Latest news

It’s important to be aware of all the variables at play; inflation, interest rates, taxation and frozen allowances all affect your finances.

Read more

When the property market reopened in mid-May last year, pent-up demand, combined with many people reassessing their housing needs following lockdown, led to a surge in buyer demand. Demand was further bolstered when, in July, the Chancellor announced a Stamp Duty holiday, during which the first £500,000 of most residential property purchases in England and Northern Ireland would be duty-free, until 31 March 2021.

Housing market activity robust towards the end of 2020

According to the latest figures from Nationwide, house prices rose by 0.9% in September and 0.8% in October, taking the annual growth figure to 5.8% in October, the highest rate since January 2015.

Nationwide also reported that a total of 91,500 mortgage approvals were granted in September, which is well above the August figure of 84,700 and represents the highest level since September 2007.

Elsewhere, Zoopla reported the size of the home sales pipeline to be 50% bigger than in the same period of 2019, with 140,000 more buyers rushing to buy a home before losing out on the Stamp Duty holiday.

Mortgage payment holidays

The mortgage payment holiday scheme had been due to end on 31 October, but when a second national lockdown for England was announced last November, the scheme was extended, allowing borrowers who had not yet applied for a mortgage holiday to ask their lenders for a repayment break of up to six months.

Mortgage protection is important

If 2020 taught us anything, it’s that the unexpected can happen and being prepared is key to ensuring our loved ones are financially secure. This includes mortgage protection cover – ensuring you have the right cover in place should be a priority for 2021.

We can help with your mortgage search and more

Finding a suitable mortgage and the right protection cover can be challenging, particularly in the current climate, but we can help. We can assess a wide range of mortgages and protection policies and advise on which best suit your circumstances.

As a mortgage is secured against your home or property, it could be repossessed if you do not keep up mortgage repayments.

Last January, as a new decade dawned, little did we know how the next 12 months would unfold. Now, as we’re in the early stages of 2021, there are growing shoots of optimism but, whatever the year does bring, a crucial lesson from 2020 is undoubtedly the need to prioritise financial wellbeing in order to ensure we can cope with life’s trials and tribulations.

Key lessons

The coronavirus pandemic has vividly laid bare our fragility and vulnerabilities, and presented immense challenges on many different levels. It’s also reinforced a number of key financial lessons, from the importance of budgeting and building up an emergency savings fund, to investment diversification and holding appropriate life and protection policies.

In short, the pandemic has demonstrated the value of maintaining sound financial planning principles and the peace of mind this delivers. In effect, by getting into good financial habits, it is possible to ensure you are cushioned against the shock when crisis does strike.

Financial wellbeing

Another key takeaway from last years’ experience has been the entwined relationship between financial wellbeing and emotional wellbeing: while a lack of financial stability typically leads to stress and anxiety, sound finances can provide mental peace.

Research conducted by insurer Royal London also highlights the critical role expert advice plays in improving emotional wellbeing by increasing clients’ financial confidence and resilience. According to the study, advised customers who have an ongoing relationship with their adviser were nearly twice as likely to feel in control of their finances as those who didn’t.

Help at hand

The first few months of the year inevitably provides the perfect opportunity to take stock of your finances and build foundations for a better financial future. And seeking professional advice is a vital step in achieving those objectives. So, get in touch and we’ll help you develop sound plans designed to ensure you hit your short and long-term financial goals and ultimately provide a boost to both your financial and emotional wellbeing.

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.

One effect of the pandemic has been to divide segments of the population, whether by age, where they live or what they do for a living. When divisions occur, tensions can develop, not least between the generations.

There is now rising concern about the economic impact of the pandemic upon Generation Z. A summary of youth unemployment statistics published in October revealed, ‘581,000 young people aged 16-24 were unemployed in June-August 2020, an increase of 35,000 from the previous quarter and an increase of 87,000 from the year before.’

Students stranded in halls of residence whilst learning online may feel more resentful over tuition fees and worsening job prospects. Many young people are also worried about whether they will ever leave the rental sector, as saving for the deposit for a home can be difficult while paying rent.

The Intergenerational Foundation (IF) says, ‘Younger generations are under pressure like never before. IF was established to draw policy-makers’ attention to this, and to get a fairer deal for young people. It concentrates on policies in housing, health and higher education, employment, taxation, pensions, voting, transport and environmental degradation.’

Empathy is the power of connection

COVID has brought added worries for elderly people, too. One concern has been poor access to banking services and cash, with branch and ATM numbers declining due to lower usage. As Age UK puts it, ‘We are hurtling towards a cashless society with no real consideration for the many people who will be left behind.’

Many older people recognise the challenges that upcoming generations face; often they do something about it by helping grandchildren at important life stages, if concern about funding their own future care allows. Those unable to assist hope government will support key elements of young adult lives – a challenge when national finances have been battered by the pandemic.

It’s about family

Although the pandemic has certainly heightened intergenerational issues, it has also highlighted health, social, emotional and financial vulnerabilities – and impacted every generation. Plenty of people have reflected on the balance in their lives and the importance of feeling connected. It’s reminded us that it’s good to talk and not to be afraid to start a conversation.

Although generational divides exist, we’re in this together and although we’ve had to endure time apart, in a strange way it’s brought us all together. If you are in a position where you want to engage your family with a conversation about finances, we understand your apprehension because money can sometimes be a contentious issue. ‘Wealth transfer’ is such an abstract term for such an emotional topic, but we can help break down those barriers and get your family talking in a positive and productive way.

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.

