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

• 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.

Key takeaways

• America’s economic rebound slowed to its lowest level in eight months in August.
• August turned into a month of highs and lows for the markets, especially in Europe.
• China’s economic growth slowed due to renewed travel restrictions and natural disasters affecting rates of output, retail sales and investment

You might be thinking about whether to invest in crypto currencies. We explain why it may not be the right choice, and how to better approach your portfolio.

This year has been eventful for bitcoin, with the cryptocurrency reaching a record high and then almost halving in value all in the space of six weeks. The walk-back in May from Tesla’s Elon Musk in his support of bitcoin underlined concerns around the idea of cryptocurrencies as a stable investment. Musk – previously an outspoken supporter – announced his company would not be accepting bitcoin as payment for its vehicles.

What followed was a series of plunges in its value – not helped by the additional news of Chinese regulators signalling a crackdown on the use of digital currencies.

Bitcoin in brief
Bitcoin is a type of digital, decentralised currency, allowing the transfer of goods and services without the need for a trusted third party. The network is based on people around the world called ‘miners’ using computers to solve complex mathematical problems in order to verify a transaction and add it to the ‘blockchain’ – a massive and transparent ledger of each and every bitcoin transaction maintained by the miners. The first to verify is rewarded with bitcoin. Thereis a finite amount of bitcoin that can be produced and, as more are created, the mathematical computations required to create more become increasingly difficult.

Cryptocurrencies can be volatile
Bitcoin’s high volatility (risk) makes it a poor substitute for money in a broad sense. The unsteady air around cryptocurrencies in May showed the speculative nature of this asset class. Bitcoin and cryptocurrencies in general have more in common with commodities and currencies – they are much harder to value than cashflow-producing equities and bonds.

Reasons to be crypto cautious

• Cryptocurrencies are a volatile choice and susceptible to stock market bubbles, which can affect investments negatively during a downturn.
• They’re not a tangible form of investment, and are not regulated, which can be a red flag when it comes to your investments.
• Volatility means investors are likely to act on doubts and sell if they fear a fall in return.

Where to invest?
A sensible approach is to invest in high-quality companies that are well-established businesses. These are usually businesses with strong management teams, serviceable levels of debt and predictable cash flows. To avoid being hit by market volatility make sure your portfolio is invested in a wide range of assets, and less vulnerable to market shocks.

Staying invested when there is a downturn can help you get through any turbulent times and put you in a good position to benefit from any ensuing recovery.

Our financial advisers can help advise you on your 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

• This year has been eventful for bitcoin, with the cryptocurrency reaching a record high and then almost halving in value all in the space of six weeks.
• Bitcoin’s high volatility makes it poorly suited as a substitute for traditional forms of money.
• A sensible strategy is to invest in high-quality companies that are well-established businesses.

Make the most of your tax allowances by using the different types of ISAs that are available.

Individual Savings Accounts (ISAs) were first introduced in 1999 and are a tax-free way to save into a cash savings or investment account. There lots of different types of ISA available, but the right one for you will depend on your financial goals. We explain how they work so you can choose the one that is best for you.

Cash ISA
A cash ISA works in the same way as traditional savings account but you won’t have to pay tax on any of the interest you earn.

For the 2021-22 tax year each person has an ISA allowance of £20,000. To take out a cash ISA you have to be a UK resident and over the age of 16. If you don’t use the allowance before the end of the tax year you will lose it and you’ll have to start anew on 6 April.

Some cash ISAs are instant access while others have a fixed rate. You can only open one cash ISA per year but you are allowed to transfer to another cash ISA or a stocks and shares ISA with another provider if you want to.

With a stocks and shares ISA you can hold a variety of investments such as shares, bonds and funds. Just like the cash ISA you can save up to £20,000 a year tax free, but you get to choose what investments you put inside it, so it’s worth getting financial advice. You also have to be 18 or over to be eligible.

Stocks and shares ISAs provide an option for people looking to avoid the erosive impact of inflation on returns. Over time there is the potential for better returns with an investment ISA over cash, although the risks are also greater.

If you want to invest in a stocks and shares ISA you need to be comfortable with the possibility of making losses and prepared to invest for the longer term.

Lifetime ISA
The lifetime ISA (LISA) can be used by first-time buyers to fund a deposit for a property or taken tax-free at the age of 60. As well as paying interest, LISAs benefit from a 25% bonus from the government to encourage saving towards a home or retirement.

The maximum you can put in each year is £4,000, which comes out of your £20,000 ISA allowance. The LISA can only be opened by anyone aged 18–39, but you can keep saving in one until you are 50.

With the LISA, you can get a bonus of up to £1,000 a year up until you are 50. If you open one at the age of 18, this means you could end up with a maximum bonus of £32,000.

However, there are some restrictions with a LISA. You have to keep your money in a LISA for a minimum of one year before you can withdraw it and if you take your money out before you are 60 and you don’t use it to buy a home, you will have to pay a 25% penalty.

Junior ISAs
If you're looking to put some cash aside for your kids, Junior ISAs (JISAs) are a great way of doing so. These accounts are available to anyone under 18 and tend to offer much higher rates than adult accounts, but there are some restrictions.

Like the adult accounts, you won’t pay any tax on your interest. In the 2019–20 tax year you can save or invest up to £9,000 in a JISA. You can save for your child either in a cash JISA, a stocks and shares JISA, or a combination of the two. JISAs can be opened by parents with children aged under 16 and then by children themselves when they are aged 16 and 17.

Innovative Finance ISA
If you invest with an innovative finance ISA (IFISA) the company offering the ISA will use the money to lend to borrowers or businesses – known as peer-to-peer lending. You’ll be offered a rate of interest from the borrower when paying back the money you’ve invested.

You can invest up to £20,000 a year in an IFISA and any interest earned will not be taxed. While you can earn higher rates of interests than with a traditional savings account, they are a much riskier option than a cash ISA as the borrower could potentially default on their loan.

Our financial advisers can help you and your family find the right product to suit your needs and financial situation.

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

• Stocks and shares ISAs and innovative finance ISAs are riskier than cash ISAs and you could lose money, so make sure you get financial advice if you are considering either of these options.
• You can save up to £20,000 a year tax-free in an ISA, but if you don’t use your full allowance you’ll lose it when the new tax year starts.
• If you’re a first-time buyer saving for a house you could get a government bonus of up to £1,000 a year to put towards a deposit if you pay in the annual maximum of £4,000.

Stock markets bounced back in October despite an unsettled month due to global supply disruptions and energy shortages.

Financial markets were unsettled in October for a number of reasons. They include soaring energy prices due to the global shortage of natural gas supplies and high demand in Asia. Markets became calmer after Russian President Vladimir Putin indicated that his country could supply additional gas to Europe. The increase in energy prices and shipping costs prompted the The Organisation for Economic Co-operation and Development (OECD) to raise its inflation forecast for the G20.

The natural gas shortage pushed up oil prices, with Brent crude rising to its highest level in seven years. The Organisation of Oil Exporting Countries (OPEC) agreed to increase oil production gradually to meet high demand as countries come out of pandemic-induced lockdowns.

US stocks rally

In mid October the S&P 500 index enjoyed its best days since July, making up for fall earlier in the month. Strong company earnings results contributed to the performance, as did the stability brought by the news of the Senate’s decision to temporarily raise the federal debt ceiling.

October followed September as a month of rising inflation in the US. However, higher prices didn’t deter consumers, with retail sales also up from previous months. There was another lower-than-expected jobs report, with the working economy still affected by the Delta variant and a sluggish labour market.

UK Budget news and interest rate speculation

In early October the FTSE 100 had its best first week of the month since May, helping it to a 20-month high and a recovery of most of the losses it experienced since February 2020 and the start of the pandemic.

However, the Bank of England warned that the UK economy is more vulnerable to the global rise in inflation than other G7 nations, and that it could slow the recovery. Attention remained on the Bank of England’s move to raise interest rates, with economists predicting a rise as soon as early 2022. City traders are betting that it will happen before the end of this year.

In this year’s much anticipated Autumn Budget, Rishi Sunak set out the government’s plans to help get the economy back on track following multiple lockdowns. Policies announced included an increase in the National Living Wage and a 50% business rates discount for firms in the retail, hospitality, and leisure sectors up to a maximum of £110,000. Dividend tax rates will also rise by 1.25% from April next year which means investors will pay more on their earnings. Further thoughts from Omnis Investments’ CIO, Robert Jeffree, can be found here.

China’s third-quarter slowdown

Asia suffered an ongoing shortage of coal, with power cuts reported across countries reliant on the fuel, like China (where coal generates two thirds of the country’s electricity), and with India on alert for similar outages. Coal prices in China hit a record high during the month along with a dip in manufacturing (the latter due to power shortages and ongoing outbreaks in coronavirus cases).

The crisis surrounding the Chinese property developer Evergrande saw the company sell part of its stake in a bank to a publicly owned investment group on condition that the developer uses the proceeds to repay a loan. Figures released in October also showed that the pace of economic growth in China slowed in the third quarter compared with the previous year.

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.

Looking for a mortgage? Here are 7 benefits of using a mortgage adviser:

1. With over 80 years combined experience and access to hundreds of mortgage lenders and thousands of mortgage deals, our team are much more likely to be able to find you the best available mortgage deals.

2. It’s important to understand that even though you may bank with a particular lender, it is highly unlikely you will get any preferential treatment when applying for a mortgage.

3. Working with us, you will have access to mortgage deals that mean you are able to make savings over time that more than cover the cost of our fee.

4. We have access to exclusive deals that are not available directly to the general public. We can also recommend lenders you may not have heard of but who, for example, are more likely to approve your application, therefore removing the risk that you will have an application rejected causing damage to your credit rating.

5. There’s a big difference between finding the “cheapest” mortgage and finding the “right” mortgage. There will be many factors that determine which deal is the most appropriate one for you and gives you the greatest advantages. We will steer you towards the best possible mortgage for your finances, your circumstances, needs, and long-term goals.

6. We do this every day. That means we have a wealth of experience, connections and understanding that is very hard to replicate in a short space of time and when you only do this a few times during your lifetime. Working with us, you will have every bit of the knowledge and experience on your side. You’ll also have the cutting-edge technology we use at your disposal.

