If you were born after the 5th of April 1951 (for men) or 1953 (for women), you will receive what is being called the “new state pension” as opposed to the old one.  Any contributions you made under the old scheme will be transferred to the new one and treated under its rules.  Here are five key points about it. The “additional state pension” has been abolished Under the old system, your state pension entitlement was based on a combination of your national insurance contributions (basic state pension) and your earnings during your working life (additional state pension), unless you chose to opt out of paying the earnings-related contribution, for example, to put extra money towards a workplace pension scheme.  The new state pension is based purely on national insurance contributions and, going forward, only a person’s individual contributions will be counted, but during the introductory period, women who paid reduced national insurance contributions, sometimes known as the “married women’s stamp”, might be able to improve their own state pension by claiming on their partner’s contributions. The name “flat rate pension” is a bit of a misnomer The full state pension will only be given to those with (at least) 35 years’ of qualifying contributions.  You need a minimum of ten years’ of qualifying contributions to receive any state pension at all and if you have at least ten years of qualifying contributions but few than 35 years’ worth of qualifying contributions, then the level of state pension you will receive will be in proportion to your level of contributions. Any existing pension contributions will be respected Your existing pensions contributions will have been converted into a “starting amount”.  If this is exactly equal to what you require to claim the full new state pension then you will receive the full amount, but will be stopped from building up any further entitlement.  If you already have more than you would have received under the new system, for example, you have been paying into the additional state pension, then this will be respected, but again, you will be stopped from building up any further entitlement, if you have less, then you will receive less but you will have the opportunity to build up further entitlement, even if you already have 35 years’ of contributions.  For example, if you were “contracted out” of the additional pension for an extended period but now want to make up the difference to improve your entitlement, you will be able to do so. Deferment is still possible, but is worth less Under the new system, each year you defer taking your state pension will earn you an increase in payments of 5.8%, which is almost half of the 10.4% offered by the old system. It’s still often a good idea to make your own plans At current time the full new state pension is £159.55 per week.  This is, obviously, better than nothing and may be enough on which to live comfortably if you have paid off your mortgage and are based in one of the more affordable parts of the country.  At the same time, however, it’s unlikely to be the sort of income on which dream retirements are built.  It’s also worth remembering that during a lengthy retirement period, inflation may well raise the cost of living, but it is entirely up to the government whether or not the state pension is increased and, if so, to what extent.  For example, during the last election, the Conservatives conspicuously declined to renew their “triple-lock guarantee” (that pensions would raise by the highest of inflation, average earnings or 2.5%).  Because of this, it can be very advantageous to make your own plans to fund your retirement and to view the state pension as a handy top-up rather than a mainstay of them.

Arguably the most significant difference between childhood and adulthood is that as adults, the default assumption in most cases is that we have the ability and the authority to take our own decisions about how we want to live our lives.  We also have responsibility for dealing with the consequences of them.  There are times, however, when we’re unable to act for ourselves and it is strongly recommended to think about those times and what we should do about them. Wills While it is theoretically possible to use any one of a number of channels to communicate your wishes with regard to what you would like to happen to your estate after your death, a legally-valid will is by far the most strongly recommended.  Quite simply a well-drafted will makes it clear who should receive what and how (for example directly or via a trust).  The drafting of a will can also be a helpful part of the process of succession planning, in other words, making sure that you leave as much as possible to the people and causes of your choice, rather than HMRC. Powers of attorney While the principle of delegation has probably been around for as long as humanity, the importance of appointing a delegate to act on your behalf if you become incapacitated has grown significantly over recent years as lifespans have extended and lifestyles have changed.  At current time, there are three, legally-recognized, ways of granting someone the authority to make decisions and take actions on your behalf, in the event that you are unable to do so. Ordinary power of attorney is used when an individual only requires temporary assistance, for example during a period of ill health from which they are expected to recover. Enduring power of attorney was used up until 1st October 2007, at which point they were replaced by lasting power of attorney.  Basically enduring power of attorney works in much the same way as a property and financial affairs lasting power of attorney. Lasting power of attorney replaced enduring power of attorney and it comes in two forms: health and welfare LPA and property and financial affairs LPA.  The former empowers your representatives to take decisions regarding your health and wellbeing if you become unable to do so.  The latter allows them to take decisions relating to your money and your property, up to and including selling your home.  Unlike the health and welfare LPA, a property and financial affairs LPA can be used straight away, even while you are still capable of managing other matters – but only with your consent. Making a power of attorney work for you There are basically two aspects to making any kind of power of attorney work for you.  One is getting the right attorney (or attorney’s) and the other is given them clear guidance as to your wishes.  When considering the former, as well as thinking about how well you know a person, how much you trust them and to what extent you have confidence in their judgement, it’s also a good idea to think about how much time they would have available if you needed them.  When considering the latter, think about how you can give them clear guidance so that they are in a position to act as you would have wished, even if they have to take decisions quickly.  Unless they have a clear indication of your wishes and expectations, there is a very good chance that they will end up taking decisions based on what they themselves would have wanted in that situation, which may be very different from what you want.  Hence, as is so often the case in life, communication is crucial. For will writing we act as introducers only.

