with 15% going towards accidental damage claims. General claims not related to accidents accounted for 25% and were mostly related to appliance and pipework damage.

The biggest rise in claims related to damage to computers and electrical equipment because of spillages. As working from home turned many of us into amateur office managers, the usual health and safety measures within a normal office environment were not easy to replicate – especially with children and pets in the picture.

Admiral reported its accidental damage claims increased by 28% since the lockdown started in March 2020, compared to the previous year. Damaged laptop claims increased by 31% and claims around damage caused by home renovation also rose.

Check your accidental damage coverage

It’s a good time to see what your home insurance policy includes when it comes to covering accidental damage to your property.

1. Check that you have the accidental damage cover in place, because it’s often offered as an optional extra to your home insurance.
2. Check the limits and exclusions on your accidental damage cover, making sure there is enough to cover any new gadgets or equipment you bought during lockdown.
3. If you have made renovations and upgrades to your home during lockdown, try to calculate the extra value they bring to your home to ensure your home policy covers it.

How to avoid accidental damage in your home

Sometimes, accidents just happen. But there are ways to reduce the likelihood of an accident, like keeping drinks in a closed cup, away from computers, or tidying cables to avoid tripping.

With many homeowners installing wooden flooring, it’s worth keeping rugs secure with non-slip backing, and encouraging children to be aware of risks in the home when they are playing.

And it’s always a good idea to have your insurers’ telephone number and the policy details handy for when you need them.

Along with helping you check the small print in your accidental damage policy, your financial adviser is here to help you find insurance plans that work best for you and your family, to make sure you’re best protected.

Key takeaways

• During lockdown in 2020, more claims for accidental damage were made compared to the previous year as a result of working from home.
• Laptop damage, water leaks and damage to appliances and windows were common reasons behind the claims.
• Check your accidental damage coverage to make sure you’re properly covered and take steps to try to avoid accidents in the home.

Most economists expect inflation to pick up over the next few months as lockdown restrictions ease and shops and restaurants reopen. But is this a cause for concern?

As lockdown measures begin to lift, financial markets are making their adjustments in anticipation of a rise in inflation, with bond yields picking up (meaning prices have fallen) and stock markets rotating from defensive sectors into cyclicals.

What is inflation?
Put simply, inflation measures the change in the prices of goods and services. If it rises then it takes more of our cash to buy things. We all experience inflation in our daily lives, from filling up our cars with fuel, buying groceries or using public transport.

In the UK, the official measure of inflation is the Consumer Prices Index. It’s published by the Office for National Statistics (ONS), which monitors what people are spending their money on, using a basket of everyday goods and services.

The ONS adjusts the basket from time to time to reflect our changing spending habits. During lockdown, there was a shift with products like hand sanitiser and hand wipes being added, and items like white chocolate and ground coffee dropping off the list.

Inflation is all an illusion… or is it?
It’s easy to ignore the impact of inflation on your finances. Most people’s spending habits this month compared with the same time a year ago would probably stick to the same patterns – regardless of inflation at the time – because the differences seem small and therefore wouldn’t affect the way they spend.

If you’re trying to save money though, it’s worth remembering that with interest rates currently lower than the rate of inflation, the real value of any cash savings is falling. In other words, the cost of living is increasing at a faster rate than your savings are growing, which means the spending power of your money is actually falling.

How will inflation affect investments?
Many people in the UK are preparing to spend the cash they’ve saved over the past year when the lockdown ends and shops, restaurants and entertainment venues reopen. Activity is likely to return to pre-pandemic levels and the expectation is that inflation is likely to pick up. Some economists are worried about inflationary pressures. In addition to this is the effect of government stimulus packages on the economy, which would provide another tailwind.

However, experts believe it’s likely to be a short-lived phase and should not pose a longer-term challenge to fixed income or equity markets. The Bank of England does foresee inflation rising towards the 2% mark but believes it will be a temporary phenomenon. Continuing deflationary forces like ageing demographics, technological innovation and global supply chains cast doubt over predictions of a new era of inflation.

Ultimately if you want to beat inflation in terms of finding some good returns on your savings, investing is the best option at the moment – due to cash savings rates being at such low levels.

One of the best ways to ensure your investments are given the strongest opportunity to navigate the effects of inflation on financial markets is through a global, multi- asset portfolio that’s actively managed by a professional team of investors. Speak to a financial adviser to find out more.

One of the best ways to ensure your investments are given the strongest opportunity to navigate the effects of inflation on financial markets is through a global, multiasset portfolio that’s actively managed by a professional team of investors. Speak to a financial adviser to find out more.

Key takeaways

• As lockdown measures begin to lift, financial markets are making their adjustments in anticipation of a rise in inflation.
• If you’re trying to save money, it’s worth remembering that with interest rates currently lower than the rate of inflation, the real value of any cash savings is falling.
• Investing in a global multi-asset portfolio, managed by a professional team of investors, is the best way to ensure your investments are given the strongest opportunity to beat the rate of inflation.

Employer pensions can accumulate as we change jobs, and it’s easy to lose track of how much each one contains. We explore what you need to know if you’re thinking about consolidating your pensions.

When you leave a job, it’s easy to forget about the workplace pension you might have had there. With the average person having several jobs during their lives, along with the 2012 introduction of auto-enrolment for employer-based pensions, it’s not surprising that many of us have more than one pension to our name.

Tracking down your old pensions
All pension providers are obliged to send members of their schemes annual statements to keep them updated on how much their pension contains.

The Association of British Insurers (ABI) estimates 1.6 million pension pots worth billions of pounds are forgotten about due to people just moving home. So it’s vital to write to your old pension providers to let them know if your address changes.

The government is in the process of launching a dashboard where all pension providers will be able to input member details, giving customers the ability to see their pensions in one place. But the process will take some years for all providers to supply their data.

Consolidating your pensions
As to whether you should consolidate your pensions into one pot, the first step should be to check the small print. If you have an older pension (around 20 years or older), you could lose some of its benefits if you transfer and be left with steep exit fees taken out of your pension amount.

Unlike older pension schemes, the newer ‘defined contribution’ pensions are more common and less likely to be affected by exit penalties if you want to transfer them into one place. The funds are invested, which makes consolidation an attractive option.

It’s worth noting that if you’re still paying into a defined contribution scheme and want to withdraw from it, the amount you can pay in and claim tax relief on could reduce.

On average, management fees for workplace pensions are around 1%. Newer pensions could benefit from tax benefits that older ones don’t come with, so it’s always worth checking each policy individually and get some advice from a financial adviser.

Leaving older pensions where they are
Along with exit fees and tax privileges, pre-2006 pensions (that were not affected by tax changes established in 2006) could have benefits like guaranteed annuity rates (promising a guaranteed income after retirement), which could be lost if transferred to another pension pot.

Final salary scheme pensions are probably best where they are, too, due to the nature of their payouts when you retire (based on what you earn at retirement.)

Some people opt to create a self-invested personal pension (SIPP), which lets them choose where their pension money is invested. This is beneficial to those who want to put their money into sustainable funds and make ethical investment choices.

Whatever the situation with your workplace pensions, the first thing to do if you’re thinking about consolidation is to speak to a financial adviser. We can help you figure out the best solution for your individual needs.

Key takeaways

• Many people accumulate several workplace pensions during their lives. It’s easy to lose track of them, so it might be worth consolidating them into one pot.
• Check the small print. If you have an older pension, it might have some benefits you could lose if you move it – along with exit fees.
• Consolidating defined contribution pensions could be an attractive option because they have the potential to bring good returns.

With the UK leading the way in lifting its pandemic restrictions, the coronavirus Delta variant has put many countries on edge.

Nations experiencing a surge in the Delta variant of the coronavirus are in a race between vaccinating a majority of the public and getting ahead of the new strain in order to lift restrictions with confidence. The US, UK and EU are experiencing spikes in the rates of infections and there is some worry from economists about Europe’s previous positive outlook experiencing a setback due to the rapid spread of the variant across the Continent.

The UK’s ‘freedom day’ did go ahead on 19 July, albeit with businesses and local authorities given the ability to apply their own mandates in areas like mask wearing. The government’s aim to push on with the full reopening of society was boosted by the news from the Office of National Statistics (ONS) of a 356,000 surge in payroll figures for June. This is still below pre-pandemic levels, however.

Uncertainty about the Delta variant led to a volatile period for stock markets towards the end of the month. But fears were alleviated by the expectation of ongoing support from central banks as well as strong corporate earnings in both the US and Europe. In better news for UK markets, London overtook Amsterdam as the biggest share trading centre in Europe. This marks the first time London has taken the mantle since the conclusion of the Brexit transition.

The United Nations estimates that the financial toll of the coronavirus pandemic on global tourism could result in a $4 trillion loss to the global economy. Poorer countries are likely to be hardest hit, mainly because of low vaccination rates.

Inflation and consumer spending continue to rise
On both sides of the Atlantic, a surge in the growth of prices has given economists renewed concern about overheating economies. US consumer prices rose again in June and the inflation rate in the UK hit 2.5% in the same period (which is the highest level since 2018). The Bank of England’s monetary committee believes this is still a temporary phenomenon of strong growth, and expects things to fall back to pre-pandemic levels.

House prices in the US rose by over 14% in the year to April 2021, signifying the fastest rate of growth in 30 years. The American job market continued to regain ground, too, with a further drop in jobless claims in June and July.

China’s surge in stocks and bonds
Focus turned to China, following news that its economy expanded by 1.3% in the second quarter. This was mainly a result of retail sales, a growth in manufacturing and increased investment. The country’s exports also rose in June, along with GDP growth of 7.9%. Global holdings of Chinese stocks and bonds surged, as reported in July, by around 40% to more than $800 billion over the past year.

This is seen as a result of investors purchasing assets at a high rate, even accounting for the tense economic relations between China and the wider international community. China’s crackdown on tech companies like ride-hailing app Didi Global, which has listed its shares in the US market, is an example of causing an air of uncertainty for investors.

Key takeaways

• Countries experiencing a surge in the Delta variant of the coronavirus are in a race between vaccinating the public and lifting restrictions with confidence.
• London overtook Amsterdam as the biggest share trading centre in Europe.
• Economists are concerned about overheating economies with inflation spiking higher on both sides of the Atlantic.

Working out how long your pension pot will need to last – as life expectancy rises – is worth thinking about sooner than later.

The lockdown caused many people to reassess their lifestyles, which for some meant choosing early retirement. But what retirees have found is that pension pots are not matching the period of time needed to enjoy a comfortable life.

Life expectancy is going up. The Office for National Statistics offers an online calculator which gives an estimate of life expectancy – and with it an idea of how many years people will need their pensions to sustain them.

What’s your number?
The ‘Class of 2021’ report from Standard Life Aberdeen lays out how much value an average pension pot needs – around £366,000 if you multiply the average annual amount retirees surveyed said they would spend (£20,000) by 20 years of post- retirement time. A third said they had less than £100,000 saved.

Retirees need more than they think
The survey reported that two thirds of retirees were at risk of running out of money post retirement. Along with people living longer (on average, people aged 55 today will live to their mid-to-late 80s) there is the issue of rising inflation which raises the cost of living as years go by. Volatility in the investment markets also adds to the concern for people approaching retirement when it comes to pensions.

How to plan for the years ahead
Those surveyed did have plans to tackle this issue, however. Half of the those surveyed aimed to reduce the amount of money they spent on a day-today basis in order to save for retirement. Other considerations include downsizing their home and seeking part-time work after retirement in order to generate an income.

There is concern among almost half of those surveyed about being financially ready to finish working in the coming year. Yet many are aware of the need to be prepared when it came to their finances post-retirement, making any necessary adjustments – ideally with help from a financial adviser.

Keeping track of workplace pension plans and thinking about consolidating them into one pot might be a good place to start planning towards the goal of making your retirement as financially worry-free as possible.

Our financial advisers can help you review your pensions and advise on how to make the most of your pension.

The value of investments and any income from them can fall as well as rise and you may not get back the original amount invested.

Key takeaways

• Retirees have found that pension pots might not be enough to sustain their lifestyle through retirement.
• A third of those in a recent survey said they had less than £100,000 saved – putting them at risk of running out of money if they retire soon.
• People were willing to look at their finances for retirement and make necessary adjustments, ideally with help from a financial adviser.

To keep your investments from losing value or slowing the growth of your as- sets, avoid these common investing mistakes.

There are more risks and opportunities than ever for investors to navigate in today’s rapidly evolving markets. Here are four approaches we believe every investor should follow.

Don’t pile into cash – stay invested

The biggest advantage of cash is that it offers relative safety. Cash can help diversify a portfolio during times of volatility and is easy to access in an emergency. With cash you’ll be paid interest on the money, which will be tax free where it’s in an ISA.

You won’t lose any money by putting your money in cash, but it tends to offer lower returns than other asset classes. It’s also important to know about the impact of inflation on your savings and investments as it can make a huge difference to how much profit you make. Cash is seen as a short-term safe haven and should not be held over a substantial period of time to avoid the impact of inflation.

While it’s good to have some cash savings for a rainy day, the spending value of your money can fall over time if inflation is higher than the interest rate you receive. With interest rates on cash investments at historically low levels, and well below the inflation rate, millions have seen the value of their savings eroded in recent years. To make money on your investment you’ll need to find an account or investment that gives you a greater return than the current rate of inflation.

Don’t go chasing fads – think about the long term

Short-term gains can seem appealing for investors, but if you don’t want to lose your savings, it’s best to not believe the hype about the latest investment craze. Choosing the wrong investment can be a costly mistake. Many investors are turning to social media platforms such as Facebook, Twitter, YouTube, TikTok and other unregulated sources for information about investing.

While it may seem tempting to get investment recommendations this way, it puts you at significant risk from volatile stocks or even fraud. It’s easy to jump on the bandwagon, but momentum is typically falling by the time most people join.

Don’t put all your eggs in one basket – diversify

One of the biggest mistakes when investing is putting all your eggs in one basket as it can leave you exposed to fluctuations in the market. If you’ve invested in one stock and something unexpected happens and it plummets, you could find your nest egg suddenly disappearing.

One way to lower risk is by spreading your wealth over a wider range of investments so it’s not concentrated in one place (known as diversification). By diversifying your portfolio, you can reduce the risk that all of your investments will experience the same negative impact at the same time.

Ideally, you should be looking to build a diverse portfolio with a mix of different investments in line with your attitude to risk. A balanced portfolio will contain a mixture of asset classes, such as stocks, bonds, and alternatives.

Sit tight when it’s right

When markets wobble it can be tempting for investors to sell their shares to avoid any further losses. It’s easy to react to short-term losses but the best thing you can do is most often precisely nothing.

Timing the market involves buying and selling investments when you think they will rise or fall at exactly the right moment. It’s a difficult strategy that rarely works and there are too many unpredictable factors.

If you sell into a falling market you will lock in your losses and it could take you years to get back to where you were. While markets can fall sharply, given time they can rebound, so instead make sure you take the long view. Stock markets have a history of recovering from downturns. If you see your investment drop, don’t worry. Just keep your cool and sit tight.

It pays to seek advice

A financial adviser can help you work out how to achieve your long-term financial goals, while taking inflation into account so it doesn’t eat up your returns. Your adviser will speak to you about your attitude towards risk and the level you are comfortable with, helping you make the right investment choices..

The value of investments and any income from them can fall as well as rise and you may not get back the original amount invested.

Key takeaways

• While you won’t lose any money by putting your money in cash, it tends to offer lower returns than other asset classes, so it makes sense to stay invested.
• Don’t put all your eggs in one basket. Diversifying your portfolio can help reduce investment risk.
• If you sell when the market falls you’ll lock in your losses. Markets always rebound, so make sure you stay invested.

Markets signed off the year amid high inflation rates and renewed concerns over the coronavirus.

The Omicron variant of the coronavirus unsettled markets at the beginning of December, with investors unsure about how renewed restrictions on socialising and travel will affect the global economy. The Organisation for Economic Cooperation and Development (OECD) urged national leaders to accelerate the vaccination rollout in order to slow the spread of the virus and reduce the impact of new strains.

Stock markets in the US and Europe had recovered most of their initial losses by the middle of the month after being encouraged higher by reports that the variant would unlikely be as disruptive as first feared. Persistently high inflation is another theme that has dominated markets throughout 2021 and the readings at the end of the year provided no relief.

The cost of living rises

The UK’s inflation rate surged in November to 5.1%, which is its highest rate in more than a decade, and exceeds the Bank of England’s expectations. According to the Office for National Statistics, the Consumer Price Index was propelled upwards by soaring energy costs but prices rose across the board.

The euro area’s average annual rate of inflation rose to 4.9% in November, the highest it has been since the creation of the single currency more than 20 years ago. In Germany inflation stood at 6%, a level not seen since the aftermath of reunification three decades ago.

Annual consumer price inflation in America rose to 6.8% a 39-year high. Prices jumped by 0.8% from October to November. A range of factors have fuelled inflation lately, including supply chain bottlenecks, labour shortages, fiscal stimulus and ultra-loose monetary policy.

Central banks take action

Policymakers on both sides of the Atlantic decided to act. In the UK, the Bank of England has raised interest rates from 0.1% to 0.25%, its first increase in more than three years, saying that the risks of inflation required it to take pre-emptive action even as the Omicron wave of coronavirus engulfs the UK. The bank’s Monetary Policy Committee decided it could not wait any longer before seeking to cool the spending in the economy.

Meanwhile, the US Federal Reserve said it will accelerate its “tapering”—the reduction of monthly bond purchases—in order to wind down economic stimulus and contain runaway inflation. From January the central bank will reduce its asset-buying by $30 billion every month—double its current pace.

Key takeaways

• The Omicron variant of the coronavirus caused investors and the markets to experience a period of volatility in December.
• The UK’s inflation rate surged in November to 5.1%, prompting the Bank of England to raise interest rates to 0.25%.
• US stocks dipped ahead of the US Federal Reserve’s decision on its plan to accelerate the tapering of its bond-buying programme

In the Financial Lives 2020 survey from the FCA, it has been found that older adults were more likely to hold a savings account of any type, than younger adults. For example, 83% of those aged 55+ did, compared with 63% of 18–24-year-olds. So, how could an ISA help you?

ISA
An ISA is an individual savings account that allows you to save tax-free money in a cash or investment account, so you could end up getting more for your money. An ISA is a medium to long term investment, which aims to increase the value of the money you invest for growth, income, or both. There are a few different types of ISAs including, Cash ISA's and Stocks and Shares ISA's. The value of your investments and any income from them can fall as well as rise. You may not get back the amount you invested.

Cash ISA
A Cash ISA is a tax-free savings account where you can deposit up to a yearly limit and pay no tax on the interest that you earn. There are three principal types of cash ISA: Instant Access, Regular Savings and Fixed rate. Anyone over the age of 16 can open one cash ISA in each tax year with as little as £1. Although Cash ISAs can be a good way to start your investment journey, they can have their drawbacks. If you find yourself with low interest rates and high inflation, this can lead to poor rates and therefore eroding value.

Stocks and Shares ISA
A stocks and shares ISA, also known as an investment ISA, is a tax-efficient investment account that can help make your money work harder. Unlike a cash ISA, a stocks and shares ISA gives your money more potential to grow by investing it in a range of places like shares, funds, investment trusts and bonds, instead of keeping it in cash. It’s a smart way to protect your money from being taxed, as you won’t pay a penny in capital gains, tax, or income tax on any profits you make in the future. So, whether you’re saving for a holiday of a lifetime, a property deposit, or simply for a rainy day, switching to a stocks & shares ISA could give your savings the boost they need to meet your financial goals.

Don’t forget to use your 2021-2022 allowance before the end of 5 April 2022.

HM Revenue and Customs practice and the law relating to taxation are complex and subject to individual circumstances and changes which cannot be foreseen.

Persistently high inflation is putting pressure on central banks to raise interest rates, which unsettled markets during the first few weeks of the year

At the start of 2022, the World Bank issued a warning that the global economy faces a variety of challenges, including new Covid variants, high inflation and an uncertain geopolitical landscape. Its economists lowered their growth forecasts and suggested that some richer countries might not reach pre-pandemic levels of output until 2023, with poorer ones taking longer.

Central bank monetary policies are another uncertain factor. After the US Federal Reserve (Fed) said it could raise interest rates multiple times this year and sooner than expected – to curb inflation – stock markets dropped in early January. The Fed is worried that inflation could spiral out of control, and a strong labour market has added to these pressures.

Stocks in the technology sector were among the hardest hit. The Nasdaq Index had its worst start to a new year since 2008 and European technology shares fell too. By the middle of January conditions had stabilised, with investors reassured by the Fed’s announcement that it would tackle the surge in inflation. However, tech share prices suffered again towards the end of the month.

Inflation soars
The annual rate of inflation in the US jumped to 7%, which is its highest level since June 1982. Several factors are sustaining rising prices, with energy costs the largest contributor. In the UK, figures released in January showed inflation at a 30-year high, increasing pressure on the Bank of England to raise rates. The euro area’s annual inflation rate crept up to 5%, another record high for the currency bloc. Energy prices were again the main factor.

Yet the underlying investment environment remains buoyant with the global economy continuing to expand, and while the rate of growth has slowed, it is still doing so at a decent pace, and companies are delivering good profits growth. Notably, the UK’s economy has already recovered to its pre-pandemic level following a strong period of growth in the last few months of 2021, due in part to early Christmas shopping and an increase in dining out in November. This was, of course, before the Omicron variant of Covid became prominent in the UK.

China’s economy has been suffering from a variety of pressures, including a heavily indebted property sector, and it slowed at the end of 2021, which prompted a cut to one of its key interest rates. However, full-year growth was 8.1%, exceeding the government’s target of 6% and rebounding from the 2.2% growth registered in 2020. With much of the world dependent on Chinese exports, the country posted a record trade surplus of $676 billion in 2021 – the highest since 1950.