7. Less stress! When you work with us, we will communicate with all lenders and any other professionals you are working with, on your behalf, take care of all the paperwork and ensure the whole process runs efficiently and professionally, and is completed without any unnecessary delay.

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

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.

JISA and CTFs both benefit
JISAs replaced Child Trust Funds (CTF) in 2011, but those who still hold CTF will continue to benefit from the increased allowance. Both JISA and CTF are a tax efficient way to build up savings for a child. It is not possible to have both a JISA and a CTF.

Savings for children
A junior ISA can be opened for any child under 18 living in the UK and the money can be held in cash and/or invested in stocks and shares. Once the person who has parental responsibility for a child has opened the account, anyone can contribute to it. The child can manage the account from age 16 and at age 18 they can withdraw the money if they want, when the account otherwise becomes a normal cash or stocks and shares Individual Savings Account (ISA). Alternatively, they can keep saving into it as a standard ISA.

The tax benefits for JISAs and CTFs are the same as for an adult ISA. So, there is no Capital Gains Tax and no tax on income.

Investing for their future
Following the Budget, it was reported: ‘By saving towards their future, families can give children a significant financial asset when they reach adulthood – helping them into further education, training, or work.

Junior ISAs and Child Trust Funds are tax-advantaged accounts for children, designed to encourage a long-term savings habit.’

Two principles which apply to many aspects of financial planning are particularly relevant when planning for your child’s financial future:

• The longer the timescale, the more scope there is for your investments to grow
• Taking expert advice can help you avoid potential pitfalls

The potential of a JISA
It is estimated that if £9,000 was invested every year from birth and assuming a 2% annual return, which is obviously by no means guaranteed, the JISA would be worth around £194,000 at age 18. Saving such a large amount is obviously out of the question for most people, but whatever amount you can afford to save for your child’s future, a JISA is an ideal choice.

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 takeaways:

• The JISA allowance will remain at £9,000 for the 2022/2023 tax year.
• Junior ISAs are long-term, tax-free savings accounts for children.
• JISAs replaced Child Trust Funds (CTFs) in 2011.
• Both benefit from the increased allowance of £9,000 per tax year.
• JISAs can be opened for any child under 18 living in the UK.
• Once the person who has parental responsibility for a child has opened the account, anyone can contribute to it.
• The child can manage the account from age 16 and at age 18 they can withdraw the money.
• There is no Capital Gains Tax and no tax on income.
• The ISA allowance will remain at £20,000 for 2022-2023.

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.

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.

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

Rohit Vaswani, Client Portfolio Manager shares views on some of investors' concerns given the recent market volatility. Whilst markets are more volatile at the moment, we have seen episodes like these before and we look at back at history to understand what this means for those who are investing for the longer term.

We hope you find this video helpful, and if you do have any questions, please speak to your financial adviser.

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.

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.

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.

There is no right time to begin investing but there are some decisions to make that could affect your returns. If you are 7 years old and saving your pocket money for a PS5, 17 saving the money from your first job for a car, 27 saving for your first house or 57 and finalising your retirement plans which include a dream holiday, we can provide personalised advice for you.

Angela was looking at ways she could reduce her inheritance tax. After spending some time researching, she realised she could make small gifts to as many people as she likes, and these gifts will be exempt from IHT. Wanting to help her grandchildren out, she gifted them £1000 each.

Isabella, Harrison, and Ava were thrilled to receive the generous gift from their grandma and were quick to discuss what they wanted to do with it. After listening to their ambitious ideas, Angela sat the children down and told them that the best thing to do, was to put it into savings and investments to make more out of the money and eventually carry out their future goals.

The surprises of savings accounts
After listening to her grandma, Ava being the youngest of the 3, wasn’t too clued up on savings, so deposited the £1000 into a regular savings account. Regular savings accounts can be great, easy ways to save securely and access money easily, however, they do not make a lot of interest.

With average interest rates for a savings account at 0.06%, Ava looked back into the savings account after a year to discover it had only made £0.60 in interest. The little interest added meant that Ava couldn’t afford the new laptop that she so desperately wanted and had to settle for an older version instead.

Are Cash ISAs still effective?
With the desire to buy a new car, Harrison chose to put his money into a cash ISA after reading about the tax-free, easy to access advantages that they had.

However, Cash ISAs also have a very low interest rate due to the fact they are affected by the rise of the cost of living and high inflation, meaning you make little to no interest on the money that is in there.

The average cash ISA interest rate being 0.63%, Harrison went back to check on his investment after a year and found that it had made £6.32 in interest. Although this interest earned meant that he was unable to put the deposit down for the car he wanted.

Why Stocks & Shares ISAs would’ve been better
Isabella the oldest of the 3 was saving for a deposit on her first home. She found that a stocks and shares ISA was the most appropriate way to invest her money.

Stocks and shares ISAs are a good way to start investing your money as you can invest up to £20,000 a year, any income is protected from tax, and they can offer considerably higher returns over time.

With an average return on stocks and shares ISA being 13.55% if paid yearly, Isabella reviewed her account after a year and was surprised to see that she had made £144.24 of interest on the £1000 she inputted into the ISA. Using this way of investing now means Isabella has the money to be able to pursue her dreams of home ownership.

Let us help
Don’t let what happened to Harrison and Ava, happen to you. Whether you are taking your first steps in investment or a seasoned saver we’re here to guide you through the most suitable ways to invest your money, ensuring your future and you are protected.

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

Key takeaways:

• You can reduce IHT by gifting money to family members.
• Savings accounts are good and easy short-term ways of saving, but don’t offer good interest.
• Cash ISAs are tax-free, easy ways of saving money but can interest rates can easily be affected by rise in the cost of living and higher inflation.
• Stocks and shares ISA are tax-free ways of saving with considerably higher returns over time.

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.

When they found out they were getting two for one, Sarah and Andrew couldn’t have been happier. But bringing up twins hasn’t been cheap and the couple are aware that as the children grow so will the strain on their finances. Having heard stories about the ever-rising cost of higher education, Sarah and Andrew are particularly keen to start saving for the twin’s university education.

How much does university cost?

On average, it costs just under £57,000 to go to university in the UK, according to Save the Student. This figure is based on the fact that the cost of tuition for most students is about £9,250 a year, average living costs are £9,720 a year and the majority of undergraduate degrees last three years. However, the exact cost can vary quite a lot depending on where you study and the course you’re doing. If Isabelle still wants to become a vet after doing her A-levels, she’ll be looking at going to university for five or six years so her costs will be higher than average. As well as a tuition fee loan, students can get a maintenance loan to help cover living costs. However, the average maintenance loan is only about £5,640 a year so there is more than likely going to be a significant shortfall.

Where should Sarah and Andrew start?

The good news for Sarah and Andrew is that they’ve started thinking about saving early. With at least eight years before the twins go to university, if their parents start saving straight away there is plenty of scope for their investments to grow.

The first thing Sarah and Andrew should do is get advice from an expert. This will help to ensure they make the right investment decision for their particular circumstances and avoid potential pitfalls.

What will Sarah and Andrew need to consider?

There are three main points Sarah and Andrew will need to consider when deciding on the best way to save for Isabelle and Isaac’s future:

• Ownership

Sarah and Andrew will need to decide whether to give ownership of the investments they make to Isabelle and Isaac. This is not generally recommended as it would mean the twins could cash that investment and blow the lot on their 18th birthday (16th if they were living in Scotland).

• Type of investment

As Isabelle and Isaac are still quite young, Sarah and Andrew have the option of making long-term investments that will hopefully achieve better returns. Being able to invest over a long period will widen the range of investment types available to Sarah and Andrew. Once they’ve made their initial investments, they would be well advised to review them on a regular basis to make sure their money continues to work as hard as possible.

• Tax

Sarah and Andrew shouldn’t choose their investment based on tax. However, once they’ve decided on the most suitable investment for their circumstances, it makes sense to invest via the most tax-efficient route.

If you’d like to discuss investment options for your child’s university education, we’ll be happy 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.

Key takeaways:

• The earlier you start saving, the better. This opens up the possibility of long-term investments offering potentially higher returns.
• Get advice from a professional to help ensure you make the right investment choice first time.
• Consider who’ll have ownership of the investments – giving ownership to a child can be risky.
• Review long-term investments on a regular basis.
• Once you’ve chosen your investment, make sure you invest via the most tax-efficient route.

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

Why is budgeting so important?

You might think that it’s not worth to spend that much time with counting all your income and expenses. But if you use apps or spreadsheets to make it visible how much you earn and spend on average every month, it will pay off.

In case of the unexpected or just having a big expense, it’s important to have some savings not to become indebted.

How to start budgeting?

First you will need to count how much money you bring home on average. Don’t forget to take your benefits into consideration as well so that you can put down the precise number.

After you became aware of how much you earn every month, it’s necessary to count your monthly average expenditure too. Don’t forget to look at at least three months of your expenses to be able to see some trends.

If you know your income and your expenses, you can compare them in order to see whether you spend more than you earn or not. If there is some money which remains every month then it’s easier for you to make a savings account. If you earn less than you spend, try to cut back on your expenses not to get into a debt spiral (spending and borrowing in turn).

In case of having debts and savings at the same time it may be a good idea to pay off the one with the other, because for loans the interest rates are higher so you earn less with the saving’s interests than you have to pay for the loan’s interests.

What kind of costs do you have to count with?

If you know how much money you spend every month, you can set up categories to see the amount of your needs and wants. First count the essential spending, for example the rent, utility bills and mortgage. These are your needs which you can’t leave out of your expenses. Although there are some tips to cut back on utility bills what you can also include in your budgeting.

In order to set budgeting goals you also need to know how much you spend on nice-to-have items like meals or holiday. You can save more if you tackle the biggest costs, for example eat outs. From a financial aspect it’s better to cook for yourself and your family than having meal in a restaurant. When cutting back on costs don’t forget to remain the things in your budget you really love within your means. It’s also important that you don’t concentrate on a typical month to work out the amount of your disposable income and set your financial goal according to this.

After you have set your financial goals, you can concentrate on the third main category of where your income gets into. It’s necessary to build some emergency savings in case of the unexpected. Experts recommend to have at least 3 to 6 months living expenses as a backup, but to have £1000 is already a good start.

How to set your budgeting goals?

When you set your budgeting goals it’s good to use the 50/30/20 rule where the biggest category is the essentials, the next one is the fun stuffs and the last one is the savings. So try to split your income according to the percentages each category gets.