A quick internet search on the term “DIY” will bring up countless results ranging from making your own gifts, to customising shop-bought products, to traditional home-improvement jobs.  These last are often the source of comedy gold (think of the programme Home Improvement), but they can have serious consequences if they go wrong.  Here are five points to consider before you decide whether or not to go down the DIY route or call in the professionals. Is it legal/OK with your insurer? There are certain jobs, typically anything involving electric, which must be undertaken by a qualified professional in order to be in compliance with the law.  Even if it is legal for you to undertake a job, your insurer may require it to be completed by a professional in order for your to be covered. What is the potential risk? All jobs carry some element of risk, for example, even something as basic as painting could result in a tin of paint being overturned on a floor or path and if you are working with ladders there is even more risk.  Jobs which involve power tools can result in a lot of damage if they go wrong and if your task relates to anything structural, then you could literally bring the house down (or at least a part of it). Do I have adequate insurance cover? You probably have home contents insurance, but accident-related damage often requires extra cover, either as an add-on to an existing home-contents policy or as a stand-alone purchase.  Even if you are an experienced DIYer, jobs can go wrong, in fact, even if you are a professional, jobs can go wrong, which is why reputable professionals tend to have insurance.  It would be a bit ironic if you opted, for example, to save money by painting a room yourself, only to have to replace an expensive carpet on which you had spilled paint. Do I realistically have the skills and tools to do this job? As a rough rule of thumb, one effective way to get a ballpark feel for this is to look at the list of tools and materials required for the job and ask yourself whether you have them (or at least have easy access to them) and, if so, whether you really feel comfortable using them.  If the answers to these questions are yes and yes, then have a look at the instruction and, again, ask yourself realistically, how you feel about following them.  When considering this question, look carefully to see if the instructions apply to all situations, for example, assembling a piece of flat-pack furniture, or if there are parts in which you need to apply your own judgement, such as compensating for an uneven floor or wall.  Also check any assumptions, such as that plumbing is already in place and double-check for yourself that they actually apply in your, personal, situation. What do I value more, my time or my money? If you’ve come to the conclusion that you’re capable of doing the job, then the final question is whether or not doing the job is really worth your, personal, time.  If you think you’d enjoy it, then that’s a clear sign to do it yourself.  If, however, you’re simply prepared to do the job because you think it would save you money, then it’s time to think carefully about how much money you could realistically expect to save and what that would mean in practical terms.  To reiterate one of the previous points, your figures should take into account the cost of taking out appropriate accident cover, unless you already have it.