The triumph of tech
With so many aspects of our lives shifting online during the lockdowns and ongoing digitalisation trends, it’s not surprising that the technology sector often dominates the headlines. Notably, Apple became the first company to reach a market value of $3 trillion. The company’s share price has more than tripled since the depths of the pandemic in March 2020.

Meanwhile, Microsoft announced a massive $69 billion deal to buy the games publisher Activision Blizzard. The move shook the gaming industry and after news of the acquisition, rival Sony saw a $20 billion drop in its market value. The deal promises to turn Microsoft into one of the world’s biggest interactive entertainment players.

Key takeaways

• Figures released in January showed levels of inflation in the UK and US that have not been seen in decades.
• The UK’s economy recovered to its pre-pandemic level following a strong period of growth over the Past few months.
• Apple became the first company to reach a $3 trillion market value and Microsoft announced a $69 billion deal to buy games publisher Activision Blizzard

New research from The Openwork Partnership, one of the UK’s largest and longest established financial advice and investment networks, shows more than 11.6 million are keeping all their money in cash despite ongoing low rates.

Its nationwide study found 22% of adults prefer to keep all their money in cash while the same number will not consider stock market investments despite potentially higher returns as they don’t understand it.

The Openwork Partnership is warning about the risks to savers of reckless caution – the cost of missing out on higher returns on their money because they stick to cash accounts. Despite the recent Bank of England base rate rise, rates on cash accounts remain below inflation while the FTSE-100 gained 14.3% last year – its best performance for five years.

Excess savings in the UK – the extra amount people have saved because of restrictions during the COVID-19 pandemic – is estimated to be around £163 billion compared with £112 billion a year ago.

Just 15% of those questioned said they had a healthy balance between savings and investments while 14% said they were willing to miss out on higher returns by avoiding stock market investment.

One potential reason for avoiding the stock market highlighted by the research was lack of knowledge – around 11% said they did not know where to go for advice. However, nearly one in 10 (9%) said they had benefited from financial advice in terms of higher returns on their cash.

Claire Limon, Network Director at The Openwork Partnership, said: “It is good news that people have built up savings and the money will be very valuable given the looming rises in the cost of living.

“But there is a real risk of reckless caution costing people substantial amounts from ignoring stock market investment in favour of keeping money in cash when rates remain at very low levels – meaning savers are losing money after inflation is taken into account.

“It is understandable that people are worried about the risks of losing money on the stock market but advice from a professional adviser can help ensure their money works hard for them and any investments are tailored to their appetite for risk.”

The table below shows the picture across the country with people in Wales most worried about investing in the stock market and most likely to want to keep all their money in cash.

High inflation, disappointing earnings results from some tech companies and Russia’s invasion in Ukraine caused turbulence for the financial markets.

The reality of armed conflict between Russia and Ukraine pushed down leading stock market indices during February. Since the start of the year, conditions have been volatile owing to concerns about persistently high inflation and central bank interest rate rises. Geopolitical tensions added further uncertainty, with rapidly changing events causing markets to slide around the world.

Oil prices surged as investors weighed up the risk of Russia’s military intervention to the flow of energy supplies. Brent crude passed $100 a barrel for the first time since 2014. Many oil firms were also assessing what effect sanctions will have on their considerable assets in Russia. The price of natural gas soared in an already tight market.

Nations around the world condemned Russia’s actions and implemented sanctions. As well as excluding Russian banks from Swift, the international payments system, the country’s central bank has had access to its foreign reserves frozen. The immediate impact included a collapse in the value of the Russian rouble and long queues outside domestic banks as Russians worried about a shortage of cash.

Inflation and interest rates

One of the greatest risks to the global economy is the likelihood that the conflict will push commodity prices higher, which will continue to put upward pressure on inflation. Even before Russian tanks rolled into Ukraine, western governments were struggling with rising energy prices that threatened to derail economies emerging from two years of the pandemic.

Inflation has soared to a 40-year high of 7.5% in America recently. It’s likely that the Federal Reserve (Fed) will increase interest rates again in March to bring down the pace of price rises. The UK is experiencing the highest level of price rises 30 years, with the Consumer Price Index reaching 5.5% in January and prompting the Bank of England to raise interest rates again, to 0.5%.

Meanwhile, inflation in the euro zone has also risen faster than expected, putting more pressure on the European Central Bank to taper off its pandemic stimulus faster than scheduled. Consumer prices jumped by 5.1% from a year ago, with rising energy costs one of the main causes. The region’s economy grew by 5.2% in 2021, and output is now back at pre-pandemic levels.

The technology sector was another source of concern for investors over the month. The sector has been one of the main beneficiaries of the lockdowns that have punctuated the pandemic over the past couple of years. In particular, businesses that have allowed us to work remotely and kept us entertained from home have performed particularly well. Yet more recently, earnings results and profit forecasts have been mixed as life starts to return to normal.

Key takeaways

• The reality of armed conflict between Russia and Ukraine pushed down leading stock market indices and energy prices surged.
• Inflation around the world has continued to rise faster than expected, putting more pressure on central banks to raise interest rates and taper their pandemic stimulus measures more quickly than scheduled.
• Earnings results and profit forecasts have been mixed for the tech sector.

Whether you’re a first-time buyer, a second-stepper or further up the housing ladder, buying a home is always a big move and can feel a bit like a roller coaster ride at the best of times. With 60% of buyers reporting being put off moving because they find the idea overwhelming, here are some tips that can help you navigate the process as smoothly as possible.

Save up
You will need to have saved a deposit - in most cases the bigger the deposit you can put down, the lower your interest rate is likely to be. Open a dedicated savings or investment account and make sure it’s paying a competitive interest rate.

Check your credit score
Even if you’re re-mortgaging or moving up the housing ladder your credit history will be important. A good credit rating can help you secure a better mortgage deal, with a lower interest rate.

The general rule is the higher the score the better, and the more likely you’ll be accepted for a mortgage or other credit. If you’re looking to take out a mortgage or re-mortgage, check your credit score regularly. You can usually get a simple overview for free and it pays to check with several different sources. Credit Karma, Equifax, clear Score and Experian all offer a service to help you understand your rating.

If you find it is lower than expected there are ways to improve it:

• Pay more than your minimum payments on credit cards
• Bring your overdraft down
• Close unused credit accounts
• Register for the electoral roll

Budgeting

It’s important to review your income and outgoings. If you have accounts, memberships or subscriptions that you no longer use, it makes sense to close them down. Cut back on unused subscriptions and watch how much you spend on things like eating out. Prospective lenders will also look at the debt you currently have, including whether your current account is in credit. If you have any savings, it makes sense to pay off loans and credit cards but be sure to leave yourself enough saved to cover emergencies.

Get some good advice

Getting professional financial advice can save you time, money and stress. We know the industry and the most appropriate lenders, to be able to recommend the most suitable mortgage for you. We can also offer useful advice on all aspects of the house buying process. More now than ever, the value of professional advice is immeasurable. As the mortgage market changes, it’s our job to keep our finger on the pulse. We’ll be able to help you get a decision in principle from a lender, which will give a seller the confidence that you are a serious purchaser

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.

Key Takeaways:

• We can guide you through the requirements before you embark on your move.
• Taking advice will save you time, money and stress – the value of professional advice is immeasurable.
• Take advice for help with all the stages involved in getting a mortgage.
• Review your finances and credit score to put yourself in the best position.
• Working with a reputable estate agent is important.

While, for many, discussions about money can be extremely uncomfortable, experts have long stressed the best approach to financial issues is invariably to talk about them. Indeed, perceived wisdom suggests the more open and honest people are about money, the better their life and relationships tend to be.

Finance: the last taboo
There’s a wide variety of reasons why people don’t like to discuss their finances. In some cases, money is simply viewed as a vulgar subject to talk about, while many individuals lack financial confidence and therefore feel foolish discussing their finances; for others it’s easy to just ignore the issue altogether or simply leave it to someone else to sort out. As a result, many of us don’t like to talk about money, which means finance stands out as one of the last taboo topics in our society.

Importance of financial conversations
A failure to communicate about money though can lead to serious problems especially for other family members. This particularly relates to the younger generation and the importance of nurturing a sense of financial responsibility that will ensure they are ready to take control of their finances. It’s also critical in relation to older people as, if discussions have not taken place, there is no way of knowing their wishes when important issues relating to their financial future inevitably emerge.

Elephants in the room
While it is therefore vital to talk, discussing some financial topics can prove extremely challenging for many people. For example, parents often find it difficult to discuss issues surrounding inheritance and the transfer of wealth which means conversations with their children on this topic can be awkward or stilted. It is imperative, however, that parents do include their offspring when making financial planning decisions in order to ensure they are ready to assume responsibility for family assets when the time arises.

Finance paralysis
An inability to talk about money can also lead to personal finance paralysis, which is basically the fear of making a bad decision. This can result in people either delaying important financial decisions or not making any decisions at all. Talking issues through with a trusted confidante though is a particularly good way to help alleviate such anxieties as it equips people with both the knowledge and conviction to make appropriate decisions.

Talk to us
As with most things in life, it’s usually easier to figure out financial problems if you talk them through with someone you trust. Discussing issues with those people that matter to you can help get things into perspective and thereby aid the decision-making process. And remember, we’re always here to help too, so feel free to get in touch and start a financial conversation with us.

Key Takeaways:

• Experts have long stressed the best approach to financial issues is to talk about them
• A failure to communicate about money can lead to serious problems
• This particularly relates to the younger generation and the importance of nurturing a sense of financial responsibility
• It’s also to older people as there is no way of knowing their wishes when important issues relating to their financial future inevitably emerge
• Parents often find it difficult to discuss issues surrounding inheritance and the transfer of wealth
• It is imperative that parents include their offspring when making financial planning decisions
• This will ensure they are ready to assume responsibility for family assets when the time arises
• An inability to talk about money can lead to personal finance paralysis, a fear of making bad decisions
• This can result in people delaying important financial decisions or not making any decisions at all
• As with most things in life, it’s usually easier to figure out financial problems if you talk them through

Make more of your money with your adviser, before the end of the 2021/2022 tax year on 5 April 2022.

As the end of the tax year approaches, there’s still time to take advantage of your annual tax-free allowances if you’ve not already done so. This is one of the best ways to make your money work harder and grow, especially with interest rates on the rise. We can guide you through the best ways to use your allowances – depending on your needs.

ISAs
The maximum you can invest across your ISAs (if it’s a cash ISA, stocks and shares ISA or innovative finance ISA) is £20,000. For a lifetime ISA the annual allowance is £4,000.

Pension allowance
Your personal pension contribution allowance is £40,000, although it can be lower for higher earners and where pension savings have been flexibly accessed already. Any contributions you (or your employer) make receive tax relief from the government (based on your income tax band) of 20% or more – and the money in your pension pot will grow tax free.

Gift allowances
A financial gift is a great way of using tax-free allowances for any extra cash, and your adviser will be able to talk you through the options available, which could include:

Junior ISAs
If you’re looking to put some cash aside for your children, Junior ISAs (JISAs) are a great option. In the current tax year you can save or invest up to £9,000 in a JISA. You can save for your child in a cash JISA, a stocks and shares JISA or a combination of the two.

Child’s pension
A child’s pension can be set up by a parent or guardian, but anyone can contribute. You can pay up to £2,880 in the current tax year into a pension on behalf of a child and the government automatically tops this up with 20% tax relief on the total amount contributed, taking the figure up to £3,600.

Cash gifts
Making a cash gift can help a loved one (and help with your estate planning). Everyone has an annual gifting limit of £3,000 that is exempt from inheritance tax (IHT). This is known as your annual exemption. If you fail to use it one year, you can carry it over to the next tax year (so if you didn’t use the gift last year you could give away £6,000).

It’s worth remembering that any gift you give, even to family members, could be subject to capital gains tax (CGT). CGT is the tax you pay on any profit or gain you make when you dispose of an asset, such as a second home or shares. If you gift an asset and it has risen in value compared to what you have paid for it, you could be liable to CGT. The current CGT allowance is £12,300. This is the amount of profit you can make before CGT is applied.

Marriage allowance
If you are married you might be able to take advantage of the marriage tax allowance. It allows one half of a couple who earns less than the income tax threshold (£12,570) to transfer up to £1,260 to their higher-earning spouse (who must be a basic rate taxpayer).

Our financial advisers can help you make the most of your annual allowances and lay out what is available to you, before the end of the tax year.

The value of investments and any income from them can fall as well as rise and you may not get back the original amount invested.

When it comes to investing, you might have heard that time in the market is better than timing the market.

Time in the market is another way of describing long-term investing. Investors with a time horizon of at least five years (and in many cases longer) buy an asset and hold on to it. They tend to invest with a goal in mind. A good example is someone saving towards retirement which, depending on the stage of their career, could be 20 years or more in the future.

On the other hand, investors who try to time the market buy an asset when the price seems low and aim to sell it once they believe the price has peaked. That means they typically trade more frequently and hold on to their investments for a much shorter period.

Patience is a virtue
How long you are prepared to leave your money in the markets can have a significant impact on your returns. Returns can become more reliable the longer you hold your investments, especially for a period of 10 years and beyond. To put this into context, take a look at the chart below which covers the performance of the FTSE All Share Index since 2007.

As the top (dark blue) line shows, if you invested £1,000 in February 2007, it would have risen in value to £2137 by February 2022. Even though annual returns were positive most years, on some occasions they were negative. But by staying in the market, you would have earned a substantial return on your investment.

The bottom (light blue) line tells a different story. It shows your returns on that £1,000 investment if you missed the ten days when the FTSE All Share enjoyed its strongest performance. This is entirely possible if you had tried to time the market, which is notoriously difficult to predict over any time frame, even for seasoned investment professionals. As you can see, your returns over the same period would be nearly 50% lower.

Source: Bloomberg, using FTSE All Share Total Return in GBP, assuming £1000 invested on 26th February 2007. Chart shows return to 28th February 2022

The value of investments and any income from them can fall as well as rise and you may not get back the original amount invested.

A financial adviser can help with your investment goals, but they can also offer many more ways to understand and make the most of your money.

You might think that people who use financial advisers are just investing in the stock market or need someone to manage their portfolios. But a financial adviser can do a whole lot more.

Different types of financial advice
For an adviser, it’s their aim to help you achieve your financial goals, but that doesn’t just cover building wealth through investment – their expertise can apply to everything from mortgages to life insurance, pensions, saving for retirement or handling an inheritance. Advisers can vary in what they specialise in, and fall under a large umbrella of services including:

Pensions
You may have several workplace pensions that you’d like to consolidate, or you could have questions about drawing an income from your pension. Whatever your circumstances, a financial adviser can examine the details within your pensions to guide you on how to approach them, considering how much you will need to live comfortably when you retire.

Tax
Another area where expert help is needed is tax. From inheritance tax to capital gains tax or working out how much you should be paying (and if there are ways to minimise your tax bill) – is tricky. With the help from an adviser, you can become more tax-efficient and make the most of any tax breaks available to you. An adviser is best placed to help minimise your tax bills and get you the best returns.

Inheritance
An adviser can help you with leaving a legacy – an important part of planning the future of your estate and making sure your wishes are carried out when the time comes, and your wealth is passed tax efficiently. This advice could range from inheritance tax mitigation to making or updating your will.

Mortgages
Mortgages can be a tricky area, whether you’re a first-time buyer, searching for the best remortgage deal or looking for an investment property. A financial adviser can help you navigate the process, find the right type of mortgage and map out how your mortgage will work over the years (and when it could be a good time to review your mortgage). They’ll also be able to let you know your tax obligations if your property is an investment.

Investment
A financial adviser can help you navigate the world of investing safely, helping you take your first steps in investing or reviewing and managing your existing investments, as well as making you aware of any risks along the way and making sure you keep focused on the long-term goals through any market highs and lows. Our advisers have a broad breadth of experience and take an objective approach – offering ongoing advice and expertise – both of which are crucial to seeing your investment and retirement objectives come to fruit.

Our financial advisers are here to help you make sense of your finances, build, and manage your wealth and protect what you have going forward – to the benefit of you and your family.

The value of investments and any income from them can fall as well as rise and you may not get back the original amount invested.

HM Revenue and Customs practice and the law relating to taxation are complex and subject to individual circumstances and changes which cannot be foreseen.

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE

Key takeaways

• Financial advisers have expertise in areas from mortgages to pensions to saving for retirement or handling an inheritance.
• With the help from an adviser, you can become more tax-efficient and make the most of any tax breaks available to you.
• A financial adviser can help you manage your investments and stay focused on your long-term objectives.

Now’s a good time to make sure your fully prepared for the financial year ahead. To make it easy we’ve summarised the key dates and facts and figures below.

1 April

National Living Wage (for age 23+) rises from £8.91 to £9.50

National Minimum Wage rises to £9.18 (for 21-22-year olds), £6.83 (for 18-20-year olds), £4.81 (for 16-17-year olds) and £4.81 (for apprentices under 19 or in the first year of their apprenticeship).

Council tax bills rise by up to 2.99% (including a 1% social care precept) although there may be some regional variations.

The Energy Price Cap increases by 54% as announced by Ofgem in February. Those on default tariffs paying by direct debit will see an increase of £693 from £1,277 to £1,971 per year. Prepayment customers will see an increase of £708 from £1,309 to £2,017.

Households in Council Tax bands A-D in England will receive £150 Energy Bills Rebate on their council tax bill to help protect them from rising energy costs. Discretionary funding will also be provided to support those in Council Tax bands E-H or those on low incomes who don’t pay council tax.

Reduced VAT rate of 12.5% on suppliers of hospitality, holiday accommodation and attractions, reverts to the standard rate of 20%.

5 April

End of the 2021/22 tax year. Have you used all your allowances?

6 April

Start of the 2022/23 tax year

ISA allowance remains at £20,000 (if it’s a cash ISA, stocks and shares ISA or innovative finance ISA) and £4,000 (for a lifetime ISA)

Junior ISA allowance remains at £9,000 (for a cash JISA, stocks and shares JISA or a combination of the two)

National insurance contributions paid by workers increases by 1.25%.

11 April

State Pension and benefit rates rise by 3.1% in line with the Consumer Price Index. This means the basic State Pension increases to £141.85 per week and the full rate of new State Pension increases to £185.15.

Standard Lifetime allowance for tax free pension saving remains at £1,073,100 until the 2025-26 tax year.

Personal tax allowance remains at £12,570. The basic rate threshold remains at £37,700 and higher rate at £50,270.

31 July

Working Tax Credit and Child Tax Credit claims for 2021/22 must be confirmed and renewed for 2022/23 if required.

Deadline for second payment on account for 2021/22 for those that pay self-assessed income tax.

1 October

All domestic electricity customers will receive a £200 discount on their energy bill from October. However, this discount will be automatically recovered from people’s bills in equal £40 instalments over the next 5 years, beginning in 2023.

30 September

Old £20 and £50 notes can no longer be used after 30 September. Although some banks and the Post Office may still allow withdrawn notes to be paid into customers accounts.

31 October

Paper income tax self-assessment deadline for 2021/22 returns to be with HMRC.

December

The government scheme that guaranteed 95% mortgages with selected lenders ends. This scheme was launched in April 2021 to help first time buyers after lockdown.

Your financial plan could be impacted by these key dates. Talk to us for advice.

HM Revenue and Customs practice and the law relating to taxation are complex and subject to individual circumstances and changes which cannot be foreseen.

Key Takeaways:

• The new tax year is upon us making it a good time to make sure your fully prepared for the financial year ahead.
• Your financial plan could be impacted by these key dates, talk to us for advice.
• HM Revenue and Customs practice and the law relating to taxation are complex and subject to individual circumstances and changes which cannot be foreseen.

There’s plenty of advice and ‘life hacks’ on how to make spring-cleaning less of a chore. A quick Google search will throw up hundreds of random tips – like using cola to clean the toilet, lemon to clean the taps and vinegar to clean just about anything!

When you’ve finished scrubbing your worktops with baking soda and polishing your windows with newspapers, why not try spring-cleaning your finances? Here are some handy hints to get you started:

Throw away unnecessary spending habits

Look at your bank statements for the last couple of months for a snapshot of your finances. It can help highlight any problem spending areas and where you can potentially make savings.

Do you have countless direct debits or standing orders? Is there anything you’ve signed up for that you no longer use? Those small payments going out every month can really add up! If you have credits cards make sure you pay them off in full each month, or if not see if you can shift your debts to a lower interest credit card or loan. Just to give yourself space to gradually pay it off without incurring huge amounts of interest.

Invest in an ISA

An Individual Savings Account (ISA) is a tax-efficient way of saving. In the current tax year (April 2022 to April 2023) the government allows us to put up to £20K into an ISA. Make sure you take advantage of this before the tax year ends in April 2023.

You can save your money in a Cash ISA or Stocks and Shares ISA or split the allowance across both types. A Cash ISA you don’t pay tax on the interest you make on these savings. With a Stocks and Shares ISA means you don’t pay tax on any income or capital gains you’ve made on your investments - but obviously this involves more risk.

There are a few other things to bear in mind. The tax efficiency of ISAs is based on current rules. The current tax situation may not be maintained. And of course, the benefit of the tax treatment depends on individual circumstances.

With Stocks and Shares ISAs, although there is no fixed term you should consider them as a medium to long term investment, of ideally five years or more. And remember, the value of your Stocks and Shares ISA and any income from it may fall as well as rise. You may get back less than you invest.

Spring clean your protection

Spring-cleaning your protection insurance is also important as you’ll want to make sure you have the right cover for your family and your lifestyle.

If you’re renting a property you will want to protect your belongings with home contents insurance. If you have just bought a home, you’ll need to make sure both your building and possessions are adequately covered. You should also think about accidental damage cover or home emergency cover.

If you have others who depend on your income, consider taking out cover to provide financial security for them should you become ill or die. Life insurance and critical illness insurance may give you the peace-of-mind that you or your family could cope should the worst happen.

Set yourself a budget

To get started, use your bank statements to analyse your spending patterns and tally up your typical monthly outgoings. Compare this to your monthly income and you can quickly see what’s left (or not) by the end of the month.