Try to set realistic financial goals, so don’t forget to build in a buffer to be able to adapt to the rising prices as well. Make the plan together with your family so that it will be easier to stick to the plan. Don’t forget to review your budget from time to time. With this checking you’ll see whether you need to change your goals and where you could still cut back on your expenses.

You can also use piggybanking to automate spending. You can set spending categories, create a jar/piggy bank/account for each one and don’t exceed the amount of money you have there while paying for items within these categories.

If you’d like to discuss your budgeting goals, we’ll be happy to help.

Key takeaways

• Budgeting and saving is important to be able to cover the unexpected expenses.
• First count your monthly average income and expenses and compare them.
• Cut back on your expenditures to earn more than you spend. Next set a savings account as well to have some backup.
• Set realistic financial goals to be able to stick to the plan.
• Use budget planner or spreadsheet to make your finances more visible.
• Professional advice can help increase your savings and improve your budgeting.

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.

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.

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.
• 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.

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.

In late May this year, the then Chancellor, Rishi Sunak, announced a range of measures to reduce the impact of the anticipated October 2022 Ofgem utility price cap increase. Mr Sunak’s announcement followed an earlier assistance package revealed in February, ahead of the April 2022 Ofgem price cap increase from £1,277 to £1,971.

Sunak’s measures, which included a flat £400 off all consumers’ bills, were made at a time when the price cap was projected to rise to £2,800 a year for the October 2022 ­­– March 2023 period. Since then:

• Ofgem has reduced the energy price cap review period from six months to three in an effort to bring more stability to energy markets.
• The regulator has set a price cap for October ­– December 2022 of £3,549, an 80% rise on the current level.
• Projections for the next cap reviews suggested the annual bill could exceed £6,500 by April 2023.

The problems created for the government by soaring gas prices are exacerbated by the fact that many businesses renew their fixed term energy contracts (typically for one or two years) in October.

The commercial sector does not benefit from any price cap and stories have emerged of small businesses seeing their utility costs jumping as much as tenfold or even being refused new contracts. Outside the commercial sector, there have been similar issues for schools and hospitals.

The Government plan
In today’s announcement during a House of Commons General Debate on UK Energy Costs, the new Prime Minister announced that:

• The government is introducing an Energy Price Guarantee (EPG) set at an annual £2,500 for the next two years from 1 October 2022. This will apply on the same basis as the existing Ofgem cap, i.e. a regional based limit on standing and unit charges in England, Wales and Scotland, not on total bills.
• The £400 flat rate payment, spread over six months, announced in May will remain in place. This reduces October – December 2022 bills by £66 a month and January – March 2023 bills by £67 a month. Arguably this means the effective cap is £1,700 through to March and £2,500 thereafter.
• Other assistance announced in May, such as the £300 additional payment for pensioners, remains in place.
• Green levies are temporarily suspended, an adjustment included in the EPG.
• Households using heating oil and LPG will receive discretionary payments.
• The same level of support will be given to households in Northern Ireland.
• The government ‘will also support all business, charities and public sector organisations with their energy costs this winter, offering an equivalent guarantee for six months’. After that period further support will be provided to vulnerable sectors, such as the hospitality sector.

Details of the funding for these measures will be announced by the Chancellor in his fiscal statement ‘later this month’, currently expected in the week of 19 September.

For more on the government’s announcements, see: https://www.gov.uk/government/news/government-announces-energy-price-guarantee-for-families-and-businesses-while-urgently-taking-action-to-reform-broken-energy-market

Further information on different forms of assistance for households can be found at: https://helpforhouseholds.campaign.gov.uk/

Rates are rising

It’s been a difficult year for bond investors so far. Inflation has hit a 40-year high in many countries, driven by ongoing supply chain problems, pandemic stimulus measures and the war in Ukraine. In response, central banks have started to raise interest rates to try to tame inflation.

Since the US Federal Reserve (Fed) started to hike rates, bond prices have fallen (they move in the opposite direction to yields). Meanwhile, bonds in many European countries had their worst month in decades in August, as surging gas prices exacerbated inflation. UK gilt yields have risen by more than 2% since the beginning of the year.

The good news for investors is that bond yields are likely to fall over the medium term (meaning prices will rise). That’s because expectations for both inflation and interest rates are probably too high.

UK bonds are likely to recover

The reason why UK gilts underperformed in August is largely because of the uncertainty surrounding the government’s fiscal policy (government spending and taxation) due to the Conservative Party’s leadership contest.

Bond yields went up after markets were spooked by Liz Truss’s talk about tax cuts and increased spending. Investors were concerned that these policies could push inflation higher, prompting further interest rate hikes in response. With the new government in place, we look forward to the clarity that forthcoming policy announcements on spending plans should provide.

Meanwhile, the bond market is pricing in a series of interest rate rises by the Bank of England taking rates up to 4.25% by the middle of next year. Even though it may take some time for inflation to fall back to the Bank’s 2% target, we believe rates are likely to peak at around 3%.

Yields on UK government bonds should begin to fall as investors reassess the extent to which interest rates might rise. Therefore, the outlook for UK government bonds over the next 12 months is positive.

US Treasuries should improve

It’s likely US Treasury bonds will experience a similar pattern. Markets are expecting US interest rates to peak at around 4%, although we think the figure will be lower at about 3.5%.

This means markets have probably gone a bit too far again. In the shorter term we should see some consolidation in yields, which may fall slightly, resulting in Treasury bond prices going up.

US inflation has peaked and should start coming down over the course of 2023 to around 5%. So expect to see a less aggressive stance from the Fed which, having stopped raising interest rates around the end of this year, will probably start to cut interest rates towards the end of 2023. With less inflationary pressure from the war in Ukraine, the outlook for US Treasuries is arguably looking more positive than for UK bonds.

Bonds remain a good diversifier

For decades bonds have been the perfect portfolio diversifier, providing protection when market conditions are challenging. Bonds usually help to diversify a portfolio as they tend to rise when stock markets are falling. However, this year stocks and bonds have been falling in tandem at a pace not seen for many years, leaving investors with few places to hide from market volatility.

Yet we believe they still have a valid role to play in multi-asset portfolios to help mitigate the unpredictability of stock markets. As economic growth cools and inflation comes back under control, high-quality bonds will almost inevitably become a good diversifier once again.

Over the past 70 years, there have been nine individual calendar years where equities and bonds have both fallen (figure 1). However, history shows us that each time this happens, the markets have always returned to normal, and there’s no reason why they will not do so again this time.

What are bonds?

A bond is a loan made to a company or a government by an investor for a set period of time – usually a number of years. The deal is that in exchange for handing over your cash, you’ll receive regular fixed rate of interest – known as a coupon.

Once the bond’s life comes to an end and it matures, your original capital will be paid back in full. The risk is that the borrower becomes insolvent at some point during the life of the bond, and is either unable to pay the coupon or repay the capital.

Most bonds are issued by governments. Those issued by large developed economies such as the US, the UK and Germany are considered to be low risk as governments of these countries are unlikely to default on their loan payments. In the UK, government bonds are called gilts, while US government bonds are known as Treasury Bills.

Bonds can play an important role in a well-diversified portfolio by helping to smooth longterm performance. In the past, bonds have been less volatile than equities, and have offered strong, positive returns in response to unexpected shocks or during periods of uncertainty

Yields and prices

A bond’s yield is the interest an investor can expect to receive each year over its term to maturity. Bond prices and yields move in opposite directions. This means that as the price of a bond goes up, the yield decreases. When the price goes down, the yield increases.

When central bank interest rates rise, bond prices tend to fall and the yield rises (figure 2) and vice versa. As interest rates change all the time, new bonds that are issued tend to offer different interest payments to existing bonds, which provides opportunities for investors.

As always, the best thing to do when you are feeling nervous about your portfolio is to stay calm and speak to your financial adviser, who will be able to assess your portfolio against your long-term objectives

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

January

• 31st – Self-Assessment Tax Deadline – You need to pay and submit your self-assessment tax return for the tax year ending 5th April 2022.

March

• 15th - Spring Budget - An update on the overall health of the economy and progress made since the Autumn Budget.
• 31st – End of the Help to Buy Scheme – Buyers who applied for the loan have until this date to complete the purchase of the property.

April

• 1st – Energy Price Guarantee increases – The guarantee will rise meaning a typical household will pay around £3,000 for their annual energy bill, until the April 2024.
• 5th - End of the 2022/23 tax year – Ensure you have used all your allowances.
• 6th - Start of the 2023/24 tax year
• 6th - New tax changes - The top 45% tax rate will now apply to anyone earning over £125,000 instead of £150,000 (excluding Scotland). Tax-free allowance for dividend income is reduced to £1,000.

July

• 31st - Deadline for second payment on account for 2022/23 for those that pay self-assessed income tax.

October

• 5th – Deadline to register for self-assessment – If you’re new to self-assessment this is the deadline to register with HMRC.
• 31st – Paper income self-assessment deadline – Your 2022/2023 returns to be with HMRC.

November

• Potential Autumn Budget

Your financial plan could be impacted by these key dates. Talk to us for advice on unused allowances, additional rate tax and dividends.

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 specialist tax advice, please refer to an accountant or tax specialist.

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 on unused allowances, additional rate tax and dividends.
• 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 specialist tax advice, please refer to an accountant or tax specialist.

Protection policies aren’t just there for when things go wrong. Many protection insurers include access to a range of health and wellbeing support services – and you don’t need to claim to be able to use them.

These services can make everyday life that little bit easier. From knowing you can have immediate professional support if your child falls ill, to having the tools to keep tabs on your health, these services provide advice, assistance and information to keep you and your family healthy.

Many customers have seen the benefits, for example, one of our insurers reported that in 2022, 99% of GP appointments were offered within 2 hours of a customer contacting them. They also saw the demand for these appointments increase by 126% from the previous year showing that wider emotional, health and family support services can really make a difference in people's lives.

With the NHS feeling pressure like never before, knowing your family’s health is covered can give you extra peace of mind.

Here’s one little thing you can do today, talk to an adviser to discuss the healthy extras available for you and your family

Health and wellbeing services can be discussed with your adviser when you’re considering a protection policy. By looking at the needs of you and your family, we can help you get the right protection in place.