The days of 100% mortgages are unlikely to return any time soon.  Quite the opposite, in the current climate, it’s a case of “the bigger the better”, where deposits are concerned.  While it may be the purchaser who hands over the deposit, many first-time buyers are turning to the bank of mum and dad for help to get on the housing ladder.  This, however, impacts on the financial health of the parents in question.  With this in mind, here are three points to consider on the topic. Set expectations early Ideally parents should start teaching their children about the importance of managing money as soon as the latter are old enough to grasp the basic concepts of it.  As they grow, involving them in the management of the family finances, as far as reasonably possible, will both help them to learn the skills they’ll need themselves in later life and help them to gain an appreciation of what is within their parents’ means – and what isn’t.  Clear communication should go a long way to stop children making plans based on unrealistic expectations of what their parents can do for them. Start saving early The pre-school years can be very expensive, but once children reach school age, costs can often become more manageable, which gives parents about 11 to 13 years to prepare for when their child leaves school.  This money may well be needed to help them through university or to help with the practicalities of entering the world of work, for example if they need a car to reach their place of employment, but having it ready can go a long way to avoid overloading the family finances at what can be a very expensive time and can therefore make it easier for parents to start saving again for their children’s next major milestones in life, such as marriage, getting on the housing ladder and having children, which are often closely connected.  While it might sound great, in theory, to give a financial gift to your children as a surprise, in reality, it is likely to be better practice to make them aware of what you are doing and why and, crucially, what they can expect in what timescales.  Basically this relates to the previous point about setting realistic expectations. Take tax into consideration every step of the way When your children are born, it’s worth taking some time to think about the advantages and disadvantages of opening a Junior ISA for them.  The obvious advantage is its tax-efficiency.  The potential disadvantages is that once the money has been deposited, it’s locked away until the child turns 18 and once they do turn 18, the money is theirs completely to use as they wish, whereas you might prefer to have some degree of control over how it is spent.  As soon as your child turns 16, they become eligible to open a cash ISA in their own name, which they can hold at the same time as their Junior ISA, giving a two-year period in which meaningful tax gains can be made.  Once they are adults, if the family is still working largely as a single unit, from a financial perspective, then it may be worth parents and other older relatives considering giving the younger adults gifts to put into an ISA wrapper, on the understanding that, unless otherwise agreed, the money is to be kept for major events and purchases (such as weddings and buying a home).  This has the advantage of providing tax-efficient savings, which may go some way to compensating for the fact that interest rates are currently very low.

For many people a mortgage is one of the biggest financial commitments they will ever make, which is why it’s so important to choose the right product for your, personal situation.  At this point in time, it’s very hard to find interest-only mortgages for residential properties (although they are still available in the buy-to-let sector), which means that for practical purposes, your choice of mortgage boils down to a tracker mortgage, an offset mortgage or a fixed-rate mortgage. Tracker mortgages Tracker mortgages are pegged to the base rate set by the Bank of England and hence rise and fall in line with the decisions taken by the Monetary Policy Committee.  While this means that borrowers benefit from any reductions to the base rate, it also means that the responsibility for absorbing any increases lies with the borrower rather than the lender.  From a lender’s perspective, this makes tracker mortgages less risky than fixed-rate mortgages and hence they can offer them at a more affordable rate. Offset mortgages Offset mortgages are a relatively new product in the UK and the basic idea behind them is that the borrower treats their mortgage rather like a current account with a huge overdraft facility.  By transferring their savings into the mortgage product borrowers reduce the balance of the loan and hence the amount of interest payable.  If need be, however, they can still access their money.  Given that interest rates paid to savers are typically lower than those charged to borrowers, the question of whether or not these mortgages are right for any given borrower usually relates less to interest rates themselves and more to whether or not such products fit in with a borrower’s overall financial plan. Fixed-rate mortgages Both the Mortgage Market Review and the recent review of buy to let mortgages undertaken by the Prudential Regulation Authority emphasised the need for lenders to examine how potential borrowers would cope in the event of interest-rate rises.  The reason for this is obvious.  At this point in time, interest rates are so low that there is far more scope for them to go up than for them to go down.  Borrowers who are also thinking about this possibility might be tempted to take out a fixed-rate mortgage now so that they have confidence about what their repayments will be over the coming years.  While this may be an astute move in some cases, there are a few points to consider. Fixed-term mortgages tend to be more expensive than tracker mortgages.  In theory, interest rates can go up infinitely and if you have a fixed-rate mortgage, it’s the lender who has to absorb the cost of this, so while fixing your payments can bring a level of certainty and a feeling of security, this can come at a price. Longer-term fixed-rate mortgages tend to be particularly expensive.  This fact is a corollary of the previous point.  Basically, fixed-rate mortgages are a combination of a loan and an insurance policy.  The longer the term of the policy, the more the lender is exposed to the risk of interest-rate rises and hence the higher the price of the cover. Exiting a fixed-rate mortgage early can lead to penalties Admittedly exiting any form of loan earlier than the lender expected can lead to penalties, particularly if the borrower is offered some kind of introductory deal, the cost of which needs to be recouped by the lender over the lifetime of the product, but given that the nature of fixed-rate mortgages is such that they are likely to attract people looking for a guarantee of stability, we feel it’s important to emphasise this point.  If borrowers are looking to fix their rate because they are concerned that they may be about to enter choppy financial waters, then it may be best to seek professional advice now to look at what options are open to you, rather than assuming that a fixed-rate mortgage will resolve the issues you may face.