Once you’ve done this you can set yourself a budget based on accurate figures. Keep it realistic as you’re more likely to stick to it.

Check on your mortgage

If you’ve got a tracker, fixed or discount rate mortgage, make sure you know when it ends as you’ll likely be switched to your providers Standard Variable Rate (SVR). The SVR is usually higher than the amount you’ve been paying and when interest rates change, so can your monthly payments.

It’s worth finding out what alternative products your current mortgage provider offers before checking out the rest of the market.

Get trusted advice

Discussing your finances with an expert can make managing your finances simpler. We can help you establish a financial plan that’s designed around your specific needs, make sure it stays on track, and provide ongoing advice that will help you achieve your goals.

If you would like to spring clean your finances this year, please get in touch for a review.

The value of investments and any income from them can fall as well as rise and you may not get back the original amount invested.

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.

Key Takeaways:

• We have a few handy tips to help you spring clean your finances.
• Throw away unnecessary spending habits to help you save more and avoid spending excessive money.
• ISAs are tax-free savings account that allow you to put in up to £20k a year.
• Check what insurance and protection you have to ensure you have the right cover for you and your family.
• Create a budget for yourself to stop unnecessary spending.
• Check your mortgage to see if you could be getting a better deal and saving money.
• Spring clean through your finances and get in touch for a review today.

As the conflict in Ukraine escalates and Russia continues its invasion of Ukraine major stock markets have fallen dramatically. But what does this mean for your investments?

Stories about stock market falls are guaranteed to make headlines like the financial crisis of 2008 and the stock market lows of March 2009. And for many they are still fresh memories but it’s worth noting that an investment then in global stocks would have grown more than twofold a decade down the line*.

That might be an extreme example with those kinds of returns never guaranteed, and those who try to second-guess markets or try to time when to invest their wealth often get it wrong. However, it does go some way to illustrate the benefits of investing over a long-term time horizon and riding through the peaks and troughs of market movements.

Investing for the long term

Volatility in markets has many varied causes, from political shifts and central bank actions through to modern media. The Omnis fund managers responsible for your investment are looking at specifics that determine the real value of stocks and shares, and overarching thematic trends, such as long-term changes in demographics or spending habits across the globe.

Short-term movements in stock markets, as sharp as they may be, are part and parcel of investing. If you are investing over a sensible timeframe, your investments correctly reflect your attitude to risk and you have a well-diversified portfolio, in most cases, you should have little to fear.

*Financial Express, MSCI World Index, 09/03/09 to 09/05/18

The value of investments and any income from them can fall as well as rise and you may not get back the original amount invested.

Retired teachers Paul and Mary are devoted parents and grandparents to their three children and eight grandchildren. As their family started to grow, they decided they wanted to begin saving for their grandchildren’s future. Disappointed with the returns from their savings accounts, they decided to look into other investment opportunities. After comparing a number companies online, they settled on one and made a £30,000 bank transfer. Within just a few months, their initial investment had grown sizably.

Soon afterwards, their eldest grandchild passed his driving test. They decided they’d like to buy him a car, so they made a withdrawal. Being able to do this so easily cemented their trust in the investment company. Over the next year, they made several more deposits.

Paul and Mary then agreed they’d like to help one of their children with a deposit for a house. However, when they tried to withdraw the majority of their original investment, they couldn’t access their money or get through to the company by phone, email or any other means. It was at this point, they realised they’d been scammed.

On top of wiping out most of their life savings, the scam took a toll on the couple’s mental health. They both suffer from feelings of embarrassment and guilt, and Paul has developed severe depression.

Anyone can fall victim to a financial scam

Although Paul and Mary feel foolish, financial scams can be extremely sophisticated and trick the savviest of us. We’re used to hearing stories about elderly and vulnerable people being conned but recent research by Lloyds Bank found 18 to 24 years olds are most likely to fall victim to investment scams, making up approximately 25% of all cases. And, in fact, victims aged under 45 account for 70% of all reported investment scams.

Types of financial scam

Financial scams take many forms including high-return investment opportunities, like the one Paul and Mary fell for, pensions transfers and health insurance supplements. Criminals use phishing (emails) or smishing (texts) to impersonate trusted organisations and trick people into giving away their personal information or money.

Top tips to avoid being scammed

1) Follow the advice of UK Finance’s Take Five to Stop Fraud campaign:

• Stop: Take time to stop and think before parting with money or personal information

• Challenge: It’s ok to refuse or ignore requests that make you feel uncomfortable. Only criminals will try to rush or panic you

• Protect: Tell your bank immediately if you think you’ve fallen for a scam and report it to Action Fraud

2) Great deals don’t come looking for you. Scammers often advertise on social media and the internet. They may also send ‘deals’ by email, phone or direct message.

3) Make sure it’s genuine. As in Paul and Mary’s case, scammers can easily set up fake companies, profiles and websites. Don’t underestimate the lengths a fraudster will go to in order to convince you they’re genuine. Before parting with any money, it’s a good idea to seek professional advice. You can also use the FCA website to check the details of financial services companies.

4) Protect your payments. Consider your payment method. It’s very hard to get money back if you pay by bank transfer. Paying by card offers the greatest protection.

If you’d like help with any aspect of your finances, we’re here to help.

Key takeaways:

• If something seems too good to be true, it probably is.
• Give yourself time to think before parting with personal information or money.
• Speak to a professional before making big decisions about your finances.

When Tom and Pete bought their first property together, life couldn’t have been better. They both had good jobs pulling in decent salaries and were excited about spending the rest of their lives together.

They chatted about making a will a few times, but somehow life always got in the way. Until one day, 10 years after moving in together, Pete got a call that would change his life forever – Tom had been killed in a car accident.

The intestacy trap

On top of grieving for his partner, Pete found he was also facing an uncertain financial future. UK intestacy laws meant he wasn’t entitled to inherit any of Tom’s property or financial assets unless he had joint ownership. Pete knew that Tom would have wanted him to inherit everything but, without a will, that didn’t matter.

Pete and Tom had owned their property as joint tenants, meaning Tom’s share automatically passed to Pete according to the rights of survivorship. However, without children or any surviving parents or siblings, the remainder of Tom’s assets ended up being passed onto a distant uncle he had scarcely known.

Without Tom’s savings and investments, life insurance policy or even the car that Tom owned but they both used, Pete now struggles to pay his bills.

How a will could have helped

Had Tom got around to writing a will, he would have been able to specify exactly who would receive what from his estate, including his savings, investments, car and other belongings. As well as writing a will, Tom could have made his wishes known by nominating beneficiaries to his pension and writing life policies under trust. By taking these steps, he would have given Pete the extra financial support he now so desperately needs.

As it stands, Pete still has the legal right to claim against Tom’s estate as they had been cohabiting for more than two years - but this will be a costly and time-consuming process and a positive outcome isn’t guaranteed. If Tom had made a will, this added stress could have been avoided.

Don’t put it off

In the UK, the number of cohabiting-couple families is growing faster than the number of married-couple and lone-parent families. However, cohabiting couples have none of the legal protections afforded by marriage. A will is one way to ensure your partner inherits according to your wishes. Despite this, three in five UK adults do not have one.

Let us help

Any will must be drawn up accurately without ambiguities and executed correctly for it to be valid and effective. So, it makes sense to use an experienced professional.

A consultation with a will-writing expert will allow you to explore ways in which to reflect your wishes and protect the financial future of your loved ones in the most tax-efficient way possible.

If you’d like to find out more about how to arrange a will, we’re here to help.

Will writing is not part of The Openwork Partnership’s services and is offered in our own right.

The Openwork Partnership accepts no responsibility for this aspect of our business. Will writing and Trusts are not regulated by the Financial Conduct Authority.

Key takeaways:

• If you’re cohabiting with your partner (but you’re not married or in a civil partnership), it’s important you both make a will. This can ensure that if one of you dies, the surviving partner inherits according to the other’s wishes.
• An expert can help ensure your will is drawn up accurately and executed correctly so that it is valid and effective.

Lindsay and Sam have just found out they’re expecting their first baby. Although they’re excited at the prospect of starting a family, it’s come as a bit of a surprise and their current living situation is far from ideal. They’ve been staying with Lindsay’s dad in his two-bedroomed terrace for just over a year while they save up a deposit for their first house. The lack of space and privacy has proved challenging to say the least. Adding a baby into the mix seems like a terrible idea.

On the positive side, Lindsay and Sam now have a decent deposit to put down on a house. Despite this, friends have warned the couple they’ve no chance of getting a mortgage due to their working situation. Sam is a self-employed roofer and he’s pretty successful. However, he’s only been working for himself for two years. His friends have told him, he’ll need at least three years of accounts before a lender will go anywhere near him. They say any mortgage the couple can get will be based on Lindsay’s income alone. Lindsay works as a hairdresser and her salary is nowhere near enough to secure the kind of mortgage they’re hoping for.

What can Lindsay and Sam do?

Should they resign themselves to bringing up their baby in Lindsay’s dad’s spare room? Or maybe they should accept that, for now, renting is their only realistic option.

In fact, the best thing Lindsay and Sam can do is stop listening to their friends – no matter how well meaning – and seek help from a qualified mortgage adviser.

But why? What can we tell you that you can’t find out online?

• We know the market

If, like Lindsay and Sam, your needs or circumstances are ‘out of the ordinary’, your options may indeed be more limited than those of other buyers. However, this doesn’t mean you don’t have options. We know the lenders who are willing to consider buyers in your situation and we’ll check you’re likely to meet their specific lending criteria before submitting a formal application. This will save you time and avoid unnecessary searches on your credit file.

• We look beyond the headline rate

An attractive rate may seem like your best bet when choosing a mortgage but you also need to factor in things like fees, loan conditions and the mortgage term. We look beyond the headline rate and can help you understand how the length and type of loan will affect how much you pay in the long term. We’ll also highlight any additional expenses like administration and booking fees, and valuation costs.

• We do the hard work for you

As well as helping you select the right mortgage, we’ll work with you to complete all of the necessary application forms and liaise on your behalf with solicitors, valuers and surveyors. We can also recommend products that provide financial protection should the unexpected happen.

• We’re professionally qualified

Unlike many mortgage sellers working for banks and building societies, we’re fully qualified to advise you on a wide range of lenders and products.

Key takeaways:

• Get help from a professional. Don’t rely on friends’ advice. The market is constantly evolving. Things that may have been true when your friends bought a house may not be true now.
• Look beyond the headline rate when choosing a mortgage deal.
• A mortgage adviser can help with more than just choosing the best deal, they can ensure the whole house-buying process runs as smoothly as possible.

The Bank of England has raised interest rates which means bigger mortgage bills for some homeowners.

Since December 2021 the Bank of England raised interest rates from 0.1% to 1.25% to combat soaring inflation.

This move will have a knock-on effect as mortgage lenders raise interest rates in response, which will increase monthly payments for some borrowers.

What does a rise in interest rates mean for your mortgage?
Anyone without a fixed-rate mortgage is likely to see their borrowing costs rise, although how they are affected will depend on the type of product they have. Your adviser can help you assess your mortgage deal and figure out ways to make some much needed savings.

• Only borrowers with a mortgage that moves up or down with the base rate will be affected by the interest rate change.

• This includes tracker mortgages and standard variable rate mortgages (which you revert to when a mortgage deal ends).

Fixed-rate mortgages
Most mortgage holders are on fixed-rate deals so won’t see any change in their monthly payments. This is because the interest rate you pay stays the same for the length of the mortgage deal.

Standard variable rate mortgages
You will usually be moved on to a standard variable rate when your existing tracker or fixed rate mortgage deal ends. For example, if you take out a two-year fixed deal and you don’t remortgage, you will be moved to the lender’s standard variable rate. The rate is likely to be considerably higher than what you were paying before, so your monthly payments will increase, and lenders can raise the standard variable rate whenever they want.

Tracker mortgages
Homeowners with a tracker mortgage will find that their interest rate payments will now go up, but when this happens will depend on their lender. Tracker mortgages are a type of variable rate mortgage that follow the Bank of England’s interest rate. So, when official interest rates go up, the rate on your tracker will rise as well.

As a rule, they do not exactly match the base rate, but are set a level just above it. For example, if the lender’s rate is the base rate +1%, the interest you’d pay in total on your loan would be 1.5%.

Whatever type of mortgage you have, we can advise you about how the interest rate rise might affect you and address any questions or concerns you have.

How to save on your mortgage costs
The best thing you can do is to speak to your financial adviser. For example, if you’re on a tracker mortgage, they will be able to advise whether changing to a fixed-term deal to protect yourself from any further rises is a good idea. They will also let you know about the fees involved when making changes to your mortgage. If you are on a standard variable rate you can switch at any time, so with interest rates rising, your adviser can help you look at available fixed-rate deals.

Homeowners on fixed deals don’t have to worry about their mortgage going up until their current term ends. Most lenders will let you lock into a new deal six months before the current one ends so it’s a good idea to plan.

Whether you’re looking to remortgage or are a first-time buyer, we can help you find the most suitable deal for your circumstances and help keep your costs down.

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT

Key takeaways

• Mortgage borrowing costs are increasing after the Bank of England raised interest rates to 1.25% to combat soaring inflation.
• If your fixed deal is ending in the next six months you could think about switching to a new one now before interest rates go up further.
• If you’re on a tracker mortgage or a standard variable rate, taking out a fixed-rate deal can protect you from any further rate rises.

Being tax smart means knowing the basics about how tax affects your life and money. Here are 10 ways to reduce your tax bill, which could make your money go further for you and your loved ones.

Personal savings allowance
You’re entitled to receive some interest on your savings tax-free every year, depending on your income tax band. For non-taxpayers or basic rate taxpayers you’re allowed up to £1,000 per year; for higher rate taxpayers you get £500. If you have savings with a spouse or partner, you can each use your allowances against your joint savings.

Marriage allowance
If you are married, you might be able to take advantage of the marriage tax allowance. It allows one half of a couple who earns less than the income tax threshold (£12,570) to transfer up to £1,260 to their higher-earning spouse (who must be a basic rate taxpayer).

ISA allowances
An ISA account allows you to save or invest up to £20,000 tax free annually, whether it’s in a cash ISA or stocks and shares ISA – which also comes with the benefit of being exempt from dividend tax and capital gains tax on all growth.

Dividend allowance
You are allowed to receive up to £2,000 a year in dividends, tax-free. This allowance can be particularly useful if you own shares or you’re a company owner or director.

Capital gains allowances
Profits (or ‘gains’) you make on the sale or disposal of an asset (like a property where it’s not the main home, investments and shares not in an ISA or even personal possessions worth more than £6,000 (apart from your car) are exempt from tax up to the annual allowance of £12,300. For married couples or those in civil partnerships who own joint assets, the allowance is doubled – to £24,600.

Pension allowance
Your pension allowance annually is £40,000, although it can be lower for higher earners and where pension savings have been flexibly accessed. Any contributions you (or your employer) make receive tax relief from the government (based on your income tax band) of 20% or more – and the money in your pension pot will grow tax free.

Pension carry forward
If you don’t use up your annual pension allowance, you can ‘carry forward’ the previous three years’ worth of unused allowances providing you are still registered with the pension and have earned in the current tax year the amount you (or your employer) would like to contribute.

Charitable donations
You can donate to charity tax free and claim back the tax on your donation through gift aid. If you are a higher or additional income taxpayer, you can also claim back the difference to the basic rate on your gift aid donations. Just remember to keep hold of all records of your donations to claim tax relief when the time comes to submit your tax return.

Gift giving exemptions
Gifting comes with the benefit of being exempt from inheritance tax, for an annual gift amount of £3,000. Other tax-exempt gifts include money towards a wedding or grandchild’s education. No inheritance tax is due if you live for seven years after making the gift to someone who is not your spouse (for example, gifting your children a property).

Knowing your tax code
This one is important because your tax code tells HMRC how much of your salary they will collect. It’s a good idea to check your tax code each time you change jobs or at the start of the tax year. Being on the wrong code could mean you’ve overpaid tax and are due a refund.

These are just some of the ways you can ensure you’re making the most of your money and not paying more tax than is necessary. Speak to your adviser to learn more about your money, estate, and taxes. Please not that Openwork advisers are not able to provide specific tax advice.

HM Revenue and Customs practice and the law relating to taxation are complex and subject to individual circumstances and changes which cannot be foreseen.

For specific tax advice please speak to an accountant or tax specialist.

Key takeaways

• You’re allowed to receive some interest on your savings tax free every year, depending on your income tax band.
• An ISA account allows you to save or invest up to £20,000 tax free annually, whether it’s in a cash ISA or stocks and shares ISA.
• Gifting comes with the benefit of being exempt from inheritance tax for an annual gift amount of £3,000.

A remortgage is the process of moving your home’s existing mortgage to one with a new lender. Remortgaging could help you save money if you weigh up the fees involved with the savings you could make. Here’s how it works.

People remortgage for many different reasons, including:

• Finding a better deal elsewhere – you might be on a standard variable rate (SVR) and want to move to a fixed-term rate.
• Coming to the end of a fixed-term deal on your current mortgage and wanting to lock in a lower rate with a new lender.
• The loan-to-value on the home is lower (as more of the mortgage has been repaid).
• Wanting to get ahead of a rise in interest rates, which would affect mortgage rates.

How a remortgage could help you save
One of the big reasons people remortgage is to save money on their monthly payments. If you’re on a standard variable rate that is higher than the fixed-rate deals currently available, you could save by switching – either to a fixed-rate mortgage or one that ‘tracks’ the Bank of England’s base rate.

If your home has gone up in value and you’ve paid off enough of your mortgage to give you a lower loan-to-value, it means you own more of your home and have less to pay off. Remortgaging could result in lower monthly mortgage payments because you’re paying off less of a loan amount (and in turn, less interest on it too).

How long does the remortgage application take?
The process can take between four to eight weeks from the time you apply so it’s good to start planning early. If you’re coming to the end of a fixed-rate or tracker term, your lender should tell you that your mortgage will move onto their standard variable rate1. This could be an ideal time to move if you find a better deal elsewhere, or you may even find an attractive deal with the same lender and go through a ‘product transfer’ (see box).

How much does a remortgage cost?

• Existing lender fees
  Your existing lender could charge you a fee if you’re leaving them early into a fixed period in your mortgage. This is known as an ‘early repayment charge’ and could be in the range of 1% to 5% of your outstanding mortgage balance. They will also charge you an ‘exit’ fee of around £50 to £100 to cover their administration costs.
• New lender fees
  Your new lender could charge you a range of fees, so before you commit it’s important to check what you will pay. This will help you calculate whether a move is financially beneficial overall.

• oTheir fees could include:
  Application fee to set up your new mortgage. Could also be called an ‘arrangement’, ‘product’ or ‘booking’ fee. This could be around £1,000.
• oValuation and conveyancing fees. Some providers won’t charge for these, but it’s worth checking if you are moving to a new lender.
• oSolicitor’s fee covering the legal paperwork to do with managing the transfer of your mortgage.

Is a remortgage right for you?
Whether or not you remortgage all depends on your situation and the type of mortgage plan you’re currently on. You may want a mortgage that lets you make overpayments, or you could be coming to the end of your current deal’s fixed term and think the lender’s SVR will be too high. One of the most important things you can do before you decide is gather your current mortgage paperwork, look at the fees and get some expert advice on your next steps.

What about product transfers?
If your mortgage is coming to its maturity date but you’d prefer to stay with your current lender, you could consider a product transfer. Switching to a new mortgage product with the same lender could save you money and time.

Our financial advisers can help guide you through choosing the option for you.

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE

Key takeaways

• People remortgage for many different reasons, including moving to a lender that offers a better fixed-rate of interest.
• Remortgaging can take between four to eight weeks so it’s good to start planning early if you are intending to change lenders.
• If you are coming to the end of your current deal’s fixed term, it’s worth shopping around and seeking some advice from an expert.

What is business protection insurance and how does it work? Find out why it could be right for your business.

If you own or run a small business, protecting it is always a priority, especially if something were to happen to a key member, which could affect the financial health of the company. In this situation, business protection insurance could provide some peace of mind.

What is business protection?

Business protection provides coverage in the event that a director, business partner or other key employee of your business suffers a critical illness or long-term disability or passes away. It’s a way of protecting the business and ensuring continuity. Business protection can help support forward planning in terms of succession and gives you ways to provide stability during what could be an uncertain time, especially if the company is small.

What are the types of business protection?
Business protection insurance usually offers cover in three ways:

• Key person protection
  This protection provides cover to replace key staff and cover income lost by their absence that could affect the business. It can cover any key employee from a head of department to the CEO.
• Business loan protection
  This protects the business by helping to repay business debts like a loan or bank overdraft if the owner or a key member (like a partner) dies or suffers a critical illness.
• Shareholder protection
  This cover is also known as ‘ownership’ or ‘partnership’ protection. It specifically covers the business owners if a shareholder dies, or suffers a critical illness, by ensuring that funds will be available to buy shares from the deceased shareholder’s estate.

These three forms of business protection also come with the option to add critical illness cover if you think it necessary. You could also get coverage for more than one person within the business. It’s always important to speak to an adviser who can help you figure out the right type of business protection for your business and any extra coverage (like critical illness) your business and employees could benefit from.

What are the benefits of business protection?
One of the benefits of business protection is the knowledge that should anything happen to a crucial member of the business, or someone with a financial commitment within the company, there would be some protection financially. It also gives other members of the business some peace of mind knowing this. Business protection can protect any loans or mortgages tied to your business, too, meaning lenders (knowing that you have business loan protection in place) are less likely to refuse a future loan, and will not approach the guarantor of a loan or their estate to recoup any existing loans.

In a small business that relies on a few key employees, the risk to the business from a financial point of view might increase if one of the team were unable to contribute because they die or are critically ill. In that situation, business protection is a wise plan to have in place.

An adviser can help you find out which type of business protection plan works for you and your company.