Whilst the Bank of England base rate remains the same, interest rates are still the highest they have been in 15 years. So if you are one of the thousands coming to the end of your fixed rate deal over the next few months it’s very likely you’ll see your payments increase as a result of higher mortgage rates but it’s a common misunderstanding that the Bank of England base rate is directly linked to the mortgage rates on offer. There are many factors that determine mortgage rate pricing.

Lots of factors determine mortgage pricing – not just interest rates
Even though the base-rate hasn’t changed, we have seen interest rates steadily increasing and it’s likely you will have noticed that mortgage lenders have been decreasing their rates slightly. This is because mortgage lenders use a number of factors to determine mortgage rates and one of these is something called ‘swap rates’ which lenders use to reflect expectations for future interest rates.

Consequently, many mortgage lenders have already priced the latest base-rate increases or non-movement into their rates so the impact on new mortgage deals is likely to be minimal.

In addition, after the UK annual rate of inflation reached 11.1% in October 2022, a 41-year high, it has been falling ever since and this gives banks and building societies more confidence that interest rates could fall in the longer term.

We can help you navigate the mortgage market
If you need to remortgage, we can help you navigate the mortgage market effectively. We continuously monitor the mortgage and wider financial market and can compare a huge range of lenders and mortgages on your behalf, finding a solution that’s completely tailored to your needs.

Call us on 01926 332231 or drop us an email on enquiries@leamfinancialservices.co.uk

Approved by The Openwork Partnership on 21/09/2023

Having ready cash on hand is an essential part of any successful financial plan. When investing, it’s important to hold an emergency fund. This readily available cash will mean you’re prepared to protect yourself against the unexpected and also plays a vital role in maintaining your financial wellbeing.

It’s generally advised to keep between three and six months of household expenditure in an easy access account – more if you work in a particularly volatile sector.

If you’re approaching retirement, you may want to keep even more of your wealth in cash.

An emergency fund and a retirement ‘buffer’ are only two aspects of how to think about cash – it can also be integral to a diversified portfolio. Cash tends to be the asset with the least associated risk. While cash offers the benefit of easy access, it also tends to provide lower long term returns than other asset classes.

Over time, cash values can be eroded by inflation. So, any additional cash reserves should be placed in accounts that can earn you more interest.

Cash savings are protected

Cash savings are protected by the government’s Financial Services Compensation Scheme (FSCS).

This provides protection for up to £85,000 for individuals and £170,000 for joint accounts per provider. If you’re a single person with £170,000 in savings, you could protect the full amount by investing £85,000 in two separate accounts held by different savings providers. 

Inertia is every saver’s worst enemy

Unfortunately, savers often fail to make the best choices about where to hold their cash. 12.6 million (nearly a third) of UK adults hold most of their savings in a current account with their main provider. As a result, they are missing out on up to £619 each in interest a year, totalling nearly £8bn, by holding their money in a current account rather than a market-leading easy access saver. So, it’s important to spend time considering the right places to hold cash reserves. Here are some of the main options and potential benefits and drawbacks.

High interest current accounts

These accounts often pay more than standard savings accounts. While they can be used as an easy access account, most high interest accounts will come with certain restrictions.

Check the small print – the promise may not suit your needs. For example, you may have to save a set monthly amount into the account or there could be limits on how much of your balance will earn interest.

Earn more with fixed-rate accounts

Fixed-rate accounts typically offer higher rates of interest. However, to gain maximum benefit, you’ll need to lock your money away for a set amount of time. If you have a healthy emergency fund and are comfortable with the commitment and timescale, these can be great for growing your balance. The longer you’re prepared to tie your money up, the higher the interest you could gain. The rate available on fixed savings has been creeping up in recent months. As of 2023, it’s possible to find two-year fixed rate accounts paying up to 6.05% interest. As the Bank of England continues to battle against rising inflation, the City expects more rate rises. So, we should see the rates on fixed savings continue to rise, too.

Consider Premium Bonds – Ernie (Electronic Random Number Indicator Equipment) could deliver big

Premium Bonds are one of the most popular UK savings options. In July 2023, more than 24 million people had a total of £121 billion of savings allocated to the National Savings & Investments (NS&I) monthly prize draw.

Instead of earning interest, each £1 bond is an entry into the prize draw. All prizes are tax-free and range from £25 to £1 million. Premium Bonds are also Treasury-backed and 100% secure. The downside is that, with no interest being paid, if Ernie doesn’t draw your number you’ll effectively be losing money as your savings won’t be keeping up with inflation. You can save from as little as £25 and the maximum you can hold is £50,000 – a couple can invest up to £100,000.

Cash can create additional leg work

Because interest rates and offers are constantly changing, ensuring your cash is working as hard as possible can take a lot of time. Fortunately, there are services that we offer that can do all the work for you.

For example, our solutions removes the complication by securing optimal interest rates for your cash deposits across a variety of banks. This simple proposition helps you to reduce risk, increase potential returns on your cash, and save time.

Get in touch
We can help you understand how much emergency cash to keep on hand and how best to allocate additional cash reserves alongside your diversified portfolio. Please get in touch to arrange a time to chat.

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. Tax concessions are not guaranteed and may change in the future. Tax free means the investor pays no tax.
Approved by The Openwork Partnership on 04.10.2023

Should I get an interest-only mortgage?

If you’re about to come off a fixed rate mortgage, then you could be forgiven for wondering what’s in store for you.

Until relatively recently, interest rates have been at near-historic lows for over a decade. In the last two years, though, they’ve rocketed. Higher interest rates, coupled with the cost-of-living crisis and high inflation levels not seen in almost 40 years, has created uncertainty for those whose fixed-rate deal is about to end.

Homeowners are keen to keep their repayments manageable and one option you may be considering is an interest-only mortgage.

What is an interest only mortgage?
An interest only mortgage means you only pay the interest each month, with the loan amount remaining the same. This means your mortgage payments could be cheaper on a monthly basis. But at the end of the term, the full amount you borrowed needs to be fully repaid.

Is an interest only mortgage the right option for you?
Any mortgage decision needs to be carefully considered, which is why we are on hand to provide you with the expert advice you need to make an informed choice. A lot will depend on your circumstances. Interest-only mortgages can cut the cost of your monthly payments but you will need a credible repayment plan at the end of the term.

Maybe you have a separate investment vehicle to pay off the debt, or perhaps you’ve built up significant equity in your property and plan on down-sizing at the end of your mortgage term. If that’s the case, then an interest-only mortgage could be an avenue that we can explore together.

What are the drawbacks of an interest only mortgage?
The interest-only option isn’t for everyone and can be a route that is, ultimately, more expensive than remaining on a repayment mortgage. There’s also a chance that the investment you have in place to pay off the debt doesn’t work out – leaving you unable to afford the lump sum at the end of the term.

We’re on hand to guide you through…..
With its cheaper monthly payments, an interest-only mortgage, can be an effective way to keep your costs down and, in the immediate term, feel like an attractive option but you have to be certain you will be able to repay the loan when it comes to the end of the term.

Our experienced advisers will talk you through all the pros and cons of an interest-only mortgage, assess all your options and help you make the right choice for you and your individual circumstances.

Call us on 01926 332231 or drop us an email at enquiries@leamfinancialservices.co.uk

Approved by The Openwork Partnership on 07/09/2023

Here are three reassuring reasons for staying invested in the stock market during uncertain times.

01 The best financial decisions are not based on emotion

Emotions can play a big role in your financial decision making if you aren’t vigilant. The thrill of seeing your investments increase in value can quickly be replaced with panic and fear when the value decreases during market slumps.

When you understand the cycle of emotions related to investing, you can reframe downturns as opportunities to maximise your returns in the long term. This is because when the value of investments falls, it becomes cheaper to buy more shares or fund units – providing greater opportunities to grow your wealth when conditions improve.

As Warren Buffett, one of the world’s most successful investors, famously said: you should aim to be “fearful when others are greedy, and greedy only when others are fearful”.

By looking at the situation objectively, without the influence of emotions, you will be able to make sensible financial decisions based on your understanding of how the markets tend to ebb and flow.

02 Bull markets tend to outlast bear markets

When markets are trending upwards and investments are generally growing in value, this is called a “bull market”. This is when you will often see your investments increasing in value. By contrast, a ‘bear market’ describes periods when the market has dropped 20% or more from its peak.

As seen in the chart below, bull markets have not only been more frequent over the past 60 years, but they have also tended to last far longer than the average bear market. Despite the rocky start to 2022 for investors, which has carried on into 2023, it makes financial sense to be optimistic about the prospect of markets recovering sooner rather than later. As the markets recover, you could see significant increases in the value of your investments.

03 Staying invested could produce better long-term gains than moving to cash

Attempting to time the market by moving your investments into cash during market downturns could lead to significantly lower long-term returns than if you had stayed invested throughout. The chart above shows how returns on £1,000 invested can be affected by attempting to use this strategy.

The end results show that the initial investment would have created a final value of £1,993.32 if it had remained invested throughout downturns; if the same amount had been invested initially, but removed from investments during downturns, the final value would have only been £1,042.43.

The difference in returns is partly because the best days in the markets tend to occur immediately after a downturn. By attempting to time the market, you will often miss out on the significant returns generated on these important days.

Compounding is the process of generating returns on the total value of your portfolio, including both your initial investment and any returns generated since then, so the impact of missing the best days in the market will be reflected in your portfolio’s value for many years.

Get in touch

If you’re concerned about whether the current market volatility will affect your long-term financial plans, seeking expert advice can help to reassure you and keep you on the right track. We can help you to decide on the most appropriate next steps based on your circumstances and future goals. Please get in touch to arrange a time to chat.

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. Past Performance is not a guide to future performance and should not be relied upon.

Approved by The Openwork Partnership on 04.10.2023

Traditionally, the value of financial advice has been measured by monetary results of investment performance and returns. Today, the cost of living crisis is causing many to re-evaluate the benefits of financial advice.

These days, financial planning is about more than simply looking after your money and protecting your wealth. As well as helping you see results in pounds and pence growth, we can also help ensure you are prepared to meet the challenges you may face in life.