Death itself is fairly straightforward for the deceased, it can, however, be both complicated and distressing for those left behind, even when the death involves an elderly person dying quietly in their sleep.  The life of those left behind can be made much simpler by some judicious planning.  Here are 7 points to consider. Minimise your tax liability Managing personal income and assets in later life is essentially a balancing act between making sure you have enough to take care of your present needs while doing what you can to reduce the value of your estate for tax purposes.  Good financial advice can easily pay for itself here. Make a will In times of stress, such as after a bereavement, people generally appreciate clear and straightforward instructions.  A well-written will spares your loved ones the complication and confusion of trying to work out what was intended to be left to whom. Take out life insurance and place it in a trust Even when your estate should be more than sufficient to take care of your beneficiaries over the long term, life insurance can still have a valuable role to play.  There are two main reasons for this, both of which relate to the fact that placing a life insurance policy within a trust wrapper essentially ring-fences it from the rest of your estate. Payments can be made before probate is complete The law does allow for certain payments to be made out of a deceased’s estate before probate is complete, for example, funeral payments, but for the most part HMRC gets their share before anyone else.  Given that, however sympathetic companies may be, they usually still want their bills paid on time, it can be extremely helpful to have the proceeds of a life insurance policy to tide them over during the process of probate (which can be extremely lengthy). Payments are excluded from inheritance tax calculations Inheritance tax is based on the value of a person’s estate and, as previously mentioned, putting a life insurance policy into trust ring-fences it from the estate and hence from the calculation of the estate’s value.  This can be particularly helpful as a means of passing on legacies to people other than legally-recognised partners as it preserves the IHT-free allowance.  It should also be noted that at this time only spouses and civil partners can receive assets from a deceased person without any IHT being payable at the time (assuming that the estate is large enough to be liable for IHT).  For couples in alternative, committed relationships, inheritance planning takes on a whole new level of importance. As an added benefit, trusts can permit both control and flexibility If you simply make a bequest to someone in your will, then it is entirely up to them what they do with it.  In many cases, particularly when dealing with competent adults, this is entirely desirable.  In some cases, however, especially when dealing with more vulnerable people such as children or even younger adults, it may be preferable for the donor to exercise some degree of control over how their legacy is used.  A trust can be written in such a way that it is subject to supervision by a responsible party, who can either act on the beneficiary’s behalf or guide them as to the best course of action.  If so wished, the level of supervision can be reduced over time before being withdrawn completely. A final point on trusts Trusts can be extremely useful, but need to be set up correctly to be both fully effective and fully legal.  Because of this, it is strongly recommended to seek professional advice when setting one up. The Financial Conduct Authority does not regulate tax and trust advice.