Key takeaways

• Business protection pays a lump sum if an owner, director, business partner or other key employee of your business suffers a critical illness or long-term disability, or passes away.
• This insurance usually offers cover in three ways – key person, business loan and shareholder protection.
• Business protection can also protect any loans or mortgages tied to your business.

There are 4.8 million self-employed people in the UK and only a third have any kind of pension arrangement. A shocking statistic when you consider that State support is shrinking and we’re all living longer.

Of course, saving for a pension when you’re self-employed is not as straightforward as it is for an employed person, who might automatically benefit from a workplace scheme and employer contributions. We’ve outlined some key points below for you to consider:

Don’t rely on the State Pension

Whether you’re employed or self-employed you’re entitled to the full basic State Pension (currently £129.20 a week) if you’ve paid in 30 years of National Insurance Contributions.

If you’re self-employed you can only claim the additional State Pension if you’ve had periods of employment.

On its own then, State support is unlikely to enable you to continue your current standard of living into retirement. That’s why it’s imperative for the self-employed to find other ways to provide the additional income needed in retirement.

Start saving early

It’s stating the obvious, but the sooner you start saving into a pension the bigger your potential retirement fund. You’ll also have more time to benefit from the tax relief that’s available.

To highlight the importance of saving early, a 25-year-old male looking to retire at 68 would need to contribute £236.25 per month in order to achieve a retirement income of £17,500 a year. If the same man had waited until he was 45 before he started saving, he would need to contribute £495.83 to achieve the same level of income, an additional £259.58 per month.

Minimise the amount of tax you pay

One of the main benefits of paying into a pension is the tax relief the savings attract. For example, if you’re a basic rate taxpayer paying £100 into your pension each month, HMRC will effectively add an extra £20 in tax relief.

The maximum amount you can save each year that attracts tax relief (otherwise known as the annual allowance) is £40,000.

Importantly, if your income is low and you’re not able to save the full £40,000 in one tax year, you can carry forward any unused allowance, and use it against earnings in the next tax year. Please note:

• You must have been a member of a registered pension scheme during the years you want to carry forward
• Your tax relief is limited by your annual earnings in the year you want to carry forward
• You can only carry forward unused allowance from the three previous tax years

What type of pension is right?

The self-employed can choose from a range of different pension products, including stakeholder pensions, personal pensions and Self Invested Personal Pensions (SIPPs). Each has its advantages and disadvantages – we can advise on which is best for you.

Perhaps the most flexible pensions are stakeholder schemes. They allow you to save as little as £20 per month and the charges are relatively low, which is helpful if you have irregular income levels.

HM Revenue and Customs practice and the law relating to taxation are complex and subject to individual circumstances and changes, which cannot be foreseen.

The value of investments and any income from them can fall as well as rise and you may not get back the original amount invested.

Key takeaways:

• A state pension alone is unlikely to be sufficient to fund your retirement.
• Make your money go further by taking advantage of the tax relief available on your pension savings.
• There are a lot of factors to take into account when choosing a pension, so it makes sense to get professional advice.

We explore how Omnis appoints third-party managers to run funds to provide access the best investment talent in the market.

Omnis Investments (Omnis) offers clients of The Openwork Partnership and 2plan Wealth Management a range of 26 funds. They appoint third-party investment managers, allowing investors access to the best talent in the market. No matter how big you are as an investment house, you can’t have the best investment managers for every single asset class – it is Omnis’ job to find the best managers out there.

Investment managers move firms and retire. The Omnis model means the team can decide if and when they need to find a new investment manager and then manage the transition without investors having to buy and sell funds. In other models, if your fund manager leaves, you would sell the fund and switch manually to another one, which can be a lengthy process. It would leave investors uninvested during the period and could sometimes lead to taxation events and charges.

Omnis has the responsibility for making sure investors always know what’s going on in the funds. The team can provide detailed information because they are able to monitor each fund manager, and make sure they are always investing in line with the funds’ investment objectives.

Manager selection

Omnis works with external specialist research firm Fundhouse to make sure it can identify the best investment managers.

There are more than 100,000 funds globally, which is more than the number of listed stocks, so Omnis distils these into a more manageable list and contacts managers to discuss their processes and capabilities.

That list then gets further refined to a shortlist of about five managers. Omnis then asks for more detailed information in writing and meets each team in person to gain an understanding of their investment approach. Omnis now manages more than £10 billion on behalf of its investors, and this size provides the level of access needed to fully assess managers.

Omnis tests each manager’s investment process with the data on other funds they manage to verify the information. A shortlist of investment managers then present to the Omnis Investment, Performance and Risk Committee, which will recommend its preferred investment manager to the Omnis board.

Sustainable investing

Omnis assesses whether the managers are incorporating environmental, social and governance (ESG) factors into their investment decisions. The team sends each potential manager an ESG questionnaire at the start of the selection process. If they don't pass our ESG requirements, they don't progress any further. Omnis looks for examples of how they’re incorporating these sustainability factors, as well as getting a feel for their culture internally.

Incorporating ESG factors into investment decisions is not as straightforward as you might think, and once they are appointed as managers Omnis continually reviews their approach to ESG and reports back to investors.

Ongoing monitoring

Once a manager is appointed, the ongoing monitoring kicks in. Omnis has regular meetings with the managers in person, and access to the portfolios so that the team can see all individual holdings at all times, allowing Omnis to make sure the funds are being run appropriately.

Omnis has launched many new funds over the past few years and the range of high quality, third-party fund managers that it can access continues to expand on performance, they aim to align their funds with the time horizons of investors, focussing on five-year rolling performance. Short-term performance over one week, one month or three months is considered as largely irrelevant in the context of meeting the stated five-year performance target set out in the objectives of the funds.

Although the performance of each underlying fund is important, Omnis does not recommend buying them individually. They should form part of a diversified portfolio to reduce risk and provide exposure to a diverse range of opportunities across asset classes, geographical regions, and industry sectors.

Your adviser will work with you to establish what the correct portfolio of Omnis funds is most suitable to you.

The value of investments and any income from them can fall as well as rise and you may not get back the original amount invested.

Key takeaways

• Omnis appoints third-party investment managers to run funds because it provides access to the best talent in the market.
• The process for selecting the best managers begins with a global universe of more than 100,000 funds, which are then distilled down using strict criteria.
• Omnis assesses whether managers are incorporating environmental, social and governance (ESG) factors into their investment decisions.

Value-added services are benefits included in an insurance policy that you might not be aware of – but could help improve your overall health and wellbeing.

When you take out an insurance plan like life insurance, critical illness, or income protection, you get the financial protection in the form of a payout, but there are also other services available to you as parts of those plans.

These ‘value-added services’ or ‘wellbeing services’ are designed to provide customers with a range of emotional and practical support services throughout the life of the plan, not just when you may need to claim. Most services are included within the price of the plan and can often be accessed by family members too.

It’s a good idea to check your policy first (and contact your provider to see if any of their services carry a charge) but you may find some of the following value-added services are part of your policy:

Annual health check
A range of tests to check various health markers such as cholesterol and blood sugar levels. This may be followed by a consultation with a nurse or GP to discuss the results, depending on how your policy works.

Bereavement counselling
Giving you access to emotional and practical support at a difficult time, if you have been affected by bereavement.

Mental health support
Being mindful of mental health is more important than ever. These value-added services help those facing mental health challenges, with counselling through various health providers.

GP services
Ability to see or speak to a medical professional from your home or face-to-face, without facing long waiting times, and at a time that suits you.

Second medical opinions
Second medical opinion services give you the chance to check with a second medical professional about the course of treatment or a diagnosis you’ve received.

Nutritional support
Gives you access to a nutritionist to help improve your diet, which could boost your overall health.

Fitness services
These services give you access to fitness services to enhance your overall health and wellbeing.

These are just some of the extra-value services that your insurance plan could offer, covering a wide range of needs.

If you’re unsure about how to find out more information from your policy, our advisers are here to look at the small print and help you make the most of any value-added benefits available to you.

Key takeaways

• Value-added services are benefits that come with insurance policies like life insurance, income protection and critical illness.
• These services can offer help such as mental health support, bereavement support, nutritional services and GP appointments.
• Value-added services are included in your overall insurance policy but always check with your provider about the details around yours.

When preparing to buy your first home, saving for a deposit can be a difficult process. As house prices, inflation, cost of living and mortgage rates increase, it can mean that some mortgage lenders may require larger deposits of the property value. This can be challenging trying to save a large sum of money and for some within a limited time. According to the Office for National Statistics, the average UK house price was £277,000 in February 2022, which is £27,000 higher than this time last year. It’s also important to consider all the other costs that are involved in buying a property – conveyancing, legal fees, insurance policies and moving costs to name a few.

How much do I need to save?

A 5% deposit of the property value is the minimum amount you are able put down and however with this your options may be limited. A 10% deposit will provide with more options, whilst a 25% deposit will enable you to get competitive mortgage rates. The larger deposit you can provide, the less risk you will be considered to lenders and better rates will be available to you.

Where do I start?

Set a savings goal, which you can break down into easier amounts and a time frame to achieve it. Regular saving is most effective and it’s important to be realistic on how much monthly you can save so that it’s more easily attainable and doesn’t feel like such a chore or impact your life severely. To decide on how much to save, researching house prices in the area you would like to buy your property and using mortgage borrowing calculators online can help you work out how much you may need to save.

Buying schemes and saving accounts options

There are various government buying schemes such as Help to Buy and Shared Ownership and mortgage deals which you may be able to use depending on how much deposit you can raise.

With a Lifetime ISA (LISA) as a first time buyer under 40, you get a 25% bonus on your savings. For example, if you put £1,000 into your Lifetime ISA, the government will add an extra £250. This would mean you have £1,250 at the end of the tax year. It could help you in reaching your deposit goal quicker.

Top tips on how to build your savings:

• Set up a savings account – look into a suitable ISA and consider a Lifetime ISA
• Look at your current spending habits – analyse and see where you can possibly reduce your monthly bills and expenditure (e.g. minimise unused subscriptions/gym membership, change energy or network providers, eating out, daily coffees etc.) to save money.
• Create a budget and stick to it – make the budget realistic so it’s easier to stick to and when you struggle, remember the goal in mind. Set up standing orders so the money is automatically allocated to savings before you have chance to spend it.
• Reduce your rent/living costs – If possible, consider moving in with family, friends or find cheaper/shared accommodation which can allow you to save money quicker.
• Make extra money – sell clothes, items online that you don’t need, or if you have a skill/talent/craft that you can turn into a business, this can help you earn extra cash.
• Make use of discounts, vouchers and online deals – every little saving helps.
• Try “no spend” months or weekends” – only pay your bills and regular outgoings and necessities and move the money you save to your savings. Consider alternative free activities.
• Set limits – If it helps, take out a certain amount of money in cash for the week or month and leave your cards at home.
• Consider investing options – including saving accounts with higher interest rates, stocks and shares ISAs
• Ask for help and advice – from friends and family for support and we’re here for any financial advice you may need.

We’re here to help you on where you can save and invest your money towards your deposit, provide you with financial advice to make sure your savings and investments are working for you and advise you on how much you can borrow for a mortgage. We’ll also be here to help find the right mortgage deal when you are ready to buy your first home!

If you would like to find out more, please get in touch with one of our advisers.

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.

A stocks and shares Lifetime ISA is a medium to long term investment, which aims to increase the value of the money you invest for growth or income or both. The value of your investments and any income from them can fall as well as rise. You may not get back the amount you invested.

Key Takeaways:

• A 5% deposit of the property value is the minimum you can put down.
• Set yourself a savings goal, which you can break down into easier amounts and a time frame to achieve it.
• Government schemes such as Help To Buy and Shared Ownership mortgage deals can help first-time buyers.
• With a Lifetime ISA (LISA) as a first-time buyer under 40, you get a 25% bonus on your savings.
• YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.
• A stocks and shares Lifetime ISA is a medium to long term investment, which aims to increase the value of the money you invest for growth or income or both. The value of your investments and any income from them can fall as well as rise. You may not get back the amount you invested.

Market performance in July was strong, as a ‘bad news is good news’ dynamic appeared to take hold.

Many investors are reflecting on the year so far, which saw the largest falls for the S&P 500 index over the first six months since 1970. The MSCI All Country World Index (which tracks the largest companies around the world) also suffered falls and its worst opening six months since its creation in 1990.

However, not all industries have performed in the same way. For example, the energy sector held up relatively well due to high crude oil and gas prices. The war in Ukraine also continued to influence markets, due largely to the uncertainty as well as higher commodity prices. In particular, energy and food costs remained elevated owing to supply disruptions.

Markets rally in July but inflation surges again
There were gains during most of the month for markets in the US and Europe, as investors looked to balance their assessment of the risk of a global slowdown with the prospect that central banks may scale back their plans for interest rate rises. The S&P 500 and tech-heavy NASDAQ indices had their best months since 2020.

A stronger-than-expected US employment report for June eased recession fears slightly, as did stronger consumer spending figures.

However, US inflation figures for June came in higher than expected at 9.1%, putting a further focus on the Federal Reserve (Fed), the US central bank, and what it may decide to do next. The Fed raised interest rates towards the end of the month by 0.75 percentage points, the second such hike in as many months, though this had been widely expected. Data showed the US economy shrank in the period between April and July, and while an economic contraction is not good news, markets rallied on the view that the Fed may be able to slow the pace of its interest rate hikes.

UK economic growth surpasses expectations
There was some positive news in the UK, as figures showed economic growth of 0.5% for the economy in May – exceeding many forecasts – after two consecutive months of contraction. The news followed a Bank of England financial stability report released early in July, stating that global economic conditions have worsened due to rising inflation – which crept up to 9.4% in June. Higher prices are putting pressure on the finances of UK businesses and households, deteriorating the country’s economic outlook. The Bank added that the volatility in global markets in recent months is likely to continue.

The inflation rate in the euro area rose to 8.6% in June, prompting the European Central Bank to raise interest rates for the first time since 2011, taking it from a negative rate of -0.5% to zero. The European Commission also cut its growth expectations and increased its inflation forecast for the region.

Fears of a recession are more intense in the euro area, as investors stay alert to cuts in energy supply from Russia, and EU members have agreed to cut their natural gas use by 15% over the winter. These fears also led to the euro falling to its lowest point against the US dollar in 20 years. Despite these fears, the euro area economy expanded 0.7% in the period between April and June, which led to markets recovering and ending the month in positive territory.

Despite positive market performance during the month for most Western stock markets, many countries are battling high inflation, slowing economic growth and an increasing probability of a global recession, which will continue to dominate financial markets over the next few months. When investment conditions are challenging, it’s even more important to remain focused on your long-term goals. We can expect periods of positive performance as we’ve seen in July, and history shows that when you try to time the markets, you risk missing out on these short bursts of recovery.

Key takeaways

• US inflation figures for June showed a higher than forecast rise to 9.1%, putting pressure on the US Federal Reserve to raise interest rates.
• The UK’s economy grew by 0.5% in May, exceeding forecasts.
• The inflation rate in the euro area rose to 8.6% in June, prompting the European Central Bank to raise interest rates for the first time since 2011

One wet and windy evening, Rachel and Nathan decided to take advantage of their newborn, Eli, falling asleep in his moses basket by getting an early night. Gently picking up the basket from its regular spot in front of the fireplace, they crept upstairs. No sooner had they settled in bed when they heard a massive crash from the living room. They ran back downstairs to find a pile of rubble in the exact spot Eli had been sleeping just minutes earlier.

Aware the incident could have been much worse, the couple were still left with an enormous mess to sort out. High winds had caused the inside of the chimney to collapse. However, Rachel and Nathan’s home insurance provider refused to pay for the structural damage because, according to their terms and conditions, the wind hadn’t been strong enough to constitute a storm. They also refused to replace the living room carpet because the couple’s contents insurance didn’t include accidental damage cover.

So, what can you do to make sure your home insurance provides you with the protection you’d expect when the unexpected happens?

Let’s start at the beginning - what exactly is home insurance?

Home insurance is split into two parts – buildings and contents.

Buildings insurance – this covers the building itself, including walls, floors, doors, windows and the roof. It also covers permanent fixtures such as baths, toilets, fitted kitchens and even wallpaper.

Contents insurance – This typically covers anything that can be taken with you if you move e.g. kitchen appliances and furniture.

Not all home insurance is equal

As Rachel and Nathan discovered to their cost, not all home insurance is equal. Although tempting to simply go with the cheapest option, it’s always best to check the details of any policy you’re considering to see exactly what’s included. For example, some buildings insurance covers garages, greenhouses and garden sheds but some policies don’t.

It's also a good idea to check for exclusions. You may find some insurers won’t pay out for anything considered to be the result of general wear and tear or damage that happens over time, such as damp or rot.

Meanwhile, contents insurance generally has a single-item limit, meaning high-value possessions may need to be named separately. You may also have to pay extra to cover belongings when they are taken outside your home.

Accidental damage cover is something else to think about. Rachel and Nathan decided to do without it. However, if they’d added it to their contents insurance, the cost of replacing their living room carpet may have been covered. According to MoneySuperMarket, mishaps account for over a quarter of all home insurance claims, so accidental damage cover may be worth prioritising.

Reading reviews of insurance providers can also be useful. Most events that result in a claim are pretty stressful, so you don’t need things like poor customer service making matters worse. According to the Association of British Insurers, home insurance prices fell to the lowest levels on record in the first quarter of 2022 meaning you shouldn’t have to pay a fortune for a good policy.

Do you really need home insurance?

Homeowners – although buildings insurance isn’t a legal requirement, most mortgage lenders insist on it. No one is going to force you to buy contents insurance but it can provide valuable peace of mind and combining it with your buildings insurance may save you money.

Renters – you don’t need to worry about buildings insurance – this is your landlord’s responsibility. However, contents insurance may be a sensible idea.

Key takeaways:

• What’s covered by home insurance varies from policy to policy, so you should check what’s included before making a purchase.
• Check the terms and conditions for any exclusions to make sure you’re getting the cover you need.
• Paying extra for accidental damage cover is worth serious consideration with over 25% of claims occurring as the result of mishaps.
• Read reviews before choosing an insurance provider – good customer service can be just as important as cost.

After seeing their six-year-old son’s birthday list, Liz and Dan have realised it’s high time they started teaching Archie about the value of money. It’s true they both have reasonably well-paid jobs and only the one child but, even so, a Saint Bernard puppy, a quad bike, a horse and a life-size dalek don’t come cheap. So, what can Liz and Dan do to ensure Archie doesn’t end up bankrupting them before he goes to high school?

Pocket money

Archie is nearly seven - the age when most parents start giving their children pocket money, according to research by Barclays. And the bank says this is a great time to start teaching youngsters about the value of money. By getting Archie to earn his dough by doing household chores, Liz and Dan will help Archie appreciate the effort that goes into earning money and encourage him to develop a strong work ethic.

Pocket money can be paid in cash or using a prepaid card. There are a number of cards available that are designed specifically for youngsters from companies including GoHenry, Osper and HyperJar. A pre-paid card could also be a gentle way for Liz and Dan to introduce Archie to electronic payments and the world of online banking.

Talking about money

By talking to Archie about money and what they spend it on each month, Liz and Dan can help him to appreciate the kind of ongoing financial commitment involved in buying something like a Saint Bernard puppy or a horse. Archie’s probably too young for them to go through their entire household finances with him. But they can start with a large sum and show him how quickly the figure falls as they tick off all their monthly bills.

Showing Archie how they budget provides a good opportunity to talk about the difference between wanting something and needing something. This will also allow Liz and Dan to introduce the benefits of saving as a way of affording treats and luxuries, after paying for essentials.

Making saving visual

Barclays suggests that making it easy for children to visualise how it’s possible for money to grow can help get them excited about saving. Liz and Dan could do this by giving Archie a clear jar to turn into a homemade piggy bank. Alternatively, they could set up a savings account so Archie can go online to see how additional deposits and interest add up over time.

Budgeting for a big day out

Research by the Bank of England found only a quarter (27%) of youngsters in the UK enjoy school lessons about money. The study revealed kids thought using real money in real situations would help make learning more fun.

Archie wants to take a couple of friends to the zoo for his birthday. This offers a great opportunity for him to use money in the real world. Putting Archie in charge of the budget for the trip may help to increase his appreciation of the value of money. Liz and Dan should agree an amount Archie has to spend and ask him to think about how he’d like to use that money. They’ll need to remind him of all the things that will have to be paid for including fuel, entry tickets, food and drink etc. Allowing Archie to take the lead as much as possible during the trip – by handing over cash or holding up cards to make payments – will help boost his financial awareness and hopefully make learning about money more engaging.

Key takeaways:

• Giving children pocket money for doing household chores can help them appreciate the effort that goes into earning cash and encourage a strong work ethic.
• Talking to children about money helps them to understand budgeting and the difference between essentials and luxuries.
• Making it easy for children to visualise how their money can grow may encourage them to save.
• Putting children in charge of budgeting for a big day out can boost their financial awareness and make them more comfortable handling money.

Markets experienced some June gloom in the wake of further interest rate hikes and lower economic growth forecasts.

Global growth is set to slow to 3% this year and 2.8% in 2023, according to the organisation for economic development (OECD). [1] The ongoing war in Ukraine has added to the slowdown, along with high inflation following the pandemic.

Supply chain issues caused by lockdowns in China are also having an effect on the global economy’s ability to bounce back and are predicted to continue into 2023. The World Bank echoed the OECD’s sentiment by lowering its forecast for global growth to 2.9% from 4.1% for the rest of 2022. [2]

Markets fall in June

At its June meeting, the US Federal Reserve (Fed) announced the largest hike in interest rates since 1994, raising the rate by 0.75% to 1.5%. It added that further increases are likely in the coming months.[3]

Stock markets in the run-up to the Fed’s decision fell in June, as concerns mounted over the likely rise in rates in a more aggressive move to tackle surging inflation. The S&P 500 dropped to its lowest point since March 2021, as investors felt uncertain about the Fed’s decision, and fell further after the Fed’s decision. Overall, global stocks hit their lowest point since November 2020.