With the end of the tax year fast approaching (Monday 5 April), if you have cash that you don’t need to access in the short term and would like to use some or all of this year’s ISA allowance, don’t leave it too late and risk missing out on this opportunity to save tax-efficiently; remember you can’t carry any unused allowance over to the next tax year, so timing is important.

The ISA allowance for the 2020/21 tax year is £20,000 and if you’re thinking of saving tax-efficiently for a child, the Junior ISA annual limit is £9,000.

You can put all the allowance into a cash ISA, or invest the whole amount into a stocks and shares ISA. You can also mix and match, putting some into cash and some into stocks and shares if you wish, as long as the combined amount doesn’t exceed your annual allowance.

Now, more than ever, it’s important for people to ensure their savings are offering the best return possible. Putting money aside tax-free is a simple way to make your savings work a little harder, an especially useful tool for those in higher tax brackets who don’t benefit from the Personal Savings Allowance.

With many after-school kids’ clubs off the agenda, why not invest the average spend of £57.36 per week, totalling almost £2,200 over the course of a 38-week school year, into a JISA? It all adds up.

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.

Whatever 2021 has in store, we want to reassure you that we’re here for you and all your financial planning needs.

While the coming months are expected to see the global economy rebound from the COVID-induced recession, the pace of recovery is indeterminable. In addition to uncertainties created by the pandemic, Brexit, trade and political issues will no doubt persist. As always, the only real certainty is that we live in uncertain times.

You can rely on us; we take the time to understand your objectives and circumstances and advise you on the financial strategies most appropriate for you.

We are proud to support you through 2021 and look ahead with hope and confidence.

With the current tax year having begun on 6 April 2020, the clock is ticking and it is important to utilise all the tax reliefs and allowances available before 5 April 2021 in order Read more

Early tax year ISA investors could be thousands of pounds better off, according to research* looking at the investing habits of hypothetical ISA investors over the last 10 and 20 years.

The study concludes that if you were an ‘Early Shirley’ and invested your full ISA allowance on 6 April for the past 20 tax years, you would be nearly £12,000 better off now than ‘Last Minute Lara’ – someone who had waited to invest on the last day of each tax year.

With not everyone able to afford the full ISA investment in one lump sum, investing like ‘Monthly Monty’, who drip-feeds money into an ISA with a monthly savings plan, would achieve better returns than investing it all at the last minute. By splitting your annual ISA allowance into 12 monthly investments your investment would have grown to £296,247 – still £7,496 more than if you had waited until the last minute.

Reminder – Temporary LISA Withdrawal Rule Change

Earlier this year the government announced temporary changes to the Lifetime ISA (LISA) withdrawal rules if people want to access their funds earlier due to the pandemic.

The LISA allows holders to save up to £4,000 a year towards their first home or retirement and provides a 25% cash bonus of up to £1,000 a year on top.

Previously, holders were charged 25% of the amount withdrawn if they took cash out before turning 60 or if they were not buying a property. The withdrawal charge has been reduced to 20% between 6 March 2020 and 5 April 2021.

*Fidelity International, April 2020

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.

Financial hardship can strike when we least expect it, showing the importance of having protection cover in place as a safety net.

A recent YouGov* survey about the pandemic revealed that nearly a third (32%) of Britons fear for their future. Payouts from life insurance, critical illness and income protection can help lessen the blow of unexpected events. Data from the Association of British Insurers shows that more than £5.7bn was paid out in protection claims in 2019.

If you are reviewing your finances to try and reduce outgoings, think twice before cancelling any existing protection policies – this could prove to be a false economy. Critical illness and income protection policies can be a lifeline if you were to lose your job or become ill for an extended period, so should certainly not be on the list of expenditure to cut.

For those of you who don’t have anything currently in place, lets set the record straight:

‘It’s too expensive’ 

Putting protection in place is far less expensive than many people imagine. We can help you find a deal that fits your budget and you can always take out additional cover later on.

‘I’m too young to need cover’ 

Protection policies aren’t just for older people. The younger and fitter you are when you take out a plan, the cheaper the premiums will be. Leave it too long and you could find yourself paying a much higher price.

‘I get cover at work so I don’t need more’ 

The amount you’re covered for might not be sufficient for your individual needs, and if you change jobs, that will change too. Plus, with your own policy, the cover can be tailored to your specific needs rather than a one-size fits all approach through your employer.

‘I don’t have kids, so it’s not relevant to me’ 

Whilst it’s true that there’s less need if you don’t have a family, how would your partner or loved ones manage if you weren’t around to contribute to the bills?

‘There’s too much choice’ 

It’s true there are lots of different types of policy, each designed to provide cover for specific risks. That’s where we can help. We can find the right type and level of cover to meet your insurance needs and your budget.

If you have any questions about existing protection policies or you are considering new ones – please get in touch.

*YouGov, 2020

Research* has revealed that one in five over-55s with a private pension withdrew a lump sum during 2019, although the study does suggest that, for many, this was probably not a financially sensible course of action.

‘Stash the cash’’
The most popular reason for accessing pension wealth was to put the money into a savings account, with one in four respondents doing so. Around one in five people who withdrew money from their pension, spent the proceeds on home improvements.

Tax implications
At first glance, the research appears to imply a sensible approach to pension withdrawals. However, in reality, shifting a taxed lump sum from a tax-efficient pension simply to place the proceeds on deposit makes little financial sense. This is partly due to potential tax bills, but also relates to inheritance rules which mean most people would be better off leaving money in a pension until they need the cash for income or specific spending requirements.

Seek advice
It’s clearly always essential to take professional advice before making any pension-related decisions, particularly in the current economic climate. So, if you are considering accessing your pension soon, get in touch – we will help you make the best decision for you.

*Canada Life, 2020

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.