It may seem hard to believe these days, but once upon a time, savers with relatively modest bank balances could still generate a decent income from leaving their money in a savings account to earn interest.  Right now, however, those days are long gone and unless and until they come back, people need to think seriously about how best to manage their money in a low-interest-rate environment. How much cash do you need? In the real world, most people are going to need some level of cash in hand, if only in the digital sense of a positive balance in a bank account.  It is also often preferable for people to have some form of cash savings, the so-called “cash cushion” easily accessible both to deal with predictable events such as replacing household items and in case of emergencies.  Assuming you are one of these people, your options for storing your cash are: hard cash, current accounts and savings accounts. How best should you store your cash? The answer to this question is really one of personal preference based on the practicalities of the individual’s situation.  For most people, the ideal might be to have a combination of hard cash, current accounts and savings accounts but percentage of funds held in each will be a matter of taste.  Those in the countryside, with a long trek to an ATM or bank might prefer to keep more money in cash, if they can do so safely, whereas those in cities might feel more comfortable keeping most of their money in a bank.  The question of how much cash to keep in a current account and how much to keep in a savings account will also depend on a person’s situation.  Obviously, you’ll need to keep enough in your current account to cover regular outgoings such as bills and have cash at hand for when you need it, but you probably want to keep as little as you feasibly can in a current account, since they are likely to pay little to no interest. Cash ISAs are now, effectively, super-savings accounts When ISAs were first introduced, once you took money out, that was basically it.  You had to accept that your tax-free allowance for that year had been reduced (or eliminated).  Now, however, if you take money out of a cash ISA, you can replace it (within the same tax year), which means that it is feasible to use them as tax-effective savings accounts for the cash you need to keep readily available. Alternatives for your extra cash Once you’ve stored enough cash for immediate and foreseeable needs and emergencies, you then need to think about what to do with any other disposable funds you have.  Assuming you still have a tax-free allowance available, then putting them into a cash ISA is certainly an option and, if you have used up your tax-free allowance, then there is still the option of using a regular savings account.  At this point in time, however, neither of these is likely to generate significant returns.  Those prepared to take a little more risk might want to look at peer-to-peer lending platforms and/or the bond market.  The returns generated in these areas are both still linked to prevailing interest rates, but as you are effectively lending directly to the borrower (rather than lending money to a bank to lend to someone else), the effective returns can be much better than the returns on bank deposits, even in cash ISAs.  Those seeking the best returns, however, may well find themselves needing to look elsewhere, such as investing in the stock market and accepting the higher degree of risk in exchange for the prospect of much better returns. For investments we act as introducers only.

Good advice can be invaluable and when it comes to pensions, getting the right advice at the right stage in your life can make all the difference to the degree of comfort in which you spend your retirement.  Fortunately the government has recognized this and since April this year it has been possible to withdraw £500 per (tax) year from pension pots (defined contribution or hybrid) without any tax liability as long as it is used for the purpose of paying for pension advice. The right time to use this benefit? As is so often the case, the right time to get any sort of financial advice, including pension advice, is the time which is right for you.  In practice, we’d suggest that you might want to take advantage of this benefit when you have a difficult and/or important decision to make.  If you happen to find yourself reaching the period just before retirement without having used this benefit, then you might want to check in with a financial advisor once a year before retiring. Questions you could discuss with an advisor Would it be best for me to access my pension pot as soon as I retire? These days “retirement” is a somewhat of a flexible concept.  For some people it can mean giving up a full-time day job to go off and earn an income doing something else, at least for a while.  If you have other income and can manage without your pension in the period immediately after retirement, you may wish to leave your pot to grow for a bit longer. Would I be better to use an annuity or income drawdown (or a combination of both)? Even though the announcement of pensions freedoms, including the right to opt out of buying an annuity, was met with great excitement in the press, the reality is that for some people annuities may well still be the most appropriate way to ensure that they have a reliable and stable income in their retirement.  On the other hand choosing an annuity when income drawdown can would have been more appropriate could wind up being a very expensive decision. If I opt for an annuity, which annuity should I choose? The word “annuity” actually covers a broad range of options and if you go down this route, it’s hugely important to get the right one for your particular situation.  This is a situation where getting the right advice can be hugely important. Should I take a cash lump sum and if so how much and when? Upon retirement, you can choose to take up to 25% of your pension pot as a tax-free lump sum.  You can withdraw more than this, but such withdrawals are liable for income tax at your marginal rate. Withdrawing the cash has the obvious benefit of giving you cash in hand, but it also has the obvious drawback of reducing the value of your remaining pension pot.  Hence, each individual has to work out which takes priority in their situation.  For example, if you still have debts to pay off, particularly high-interest debts, then it may be to your advantage to take out money to pay them off, or if you choose to go down the route of purchasing an annuity, you could use the 25% withdrawal as an investment budget so that you still have the opportunity to pursue the sort of returns which can be found in the stock market.  If, however, you choose to go down the route of income drawdown, you may find that it is in your best interest to keep your pension pot as large as possible for as long as possible. For pension advice we act as introducers only.