Europe braces for late summer rate rises

In Europe, markets were affected by the European Central Bank’s (ECB) plan to curb inflation across the single currency region. As well as cutting its growth forecast, the ECB revealed plans to make its first interest rate rise since 2011 in July, as well as a potential follow-up rate rise in September.

Although economic pressures linked to the pandemic have declined, the war in Ukraine as well as further disruption to energy supplies to Europe adds a substantial risk to growth.

UK growth forecast slows

The UK’s economic growth is expected to slow towards the end of this year and into 2023, according to the British Chambers of Commerce, with a possibility of inflation hitting double figures by the end of 2022. The forecasts for economic growth are at 3.5% for 2022, which is less than half of the recorded growth in 2021. [4]

The Bank of England raised the interest rate again in June, by 0.25% taking it to 1.25%. [5] It predicts inflation will reach 11% by October. This led to the FTSE 100 dropping 3% on the day of the rate rise, as markets continued to show concerns about growth both in the UK and abroad.

China shows some positive signs

China’s economy showed some signs of recovery in June, as its industrial output grew during May having fallen the month before. The country’s exports also grew in May, as some of the country’s covid restrictions were lifted. However, China’s zero-covid approach is still affecting consumer spending – with many cities affected by strict lockdowns as new outbreaks in some parts raised fears of fresh lockdowns.

Download the PDF version here

Key takeaways:

• Global growth is set to slow to 3% this year and 2.8% in 2023, according to the Organisation for Economic Development.
• Markets fell during June in the run up to interest rate hikes from the US Federal Reserve and the Bank of England.
• China’s economy showed some signs of recovery in June, as its industrial output grew during May having fallen the month before.

The covid pandemic put things into perspective for Deborah. Before hand-sanitizer and facemasks became the norm, she and her boyfriend were living in a pokey flat while they saved up to buy a place of their own. As the pandemic took hold, they were both furloughed and - for the first time in years - had lots of free time together. This ultimately spelt the end for their relationship. Deborah moved back in with her parents and, to distract herself from this depressing development, got out her old sewing machine and starting upcycling second-hand clothes. Intrigued to know if there might be a market for her designs, she set up a simple online shop. Her clothes were a huge hit and, before she knew it, Deborah had a viable business on her hands.

Since going back into the office, Deborah’s realised how unfulfilling she finds her nine-to-five and is seriously considering quitting to focus on her upcycling business. However, she’s also determined to buy a place of her own within the next six months and doesn’t want anything to jeopardise her chances of passing a mortgage affordability assessment.

So how do lenders decide whether to offer you a mortgage?

If you’re applying for a new mortgage, remortgaging or increasing your current mortgage, lenders are required to carry out an affordability assessment. This involves a variety of checks designed to make sure you can afford to repay what you borrow. According to the Independent, some two thirds of first-time buyers are rejected for a mortgage at their initial attempt, so clearly these checks aren’t just for show. So what can Deborah do to boost her chances passing an affordability assessment.

Demonstrate stable employment

Lenders are reluctant to offer mortgage deals to people who have recently become self-employed. Many ask for three years of accounts, although some will accept two and a few will even consider you with only one. Even simply switching from one employed position to another can affect your chances of success. Most lenders like to see that you’ve been with an employer for at least three to six months before they’ll consider you. With this in mind, it would make sense for Deborah to secure a mortgage first and then think about what she wants to do career-wise.

Reduce her debts

Lenders will look at Deborah’s total income and then work out how much she needs to maintain a basic standard of living. This will give them an idea of how much she can afford to spend on a mortgage. Reducing the amount she owes on things like credit cards and loans will increase the amount she has available and boost her chances of passing an affordability assessment.

Check her credit report

Before offering you a mortgage, lenders check your credit report. A poor credit history could affect the amount they’re prepared to offer or cause them to turn you away altogether. However, there are simple ways to improve your credit rating. Before applying for a mortgage, Deborah should check her credit report for errors, make sure she’s registered to vote at her mum and dad’s address, avoid applying for new credit in the six months leading up to her application and make sure she’s well within any existing credit limits.

Get professional advice

A mortgage adviser will be able to assess Deborah’s circumstances and point her in the direction of the right lenders.

If you want advice on passing a mortgage affordability assessment, we’ll be happy to help.

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.

Key takeaways:

• Lenders like to see that you have a stable income so it’s best to avoid changing your work situation in the time leading up to a mortgage application.
• Reducing the amount you owe on credit cards and loans can help improve your chances of securing a good mortgage deal.
• Lenders will check your credit report before offering you a deal so make sure yours is up to scratch before submitting a mortgage application.
• Professional advice could boost your chances of passing an affordability assessment.

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.

In a bid to tackle rising inflation, the Bank of England has increased the base rate for the seventh time since December 2021. The 0.5% hike takes the interest rate to 2.25% - the highest since November 2008, when the banking system faced collapse. So, what does this mean for you?

Mortgages
If you’re on a fixed-rate mortgage, you’ll be protected from the latest rise until your current deal runs out. If that happens any time soon, you may well find the cost of a new fixed-rate mortgage has shot up - with even the most competitive two-year deals currently priced at between 4 and 4.5% compared to less than 1% a year ago.

For those on tracker mortgages, you’ll almost certainly see your payments go up in the next few weeks to reflect the full increase in the base rate. In general, you can expect to pay an extra £23 a month on a £100,000 mortgage.

Homeowners on their lender’s standard variable rate (SVR) will also probably see their monthly payments go up. They may not be hit with the full increase though, as these rates go up at a lender’s discretion. Banks and building societies may take longer to decide on SVR changes, as they come under pressure to shield customers from the full impact of the latest base-rate hike.

Other debt
The base-rate increase will also more than likely see the cost of borrowing rise in other areas. Although often not explicitly linked to the base rate, credit card rates are generally expected to go up in response to the latest rise. This means they’ll almost certainly reach the dizzying heights of 30%.

It’s also widely anticipated that many lenders will pass on the increase to people taking out new personal loans and car finance.

Savings
The base-rate rise should be good news for savers, although it can take time for increases to be passed on to customers. Getting professional advice can help you make the most of your money.

Investments
Changes to interest rates can affect different types of investment in different ways. Your financial adviser can build a diverse portfolio which may minimise the effects of any rate fluctuations.

Budgeting
In light of the latest base-rate increase and changes announced by Kwasi Kwarteng in the government’s mini-budget, it makes sense to review your own budget. A financial adviser can help you weather these uncertain times and ensure you’re making more of your money.

Key takeaways:

• Homeowners with tracker mortgages are likely to see their monthly payments go up in the next few weeks. People on their lender’s SVR will probably see an increase to the amount they have to pay too, although they may be shielded from the full impact. The cost of new fixed-rate deals is also set to rise.
• The cost of credit card debt, along with new car finance and personal loans, will almost certainly increase in response to the change in the base rate.
• The rise should be good news for savers, although it may be worth waiting before switching to see if rates increase further.
• Making sure you have a diverse portfolio can protect investments from rate fluctuations.
• A financial adviser can help ensure you’re making the most of your money in these uncertain times. 

Practically every penny of Mike’s monthly salary is accounted for so, as the cost-of-living crisis starts to bite, he’s worried about making ends meet. He’s started shopping around for cheaper deals on his broadband, mobile-phone contract, and car insurance, and he’s also cancelled his gym membership and a couple of his TV subscriptions. But he’s overlooked the bill offering the largest potential saving – his mortgage.

What is remortgaging?

Remortgaging involves taking out a new mortgage on a property you’ve already bought. You might do this to replace an existing mortgage deal or to borrow money against your home.

Is remortgaging right for Mike?

After Mike’s last mortgage came to an end, he didn’t look for a new deal so he was switched onto his lender’s standard variable rate (SVR). An SVR is usually much higher than fixed and tracker rates, and it can go up at any time. Research by Habito found 27% of mortgage holders in the UK are currently on their lender’s SVR, and they worked out - on an average mortgage - this translates to an extra £340 a month. This means Mike could almost certainly benefit from remortgaging.

Other reasons to remortgage

Even if you’re not on your lender’s SVR, there are a variety of reasons you might want to remortgage:

• To beat interest rate hikes. As inflation goes up, interest rates are starting to follow suit, so it may make sense to lock into a low rate now.
• You’re coming to the end of a deal. Mortgage advisers generally agree you should start looking for a new deal around three to six months before your current rate ends. However, the research by Habito found 46% of mortgage holders are unaware of this.
• The value of your home has gone up. A significant rise in the value of your home may have moved you into a lower loan-to-value band, meaning remortgaging may give you access to reduced rates.
• You want to borrow against your home. Remortgaging may allow you to raise money cheaply on low rates. Before doing this, it’s worth getting financial advice to make sure this really is the cheapest way for you to borrow.
• You want to overpay, and you can’t on your current deal. If you’ve come into some money recently, remortgaging will allow you to reduce the size of your loan and possibly get a better rate. You’ll need to take into account any exit fees or early repayment charges to weigh up whether remortgaging makes financial sense.

Where to start

It’s not always clear cut whether you’ll benefit from remortgaging. A qualified mortgage adviser will look at your circumstances and find out exactly what you want to achieve by remortgaging. For example, are you simply looking to reduce your monthly payments or do you want a more flexible mortgage that allows payment holidays? The adviser will then set out the best options available. Regular mortgage reviews can help ensure you’re never overpaying unnecessarily.

If you’d like to speak to someone about your mortgage, we’re here to help.

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.

Key takeaways:

• Remortgaging can be useful in a variety of situations from reducing your monthly payments to borrowing money against your home.
• It’s not always clear cut whether you’ll benefit from remortgaging – talking to a qualified mortgage adviser can help you decide whether it’s right for you.
• Regular reviews with a professional can make sure you’re not overpaying unnecessarily on your mortgage.

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.

Tina is a fit and vibrant 59-year-old who expected retirement to offer a whole new lease of life. She was looking forward to using her increased leisure time to explore Europe while indulging her passion for climbing. However, after going through her finances, she’s now concerned she won’t be able to afford her monthly bills let alone pay for trips abroad.

Tina has always managed her day-to-day finances really well, but she never sat down and worked out how much she’d need for a comfortable retirement. A 2021 Which survey found that a retiree in a single-person household spends an average of £19,000 a year and needs £31,000 a year to enjoy luxuries such as long-haul trips and a new car every five years. When you compare this figure with the current maximum state pension of approximately £9,627 a year, it becomes clear relying on that income alone can cause problems.

Why is money going to be so tight for Tina?

There are a number of reasons for this:

Career breaks have affected her state pension entitlement

Tina was a stay-at-home mum throughout most of her 20s and into her mid-30s, when she split up with the father of her children. They were never married so Tina isn’t entitled to any of his pension.

After working full-time for a few years, Tina moved in with another partner and splitting the bills meant she could afford to drop down to part-time hours. She began working full time again when that relationship ended a few years ago and she moved into her own place.

Despite working on and off, Tina hasn’t made anywhere near the 35 years’ worth of National Insurance contributions that guarantee a full state pension. As she’s made more than ten years’ worth of contributions, she’ll get something but nowhere near as much as she expected.

If Tina had checked her state pension forecast regularly, she could have avoided a nasty shock and taken steps to increase her pension pot.

She’s only made minimum contributions to her workplace pensions

Tina’s been enrolled in a couple of workplace pension schemes, but she’s only ever made the minimum contributions required.

There are no fixed rules about how much you should pay into a private pension, but one rule of thumb is to take the age you start saving and divide it by two to give you the percentage of your salary you should put away each year. So, if you start saving at 30, you should pay in 15% of your salary.

It’s worth bearing in mind that the government tops up private pension contributions in the form of tax relief at your highest rate of income tax. Basic rate taxpayers receive tax relief of 20%, while higher rate and additional rate taxpayers can claim back 20% and 25% respectively through their tax returns.

What can you do to boost your pension pot?

There isn’t one simple answer when it comes to saving for your retirement. It’s complicated! So it makes sense to get help from a financial adviser.

If you’d like to make sure you’re doing all the right things to enjoy a comfortable retirement, we’re here to help.

The value of investments and any income from them can fall as well as rise and you may not get back the original amount invested.

HM Revenue and Customs practice and the law relating to taxation are complex and subject to individual circumstances and changes which cannot be foreseen.

Key takeaways

• Whatever your age, it’s worth reviewing your pension arrangements.
• Get a state pension forecast to check how much you’re likely to get.
• Make sure you’re taking full advantage of any government and employer incentives.
• Check that you’re making the most of tax relief and employer contributions.
• Get help from a financial adviser.

The value of investments and any income from them can fall as well as rise and you may not get back the original amount invested.

HM Revenue and Customs practice and the law relating to taxation are complex and subject to individual circumstances and changes which cannot be foreseen.

Although not traditionally associated with jollity, for those who like to have the last laugh, a funeral may offer the perfect opportunity.

It’s becoming increasingly popular to use humour during services to reflect the personality of the individual being celebrated. A survey by Co-op Funeralcare on the music people would like at their final goodbye found Another One Bites the Dust by Queen, Going Underground by the Jam and Highway to Hell by ACDC were among the chosen tunes.

After the music’s faded, gravestones offer another opportunity to raise a smile long after you’ve gone. One of the most famous examples of a humorous epitaph is Spike Milligan’s ‘I told you I was ill’. Meanwhile, Mel Blanc - the man behind the voices of Bugs Bunny, Daffy Duck, Porky Pig and many others – opted for the famous Looney Tunes sign-off ‘That’s all folks!’ In a similar vein, gameshow host Merv Griffin, who presented Wheel of Fortune in the USA, went with ‘I will not be right back after this message’.

A funeral that captures the essence of the person being remembered can provide some level of comfort to loved ones during an incredibly difficult time. Another way to make things as easy as possible is to have your financial affairs in order.

Whole of life plans

A whole of life plan provides your loved ones with a lump sum when you die. With some policies, you pay monthly or annual premiums until your death, while others allow you to stop paying at a certain age - although this may impact the amount of money your loved ones receive.

Create or review your will

A will allows you to specify how your property, money and possessions will be distributed when you die. If you pass away without a will, the rules of intestacy will determine this for you and may not reflect your wishes. A will can also be used to set out plans for the guardianship and any future financial support of your children.

Accounts, bills and policies

Make a list of your accounts, bills and policies to help those left behind. This is important in case there are outstanding debts attracting interest that could be settled. Remember to include:

• Current/savings accounts
• Investments/pensions
• Credit cards/loans
• Mortgages
• Insurance policies

Paying for your funeral and other expenses

Dying is costly! According to the SunLife (2022) Cost of Dying Report, you’re looking at an average bill of £8,865. This includes:

£4,056 – the average cost of a basic funeral

£2,484 – the average amount spent on extras such as the memorial, death and funeral notices, flowers, order of service sheets, limousines, venue and wake

£2,325 – the average amount spent on legal professionals

A pre-paid funeral plan allows you to set aside money to pay for your funeral. However, these plans aren’t currently regulated. If you’re taking out a policy before 29 July 2022, when they will be regulated, make sure you check the provider’s status on the FCA website. Don’t buy a plan if its status is 'not applying for authorisation', 'application refused' or 'application withdrawn’.

If you’d like more information on estate planning, we’re here to help.

Key takeaways:

• A whole of life plan can provide your loved ones with a lump sum payment on your death.
• An up-to-date, valid will helps to ensure your property, money and possessions are distributed according to your wishes after you die.
• Keep an up-to-date list of your financial assets and debts to help loved ones in the event of your death.

Rachel is a 35-year-old charity administrator. When she started her current job nearly six years ago, she was automatically enrolled into her workplace pension. Auto-enrolment for workplace pensions was introduced in the UK to encourage more people to save for retirement. It means employers have to enrol into a pension any workers who are:

• Not already in a pension
• Between the ages of 22 and the state pension age
• Earning more than £10,000 a year
• Working in the UK

Rachel was happy to be enrolled into her workplace pension when she joined the charity but, now the cost of living crisis is starting to bite, she’s considering opting out in order to maximise her take-home pay. So, would this be a wise move or a false economy?

What will Rachel get out of her workplace pension?

In 2019, the government increased the minimum contribution to workplace pensions to 8% - at least 3% from employers with employees making up the balance. It’s important for Rachel to remember that her contribution comes from her pre-tax earnings, so opting out of her workplace pension may not boost her take-home pay as much as she expects.

The government is also contributing to Rachel’s workplace pension in the form of tax relief. As a basic-rate taxpayer, Rachel only needs to pay in £80 to increase her pension savings to £100 because the taxman contributes £20.

So effectively, Rachel is contributing 4% of her qualifying earnings (any pre-tax employment income between £6,396 and £50,270) to her workplace pension. The government then adds 1% tax relief and the charity tops this up with a 3% contribution. This means, in effect, Rachel’s net contribution is being doubled. In other words, for every £100 Rachel contributes, £200 is landing in her pension pot.

But does Rachel really need another pension on top of her state pension?

The short answer to this is yes! Many people overestimate how much they’ll get from their state pension. Currently, a full state pension provides an annual income of just over £9,600. Rachel will definitely get a proportion of this, as she’s already made ten years’ worth of National Insurance contributions. However, to get the full amount, she’ll need to make 35 years’ worth of contributions. Even if she manages this, according to Which, a single person needs £19,000 a year to enjoy a comfortable retirement and closer to £31,000 a year to be able to afford luxuries like exotic holidays and a new car every five years.

Why should Rachel get advice?

With costs rising left, right and centre, it’s understandable that Rachel wants to make savings wherever she can. However, by opting out of her workplace pension, she would essentially be throwing away free money from her employer and the Government. If possible, it would make sense for her to continue paying into her workplace pension while looking to make savings elsewhere.

Probably the best thing Rachel can do is seek advice from a professional. They’ll be able to explore options that allow her to enjoy the best possible standard of living both now and in the future.

If you’d like to discuss pension planning or any aspect of your finances, we’re here to help.

The value of investments and any income from them can fall as well as rise and you may not get back the original amount invested.

HM Revenue and Customs practice and the law relating to taxation are complex and subject to individual circumstances and changes which cannot be foreseen.

Key takeaways:

• A workplace pension helps you to boost your retirement savings with contributions from your employer and the government.
• The state pension alone is unlikely to be sufficient to fund your retirement.
• Get professional advice to make sure you get the retirement you deserve.

The value of investments and any income from them can fall as well as rise and you may not get back the original amount invested.

HM Revenue and Customs practice and the law relating to taxation are complex and subject to individual circumstances and changes which cannot be foreseen.

Harpreet is pretty good with his hands so he decided he’d save himself some money by carrying out his own loft conversion. It was all going quite well until he dropped his hammer. The hammer crashed through his bathroom ceiling and landed on the toilet, cracking the cistern. When Harpreet rang his home insurance company to report the incident, he discovered he wasn’t covered as he didn’t have accidental damage protection.

The cost of a DIY disaster

Harpreet’s mistake ended up proving quite costly, but it could have been worse as. Harpreet is far from alone in carrying out his own home improvements though. A study by Ironmongery Direct found that many Brits are prepared to take on jobs around the house. Although a bit of DIY can save you money, the research found that - when you get it wrong - it can prove extremely costly. Aviva estimated the annual cost of DIY disasters in the UK to be around £7 million. Harpreet was taking on a particularly risky project by attempting his own loft conversion, as they are the most expensive job to get wrong – potentially costing more than £35,000 to put right.

When it comes to taking risks, research found that young people are more willing to dice with danger than the older generation: millennials are most likely to have faced a DIY disaster, with two in five admitting they’ve had home improvements go wrong because they tried making upgrades to their property themselves.

So, if you don’t want to end up in Harpreet’s position, what should you do before embarking on a DIY project?

• Check your home insurance

Don’t assume that you’re covered for DIY accidents. Check the terms and conditions of your policy or give your insurer a call to make sure. Accidental damage protection usually comes as an optional extra, with standard home insurance only providing very limited cover for mishaps.

• Prepare thoroughly

To help DIY projects run as smoothly as possible, good preparation is key. We’ve come up with a checklist for you to go through before getting started:

• Make sure you have everything you need to complete the job before you begin. This will ensure you don’t end up trying to improvise with unsuitable tools etc.
• Carry out research to make sure you’re tackling the job in the most appropriate way – talk to the staff at your local DIY store, watch reputable YouTube tutorials etc.
• Where possible invest in good quality materials – look out for special offers from DIY retailers to make this more affordable.
• Allow yourself plenty of time to complete the job – you’re more likely to have an accident if you’re rushing.
• Leave the tricky stuff to the experts

Know your limitations and leave any major works to the professionals. If you attempt big jobs yourself, the chances are you won’t be covered by your home insurance. When it comes to electrical and plumbing work, you should always get an expert in – otherwise you risk invalidating your cover.

Key takeaways:

• Before embarking on any DIY project, check that your home insurance covers you for any mishaps.
• Prepare thoroughly for DIY tasks and make sure you allow yourself plenty of time to complete the job.
• Leave any major or specialist jobs to the experts or you risk invalidating your home insurance.

When Sue and Jim decided to move in with their daughter so they could be on hand to help with childcare, they were reluctant to sell their home in case their new living arrangement didn’t work out. They were a bit worried about leaving it empty though, so when they heard their niece Megan was looking for somewhere to rent, it seemed like the perfect solution.

Everything was going great until, after a busy night shift, Megan came home and decided to run a bath. While the tub was filling up, she went downstairs to wait on the sofa where she promptly fell asleep. Megan was woken to the sound of water bringing down part of the living room ceiling. When Sue rang her home insurance provider to make a claim, she was informed they weren’t covered as they didn’t have landlord insurance.

What is landlord insurance?

Landlord insurance is designed to protect you, your property and your tenant(s). Basically, it covers all the same things as standard home insurance, plus various tenant-related issues.