Used as a trusted and impartial sounding board, we can help by:

• Encouraging you to recognise your goals and establish a clear financial road map to help you attain them

• Providing you with someone to listen to you and to help you to arrive at the right financial outcomes – taking an objective view and a way forward

• Managing your investments to maximise returns, while controlling risk, and reducing potential tax charges

• Preparing you to deal with unpredictable outcomes you may not have considered, such as premature death, being diagnosed with critical illness or other unexpected life events that change income, savings, or retirement dates that could have a detrimental impact on your desired lifestyle

• Offering emotional support and guidance to provide peace of mind And the value of financial planning doesn’t stop there.

And the value of financial planning doesn’t stop there.

Financial advice is more than just your money; it covers every aspect of your life

A great financial adviser can serve as an objective ear and help you to prioritise your future spending, helping you to deploy the money that you have in a more meaningful way. Longevity and the ability to live your best life are inherent to great financial advice. So, helping you to understand how a healthier lifestyle can help you to achieve your goals is another important aspect of our role.

With a wealth of knowledge about healthy choices now available, small changes can improve your quality of life and help you live longer and in better health. The ripple effect of living a good life means adjusting your plan to ensure you have enough money to last for a comfortable future.

The unseen value of free support services you can access

If something unexpected were to happen, insurance products and policies can provide valuable peace of mind to you and your family. This could include being too sick to work, suffering a life-threatening illness, or death.

In addition, insurance products often also include a wide range of practical and emotional support services. Many of these additional benefits are available at no extra cost and can be used by your family members too. These extra benefits are usually available as soon as your policy starts and remain open to you and your family until the policy ends. This kind of added value is automatically built into your insurance policies but can often be forgotten about or overlooked.

Although the type of complementary services will depend on both the policy and the insurance provider, they tend to be fairly similar and could include:

• Medical related services

- 24/7 access to a doctor through a virtual consultation

- An expert second medical opinion on your diagnosis

 - Private prescription services

- Medical care while abroad

• Counselling services

- Mental health and other support services – usually remote and without a long wait

- Physical rehabilitation

- Support to help you get back to work

• Preventative services

- Nutritional support

- Health checks

Structuring a sustainable income

Trust is one of the primary drivers of a successful client/adviser relationship. We proactively monitor your needs and investment portfolios. This means we’re well-positioned and able to recognise when changes are needed. Knowing that life can get in the way of even the best-laid plans, we have annual review meetings to help you stay on track. These regular reviews will help make sure your actions and investments remain aligned with your goals. Shockingly, the Financial Conduct Authority (FCA) revealed that only 8% of the population use a financial planner.

At your review, we’ll often use cashflow planning tools to explore the financial impact of various scenarios. This helps ensure that you’ve thought about all aspects of your financial future, including inflation, so that whatever the future holds, you can be better prepared for whatever life might have in store for 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.

Get in touch

If you’re worried about the rising cost of living and want to reap the financial and emotional benefits that speaking to a financial planner can bring, we’re here to help. Please get in touch to arrange a time to chat.

Approved by The Openwork Partnership on 04.10.2023

Life can be full of surprises. You can’t be prepared for everything. You may have some insurance to support you financially if the unexpected happens, but have you considered how private medical insurance might offer you and your family the peace of mind you need if your health takes a turn for the worst?

A growing trend
According to data published by The Telegraph, close to half a million people have taken out private medical insurance over the past year, as NHS waiting lists hit record levels this autumn. According to government statistics almost 7.8 million people were waiting to start routine hospital treatment in September 2023.

Against this backdrop, it’s hardly a surprise that more people than ever are considering the benefits of private medical insurance including faster access to medical treatment for themselves and their families.

It’s not just speed of access, it’s also about the quality of care you receive, the flexibility of choosing where and when you would like to receive treatment, and the range of treatments, medicines, facilities and consultants available to you. Cost-restrictions in an already stretched NHS mean that not all breakthrough treatments are accessible. With private medical insurance you can sleep easy, safe in the knowledge that the very best care is available.

It’s more affordable than you think 
Avoiding lengthy waits for treatment and quality of care are just two of the biggest attractions of taking a route which has traditionally been seen as too expensive for most. But through our specially selected health insurance partner we can help you find the right policy for your budget. If you already have private medical insurance, we may be able to find you cheaper premiums for your circumstances, and all with a free no obligation quote.

The pandemic provided a reminder to us all of just how precious good health is – and acted as a reset for many. Health became a priority, and continues to be so. Spending money on private medical insurance may not have previously been a priority but protecting you and your family over the long-term means a growing number of people are taking the time to consider a more proactive approach to getting the treatment they may need.

We love our NHS but we know the pressure it’s under
We have nothing but respect for the hard-working and talented individuals who make the NHS what it is. But we also know that the service that has given so much to so many is under unprecedented pressure. We also know that there is often a faster and better alternative.

We can make sure you get all the information you need to decide whether private health insurance is the right option for you.

Call us on 01926 332231 or drop us an email on enquiries@leamfinancialservices.co.uk

Approved by The Openwork Partnership on 30/10/2023

January

• 1st – New Energy Price Cap – The new energy price cap for the next 3 months.
• 6th – National Insurance Tax Cut - The 12% NI rate will fall by 2 percentage points to 10% from 6 January, 2024.
• 31st – Self-Assessment Tax Deadline – You need to pay and submit your self-assessment tax return for the tax year ending 5th April 2023.

February

• 1st – First MPC Meeting of the year – The first interest rate announcement of the year for the Monetary Policy Committee to decide whether interest rates should be altered.

March

• Spring Budget - An update on the overall health of the economy and progress made since the Autumn Statement on 22nd November 2023.
• 5th – Rail Fares Rise – The Government are freezing all rail fares for January and February, meaning they are due to rise in March 2024.
• 21st – MPC Meeting – The second Bank of England Base Rate announcement of the year.
• 23rd – Temporary Cut to Fuel Duty ends – The 5p fuel duty cut was announced in March 2022, then extended another 12 months in early 2023, it is due to end on 25th March 2024.

April

• 15 hours free childcare for two-year-olds – The Government’s policy of 15 hours free childcare for working parents of two year olds comes into effect.
• 1st - New Energy Price Cap – The energy price cap for the second quarter of the year will come into effect.
• 1st - National living wage and minimum wage rise take affect – The hourly rate for people aged 21 and over will go from £10.42 to £11.44. Those aged 18 to 20 will see a £1.11 rise.
• 1st - Changes to household bills – Changes to a range of household bills will take place from the start of April.
• 5th - End of the 2023/24 tax year – Ensure you have used all your allowances.
• 6th - Start of the 2024/25 tax year
• 6th - Pension rises – State Pension is expected to rise to 8.5%.
• 6th - New tax changes:

- Lifetime allowance will be axed in April.

- Minimum age to open an ISA will rise to 18.

- Tax-free allowance for dividend income will be reduced from £1,000 to £500.

- Threshold for paying capital gains tax will be reduced from £6,000 to £3,000.

- IHT threshold will remain frozen until 2027/2028.

- Tax-free personal allowance will remain frozen at £12,570.

May

• 9th – MPC Meeting – The next Bank of England Base Rate announcement.

June

• Bank notes featuring King Charles are expected to circulate.
• 20th – MPC Meeting - The next Bank of England Base Rate announcement.

July

• 1st – New Energy Price Cap – The new energy price cap for the third quarter will come into effect.
• 31st - Deadline for second payment on account for 2023/24 for those that pay self-assessed income tax.

August

• 5th – MPC Meeting – The next Bank of England Base Rate announcement.
• 14th - July Inflation released – The inflation figure for July is important as it is traditionally used to set the increase in rail fares, which takes place the following year.

September

• 15 hours free childcare from nine months – Second stage of the Government’s roll out of free childcare from the age of nine months.
• 19th – MPC Meeting – The next Bank of England Base Rate announcement.

October

• 1st – New Energy Price Cap – The new energy price cap for the fourth quarter comes into effect.
• 5th – Deadline to register for self-assessment – If you’re new to self-assessment this is the deadline to register with HMRC.
• 16th – September inflation released – The inflation figure for September is important as it is used when calculating changes to benefits, the state pension and tax credits.
• 31st – Paper income self-assessment deadline – Your 2023/24 returns to be with HMRC.

November

• Potential Autumn Statement.
• 7th – MPC Meeting – The penultimate Bank of England Base Rate announcement of the year.

December

• 17th – Last possible day to call a general election.
• 19th – Final MPC Meeting of the year – The final Bank of England Base Rate announcement of the year.

Your financial plan could be impacted by these key dates. Talk to us for advice on unused allowances, additional rate tax and dividends.

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 specialist tax advice, please refer to an accountant or tax specialist.

Approved by The Openwork Partnership on 09/01/2024

As a new year begins you may want a fresh start for you and your families’ health. Did you know that many insurance policies offer access to a range of health and wellbeing services that can help? You also don’t need to make a claim to use them as your protection policies aren’t just there for when things go wrong.

Often called added value benefits, these services can help you and your family start or maintain good health and make your lives easier, providing advice, assistance and information to keep you and your family healthy throughout the year.

The types of services typically available with protection insurance fall into three areas:

Medical

• Access to an online GP
• Second medical opinion service
• Prescription services
• Medical care abroad

Support

• Mental health support
• Physical rehabilitation
• Counselling services
• Return to work support
• Bereavement support
• Legal support

Preventative

• Health MOTs
• Nutritional support
• Fitness services
• Online physiotherapy
• Nurse healthlines

Please note that not all insurers include all of these, so speak to us to make sure you have the right cover in place for you and your family.

You can use your protection policy to help you stay in good shape with these added health services and here’s why:

• Many of the services are free - You don’t need to claim on your policy to use them and they can be used throughout the life of your plan and regardless of pre-existing conditions.
• They can often be used by your family too – most services are also available for a partner or children to use at no cost.
• They are easy to use - You can book many of these services online and they’re accessible, via an online consultation, an app, or by phone with a professional.
• They are provided by medical and health experts.
• They are good for your health and wellbeing - From serious illness to everyday healthcare support, fast access to expert advice and support can be included in your protection policy.

Many clients have seen the benefits, for example, one of our insurers reported that 99% of GP appointments were offered within 2 hours of a customer contacting them. They also saw the demand for these appointments increase by 126% from the previous year showing that wider emotional, health and family support services can really make a difference in people's lives.

We can discuss health and wellbeing services with you when you’re considering a protection policy. By looking at the needs of you and your family, we can help you get the right protection in place.

Ready to start a healthy new year?