Savings generally fall into two categories. “Cash cushions” provide a soft landing for life’s bumps. “Goal-orientated” savings help us to make key purchases, large and small. Perhaps the clearest example of this is saving for the deposit on a house. Whatever your stage of life, savings can make a big difference to it, particularly if you plan ahead. Childhood years In the very earliest childhood years, it will probably be older family members who make savings on behalf of the child. Junior ISAs are a popular choice for this, but there are other options such as trust funds. As soon as children begin to develop an awareness of numbers, however, parents can start to give them their earliest lessons in financial management by teaching them how saving now can pay off later. Young children can watch their cash in a jar, while older ones can start to get to grips with bank accounts. Sweet sixteen At this point, 16 is a very important age in financial terms. The reason for this is that Junior ISAs run until the child’s 18th birthday, but 16 year olds can open cash ISAs, which means that for two years, you have the opportunity to make extra-large tax-free savings, right before those expensive post-school years. The post-school education period Regardless of whether or not a person goes to university, they will probably need some sort of training after they leave school and may also need to get some form of private transport. It may be very difficult for them to save any money during this time, in fact it is more likely that they will need help from the savings made on their behalf during their childhood years. If they can save at all, it’s probably advisable to ensure that the savings are easy-access, just in case they need them. The young-adult working years These can be some of the most financially-critical years of a person’s life, handled well, they can set a person up for a prosperous future. For many people, their next major financial priority will be to get on the housing ladder, which means building up as big a deposit as possible. The Lifetime ISA is one way to do this, but there are other options and hence it may be worth getting professional advice on the best route. The Lifetime ISA can also be used to save for retirement but if a person is working then it may be better to go down the workplace pension route to benefit from employer contributions. This again, is a good place to get financial advice. The family years Once you are on the housing ladder, a person’s two key concerns are often saving for their children and saving for their retirement. We’ve already discussed children, so the next issue is retirement. While there are ways to fund retirement other than pensions, they are a mainstay of retirement for many people and for good reason, so if you haven’t started one already, then this should probably be high on your list of priorities. You will probably have other goals as well and hence may well have a need for other means of saving and investing, for example making use of your standard ISA allowance. You might wish to seek professional advice here too, so that you can decide how best to allocate your available funds, for example in the earlier period of your family years, you may be want to make some higher-risk and/or longer-term investments for the best rewards, whereas later, a more conservative investing strategy may be more appropriate. Retirement Perhaps it would be better to say, “the post-employment years” since the concept of retirement is changing dramatically and hence so are the financial needs of retirees. Getting the maximum value out of a pension pot can make a huge difference to the quality of a person’s retirement and again, professional advice can be invaluable.