Landlord insurance usually provides as standard:

• Buildings insurance
• Contents insurance - your belongings not those of the tenant(s)
• Property owner’s liability cover – this covers any damage, injury or illness caused by the property that you may be deemed liable for e.g. a tenant tripping down a poorly maintained set of stairs and hurting themselves
• Loss of rent cover – this protects you in the event that your tenants don’t pay their rent or they have to move out after an insured event such as a fire or flood

Optional extras may include:

• Accidental damage cover – this covers accidental damage to the building and its fixtures and fittings e.g. if a tenant accidentally smashes a window
• Emergency assistance cover – this provides help for your tenant(s) in the event of an emergency e.g. if there’s a burst pipe
• Legal cover – this covers your legal expenses e.g. if there’s a contract dispute

Who needs landlord insurance?

You’re not breaking the law if you don’t take out landlord insurance but, if you’re renting your property and something goes wrong, you’re unlikely to be covered by standard home insurance. Also, if you have a mortgage, you’ll probably find your lender will insist on you having landlord insurance before you take on any tenants.

Even if you’re renting to family members, as Sue and Jim discovered to their cost, standard home insurance may not be adequate. The same applies if you’re renting out part of your property, even if you’re still living there too.

What your insurer will want to know

You’ll be asked what kind of tenant(s) you have. Your answer to this question will impact how much you pay for your insurance. You tend to pay more if you rent to students or those receiving housing benefit. Not every insurer will cover every type of tenant. If you fail to disclose who you’re renting to, you may invalidate your policy.

You’ll also need to confirm that the property is safe. This will mean fitting smoke and carbon monoxide alarms and making sure all gas and electrical equipment meets safety standards. Failing to do this may invalidate your policy. Your tenants could then take you to court and you wouldn’t be able to use the legal cover from your landlord insurance to pay your costs.

Ask an expert

If you’re a new or prospective landlord and you’d like advice on insurance, or any aspect of managing your finances, we’d be delighted to help.

Key takeaways:

• Although landlord insurance isn’t a legal requirement, if you rent out your property and something goes wrong, you’re unlikely to be covered by standard home insurance.
• Most mortgage lenders will insist on landlord insurance.
• You’ll probably need landlord insurance if you’re renting your property in any capacity, even if you’re still living in the property or you’re renting to a family member.
• Your insurer will need to know the type of tenant you’re renting to and you’ll be required to make sure the property meets certain safety standards.
• If you need advice about landlord insurance, ask an expert.

Reducing your energy consumption can be a great way to cut your carbon footprint, lessening your personal impact on the environment and potentially helping to limit the devastating effects of climate change.

As living costs and the price of energy are soaring, taking action to lessen your usage can also be an effective tool to save money on your bills.

1 in 8 UK consumers think they’re already doing enough
Interestingly, when compared globally, the UK has the highest proportion of consumers – 17% – who think they already do enough to prevent climate change, according to a MarketScreener report.

However, by better understanding your consumption habits, you might realise there’s more you can do.

According to the report, Jaap Ham, associate professor at the Eindhoven University of Technology, argues that our mindset is the biggest problem to tackle when trying to take action to curb energy consumption.

Echoing this, Schneider Electric’s vice-president of home and distribution, Nico van der Merwe, says that “it is encouraging to see the public recognise that real change starts at home”. He puts emphasis on the use of smart tools to help consumers understand their own usage, allowing you to take targeted action from there.

With 8 in 10 UK consumers believing that climate change will lead to higher energy bills, conditioning yourself to make the most of your energy consumption could kill two birds with one stone – saving money and the planet.

Here are 10 useful ways to reduce your carbon footprint while saving on your energy bills.

1. Understand your carbon footprint
A useful first step in reducing your carbon footprint is to understand it.

Visualising where you’re being excessive with your energy consumption can often be the wake-up call that people need to shock them into action. Online calculators are a great way to find this information and help you track your energy habits.

For instance, seeing how much energy you use through your dishwasher may inspire you to pack loads more tightly, making better use of your appliances.

Carbon footprint calculators are available from organisations such as WWF, the Carbon Trust, and the UN among others.

2. Switch to renewables
Next, you could consider switching to renewable sources of energy in your home.

Switching to a supplier that generates energy from sustainable sources can be a good way to reduce bills as well as reassuring yourself that the energy you’re using is “clean”.

As well as this, you could generate your own renewable energy by installing solar panels on your home. While this upfront cost can be expensive, this can offset your energy bill by using less of your supplier’s energy and generating your own from the power of the sun.

3. Use less hot water
Limiting how much hot water you use at home is another useful way to control your bills while lending the environment a helping hand.

Keeping tabs on how long you take in the shower, monitoring the number of baths you have, or being conservative with the hot tap are all examples of ways you can reduce your energy use.

Heating water is an expensive process as well as an energy-intensive one, so limiting how much you’re using could help to offset your bills.

4. Turn off idle appliances and chargers at the plug
TVs, chargers, and any other appliance plugged into the mains could be soaking up your precious energy. When switched on, chargers will use electricity even if nothing is connected.

So, getting into the habit of checking plugs throughout the day, or before you leave the house, can help you to waste less money on unused electricity while reducing your carbon footprint.

As well as this, TVs, radios, and consoles all use energy when on standby, so make sure you fully turn them off!

5. Consider an electric vehicle
Swapping your petrol or diesel car for a battery-powered, electric vehicle can reduce your costs and can also have environmental benefits.

Emissions you personally produce while driving can be drastically reduced by going electric instead of using fuel. As well as this, powering your vehicle with electricity is often cheaper over time compared to regularly filling a petrol or diesel tank.

Increasingly, you can even come across free charging points that are available for public use – according to Zap-Map, supermarkets such as Aldi, Lidl, Sainsbury’s, and Tesco are great places to find them.

6. Buy energy-efficient appliances
Kitting out your home with low-consumption appliances is a simple way to lower your energy consumption and, as a result, your bills.

Good examples of these include bulbs, showerheads, kettles, plugs, and hoovers to name a few.

The compromise in performance is generally negligible and well worth the switch. For example, a low-energy bulb may take a few extra minutes to reach full brightness but save a worthwhile amount of energy over time.

7. Use “smart” home appliances
Making use of smart devices that can remotely alter your home’s use of energy offers an easy way to reduce the size of your bills along with your carbon footprint.

According to research reported by MarketScreener, smart lighting and thermostat devices are now among the top three most purchased smart devices, proving how people are waking up to their utility.

Installing these in your home allows you to easily monitor your consumption and readily adjust how your home is using energy. Even better, you can change your home’s settings remotely so you can stick to your low-energy habits even if you leave the lights on after you go out.

8. Replace or service kitchen appliances
If you have any older models of kitchen appliances, it could be worth replacing them with newer, energy-efficient versions.

Culprits of high energy use could include your dishwasher, fridge, freezer, tumble dryer, or washing machine. Thankfully, technological advances mean newer appliances can complete tasks to the same standards while using less energy.

Through constant use over many years, these marginal savings can add up to be well worth the investment.

9. Improve your home’s insulation
If you’re already paying to heat your home, you should want to make the most of what you get – especially with energy prices being so high.

One of the best ways to do this is to make sure your home is appropriately insulated. You can draught-proof your home by:

• Plugging holes and cracks
• Insulating vulnerable areas like windows, doors, and floorboards
• Utilising draught excluders or fitting a suitable carpet to prevent heat loss.

According to Energy Saving Trust, draught-proofing your home could save you up to £45 a year, or £65 if your home has a chimney.

10. Turn down the thermostat
With winter approaching, limiting your use of central heating can offer a great way to keep your energy bill down.

When you can, opt instead for an extra layer and wrap yourself up inside a warm blanket. Some nights are colder than others, but keeping windows closed and updating your home’s insulation can reduce the need to crank up the heating.

Installing thick curtains can stop some of your precious heat from escaping through the cold windows and keeps you warmer for less.

In turn, this additional energy efficiency will see you require less energy, helping to reduce your carbon footprint.

One wet and windy evening, Rachel and Nathan decided to take advantage of their newborn, Eli, falling asleep in his moses basket by getting an early night. Gently picking up the basket from its regular spot in front of the fireplace, they crept upstairs. No sooner had they settled in bed when they heard a massive crash from the living room. They ran back downstairs to find a pile of rubble in the exact spot Eli had been sleeping just minutes earlier.

Aware the incident could have been much worse, the couple were still left with an enormous mess to sort out. High winds had caused the inside of the chimney to collapse. However, Rachel and Nathan’s home insurance provider refused to pay for the structural damage because, according to their terms and conditions, the wind hadn’t been strong enough to constitute a storm. They also refused to replace the living room carpet because the couple’s contents insurance didn’t include accidental damage cover.

So, what can you do to make sure your home insurance provides you with the protection you’d expect when the unexpected happens?

Let’s start at the beginning - what exactly is home insurance?

Home insurance is split into two parts – buildings and contents.

Buildings insurance – this covers the building itself, including walls, floors, doors, windows and the roof. It also covers permanent fixtures such as baths, toilets, fitted kitchens and even wallpaper.

Contents insurance – This typically covers anything that can be taken with you if you move e.g. kitchen appliances and furniture.

Not all home insurance is equal

As Rachel and Nathan discovered to their cost, not all home insurance is equal. Although tempting to simply go with the cheapest option, it’s always best to check the details of any policy you’re considering to see exactly what’s included. For example, some buildings insurance covers garages, greenhouses and garden sheds but some policies don’t.

It's also a good idea to check for exclusions. You may find some insurers won’t pay out for anything considered to be the result of general wear and tear or damage that happens over time, such as damp or rot.

Meanwhile, contents insurance generally has a single-item limit, meaning high-value possessions may need to be named separately. You may also have to pay extra to cover belongings when they are taken outside your home.

Accidental damage cover is something else to think about. Rachel and Nathan decided to do without it. However, if they’d added it to their contents insurance, the cost of replacing their living room carpet may have been covered. According to MoneySuperMarket, mishaps account for over a quarter of all home insurance claims, so accidental damage cover may be worth prioritising.

Reading reviews of insurance providers can also be useful. Most events that result in a claim are pretty stressful, so you don’t need things like poor customer service making matters worse. According to the Association of British Insurers, home insurance prices fell to the lowest levels on record in the first quarter of 2022 meaning you shouldn’t have to pay a fortune for a good policy.

Do you really need home insurance?

Homeowners – although buildings insurance isn’t a legal requirement, most mortgage lenders insist on it. No one is going to force you to buy contents insurance but it can provide valuable peace of mind and combining it with your buildings insurance may save you money.

Renters – you don’t need to worry about buildings insurance – this is your landlord’s responsibility. However, contents insurance may be a sensible idea.

Key takeaways:

• What’s covered by home insurance varies from policy to policy, so you should check what’s included before making a purchase.
• Check the terms and conditions for any exclusions to make sure you’re getting the cover you need.
• Paying extra for accidental damage cover is worth serious consideration with over 25% of claims occurring as the result of mishaps.
• Read reviews before choosing an insurance provider – good customer service can be just as important as cost.

With over 10 years of record low interest rates, fixed rate mortgages offer borrowers the stability of knowing what the mortgage payment will be for a set period, which helps with budgeting.

Because of the way many lenders decide what rates to offer, we’re currently seeing tracker products priced a lot more competitively than fixed rate products.

Unlike a fixed rate, the monthly payment of a tracker mortgage fluctuates and the rate charged on the mortgage ‘tracks’ the Bank Rate usually for a set period. Whilst you may have to pay a penalty to leave your lender, especially during the tracker period, there are tracker products that have no early repayment charge, so you are free to leave without penalty.

If you’re coming up to the end of your fixed-rate and you’re faced with a higher interest rate than you were expecting, switching to a tracker at a lower rate may be tempting. Although you may find there are cheaper tracker products on offer than current fixed rates, you must be confident that you’ll be able to afford your repayments if the rate goes up.

We can help guide you through all your mortgage options including advice on whether a fixed rate or tracker product is more suitable.

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE

It’s important to regularly review your mortgage. If necessary, you may want to transfer to a new deal or a different lender when you come to the end of a fixed rate. If you’re worried about your options when you come to the end of your deal, talk to us. We can help by looking at our range of lenders to see what's right for you and we'll also consider what your current lender offers.

Many lenders allow us to secure a new fixed rate for you months in advance of your current rate ending. It’s important to start early and we can help you navigate everything you need to, to ensure your needs are met.

We can help guide you through all your mortgage options so please get in touch soon.

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE

Hardly a day goes by without the cost of living hitting the headlines. For many homeowners the increasing costs of owning and running a home is having a huge impact on household budgets. For those borrowers with a fixed rate mortgage, the recent increase in mortgage interest rates may not have an immediate impact. However, as mortgages are more expensive now than they were two years ago, you may see your mortgage payments rise when you next come to remortgage.

Overpaying on your mortgage now could save you more on interest down the line and help reduce your mortgage payments. It could also make sense to overpay on your mortgage rather than keep your money in a savings account, because you’ll earn more in interest savings on your mortgage than you could earn in a typical savings account.

An overpayment is any additional payment you make over your usual monthly mortgage payment. Overpayments can either be a one-off lump sum or a regular overpayment made throughout the year. Overpaying on your mortgage means you can potentially clear your mortgage balance quicker.

Lenders will offer you better rates if you have a lower loan to value. The more you can pay to reduce your mortgage, the potentially lower interest rates you’ll have when you come to remortgage to a new deal.

Overpaying on your mortgage might not be right for everyone. Using savings to overpay on your mortgage could leave you with less cash to fall back on in an emergency.

Not all lenders have the same rules for overpaying and there may be a penalty fee called an Early Repayment Charge if you overpay too much.

You should only make overpayments if you’re sure you can afford them. It’s a good idea to make overpayments if you already have an emergency fund, and you don’t have any other, more pressing debts that need to be repaid.

We can help guide you through all your mortgage options including advice on making overpayments.

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE

While the Covid pandemic began the inflationary increase, this was further exacerbated by the war in Ukraine pushing up energy and food prices even further.

Following such an extended period of price rises, you may be concerned about your household finances and long-term plans. So, here are five ways to protect your finances during the cost of living crisis.

Review your budget and personal inflation rate

Reviewing your spending will clarify where your money is going and highlight potential areas to cut costs and make savings.

Despite a lot of noise about inflation and its impact on UK households, the good news is that your personal rate of inflation depends on how you spend your money. It won’t necessarily match the official inflation rate and so changing your spending habits can help bring it down.

For example, since much of the rise in prices has been caused by soaring fuel prices, your personal inflation rate may be lower than the average if you don’t drive or own a car.

Energy prices have also risen significantly throughout 2022. However, if your home is especially energy-efficient, you may use less energy than an average household. This could bring your personal inflation rate below the average.

You can use an online calculator – such as this one from the ONS website – to help you work out your personal inflation rate online.

Manage debt

Higher interest rates mean increased borrowing costs. So, check the rates and see if you can reduce the interest you’re paying.

Focus on repaying credit card debt first. Credit cards typically charge high levels of interest and the negative compounding effects can be difficult to escape.

If you have high credit card debt, transferring to a limited-period nil-interest rate account could help you repay the debt sooner.

Ensure your savings are working hard for you

Around £160 billion in savings accounts pay less than 0.5% interest, so it’s worth shopping around for higher interest rates on your savings.

Alternatively, Insignis can help you secure the best cash savings rates.

As interest rates change, Insignis moves your money to secure optimal rates. The one-time sign-up is quick and easy to set up, plus you’ll never need to open or close another account again.

Resist the temptation to dip into your investments or stop saving for your future

You may be tempted to dip into your pension or investments to tide you over but consider the long-term effect on your retirement plans.

Selling investments or drawing from your pension could leave you worse off in the long run, so assess every option before you act.

It’s important to continue to pay your future self first, too; be sure to maintain regular, tax-efficient contributions to your pension and ISAs.

Remember your long-term financial plan

Making rash financial decisions during the current crisis could jeopardise your long-term financial security. If you’re worried about the rising costs of living and what you can do to protect your short- and long-term financial plans, we can help.

Get in touch

If you’re worried about the rising cost of living and would like to discuss ways to protect your finances from the effects of inflation, we’re here to help. Please get in touch to arrange a time to chat.

An ISA is a medium to long term investment, which aims to increase the value of the money you invest for growth or income or both.
The value of your investments and any income from them can fall as well as rise. You may not get back the amount you invested.
HM Revenue and Customs practice and the law relating to taxation are complex and subject to individual circumstances and changes which cannot be foreseen.
Tax concessions are not guaranteed and may change in the future. Tax free means the investor pays no tax.

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- Here are five ways to protect your finances during the cost of living crisis

How much do I need to save?

A 5% deposit of the property value is the minimum amount you are able put down, however your options may be limited. The larger deposit you can provide, the less risk you will be considered to lenders and better rates will be available to you.

Where do I start?

Set a savings goal, which you can break down into easier amounts and a time frame to achieve it. Regular saving is most effective and it’s important to be realistic about how much you can save monthly so that it’s more attainable and doesn’t feel like such a chore or impact your life severely. Researching house prices in the area you would like to buy your property and using mortgage borrowing calculators online can help you work out how much you may need to save.

Savings accounts options

There are many ways of saving for your deposit. Look around and think about what you want to achieve and how quickly. With a Lifetime ISA (LISA), if you’re a first-time buyer under 40, you get a 25% bonus on your savings. For example, you can deposit up to £4,000 each tax year and receive a government bonus of £1,000 on top, meaning you would have £5,000 at the end of the tax year. It could help you reach your deposit goal quicker.

Top tips on how to build your savings:

• Set up a savings account – Look into a suitable ISA and consider a Lifetime ISA.

• Look at your current spending habits –See where you can possibly reduce your monthly bills and expenditure (e.g. minimise unused subscriptions/gym membership, change energy or network providers, eating out, daily coffees etc.) to save money.

• Create a budget and stick to it – Make the budget realistic so it’s easier to stick to and when you struggle, remember the goal in mind. Set up standing orders so the money is automatically allocated to savings before you have chance to spend it.

• Reduce your rent/living costs – If possible, consider moving in with family, friends or find cheaper/shared accommodation which can allow you to save money quicker.

• Make extra money – Sell clothes or items online that you don’t need, or if you have a skill/talent/craft that you can turn into a business, this can help you earn extra cash.

• Make use of discounts, vouchers and online deals – Every little saving helps.

• Try “no spend” months or weekends” – Only pay your bills, regular outgoings and necessities and move the money you save to your savings. Consider alternative free activities.

• Set limits – If it helps, take out a certain amount of money in cash for the week or month and leave your cards at home.

• Consider investing options – Including saving accounts with higher interest rates such as stocks and shares ISAs.

• Ask for help and advice – From friends and family for support and we’re here for any financial advice you may need.

We’re here to help you save or invest your money to build your deposit. We will make sure your savings and investments are working for you and advise you on how much you can borrow for a mortgage. We’ll also be here to help find the right mortgage deal when you are ready to buy your first home!

If you would like to find out more, please get in touch with us.

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.

A stocks and shares Lifetime ISA is a medium to long term investment, which aims to increase the value of the money you invest for growth or income or both. The value of your investments and any income from them can fall as well as rise. You may not get back the amount you invested.

Approved by The Openwork Partnership on 17/03/2023.

Key Takeaways:

• Set yourself a savings goal, which you can break down into easier amounts and a time frame to achieve it.

• With a Lifetime ISA (LISA) as a first-time buyer under 40, you get a 25% bonus on your savings.

• YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.

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• A savings plan can make all the difference and we can offer guidance to help you here.

Whether you’re a first-time buyer, downsizing or moving to your dream family home, it’s an exciting – and busy – time. It also comes with costs that could take you by surprise, so here’s a look at the ones you’re likely to come across and how we can help you through the journey.

Advice fee

We can help when you’re applying for your mortgage in principle, putting you in a strong position once an offer is accepted. The benefit of using a broker is that they have the expertise to ensure you’ve covered the required checks and paperwork related to buying your home and getting a mortgage.

We will let you know at the start of the process about our fees.

Booking and arrangement fees

These fees go to your mortgage lender. The booking/application fee is usually £100 to £300, but the arrangement fee can be much higher, anything from £0 to over £2,000 or a percentage of the loan. We can help you decide whether it’s better in the long term to opt for a mortgage with a slightly higher interest rate and lower arrangement fee, rather than a high arrangement fee and lower interest rate.

Valuation fee

Your mortgage lender will need to value the property themselves to make sure it’s not over- or under-priced. The valuation will also confirm the amount they’re willing to lend to you. Some lenders don’t charge a valuation fee, but if they do, it can cost upwards of £250 – depending on the size of the property and its value.

Surveyor’s fees

It’s important to know that the valuation fee doesn’t look at the structure of your new home, or any issues to do with maintenance and repair. We will be able to arrange an expert to conduct a thorough structural survey of the property. This will help you decide whether to negotiate the terms of the sale with the seller and their agent – before you exchange contracts. Survey fees can range from around £300 to over £1,500 - all depending on the level of service required and the size of the property.

Conveyancing costs

Electronic transfer fees

Insurance 

Removals

We will help take the stress out of home buying and can find you the competitive deals and savings available.

Don’t forget the stamp duty

As a buyer you will have to pay a stamp duty land tax, this depends on whether you’re a first-time buyer, where you live, and where the property is located within the UK. First-time buyers will pay no stamp duty land tax on properties up to £425,000.

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.

Approved by The Openwork Partnership on 17/03/2023.

Key Takeaways:

• There are additional costs you need to be aware of when buying your first home.
• Consider additional costs such as advice fees, booking and arrangement fees, valuation fees, surveyor’s fees, conveyancing fees, electronic transfer fees, insurance, removals and stamp duty.
• Always remembers additional fees when buying a home, save that little bit extra to account for them.
• YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.

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• Buying your first home can come with surprise costs you didn’t account for, so get ahead of the game.

Start with an open mind

There is the danger of becoming too fixated on certain locations or certain properties. It’s important to be open when searching for your first home, ensuring that you’re considering all locations and types of houses. Often buyers become stressed because they have narrowed their search down too far too early.