Call us on 01926 332231 or drop us an email at enquries@leamfinancialservices.co.uk

Approved by The Openwork Partnership on 18/01/2024

As we approach the end of the tax year, it's a good time to start thinking about how to make the most of the tax reliefs and allowances you’re entitled to, before they are lost. We’ve put together a checklist to ensure you’re aware of all the ways to make sure you don’t miss out.

1. Open or top up your ISA

You can hold up to £20,000 in your ISA in the 2023/2024 tax year and split the contribution, between either a Cash ISA or Stocks and Shares ISA.

2. Use your pension allowance

Usually if you’re under 75 can contribute to a pension and receive income tax relief, up to 45%. You can contribute your total salary or £60,000, whichever is the lesser amount, down to £3,600.

3. Review your State Pension National Insurance contributions

The amount of State Pension you’ll get depends on how many ‘qualifying’ years of National Insurance payments you have. Review your National Insurance contributions that you pay when you are working and see if you can top it up.

4. Open or top up a Junior ISA

You can add up to £9,000 into a Junior ISA in the 2023/2024 tax year, until the child turns 18. Like normal ISAs, you can choose between a Cash ISA or Stocks & Shares.

5. The capital gains tax allowance is £6,000 for the 2023/2024 tax year.

This means if you make gains on assets over the value of £6,000 annually, you’ll be required to pay capital gains tax on the excess amount at their marginal tax rate.

6. Match Capital Gains and Losses in the same tax year to reduce CGT liability.

Capital gains and losses incurred in the same tax year are offset against each other. This includes reducing gains down to zero even though some of the gain would otherwise have been covered by the annual exemption.

7. Consider VCTs and EISs

VCTs are sophisticated, long-term investments offering the chance to invest in small, fast growing UK companies. In return for the extra risk, you can receive a tax relief of up to 30%.

Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment. You may not be able to access your money easily and are unlikely to be protected if something goes wrong.

8. Reduce your Inheritance Tax liability

You can gift up to £3,000, known as the annual allowance, and use previous unused annual allowance once. Gifts over £3,000 are known as Potentially Exempt Transfers (PET) and free of inheritance tax if the individual survives seven years.

Planning now allows you to make smart decisions throughout the year that will benefit you and your family’s financial future.

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.

Approved by The Openwork Partnership on 12-2-2024

She hasn’t quite had more jobs than hot dinners but, when she thinks about the various pensions she’s acquired over the years, sometimes it feels that way.

Jenny has recently been considering consolidating pensions. But is combining her pensions necessarily the best way forward?

There are several potential advantages of consolidating your pensions.

Easier to manage - One of the main advantages Jenny might gain by combining her pensions is it should be easier for her to manage her retirement pot and reduce her chances of losing track of any savings.

In October 2022, the Association of British Insurers reported that three million UK pension pots worth £26.6bn were no longer matched to their owners, putting these savers in danger of missing out on significant sums of cash.

Lost pensions are worth an average of £9,470 each and often become unmatched from owners who fail to tell providers when they move home. If you’ve lost track of a pension, the government’s pension tracing service may help you find it.

Lower costs - By combining her various pensions, it’s also possible Jenny will be able to reduce the fees she pays.

She’s currently paying separately for the administration of each of her pensions. This isn’t very cost effective and makes it difficult for Jenny to keep track of what she’s paying in total.

Better returns - If Jenny’s various pensions aren’t working hard to grow her savings, consolidation may be a good option.

By switching to a provider that offers more investment options than those available through some older schemes, she may be able to make her money work harder and potentially increase the size of her pension pot.

Increased flexibility  - Schemes set up before pension freedoms were introduced in 2015 may not be as flexible as newer schemes.

By combining her pensions, Jenny might benefit from greater freedom in how she’s able to access her money.

Income drawdown came into effect in 2015. This makes it possible for people to withdraw money from their pensions from the age of 55. Older pensions may not offer this option.

Before consolidating pensions, there are some important considerations

Do existing pensions come with valuable benefits? Jenny might be better leaving a pension where it is, if transferring money out would mean she’d end up sacrificing valuable benefits.

Benefits she might not want to give up include:

• a guaranteed annuity rate
• the ability to withdraw more than the standard 25% tax-free cash sum allowed under drawdown
• being able to take a pension earlier than 55
• life insurance or critical illness cover

Are any of the existing pensions final salary pensions? Final salary pension schemes offer a guaranteed income for life, inflation protection and they may pay out to a surviving spouse if Jenny dies after reaching the scheme’s pension age.

Often, it makes sense to leave final salary pensions where they are.

Are there exit fees? If any of Jenny’s current providers charge significant exit fees, she’ll need to make sure those costs don’t outweigh any potential gains.

As she won’t be needing her pension for over ten years, it may be cost effective to switch despite hefty exit fees. However, if she was closer to retirement, there may not be enough time for any gains she might make through higher returns to outweigh the exit-fee costs.

How are her current pension schemes performing? If Jenny’s current pension schemes are generating strong returns, it might not be worth moving them for the sake of a little less admin.

She shouldn’t assume that moving her money will result in a bigger pension pot.

The importance of expert advice

Deciding whether to consolidate pensions isn’t always straightforward. Jenny may well benefit by getting help from a qualified financial adviser. A professional will make sure she doesn’t inadvertently lose access to valuable benefits or reduce the potential returns of her investments.

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.

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

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:

- Whether it’s a good idea to consolidate your pensions will depend on your personal situation and pension schemes.

- Combining pensions can make them easier to manage and reduce costs, as well as offering the potential for increased returns and more flexibility.

- It’s possible you may sacrifice valuable benefits by consolidating your pensions.

- Final salary pensions are usually best left where they are.

- Hefty exit fees may mean it’s not cost effective to move your money.

- If your current pensions are already generating strong returns, it may not be advisable to consolidate.

- Getting professional advice could prevent you making a costly mistake.

Approved by The Openwork Partnership on 27/02/2024

These legislative announcements are game-changers for Britain's economy, and Hunt’s announcements included a number of sweeping changes that could potentially affect the personal finances of everyone living and working in the United Kingdom.

In laying out the Spring Budget, Hunt reinforced the government’s dedication to building the British economy while also helping working families.

Hunt’s last announcement, made back in November, included boosts to minimum wages, an increase in State Pension, and a reduction to the headline rate for National Insurance. As of today, the government is maintaining their low-tax strategy by decreasing National Insurance even further, alongside major initiatives aimed at helping drivers, families, those in debt, and other crucial economic groups.

So, ultimately, who wins and loses? Who will benefit? Who will miss out? We’re breaking it all down in this post.

The Winners

Employees

Perhaps the most notable development from the Spring Budget announcement was the continuing drop in the main rate of National Insurance.

Referring to the tax increases for higher-income individuals, Chancellor Hunt stated that: “because we’ve asked those with the broadest shoulders to pay a bit more, today I go further. From April 6th, employee National Insurance will be reduced by another 2p, from 10% to 8%.”This is in addition to the reductions from November’s Autumn Statement, when the rate was brought down from 12% to 10%.

The cut is primarily aimed to benefit employees instead of employers. For example, today’s reduction would be worth around £450 for someone on a full-time salary of £35,000. However, think tanks warn that tax cuts that lack a highly specific target may do more harm than good.

The Institute for Public Policy Research (IPPR) says the cut would cost the government around £10.4 billion, and although that money would then be divided amongst taxpayers, it’s unlikely to end up in the hands of those that need it most. Since high-income individuals benefit most from National Insurance cuts, almost half of the money would go to the richest 20% of households, while only 3% would benefit the poorest 20% of families.

While a National Insurance cut would increase annual household disposable income, the IPPR warns that the negative impact on public services negates this benefit.

Families claiming child benefit

Around 500,000 families will gain almost £1,300 from an increase in the high-income threshold for child benefit. Hunt says he will change the way child benefit is paid. At present, high-income thresholds only apply to individuals as opposed to households, which is set to change.

However, as the transition would take a significant amount of time to enact, the Chancellor announced an immediate solution by increasing the higher income threshold from £50,000 to £60,000.

First-time home buyers

Hunt claimed that the government is on track to deliver over a million homes, opening up the property market and helping young people get onto the property ladder. More than £188 million has already been allocated to building new homes, and over £242 million is still to be spent on building homes across London.

In addition, Hunt stated that a higher rate of property capital gains tax is to be reduced from 28% to 24%, in a bid to increase revenues by increasing the rate of transactions.

Drivers

Fuel duty has been frozen at 52.95 pence per litre since 2011. When the Ukraine War threatened to send prices skyrocketing, a temporary 5-pence reduction to fuel duty was introduced in 2022 to balance things out.

That reduction was extended in 2023. But it has now been extended yet again by Jeremy Hunt in today’s budget announcement, preventing a 13% increase in fuel duty according to the chancellor. Scrapping the increase could cost the government around £2 billion, according to independent think tank Resolution Foundation. While obviously benefiting drivers and the UK industry in general, the plan could have notable climate consequences.

Arts, the media, and the film industry

To help maintain creative sector growth in the UK, the Chancellor has announced a wave of tax relief measures for the British film industry. For example, the rate of tax credits for visual effects studios will be increased, and a 40% tax relief on gross business rates for eligible film studios in England until 2034 was announced. Additionally, the budget included a new tax credit for UK independent films made with a budget under £15 million.

Hunt also announced £26 million in maintenance funding to the National Theatre, and stated that the tax relief for theatres will be made permanent. The relief rate now sits at 45% for touring and orchestral productions, and at 40% for non-touring productions.

Households on universal credit

The Chancellor also announced plans to assist households currently living on universal credit, by making loans easier to repay.

Hunt stated: “Nearly one million households on Universal Credit take out budgeting advance loans to pay for more expensive emergencies like boiler repairs or help getting a job. To help make such loans more affordable, I have today decided to increase the repayment period for new loans from 12 months to 24 months.”

Hunt also announced that he would also abolish the £90 Debt Relief Order charge, and extend the Household Support Fund — aimed at supporting local councils in helping families with food banks and vouchers — for an additional six months.

The Losers

Holiday home landlords

The chancellor claimed that he intends to scrap tax breaks that make it more profitable for second homeowners to let out their properties to vacationers, rather than those who let their properties to long-term tenants. As such, the government is set to abolish the furnished holiday lettings regime.