We’ve all seen the adverts on TV (and elsewhere), cut out the middleman, go direct and get the best, possible price.  In theory, that’s sound advice – provided that you know exactly what you’re doing.  In practice, however, going to a reputable middleman can be exactly the right move to save money (and hassle).  This is particularly true with mortgages because they are complex products and as they tend to involve large sums of money, mistakes can be magnified, while astute moves can generate very meaningful rewards.  Let’s look at three examples of what this can mean in practical terms. Choosing the right type of mortgage for your situation Is that a standard repayment or an offset mortgage?  Is it a tracker or a fixed-rate mortgage?  If it is a fixed-rate mortgage for how long should the rate be fixed?  The answers to all these questions, and possibly many more, will determine what mortgage is best for your situation right now and in the foreseeable future.  You can only choose the right provider when you know what it is you need, so doing this ground work is essential and unless you really know your way around the topic of mortgages, you’re unlikely to have the same sort of insight as a professional who deals with them as part of their daily business.  Even if you do feel confident you understand mortgages, it can still be helpful to have a fresh pair of eyes look over your calculations, because getting them right could have a huge impact on your overall financial situation. Choosing the right provider How many lenders provide mortgages in the UK?  Do you really know all of them or at least all of the ones who provide the sort of mortgage you’ve decided you want?  Do you know how to approach them to get the best deal?  If we asked the average person to name as many mortgage lenders as they could, we suspect they’d be able to name all the major high-street brands and possibly a few niche providers as well.  If you went to a price-comparison site, you’d get access to a list of companies which work with price-comparison sites, but for many and varied reasons, there are numerous companies out there, large and small, which prefer to steer clear of being involved with them.  A mortgage broker, by contrast, will have an in-depth knowledge of the market and will be able to direct you straight to the best lender(s) for your overall situation.  These may or may not have the very lowest price in their range, as your broker will look at the complete picture rather than just the headline figures. Mortgage brokers may actually be the lowest-cost option Mortgage lenders are in business to make a profit.  That’s a simple reality.  Maximising their profits means that they have to sell their product to as many people as possible for as high a price as possible.  To achieve the first objective, many mortgage lenders combine direct selling with working through intermediaries such as price-comparison sites and mortgage brokers, both of whom have their own bills to pay and therefore expect payment for the work they do.  The main price-comparison sites are free for consumers to use, hence they make their money from the companies which use their services.  For example, they may receive a commission on sales made through their site.  Mortgage brokers may take an upfront fee from their clients or they may take a commission on sales from the lender, however, as they are real people, who genuinely work on behalf of their clients, they can offer flexibility about this, for example they may forgo some of the commission available to them to get their clients a lower price.  In theory, individuals could try to negotiate a lower price directly with the lender, but in practice lenders who rely on affiliates to generate sales for them may be very loathe to put those relationships at risk by offering better deals to customers who bypass them. Your property may be repossessed if you do not keep up repayments on your mortgage. For Residential & Buy to Let Mortgages, our typically processing fee is £395 and we may receive commission from the lender.

Most people benefit from a combination of savings and investments. Savings make sure that we have access to cash in case of need. Investments grow our net worth and make it possible for us to achieve our financial goals. Putting our savings and/or investments into a tax-free wrapper helps us to enjoy more of the returns ourselves, hence the huge popularity of ISAs. ISA allowances tend to go up each year There are no guarantees, but traditionally ISA allowances have tended to be raised at the start of each financial year. The standard ISA allowance for 2017/2018 is £20,000, this can be put into a cash ISA, a stocks-and-shares ISA or an innovative finance ISA. Anyone (resident in the UK) who has reached the age of 16 can open a cash ISA, stocks-and-shares ISAs and innovative finance ISAs can be opened by anyone who has reached the age of 18. Cash ISAs come in various forms: Instant-access ISAs are basically supercharged savings accounts and handy if you want the reassurance of knowing you can always get at your cash quickly if you need it. Regular-saver ISAs tend to give a better rate in return for the commitment, but may have restrictions on how you can access your cash. Fixed-rate ISAs give guaranteed returns, but again they may restrict how you access your cash. Stocks and shares ISAs allow you to shelter a variety of investments in a tax-free wrapper and eliminate the need to pay capital gains tax on your returns. You may, however, have to pay some form of tax within any funds in which you invest. Innovative finance ISA Peer-to-peer lending is becoming a major force in the UK, so it’s good to