Talk to your local estate agent

It’s worth booking in a conversation with your local estate agents as after all, they are the experts. They will be able to give you an idea of properties available in the area, upcoming areas to search in and whether your budget is realistic to where and what you’re looking for.

Check out the location before putting an offer in

You don’t want to commit to a house before even knowing what the location or neighbourhood is like. If you fail to do this, you could be stuck…for a long time! It’s a good idea to identify three to four neighbourhoods you’d like to live in based on commute time, schools, recreation, crime, and price.

Use property finding websites

With the world evolving, property search websites have become the most popular way in finding properties for sale and to rent. They are easy to use, open all hours, provide you accurate results and you don’t even have to move from the sofa! Some of the many include Rightmove, Zoopla and OnTheMarket.

Speak to a mortgage adviser

We can give you an idea of how much you will be paying monthly, taking various fees and rates into account. We will also be able to tell you whether your budget is enough to get you the property you want and what deal we believe is right in light of your needs.

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.

Approved by The Openwork Partnership on 17/03/2023.

Key Takeaways:

• It’s important to consider everything when making one of the biggest purchases of your life.
• Buying your first home is an overwhelming experience, so making sure you’re open to everything is key.
• When finding your first home it’s important to consider things like the neighbourhood, whether it’s a starter house or your forever home, price and affordability.
• Estate agents are great for finding your first home, they will give you insight into where to buy, upcoming areas to buy into and if you can afford certain areas.
• Property finding sites are great for finding your first home, they are open all hours, are easy to use and you don’t have to move from the sofa!
• We can help make the process of finding your first mortgage as smooth as possible.
• YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.

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• Buying as a first-time buyer is an overwhelming experience, so read these five tips for buying your first home.

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.

Aware the incident could have been much worse, the couple were still left with an enormous mess to sort out. High winds had caused the inside of the chimney to collapse. However, Alex and Megan’s home insurance provider refused to pay for the structural damage because, according to their terms and conditions, the wind hadn’t been strong enough to constitute a storm. They also refused to replace the living room carpet because the couple’s contents insurance didn’t include accidental damage cover.

So, what can you do to make sure your home insurance provides you with the protection you’d expect when the unexpected happens?

Let’s start at the beginning - what exactly is home insurance?

Home insurance financially protects your home against damage or theft but is typically split into two parts – buildings and contents.

Buildings insurance – this covers the building itself, including walls, floors, doors, windows and the roof. It also covers permanent fixtures such as baths, toilets, fitted kitchens and even wallpaper.

Contents insurance – This typically covers anything that can be taken with you if you move e.g. kitchen appliances, furniture and valuables.

Not all home insurance is equal

As Alex and Megan discovered to their cost, not all home insurance is equal. Although tempting to simply go with the cheapest option, it’s always best to check the details of any policy you’re considering seeing exactly what’s included. For example, some buildings insurance covers garages, greenhouses and garden sheds but some policies don’t.

It's also a good idea to check for exclusions. You may find some insurers won’t pay out for anything considered to be the result of general wear and tear or damage that happens over time, such as damp or rot.

Meanwhile, contents insurance generally has a single-item limit, meaning high-value possessions may need to be named separately. You may also have to pay extra to cover belongings when they are taken outside your home.

Add Ons

There are also certain add ons that are worth thinking about to provide a way to get cover without paying for a more expensive policy with features you may not need. These include:

• Accidental damage cover – This provides cover for accidents that occur around your home.
• Home emergency cover – This protects your home against emergency call outs or repairs like a burst water pipe.
• Personal possessions – This covers items that are used away from home such as handbags and mobile phones.
• Legal expenses – This covers the cost of legal proceedings if you need to take action or defend a claim.

Do you really need home insurance?

Homeowners – although buildings insurance isn’t a legal requirement, most mortgage lenders insist on it. No one is going to force you to buy contents insurance but it can provide valuable peace of mind and combining it with your buildings insurance may save you money.

Renters – you don’t need to worry about buildings insurance – this is your landlord’s responsibility. However, contents insurance may be a sensible idea.

Speak to a professional

Your home is probably your most valuable possession, and you’ll want to make sure it’s protected. Whether you want a combined building and contents insurance policy or separate ones, we’re here to help.

Approved by The Openwork Partnership on 16/03/2023.

Key takeaways:

• What’s covered by home insurance varies from policy to policy, so you should check what’s included before making a purchase.
• Check the terms and conditions for any exclusions to make sure you’re getting the cover you need.
• Read reviews before choosing an insurance provider – good customer service can be just as important as cost.

Social media text posts:

Will your home insurance provider pay out in the event of a claim? Find out what to check for when choosing a policy.

• The government is reducing debt and borrowing, with borrowing forecast to be lower this year, next year, and on average over the forecast period compared to the OBR's March forecast.
• Underlying debt is also lower as a percentage of GDP, by an average of 2.1 percentage points across the forecast.
• The government is on track to meet its debt and borrowing fiscal rules with greater headroom against both rules compared to spring.
• The government has made available up to £14.1 billion for the NHS and adult social care and an additional £2 billion for schools in both 2023-24 and 2024-25.
• Total departmental spending will be £85 billion higher in real terms by 2028-29 than at the start of this Parliament (2019-20).
• Households on the lowest incomes have benefited the most from government decisions on tax, welfare, and public spending since Autumn Statement 2022.
• The government is introducing the largest package of measures to tackle tax non-compliance since 2016, which is forecast to raise an additional £5 billion of tax revenue over the next five years.
• The government is continuing to drive forward the Public Sector Productivity Programme to reimagine the way public services are delivered.

Cutting tax and rewarding hard work

Tax Cuts for Workers

• The main rate of Class 1 NICs will be cut from 12% to 10% from 6 January 2024, benefiting over 29 million workers.
• The average worker will receive a tax cut of over £450 in 2024-25.
• Class 4 NICs for self-employed will be reduced from 9% to 8%, and Class 2 NICs will be abolished.

National Living Wage Increase

• The National Living Wage will increase by 9.8% to £11.44 from 1 April 2024.
• The age threshold will be lowered from 23 to 21 years old.
• This will benefit over 2.7 million low-paid workers.

Welfare Reform

• The government is launching a Back to Work Plan, with over £2.5 billion in funding, to help people find and stay in work.
• The Fit Note process will be reformed to support returning to work after illness.
• The Universal Support programme will be expanded to match people with disabilities to jobs.
• The Work Capability Assessment will be reformed to provide better support.
• Additional Jobcentre Support will be expanded.

Changes to the benefit system

• All working-age benefits will be uprated by 6.7% in line with inflation for 2024-25.
• Pensioner incomes will be protected by maintaining the Triple Lock.

Support for High Cost of Living

• Local Housing Allowance rates will be raised to the 30th percentile of local market rents.
• This will benefit 1.6 million low-income households.
• The government has provided £104 billion in support to households to help with the cost of living.

Backing British business

The government is taking action to boost business investment and drive long-term economic growth.

Key measures include:

• Making full expensing of plant and machinery investment permanent, worth over £10 billion a year.
• Simplifying and improving R&D tax reliefs, worth £280 million a year.
• Removing barriers to investment in critical infrastructure.
• Providing £4.3 billion of business rates support over the next five years.
• Reforming the pensions market to unlock investment into high growth sectors.
• Announcing further targeted support for digital technology, green industries, life sciences, advanced manufacturing, and creative industries.
• Investing £4.5 billion to unlock investment in strategic manufacturing sectors.
• Confirming the next set of investment zones in Greater Manchester, the West Midlands, and the East Midlands.
• Doubling the flexible funding envelope for each investment zone from £80 million to £160 million.
• These measures are expected to raise business investment by around £20 billion per year in a decade's time.

Changes to ISAs

The government is making changes to simplify ISAs and provide more choice, meaning it will be easier for people to choose the best ISA accounts for their needs and move money between them. This involves digitalising the ISA reporting system to make it more effective, as well as expanding the investment opportunities available in ISAs to include Long-Term Asset Funds and open-ended property funds with extended notice periods.

Key highlights:

• Allowing multiple ISA subscriptions – The government will allow multiple subscriptions to ISAs of the same type every year from April 2024.
• Allowing partial transfers between providers – The government will allow partial transfers of ISA funds in-year between providers from April 2024.
• Removing the requirement to reapply for an existing ISA annually – The government will remove the requirement to reapply for an existing dormant ISA from April 2024.
• Expanding the Innovative Finance ISA to include Long-Term Asset Funds – The government will allow Long-Term Asset Funds to be permitted investments in the Innovative Finance ISA from April 2024.
• Expanding the Innovative Finance ISA to include open-ended property funds with extended notice periods – The government will allow open-ended property funds with extended notice periods to be permitted investments in the Innovative Finance ISA from April 2024.
• Allowing certain fractional shares contracts as a permitted investment The government intends to permit certain fractional shares contracts as eligible ISA investments and will engage with stakeholders on implementation.
• Digitalise the ISA reporting system – The government is announcing the digitalisation of the ISA reporting system to enable the development of digital tools to support investors.
• Harmonise ISAs to those over 18 years of age – The government will harmonise the account opening age for any adult ISAs to 18 from April 2024.
• The government is freezing the Individual Savings Account (£20,000), Junior Individual Savings Account (£9,000) Lifetime Individual Savings Account (£4,000 excluding government bonus) and Child Trust Fund (£9,000) limits at their current levels for 2024-25.

It’s been a challenging year with inflation dominating headlines. While inflation has fallen, it’s still higher than the Bank of England’s 2% target at 4.6% in the 12 months to October 2023.

Ahead of his speech, Hunt faced pressure to reduce the tax burden on both households and businesses while there was speculation about a potential Inheritance Tax cut, which didn’t materialise.

In his speech, Hunt said the plan for the British economy was working as the UK avoided a previously forecast recession this year. However, he cautiously added that the “work is not done” as he set out 110 measures to “reduce debt, cut taxes, and reward work”.

Here are the key points of the Autumn Statement, and what they might mean for you.

National Insurance cut for employees and self-employed workers

The chancellor cut National Insurance (NI) for 29 million working people.

The main rate of employee NI will be reduced by two percentage points from 12% to 10% from 6 January 2024. The new rate will save the average employee earning £35,400 a year more than £450 annually.

In addition, Class 2 National Insurance contributions (NICs), which are mandatory for self-employed workers earning more than £12,570 a year, will be abolished from April 2024. It’s estimated this will save the average self-employed person £192 a year. The good news for self-employed workers is they’ll retain access to contributory benefits, including the State Pension.

In 2024/25, Class 4 NICs paid by self-employed workers on earnings between £12,570 and £50,270 will fall from 9% to 8%.

Combined, these two changes will result in an average self-employed person earning £28,200 saving £350 a year from 2024/25.

The State Pension “triple lock” will remain in place

After weeks of uncertainty, Hunt confirmed during the Autumn Statement that the State Pension “triple lock” will be honoured.

Under the “triple lock”, the State Pension increases each year by the higher of:

Inflation, as measured by the Consumer Prices Index (CPI) in September (of the previous year)

The average increase in wages across the UK from May to July (of the previous year), or

2.5%.

Wage growth of 8.5% means someone on the full new State Pension will receive more than £900 a year extra in 2024/25.

Similarly, Pension Credit will also rise by 8.5% in April 2024.

Abolition of pension Lifetime Allowance confirmed

While the chancellor didn’t make any new announcements related to pension allowances during the Autumn Statement, he did confirm that the previously reported abolition of the pension Lifetime Allowance will take effect from 6 April 2024.

Hunt also announced plans to consult on a pension “pot for life”. Under the plans, pension savers would have the legal right to choose the scheme their employer pays pension contributions to. This move could help workers manage retirement savings and reduce the number of people with multiple small pensions.

ISA holders will benefit from more flexibility

The annual subscription limits for ISAs (£20,000), Junior ISAs (£9,000), Child Trust Funds (£9,000), and Lifetime ISAs (£4,000, excluding government bonus) will remain the same in 2024/25.

However, changes could provide savers and investors with more flexibility.

First, ISA holders will be able to deposit money into multiple ISAs of the same type each tax year from April 2024. They will also be able to partially transfer money between providers.

Second, investors with an Innovative Finance ISA will be able to invest their money in a greater range of assets, including long-term asset funds and open-ended property funds with extended notice periods.

Other measures

National living wage

Hunt announced the largest increase to the UK’s national living wage. It will rise by 9.8% to £11.44 an hour. In addition, the new rate, which comes into force in April 2024, will be expanded to include 21- and 22-year-olds for the first time.

It’s estimated the increase will benefit almost 2.7 million people, with full-time workers earning the national living wage receiving a boost of more than £1,800 a year to their income.

Benefits uprated

In line with September 2023 inflation figures, Hunt announced an increase in benefits of 6.7%. He also added an increase to the Local Housing Allowance, providing 1.6 million households with an average of £800 of support next year.

A shake-up of the benefits system was also unveiled. Benefit claimants who fail to find work for more than 18 months will have to complete a work experience placement. Long-term unemployed who are deemed to be not adequately looking for jobs will also face stricter penalties.

Business rates discount to continue for another year

The 75% business rates discount for retail, hospitality and leisure firms has been extended for another year in a welcome boost for high street shops, pubs, and more.

The multiplier for small business premises is also frozen.

Freeze on alcohol duty

In further positive news for pubs, the chancellor announced a freeze on all alcohol duty until 1 August 2024.

Full expensing

Businesses will continue to benefit from full expensing. It allows firms to offset spending on plant and machinery against profits.

The measure was previously set to expire in March 2026 but has been made permanent.

Enterprise Investment Scheme and Venture Capital Trusts

To support early-stage, innovative companies, both the Enterprise Investment Scheme and Venture Capital Trusts, which provide a tax break to investors, have been extended to 2035.

Please note: All information is from the Autumn Statement 2023 document and the government’s Autumn Statement news bulletin.

The Winners

Young and low-paid staff

Although the news was released ahead of the main statement, the announcement confirmed a large-scale increase to the national living wage, bringing the hourly rate from £10.42 to £11.44 (an improvement of almost 10%). The new rates will come into effect from April 2024 and impact just under 3 million workers across the UK.  

Eligibility for the new rate will also expand to 21 and 22-year-olds from the first time: A 21-year-old will get a 12.4% increase, from £10.18 this year to £11.44 next year, worth almost £2,300 a year for a full-time worker. 

Additionally, the minimum wage for apprentices is also to rise considerably, from £5.28 to £6.40. This 21% increase is also set to take effect in April 2024.

Pensioners

The state pension will increase by 8.5%, in line with the triple-lock system. The move comes after rumours that he would opt for a slightly lower inflationary figure. However, the announcement delivers an increase to the State Pension, boosting it to £11,500.

Also announced was a consultation on a “pot for life” scheme. These proposed reforms will give workers the legal right to nominate a single pension scheme across their entire working career that employers pay into. The programme aims to end the difficulties of workers who, after moving jobs, accrue multiple, separate retirement funds, and sometimes lose access to pension entitlements.

This builds upon other recent work from Hunt’s Mansion House reforms to drive market innovation. The latest measures could provide an extra £1,000 for average earners saving from 18 and help combat the ongoing cost of living crisis.

Workers

27 million people in the UK will benefit from the National Insurance cuts announced today. The Government will reduce the headline rate of National Insurance from 12% (to 10% for employees. The cut will also be enforced from 6 January 2024 instead of the new financial year.

The 2% cut will be worth £760 a year to someone earning more than £50,000 — however, even a 2% cut multiplied across every worker paying National Insurance could cost the Government somewhere in the region of £10bn.

Growing businesses

The Chancellor again confirmed a £4.5bn fund to support the UK’s manufacturing sector. The package is aimed at eight sectors deemed “key to economic growth,” with the car industry in particular set to be one of the biggest beneficiaries, receiving around £2bn.

There was also a range of pro-investment measures, including a £1bn scheme to create 12 investment zones (similar but separate to Sunak’s freeports), and the indefinite extension of the Full Expensing system. Under the system, for every £1 of investment in IT, machinery and equipment, businesses can claim back 25p in corporation tax, making it one of the most generous capital allowances in the world.

Benefits claimants

Welfare benefits are set to rise by 6.7% under the 2023 Autumn statement, in line with the 6.9% inflation rate recorded in September, which equates to an extra £470 a year for the lowest-income households. Prior to today’s statement, it was thought the Government would use the October inflation rate of 4.6%, as this would mean a smaller benefits increase and therefore preserve approximately £2bn in funds. 

This news comes alongside further details of the Back To Work plan, designed to help over 1 million UK residents get off benefits and move into gainful employment. 

The hospitality industry

The Autumn Statement has promised a host of benefits for hospitality businesses in the coming year, specifically pubs and pubgoers. 

Alcohol duty will be frozen until August 2024, which means no increase in duty for beer, cider, wine or spirits. The Chancellor also confirmed the Government’s ‘Brexit pubs guarantee’, which ensures that pints poured in pubs and restaurants stay cheaper than alcohol bought in a supermarket.

Finally, Mr Hunt said he would extend the 75% discount on business rates up to £110,000 for another year. While this discount applies to retail and leisure businesses as well as the hospitality industry, the Chancellor specifically mentioned that the measures will save the average independent pub over £12,800 over the year.

The self-employed

Some of the most notable updates in the UK Autumn Statement were changes to self-employed National Insurance payments. Namely, abolishing Class 2 contributions which are currently compulsory along with a 1% reduction of Class 4 contributions from 9% to 8%.

When combined, Hunt said, “these reforms will save around two million self-employed people an average of £350 a year from April."

The Losers

Public services spending

Mr Hunt focused on the idea of a “more productive state, not a bigger state”. As such, the Chancellor gave targets rather than promises of investment: the public sector is tasked with increasing productivity growth by 0.5% per year. One measure to help achieve this is the reduction of the size of the Civil Service to pre-pandemic levels, as well as a review to see how “bureaucracy is holding [police, fire and ambulance services] back”.

Through these tactics, Mr Hunt hopes to keep the growth in public spending lower than the growth in the economy, while also protecting essential public services. 

Fossil fuel companies

Fossil fuel companies stand to lose out on the new subsidiaries offered by Mr Hunt. Of the £4.5 bn investment package to the UK manufacturing sector, £960 million is earmarked for clean energy.

With the funds set to become available in 2025, the fossil fuel industry will soon feel added pressure to transition away from carbon-intensive energy sources.

Long-term unemployed

The Chancellor also announced reforms to benefit entitlements. Specifically, if a claimant is still without employment after seeking a job for 18 months, they must undertake mandatory work placements "to increase their skills and improve their employability."

Continuing, Mr Hunt said that if they "choose not to engage with the work search process for six months, we will close their case and stop their benefits".

Smokers

The House also heard Hunt’s plan to increase hand-rolling tobacco duty an additional 10% above the existing tobacco duty escalator.

The move continues the Government’s work to support the long-term sustainability of the health service. Notably, the Prime Minister’s October announcement of a “smoke-free generation,” that has the potential to prevent up to 115,000 cases of strokes, heart disease, lung cancer and other lung diseases.

What’s Next?

The 2023 Autumn statement contained a variety of measures aimed at growing the economy, supporting business, and levelling up regions across the country. 

Yet, with changes set to affect both business and personal finances, it’s important to seek financial advice based on the economic changes laid out by the Statement. With National Insurance contributions changing along with billions in business support announced, there’s a lot to grapple with. What’s more, it can be difficult to understand how the Autumn Statement affects you without expert financial advice. 

So, if you want more information on how the Autumn Statement could affect your finances, don’t hesitate to get in touch.

The value of investments and any income from them can fall as well as rise, so you may not get back the original amount invested.

HM Revenue and Customs practice and the law relating to taxation are complex and subject to individual circumstances and changes which cannot be foreseen.

Approved by The Openwork Partnership on 22/11/2023

1. Act quickly

Time is crucial when dealing with financial scams. Take immediate action if you think you’ve been scammed to minimise any further damage. If you’ve shared personal information, contact your bank or building society right away to report the fraud and freeze your accounts to prevent further unauthorised transactions.

If scammers have posed as a person you trust, such as a family member or your financial adviser, it’s important to let them know in case their identity has been stolen. If the scam involved theft of your own identity, you may want to contact major credit reference agencies like Experian and Equifax to place a fraud alert on your credit report. This will make it harder for scammers to open new accounts in your name.

2. Gather evidence

Collect as much relevant documentation as you can to aid the recovery of stolen funds. This should include any emails, texts or other correspondence between you and the scammer, as well as any contracts, marketing materials or web addresses they sent to you. Be careful not to click on any suspicious links.

Make detailed records of any transactions or bank statements that show suspicious activity, and retain any fake invoices or payment requests the scammer sent you. Keep a close eye on the accounts you think may be compromised and record any further suspicious transactions.

3. Report the scam

Report the scam to the police, especially if your money has been stolen or if a scammer is threatening or harassing you. If you live in England or Wales, you can also report a scam to Action Fraud at www.actionfraud.police.uk or by calling 0300 123 2040. If the scam involved phishing or malware you can report it to the relevant online platform or service provider.

You should also tell your bank, building society or other financial institution about the scam so they can secure your accounts, reverse fraudulent transactions if possible, cooperate with the police and advise you on what to do next.

4. Seek support

The financial impact of scams is evident, but being the victim of fraud can take a serious toll on your mental health. Reaching out to family, friends or support groups such as Victim Support can help to alleviate distress and provide you with practical advice from people who have experienced similar situations.

You can also seek professional support. Financial advisers and lawyers can give you guidance on how to recover lost funds and deal with the aftermath of a scam. Many charities also offer free or low-cost services to scam victims.

5. Stay vigilant

Once you’ve addressed the immediate impacts of a financial scam it’s important to remain alert and protect yourself from future scams. Fraudsters are increasingly engaging in repeat scamming, stealing money from victims using one method before returning in the guise of an organisation offering to recover lost funds for a one-time fee.

Educate yourself on common fraud tactics and adopt good security practices, such as using strong, unique passwords and regularly monitoring your accounts. Be cautious when sharing personal information and verify the legitimacy of offers or payment requests.