Vapers and Smokers

The Chancellor also announced a new tax on smoke-free heated tobacco products — set to take effect from October 2026 — following on from the government’s proposed vaping crackdown announced in the autumn. Hunt also announced a one-off increase in tobacco duty. This means that taxes on tobacco products will rise further, making the habit far more expensive.

Oil and Gas Companies

Chancellor Hunt has announced an extension of the windfall tax on oil and gas companies. This means the government will apply the tax for another year beyond the previous end date. Instead of concluding in March 2028, it will continue on into March 2029, raising £1.5 billion.

The windfall tax (more accurately known as the 2022 Energy Profits Levy) is a response to the soaring profits oil and gas companies began making after the combined impact of the lifting of COVID-19 restrictions and price increases due to Russia’s war in Ukraine. The 35% tax (originally 25% but raised in January 2023) applies to any profits made from the extraction of UK oil and gas.

Non-Domiciled Residents

The Chancellor also announced that rules over the taxation of non-dom residents — those who live in the UK but keep their permanent, registered place of residence abroad — are set to change. Hunt stated that the existing system will be replaced by a: “modern, simpler and fairer” one, as of April 2025. From then on, non-domiciled residents living in the UK will face the same taxes as other UK residents after four years.

What’s Next?

As you can see, the 2024 Spring Budget statement has unveiled a number of key initiatives aimed at growing the economy, supporting business, and boosting industry across the nation. 

It’s clear that these new initiatives will have a major impact on the finances of British people, and businesses operating in the country. It’s vital, therefore, to seek sound financial advice based on the adaptations laid out by the budget. Indeed, it can be tricky to understand exactly how the Spring budget will affect you or your enterprise without consulting qualified financial advisors first.

So, if you want more information on how the Spring budget could affect your finances, don’t hesitate to get in touch now.

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 06/03/2024

Life is busy, we get it. But is anything more important than being in control of your future? Recent research* suggests that only 44% of UK adults have made a will, which means that you’re far from alone if you haven’t yet got around to completing what, for some, appears to be a daunting task.

It’s always worth bearing in mind that if you die without a will, the law decides who inherits everything you own (your assets) according to certain criteria called ‘intestacy rules’. So your assets may not be divided up as you would like, meaning your loved ones’ future isn’t in your hands, but in the hands of HM Treasury.

What is a will?

A will allows you to direct how your assets are distributed after you die. These might consist of properties, bank balances or prized possessions. If you have a business or investments then your will describes in black and white who will receive these assets and when. It also enables you to leave gifts to a charity or charities of your choice, should you wish to.

In short, a will is the only way to ensure your money, property, possessions, and investments go to the people or the causes you care about most. 

Don’t put it off

A 2023 report* from the National Will Register found that 42% of adults in the UK hadn’t spoken to anyone about what should happen to their assets after their death. Even among the age group most likely to have written a will, three in ten over 55s hadn’t discussed their wishes with anyone. 

It’s easy to understand why people put off such major decisions but this isn’t a subject which should be parked – it’s one that needs to be proactively tackled before it’s too late.

Which is where we come in. Getting it right is too important to leave to chance, so get in touch and we can ensure you’re directed to the right place to ensure the will you write is uniquely designed to express your wishes and safeguard your loved ones’ futures. 

Approved by The Openwork Partnership on 07/02/2024

Will writing is not regulated by the Financial Conduct Authority.

A UK mortgage lender has launched a £5,000 deposit mortgage especially for first time buyers!

• Minimum £5K deposit. 
• Available for Loan To Values between 95.01% and 99%.
• House purchases above £100k and up to £500K.

If you are looking to take your first steps on the property ladder, talk to us today to find out more.

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.
Approved by The Openwork Partnership on 27/03/2024.

A Lasting Power of Attorney (LPA) is a legal document that allows you to appoint one or more people to make decisions on your behalf during your lifetime. The people you appoint to manage your affairs are called the attorneys. An LPA is a completely separate legal document to your will although many people put them in place at the same time as getting their will written, as part of planning for their future.

What does a Lasting Power of Attorney (LPA) cover?

There are two types of LPA which come into effect when you are no longer able to make your own decisions.

A health and care LPA lets your attorney make decisions about your medical treatment and day-to-day care. This can include where you live, what you eat, what medical treatment you receive and who you see.

A financial decisions LPA lets your attorney handle (and make decisions about) your money and property. This can include paying your bills, selling your property, collecting your pension and collecting your benefits.

Do you need an LPA?

Without an LPA, if you need someone to step in and manage your finances or make decisions about your healthcare in the future, their only option will be to apply for a deputyship order through the court. This can be a costly, complex and lengthy process. If you have an LPA, it can take effect as soon as it’s needed, meaning your chosen attorney can step in to help straight away.

Once your LPA is in place, you have peace of mind in knowing that someone you trust can look after your affairs if you're ever unable to yourself, because of an illness or an accident.

Don’t put it off

More than 75% of the over 55s have not registered an LPA. The benefits and the simplicity of putting one in place should encourage you to make the decision to get your ducks in a row before it’s too late.

Which is where we can help. Getting it right is too important to leave to chance, so get in touch and we can ensure you’re directed to the right place to organise and register your LPA.

Approved by The Openwork Partnership on 20/02/2024
Will writing and Lasting Power of Attorney are not regulated by the Financial Conduct Authority.

Whether you are looking to buy brand-new items or saving a little cash with pre-loved items, starting a family can be expensive.

There are the everyday costs, whether it is the cost of disposable nappies or the cost of running the washing machine for reusable nappies. Then there are the big-ticket items like prams, cots, and car seats.

With all the excitement of a new baby reviewing your contents insurance is probably the furthest thing from your mind. But all the new furniture, electrical equipment, toys, and clothes can add up. Costs can vary depending on whether you are having your first, second or even third child, but on average families spend around £6,000 in the first year.

When to review your contents insurance

You should also review your contents insurance if you have any major life changes for example:

1. If you move to a new home, you should review your contents insurance policy to make sure it still meets your needs. The value of your personal belongings may have changed, and you may need to adjust your coverage accordingly.

2. If you purchase expensive items, such as a new piece of jewellery or a high-end appliance, you should review your contents insurance policy to make sure these items are covered. Some policies have limits on the amount of coverage for certain types of items, so you may need to purchase additional coverage.

3. If you renovate your home, you may need to review your contents insurance policy to ensure that it covers any improvements or additions you have made. You may also need to increase your coverage to account for the increased value of your personal belongings.

4. If your circumstances change, such as getting married, having a child, or starting a home-based business, you should review your contents insurance policy to ensure that it still provides adequate coverage for your personal belongings.

Tips for reviewing your contents insurance:

• Make a list of all your belongings and their value. This will help you to determine how much cover you need.
• Check your policy documents to make sure that you understand any exclusions or limitations.
• Speak to your financial adviser about any gaps in your cover.

Get Advice
It is important to review your contents insurance regularly to make sure that it still meets your needs. By doing so, you can be sure that you are properly protected in the event of a claim.

Approved by The Openwork Partnership on 18/05/2023.

We’ve put together some ideas to try and take away some of the stress and confusion and give you confidence to move through the home buying process as smoothly as possible.

Get the right advice

Of course, we’re going to say that - it’s what we do! We’ll review your circumstances and look at your income, debt, day-to-day outgoings, employment and the size of your deposit, to assess what you can afford to borrow now and in the future. We’ll talk you through the types of mortgages we think are right for you and the lenders who offer them.

Save as much as possible

Buying a house is going to be expensive so it’s important to save, save, save and save some more to get yourself in the best position possible. Many lenders will accept a minimum deposit of 5% of the cost of the house you’re buying but aim higher. The bigger your deposit the smaller the mortgage (and monthly mortgage payments) making you more attractive to a lender.

Compromise

We can all admit that it is easy to get a little carried away when looking for your ‘dream’ home, but sometimes buying your first house is all about compromise. Deciding what you’re prepared to compromise on is an essential step when considering your first home. Whether it’s the luxury of having a drive or a bigger garden, it’s unlikely that you’re going to get everything you want at a price you can afford.

Know your budget

Your hard-saved deposit and monthly mortgage repayments aren’t the only expenses you need to be mindful of when buying your first home:

• Some lenders will charge for a valuation fee to help them establish how much they are prepared to lend you.
• You’ll also need to factor in the cost of a survey (depending on the type of property you’re buying and the lender you choose to go with you might need a basic mortgage valuation, a homebuyer’s report or a full structural survey).
• In Scotland you also need to budget for Land and Buildings Transaction Tax and in Wales you’ll need to budget for Land Transaction Tax. If you live in England or Northern Ireland, you won’t pay any Stamp Duty Land Tax on properties worth up to £250,000.
• You’ll also need to pay your solicitor or conveyancer for any legal work and local searches they do on your behalf.

Talk to us and we can help with practical financial advice on your first and future home purchases.

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

Approved by The Openwork Partnership on 14/03/2024.

How to improve your chances of passing a mortgage affordability assessment

Every year brings new possibilities – and at the start of the 2024/25 tax year, it’s time to maximise your financial options and opportunities. If you’re an investor or saver then there are plenty of tax perks you can take advantage of. But the clock is ticking before the tax year door slams shuts and our team of experts are on hand to ensure that you receive the information you need to make the best decisions for you and your finances.  

So, what should my priorities be?

Well, there’s little benefit to having an ISA allowance if you don’t use it to its full potential. The current rules mean you can pay in a maximum of £20,000 across all your ISAs – and you can’t roll over those unused allowances into the next tax year. That allowance applies to cash ISAs, stocks and shares ISAs, lifetime ISAs and innovative finance ISAs – put your money in, and you won’t pay a penny in income tax. 

Free cash?  

There are cash efficiencies available to you everywhere, you just need to know where to look. Take the lifetime cash ISA as an example. It’s one of the best ways to maximise allowances and bonuses and can be opened by anyone under the age of 40. By contributing up to £4,000 each tax year, the government gives savers a 25% bonus worth £1,000 a year. 

A lifetime ISA can only be used for saving towards either your first home (costing up to £450,000) or for retirement. If you withdraw some or all of the cash

before the age of 60 or don't use it for a first home or retirement, you will have a 25% penalty on the withdrawal amount, so you effectively lose the Government bonus.