see that it can now be included in ISAs – in theory at least. In practice, P2P lending platforms need to be regulated in order to be included in an IF ISA and this is taking time, however progress is being made. Landbay and Lending Works are already registered. Zopa is nearly there. Junior ISA Junior ISAs are often just known as JISAs and can be opened on behalf of children under the age of 18 (the sharp-eyed may have noticed that this means 16-18 year-olds can have both JISAs and cash ISAs). For 2017/2018 families will be able to save up to £4,128 on behalf of the child. This money is locked away until the child’s 18th birthday at which point it becomes theirs completely. Lifetime ISA The Lifetime ISA has caused both interest and controversy in the press. The interest stems from the fact that it is new and quite different from existing products. The controversy stems over the question of whether it is really an appropriate choice for its target market. Lifetime ISAs can be opened by people aged between 18 and 39 and, in very simple terms, its sole purpose is to help people save for (a deposit on) their first home and for their retirement. Savers can put away up to £4000 of their own money per year, which the government will top up by 25% to make a total of £5000. The money saved can only be withdrawn for a house purchase or after the saver has reached the age of 60. If the saver wishes to access their money in any other situation, the ISA must be closed and the bonus will be lost. Help to buy ISA The help to buy ISA will close to new applications in November 2019. At current time, savers who go down this route will see their savings topped up by 25% to a maximum of £3000. There are, however, restrictions on the type of property which can be bought with these savings and, critically, the funds can only be accessed upon completion rather than put towards a deposit. For investments we act as introducers only.

Children are expensive and as soon as you know you’re having one, planning for their arrival and taking care of them once they’ve arrived can take precedence over every other priority. You’ll always be a parent, but you’ll always be a person too and while your children may seem like they’re growing up so quickly that you’ll miss something important if you even blink, you’re growing older too and it’s important to prepare for your own old age. If you think of this as being selfish, then consider how much of a relief it will be for your children to know that you are able to take care of yourself and maybe even help them (with grandchildren) rather than them having to worry about how to take care of you. If you are a home maker Even if your overall household income is too high for you to receive any child benefit payments, it can still be worth your while to register for child benefit so that you can receive National Insurance credits, which can count towards your State Pension. Having said that, it is an open question as to what level of State Pension will be offered when you reach retirement age, in fact, in principle the State Pension could be abolished completely or be converted into a means-tested benefit. That being so, it is advisable to look for additional ways to save for retirement, which will boost your income if you do receive a State Pension and replace it if State Pensions are withdrawn (or the qualification process changed). You’ll be unable to take advantage of the benefits offered by workplace pensions, but you can still open a personal pension and if a taxpayer such as your partner pays into it for you, you can claim tax relief. If you work part time As a part-time worker, you may or may not be automatically enrolled into a pension scheme, but if you are not you can still ask to be enrolled and your employer may choose to make additional contributions. If they do, then it is generally very advantageous to make the most of them to build up your retirement funds as much as you possibly can, particularly given that part-time workers, by definition, earn less than their full-time counterparts (on a like-for-like basis). If they do not, then you may wish to stick with a personal pension for reasons of continuity. In either case, however, you do wish to contribute as much as you can from as early a time as you can manage, even when retirement is decades away. If you work full time Upon returning to full-time work, you are very likely to be eligible for auto-enrolment in a workplace pension scheme. In this situation, unless you actively opt out, you will have deductions made from your salary and your employer will also make contributions. The minimum level of both employee and employer contributions is set out by the government, some employers may choose to let employees make extra contributions and some may make extra contributions themselves. Obviously, employer contributions are attractive in any situation and if an employer makes contributions over and above the government-mandated minimum, then this can be a very attractive benefit and you should take full advantage of it if possible. At the same time, however, it is understandable that some people may be uncomfortable making a commitment to sacrifice part of their salary in the here and now, when they may be on tight budgets and have little room to manoeuvre when life happens. In that situation, it may be appropriate to use a personal pension, which offers more flexibility. You may lose out on employer contributions (although you could ask and your employer may offer to pay them), but if you opted out of auto-enrolment, you would lose those anyway and at least this way you are saving something. For pension advice we act as introducers only.