Recovering from a financial scam is challenging but it is possible. Acting quickly, gathering evidence and reporting the scam to the police and your financial institutions gives you the greatest chance of recovering lost funds and preventing future attempts. Seeking support can help you overcome the impact of a scam on your emotional well-being and help you better protect yourself in the future.

Contact the police if you think you’ve been the victim of a financial scam. You can also forward suspicious emails to report@phishing.gov.uk and forward suspicious text messages to 7726 for free.

For more information about financial scams visit www.actionfraud.police.uk. If you’re in England or Wales, you can also report fraud or cybercrime to Action Fraud on their website or by calling 0300 123 2040.

If you've ever felt like you don't quite fit the conventional mould when it comes to securing a mortgage, you're not alone. In fact, more and more people are in the same boat, challenging the standard lending rules.

If you’re self-employed, had a credit blip or over 50 you may have encountered challenges when applying for a mortgage because traditional mortgages don't always cater to everyone's needs. Luckily, there are specialist mortgage products designed just for people like you and we can help.

Self-Employed?

Do you feel like you have to jump through more hoops when applying for a mortgage just because you’re self-employed?

We understand the complexities of self-employed finances and can help you find the right mortgage product tailored to your needs.

Whether you're a sole trader, in a partnership, a company director, or a contractor, we'll guide you through the process and help you gather the necessary documents to prove your income.

Dealing with a Credit Blip?

Don't let past credit issues hold you back from getting a mortgage.

We have access to specialist lenders who work with people with varying credit histories.

Whether you've had late payments, past debts, or no credit history at all, we'll help you explore your options and find a mortgage solution that works for you. We understand that life circumstances can impact credit, and we're here to help you.

Over 50 and Need a Mortgage?

Getting a mortgage in your 50s and beyond used to be a challenge, but things have changed!

With access to a wide range of mortgage products, including those with age-friendly terms, we'll guide you through the process and ensure you find a mortgage that fits your needs.

Whether you're looking to downsize, renovate your home, or explore new living arrangements, we'll help you find the right mortgage solution for this exciting chapter of your life.

How we can help you? 

We offer personalised guidance tailored to your unique circumstances and can help you if your financial situation, age, or employment status don't fit the traditional mortgage mould. Together, we can explore the options available to you.

Call on 020 3909 6301 or drop them an email on  info@kalonfinancial.com

Approved by The Openwork Partnership on 08/05/2024.

Do you feel like you have to jump through more hoops when applying for a mortgage just because you’re self-employed? And not sure which way to turn?

We’re here to help. We are mortgage advisers and we can help you navigate the self-employed mortgage market and any of the challenges you may face.

What is a self-employed mortgage?

There isn't a specific product called a self-employed mortgage, you will be applying for the same mortgages as those who are employed. The key difference is that lenders look at self-employed earnings differently and have lending criteria that considers borrowers that do not have an employer to back up their earnings.

So, when it comes to applying for a mortgage, you will need to prove your income will cover your monthly mortgage payments.

How do I prove my self-employed income?

The documents lenders require as proof of income will depend on how you run your business and will be different for sole traders, partnerships, limited company directors and contractors. These proof of income documents could include SA302 forms, tax returns, business accounts, and bank statements.

You will usually be required to provide at least two to three years of business accounts and bank statements to prove that you have been earning consistently for some time. But if you haven’t, don’t feel you’re automatically written off, even if you’ve only been trading for a year - it’s possible we can source a mortgage for you.

Seeking advice is a good thing

If you’re self-employed, it makes sense to get a helping hand from a mortgage adviser.

We’ll help you compile all the documents you need and help you access a wide range of mortgages including those that are only available from specialists - who may offer more flexible options. An expert in your corner can find a solution that’s completely tailored to your needs.

Ready to get started? Speak to an expert self-employed adviser today.

Call on 020 3909 6301 or drop them an email on info@kalonfinancial.com

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

Approved by The Openwork Partnership on 15/04/2024.

The cost-of-living crisis and inflationary pressures has put pressure on people’s finances and made it harder for people to get on the housing ladder due to affordability constraints and more people having a less than perfect credit history.

How important is your credit history for mortgage lenders?

Looking into your credit history is one of the ways in which a mortgage lender will gain information on how reliable you have been at paying back debts and loans in the past. A mortgage lender needs to be confident that you’ll be able to keep up with your repayments across the whole lifetime of the loan.

What if your credit history isn’t perfect?

Don’t worry, if your credit history isn’t perfect, you're not alone! Many people experience minor setbacks in their credit history at some point.Such as missing a credit card payment, neglecting to pay utility bills on time, or going into an unarranged overdraft. These types of “credit blips” can leave a mark on your credit history but this doesn’t mean you aren’t eligible for a mortgage.

Specialist mortgage support

An expert adviser can assess your financial situation, including your credit history, guide you through the application process and increase your chances of getting approved for a mortgage by finding the most suitable mortgage deal for your circumstances.

We have access to lenders who specialise in working with people with varying credit, whether you've had late payments, past debts, or no credit history at all, there are options available for you.

Don’t let a credit blip throw you off track! Get in touch today.

Call on 020 3909 6301 or drop them an email on info@kalonfinancial.com

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

Approved by The Openwork Partnership on 08/04/2024.

Getting a mortgage in your 50s and beyond used to be a challenge, but things have changed! Nowadays, mortgage lenders are more willing to help older applicants buy homes or refinance. So, if you're thinking about getting a mortgage later in life, here's what you need to know.

Age limits and what lenders look for
Let's start with age limits. Lenders usually have their own rules about how old you can be when your mortgage needs to be repaid. It varies, but usually, you'll see age limits ranging from 70 to 85 years old, sometimes even up to 95 years old! But whatever your age, you've got to show the lender that you can manage the monthly payments for the entire term of the loan.

Getting a mortgage after retirement
Think you can't get a mortgage once you've retired? Think again! As long as you can show the mortgage lender that you've got the income to handle the monthly mortgage payments and you fit their age criteria, you're good to go. Plus, if you own your home outright or have substantial savings, you've got even more options.

Why you might want a mortgage now
Why would you want to take out a mortgage when you're over 50? Well, there are plenty of reasons:

• Life Happens: Divorce, separation, or becoming a widow might mean you need a new place to call home.
• Accessing funds: Home renovations, repaying existing debts, or helping your kids get onto the property ladder may be things you’re thinking about.
• Downsizing: Maybe the kids have flown the nest, and you want a cosier home.
• Expanding or Moving: Feeling the itch for something new? You may be looking to buy a bigger home or explore a new location.
• Investing in property: You may be looking to get into the landlord business or buy a holiday home.

Expert Guidance
Our expert advisers provide access to a wide range of options including those that aren't always found on the high street. Securing a mortgage in your 50s and beyond may seem a bit daunting at first but with the right guidance and approach it's entirely doable.

Call on 020 3909 6301 or drop them an email on info@kalonfinancial.com

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

Some Buy to Let mortgages are not regulated by the Financial Conduct Authority. 

Approved by The Openwork Partnership on 23/04/20224.

The information a lender finds during a credit check is important – it could affect whether you’re able to borrow money, including through a mortgage, and the interest rate you’re offered. Yet, they can also seem perplexing.

Indeed, a Royal London survey found that a third of Brits had never looked at their credit report.

The good news is that we can help you cut through the jargon, so you feel more confident next time you apply for a loan.

Lenders usually carry out a credit check to assess how much risk you pose

Lenders carry out a credit check by looking at your credit report to understand how financially stable and reliable you are. Your credit report includes:

• Personal details, such as your name and address
• Borrowing and payment history
• Current borrowing and credit limits
• Details of people you’re financially linked to, like your partner.

If their check indicates that you are more likely to default on repayments, a lender may offer you a higher interest rate, which would affect your repayments and the total cost of borrowing, or even reject your application.

Hard v soft credit check

Two different types of credit searches can be carried out – a hard or soft credit check.

A soft credit check happens when you review your credit report or a lender checks to see if you’re eligible for certain offers. A soft credit check doesn’t show up on your report.

A hard credit check is usually carried out when you’ve made a finance application, such as a credit card or mortgage, and the lender wants to take an in-depth look at your report.

Hard credit checks may be noted on your credit report for up to two years and will be visible to other lenders.

Several hard credit checks in a short space of time may affect your ability to borrow as it could indicate you’re struggling to manage your finances. As a result, taking the time to understand which lenders are suitable for your needs could be useful as it may reduce the number of hard credit checks that are carried out.

A hard credit check can only be performed with your permission.

Don’t worry if you’re unsure about the two different types of credit searches and what they mean to you, we’re on hand to talk you through it all.

6 useful steps you could take to improve the outcome of a credit check

By reviewing your credit report and score before applying for credit, you may have a chance to improve how lenders view you. Here are six steps you may be able to take.

1. Search your credit report for any mistakes and contact the provider to fix them
2. Register on the electoral register to demonstrate stability
3. Reduce your outstanding credit
4. Pay more than the minimum payment on a loan or credit card
5. Avoid late payments by automating bills
6. Be careful about applying for new forms of credit.

Speak to your adviser if you have any questions

If you have any questions about your credit report or are worried about what it means for your future, including the ability to secure a mortgage, please don’t worry. You can contact 020 3909 6301 or drop us an email on info@kalonfinancial.com to discuss your concerns and plans.

Approved by The Openwork Partnership on 20/12/2023.

30 Oct 2024

On 30 October 2024, Chancellor of the Exchequer Rachel Reeves unveiled the Government’s fiscal plans to raise up to £40bn for public finances over the next five years.

The measures aim to “restore economic stability” and put “more pounds in people’s pockets”, according to the Chancellor, who added that she believed the only way to drive economic growth is to “invest, invest, invest”.

We’ve created a range of resources for you to use in conversations with your clients. You can access these on Smart Hub by clicking the buttons below.

Investment commitments

How individuals will benefit

Minimum wage

• The National Living Wage paid to over-21s will go up by 6.7% in April 2025 to £12.21, while the National Minimum Wage for 18 to 20-year-olds will see a 16.3% increase to £10.
• Apprentices will get the biggest pay bump, with hourly pay increasing from £6.40 to £7.55.

Bus fare cap

• The single bus fare cap applied to many routes in England will be raised to £3.
• It is an increase on the current limit of £2, which was introduced under the previous Conservative government and was due to expire in December.

State pension

• The state pension will rise by 4.1% to match the average earnings element of the triple lock. This means that next year's full new state pension is set to reach £11,975.60 annually, an increase of £473.

Fuel duty

• There will be a freeze on fuel duty in 2025 and the Chancellor has promised she will maintain the existing 5p cut for another year too.

Carer’s allowance tax

• Carers' allowance will increase from £81.90 per week to the equivalent of 16 hours at the National Living Wage per week. This allows carers to now earn over £10,000 a year whilst receiving the allowance.

Alcohol

• The duty rates on draught alcohol will be cut by 1.7%. Alcohol duty rates on non-draught products will increase in line with RPI from February next year.

How businesses and industries benefit

NHS

The Government are creating a 10 year plan in the Spring to enable a 2% productivity increase.

There will be £22.6bn increase in the operation budget, plus a £3.1bn increase to the capital budget which will fund repairs to buildings, new beds in hospitals, capacity for new diagnostics and other measures designed to bring waiting lists down to no longer than 18 weeks.

£6.7bn for the Department of Education in 2025

• A range of commitments aimed at giving every child the best start in life, supporting disadvantaged children, and investing in further education.
• Measures include increasing per pupil funding in real terms, funding towards supporting the special educational needs and disabilities (SEND) system and the continued expansion of government funded childcare. The rollout of free breakfast clubs in thousands of primary schools, this will also help parents stay in and return to work.

Electric Vehicles

• The Government is strengthening incentives to purchase electric vehicles (EVs) by widening the differentials in Vehicle Excise Duty First Year Rates between EVs and hybrids or internal combustion engine cars. The government is also maintaining EV incentives in the Company Car Tax regime and extending 100% First Year Allowances for zero emission cars and EV chargepoints for a further year.

40% relief for the Retail and Hospitality industries

• The government intends to introduce permanently lower business rates multipliers for high street retail, hospitality and leisure properties (RHL) from 2026-27. The small business multiplier will be also frozen.

Strategy defence review

• The defence budget will grow ensuring the UK comfortably exceeds the NATO spending target of 2% of GDP. The UK will modernise the Armed Forces through the nuclear deterrent, combat and surveillance aircraft, surface and submarine fleets, forward land forces, Special Forces and cyber and space capabilities. There will also be continued support to Ukraine, committing £3 billion per year for as long as it takes. Finally, commitment to fund commemorations in 2025 to remember those who gave their lives and honour those who served at home and abroad.

Local government increases

• The government is committed to returning to sustainability through a comprehensive set of measures to support local authorities in England, including increasing core spending power by around 3.2% in real terms in 2025-26, with £1.3 billion of new grant funding including at least £600 million new grant funding for social care.
• Investing in children’s services to put them on a sustainable trajectory, with a £1 billion uplift for SEND and alternative provision funding enables the Government’s ambition to reform the system. £233 million of additional spending in 2025-26 to prevent homelessness will help to prevent rises in the number of families in temporary accommodation and help to prevent rough sleeping.

More funding for devolved governments

• The devolved governments will receive £6.6 billion which includes £3.4 billion for the Scottish Government, £1.7 billion for the Welsh Government and £1.5 billion for the Northern Ireland Executive. This will enable critical investment into schools, housing, health and social care, and transport across Scotland, Wales and Northern Ireland.
• Additionally, the Government is providing the Welsh Government with £25 million to support essential work to keep disused coal tips maintained and safe. In Northern Ireland, the government is also providing £730,000 to support schools as they work towards integrated status, and a further £45.8 million for the Police Service of Northern Ireland’s Additional Security Fund and the Executive Programme on Paramilitarism and Organised Crime.

Long-term funding for growth-driving sectors

• £975 million for the aerospace sector over 5 years, over £2 billion over 5 years to support the automotive sector, and up to £520 million for a new Life Sciences Innovative Manufacturing Fund as part of the Industrial Strategy.

Taxation and generating income from individuals

Capital Gains Tax

• The lower rate of Capital Gains Tax will rise from 10% to 18%, and the higher rate from 20% to 24%.
• The rates on residential property will remain at 18% and 24%.
• Rates on carried interest will increase to 32% from April 2025.

Non-domicile tax status

• Abolition of non-domicile status from April 2025 and introduction of a residence-based regime.
• Individuals who opt-in to the regime will not pay UK tax on foreign income and gains (FIG) for the first four years of tax residence.
• The new residence based system for Inheritance Tax (IHT) will end the use of offshore trusts to shelter assets from IHT, and scrap the planned 50% reduction in foreign income subject to tax in the first year of the new regime.

Inheritance Tax

• Inheritance Tax threshold freeze extended to 2030.
• The government will reform agricultural property relief and business property relief from April 2026. In addition to existing nil-rate bands and exemptions, the 100% rate of relief will continue for the first £1 million of combined agricultural and business assets to help protect family farms and businesses, and will be 50% thereafter.
• The government will also reduce the rate of business property relief to 50% in all circumstances for shares designated as “not listed” on the markets of a recognised stock exchange.
• From April 2026, the first £1m of combined business and agricultural assets will continue to attract no inheritance tax at all, but for assets over £1m, inheritance tax will apply with 50% relief, at an effective rate of 20%.
• The government is removing the opportunity for individuals to use pensions as a vehicle for inheritance tax planning by bringing unspent pots into the scope of inheritance tax from April 2027.
• The government will invest £52 million to digitalise the inheritance tax service from 2027-28 to provide a modern, easy-to-use system, making returns and paying tax simpler and quicker

VAT on private schools

• VAT will be added to private school fees from 1 January 2025.
• Eligibility of private schools for charitable rate relief will be removed from April 2025.

Housing - Stamp duty second homes

• Increase to Stamp Duty land surcharge for second homes by 2% to 5% from tomorrow.

Tobacco and Vaping

• Tobacco taxes will rise by the Retail Price Index (RPI) measure of inflation as well as 2%.
• Hand-rolling tobacco duty will increase by 10%
• A new flat-rate duty on all vaping liquid from 2026

Air passenger duty

• Increase of no more than £2 for an economy-class short-haul flights.
• Increase on private jets by 50% - equivalent to £450 per passenger for a private jet.

Generating income from businesses and industries

Energy windfall tax

• Windfall tax will increase on oil and gas profits to 38% from 35% on 1 November and will now expire in March 2030.
• 29% investment allowance will be removed to ensure oil and gas industry can protect jobs and support the UK's energy security.

Employer NI contribution

• National Insurance contributions will rise from 13.8% to 15% from April 2025.
• Threshold at which businesses start paying National Insurance on a workers' earnings will be lowered from £9,100 to £5,000.
• The Employment Allowance will increase from £5,000 to £10,500 to help smaller businesses.

That’s where financial advisers come in. It’s their job to break down complex changes and explain how they affect your specific circumstances. They can help you avoid pitfalls and optimise your financial plan to achieve the outcomes you want.

Day-to-day financial advice for everyone

Most people think about getting advice when they have a specific goal or a big financial decision to make, like deciding what to do with a large lump sum. Financial advisers can certainly help with these major events, but they can also give advice on most other aspects of your financial life. That might include:

Effectively managing your monthly expenses.
Finding tax-efficient ways to use your money.
Identifying financial products (like insurance policies) that suit your needs.
Help you set goals for your financial future.
Increasing your financial resilience.
Keeping your assets safe for future generations.
When times get tough, this day-to-day advice can help ensure your long-term goals don’t get overshadowed by short-term pressures.

The value of a tailored approach

No two people are the same, and neither are their financial needs. What works for one person may not be suitable for another, especially in uncertain times, so the tailored approach offered by a financial adviser can be crucial for weathering major changes. They get to know your circumstances and goals, adjusting their advice based on both the market and your specific needs.

It can be especially scary if big changes are looming and you don’t know how they might affect you or your family. A financial adviser can explain the potential impacts of changes in the market or your circumstances, reassure you if you’re worried, and support you in conversations about money with your loved ones. Ultimately, they can use their knowledge of the market and financial products to help you make the right decisions for your money.

Most importantly, a financial adviser can be a trusted confidante. They’re experts in their field who can help you make the most of your finances, but they’re also dedicated to giving you peace of mind. It’s easy to get bogged down in the facts and figures, but financial advice isn’t just about numbers; it’s about giving you security and confidence.

Let's face the future together

Every day we help thousands of people create a secure financial future. Our advisers can help you understand your finances and navigate any uncertainties. Because for us, financial advice isn’t just about creating great outcomes. It’s about helping you face the future with confidence.

The value of investments and any income from them can fall as well as rise and you may not get back the original amount invested.

Approved by The Openwork Partnership on 16/10/2024.

Why mortgage rates don’t always drop when the base rate does?

The Bank of England’s Monetary Policy Committee (MPC) is the group responsible for setting the bank base rate (BBR). This interest rate influences the cost of borrowing for banks and the rates they offer on loans, mortgages and savings, all with the ultimate aim of helping to control inflation.

When the committee meets roughly every six weeks, all eyes are on its decision. Based on a large number of factors in the UK economy and also abroad, the MPC will decide whether to raise, hold or cut the base rate.

You may expect a cut to the base rate to mean an instant cut to mortgage rates - however, this isn’t always the case. In reality, the base rate is just one component that influences the mortgage rates offered by a lender.

Swap rates

Another factor is something called swap rates – the rate lenders pay to access money to lend. Think of these like the stock exchange - they fluctuate all the time depending on economic conditions, global factors, market expectations and sentiment. If swap rates increase, then so does the cost for lenders to lend money.

When the economy is stable and inflation is on track, a decision to cut the base rate can cause swap rates to fall and almost instantly bring mortgage rates down. However, if swap rates become unsettled by economic events, future expectations for inflation or challenges abroad, a cut to the base rate may not be enough to calm swap rates, causing the cost for lenders to borrow money to increase.

We have seen this recently following the Chancellor’s Budget. The big policy announcements made by the Chancellor, along with concerns in the Middle East and uncertainty around the implications of the US Presidential race, unsettled swap rates and caused them to rise. Even with the positive news from the MPC to cut the base rate, it wasn’t enough to stop fixed rate mortgages increasing.

What about trackers or SVR?

It’s important to note that this swap rates something that mainly impacts fixed rate mortgages. A cut to the base rate will be felt almost immediately by those who are on a tracker mortgage – a flexible rate that follows the bank base rate – or if you are on a lender’s standard variable rate (SVR) – a changeable rate set by the lender typically after your fixed rate comes to an end.

This is only a minority of borrowers though, as according to UK Finance, 74% of homeowner mortgages are on a fixed rate contract, with 94% of new borrowers choosing this since 2019.

Supply and demand

Alongside swap rates, supply and demand is another factor that can cause mortgage rates not to drop if the base rate is cut. It may seem advantageous for one lender to offer a lower rate than their competition. However, if a rate is too competitive following a rise in swap rates, they may become overrun with new business enquiries and unable to cope with the demand.

In this instance, we may see some lenders decide to follow the herd and reprice their products, bringing them closer in line with their competition.

Separately, it is important to note that lenders have many internal factors that will decide whether they raise or reduce mortgage rates. This can include their own lending targets and future pipeline, competitor pricing and overall service levels, irrespective of swap rates or the bank base rate.

Get advice today

Understanding the factors that can contribute to mortgage pricing can be important in helping you make the right decision. While this can be confusing, with lots of factors contributing to the rates on offer, mortgage and protection advisers can offer plenty of knowledge, support and access to lots of lenders for those looking to navigate the market.

Whether you’re looking to apply for a mortgage, you are soon due to remortgage or you are just looking for some advice, we can help you find the right solution.

To book your appointment, please call Kalon Financial on 020 3909 6301 or email info@kalonfinancial.com.

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.

Approved by The Openwork Partnership on 27/11/2024.