Utilise your pension

Are you a higher rate or additional-rate tax payer? If the answer is yes, then you can claim the full amount of pensions tax relief – which could be a further 20% or 25%. It’s not only a tax- efficient way of saving for retirement, it’s also a means of using your pension contributions to bring down your income tax band. 

It’s in your hands

Whatever happens in the next tax year, remember that it’s in your hands. And ours too. We’re here to provide you with all the expertise and advice you need to make sound decisions when it comes to one of the few certainties in life. Tax doesn’t have to be taxing. 

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.

Approved by The Openwork Partnership on 7-5-2024.

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 us on 01926 332231 or drop us an email on enquiries@leamfinancialservices.co.uk

Approved by The Openwork Partnership on 15/04/2024.

At the start of 2024, Rishi Sunak said that his “working assumption” was that the general election would be held “in the second half of the year”. His unexpected choice of 4 July just passes that midway threshold, so what happens next?

Election timeline

The run-up to the dissolution of parliament will see a week of frantically trying to pass outstanding legislation (including the March Budget’s Finance Bill). The manifestos will probably appear around the second week of June, although there are some suggestions they may be quite thin documents.

23 – 24 May - ‘Wash up’ period in parliament for outstanding legislation. 16 bills will either be dropped or pushed through on a consensus basis. The list includes the relatively short Finance (No 2) Bill 2024 which was at the report stage in the House of Commons when the election was called. Parliament prorogued.

30 May - Parliament dissolved ahead of 25-day election campaign cycle

5 – 16 June - Expected publication of party manifestos

4 July - General election

Tax policies so far

What we know about the main party’s tax policies so far is limited and well-flagged:

• The Conservatives want to abolish individual national insurance contributions. Still, the cost of this is over £40 billion, so falls into the category of long-term aspiration rather than short-term policy.

Labour has said it will:

• Extend the tax on non-domiciled individuals beyond the arguably stolen proposals revealed by Jeremey Hunt in March;
• Apply VAT to private education; and
• Change the tax treatment of carried interest for investment managers.

In terms of revenue raised, the three count as minor revenue raisers.

Rachel Reeves, the Shadow Chancellor, has effectively signed up to the spending plans that Jeremy Hunt set out in the spring Budget. Outside the world of politics, these are not regarded as credible. The chairman of the Office for Budget Responsibility (OBR) has described them as worse than fiction. Similarly, the International Monetary Fund’s recent report pointed to the Chancellor’s Budget plans containing a £30 billion black hole that needed filling with tax rises and/or spending cuts.

Post-election landscape

Based on previous elections, we could find out more about the new government’s real tax and spending intentions in a Budget held within about two months of the polls closing. That means we could see an incoming Labour Budget in early September. Rachel Reeves has already said she wants to hold a single Budget each year, in autumn.

In any event, the (new) Chancellor is due to deliver a Spending Review for the next three years from April 2025, which cannot practically be deferred beyond November.

Tax announcements might also emerge at that second fiscal even. Autumn brings several costly calls on government resources – compensation for the Post Office and blood contamination scandals – to which can be potentially added funds to bail out failing water companies and local councils. The next Economic and Fiscal Outlook from the OBR, theoretically due in autumn, looks like a challenge for whoever is Chancellor – and may explain that early election date.

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 us on 01926 332231 or drop them an email on enquiries@leamfinancialservices.co.uk

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 us on 01926 332231 or drop them an email on enquiries@leamfinancialservices.co.uk

Approved by The Openwork Partnership on 15/04/2024.

“Behavioural finance” was first coined in the 1970s by economist Robert Shiller and psychologists Daniel Kahneman and Amos Tversky. They used the term to refer
to how unconscious biases and previous experiences affect the way people make financial decisions.

It can be used to explain why investors can make knee-jerk decisions or invest in opportunities that aren’t in their own best interest. Rather than relying purely on facts, investors often have biases thataffect how they react to certain situations.

Finance bias can lead to “irrational” decisions through shortcuts

There’s a reason why people often make decisions based on biases: they can make the decision-making process quicker.

If you imagine how many decisions you need to make every single day, it’s easy to see why this kind of decision-making can be useful. From what to eat for breakfast to which way totravel to work, it’d take up all your time if you carefully went through the facts for each decision you make. So, you make shortcuts by using biases.
However, while it can be a useful process in your day-to-day life, bias can have a negative effect when you’re making important decisions, including financial ones.

Behavioural finance covers five concepts:

1. Mental accounting
Mental accounting can be incredibly useful when you’re managing a budget. However, inflexibility could mean you miss out on opportunities. The concept refers to how people may designate money for certain purposes. So, you may have different savings accounts for various goals. It’s a process that can help you manage your
outgoings and work towards goals. However, it can also lead to irrational decision making. You may not dip into a savings account that you’ve allocated to buying a newcar even when you face an emergency and it’d make sense logically. How you receive the money may also affect how you use it. For instance, you may put off using money thatwas given as a gift in an emergency because you believe it should be used for something special.

2. Herd behaviour
Herd behaviour is something that’s often seen in investing. When you hear that lots of people are selling certain stocks or buying a specific share, it can be easy
to be led by this and follow suit. It can lead to you making decisions that, while possibly right for others, don’t suit you or your circumstances. It’s not just investing where herdbehaviour can have an effect. You may be tempted to purchase an item after a friend has or choose a savings account because someone you know has.

3. Anchoring
When you have some information, you may focus on this – anchoring your views to this data. Setting a benchmark can be useful, but it can mean you don’t take in
other information, especially if it’s contradictory. So, you may hold on to investments even after the value has fallen because you’ve anchored its worth to a previous valuation.

4. Emotional gap
Emotions often play a role in financial decisions. You may sell a stock because you fear that the price will fall, or make an impulse purchase because you’re happy.
Being comfortable with your financial plan is important, but an emotional gap can fuel irrational decisions as you’re more likely to overlook data.

5. Self-attribution
This concept refers to how investors are likely to have overconfidence in their abilities. You may believe you can reliably time the market to maximise profits when
the markets are unpredictable. In this case, it’s common to see “wins” as being down to your knowledge, while “losses” are attributed to things
outside of your control.

Unconscious bias may affect your decisions in ways you don’t expect. If you have any questions about your finances and the decisions you need to make, please contact us.

The value of your investment can go down as well as up and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance.

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Expires 13/03/25
Approved by the Openwork Partnership on 14 March 2024.

Don’t put it off

Retirement can often seem a long way off – but the choices you make before you stop working can have an enormous impact on the kind of life you enjoy when you finally call time on the nine to five. Our trusted and highly-skilled team of advisers are on hand to give you the best possible advice, making a potentially stressful process far easier.

There are several considerations you need to take into account as part of that planning process. So, we’ve put together a quick checklist to make sure that the decisions you make now, stand you in the best possible stead when you retire.

How much will I need?

At a time when final salary pension schemes are rare, the chances are you’ll have to get accustomed to a different pattern of income and expenditure in retirement. That can be a daunting prospect, but like anything in life, planning ahead can help make a potentially bumpy path, far smoother. Splitting your expenditure into two distinct categories – essential spending, and discretionary spending – you can work out a plan that best suits your finances. Once you know how much you’re likely to spend in retirement, you can plan accordingly.

How much will I have?

It’s always a good idea to work out how much of a retirement pot you’re likely to enjoy well before you finish your working life. And there are a number of ways to make that as simple as possible.

Firstly, you can get a State Pension forecast. This will give you an estimate of how much of a state pension you will receive, based on your National Insurance contributions. You can do this by visiting GOV.UK.

If you also have a defined benefit pension, or a defined contribution pension pot, you can ask your pension provider to provide you with a retirement quote or information on your retirement options.

You can also boost that final pension pot by tallying up your savings and investments. And finally, it’s always a good idea to try and trace any lost pensions through the Government’s free Pension Tracing Service site.

Assess your income options

Depending on the type of pension you have, you may need to decide how you take your money in retirement.

If you have a defined benefit pension, for example, you will often be paid a guaranteed income from your normal retirement age. If you have a defined contribution pension, then you’ll have a pot of money which you can begin drawing down from the age of 55.

You might also have other sources of income that you can draw on in retirement. This might be derived from property, savings or part-time work.

Now draw up that plan

Once you have all the information at your fingertips, you can begin planning. And looking forward to a future that is stress-free and secure.

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 7-5-2024.

Investing can be a daunting task, especially if you're not sure where to start, that’s where advice can be handy. A financial adviser can help you understand your financial situation, develop an investment plan, and choose the right investments for your needs to meet your goals.

Value of investment advice

Assess where to invest – Getting advice from a financial adviser can expose you to a wider range of choices when it comes to deciding where to invest. They have the knowledge and expertise on how products work in different markets and can identify any possible downsides as well as potential benefits.

Asset allocation – It’s important to invest in a mix of investments to reduce risk. A financial adviser can help determine your objectives for the investment as well as your attitude to risk before making any recommendations. This is to ensure you are taking the right level of risk and are in a good position to achieve the returns you want.

Portfolio rebalancing – To maintain a healthy mix of investments, you need to rebalance your portfolio. Essentially this is adjusting the weightings of different asset classes in an investment portfolio. A financial adviser will review the portfolio and rebalance where needed to ensure that you don’t take too much risk.

Help achieve your goals – Even a seemingly straightforward financial goal can involve numerous decisions and a range of different products and providers. A financial adviser can help assess what is realistically possible and create a tailored financial plan to ensure you achieve your investment goals.

The key benefits of investing

It's important to think carefully about putting some of your income aside for the future. For example, you may have more money to invest once your children have moved out, or your mortgage repayments may have reduced. So, what are the benefits to investing?

• Long-term returns

Investing offers the potential opportunity for long-term returns. The money you invest has the potential to grow significantly over time.

• Building wealth

Investing money in a variety of assets can be a great way to potentially build your wealth. The earlier you start and the more you’re able to save, the better shape your financial assets are likely to be in when you need to draw on them.

• Planning for retirement

No matter your age, it’s important to start saving for retirement as early as possible. Investing can help to grow your savings to ensure you have the money to get through your retirement years comfortably.

• Meeting financial goals

Another benefit to investing is the ability to achieve your personal and financial goals. Whether it’s saving for university, buying your dream home or simply building savings for the future, investing can grow your money giving you financial freedom to achieve your goals.

We’re here to help

We can go through the options available to you and discuss the various factors that could affect your investment and provide a personalised, tailored investment plan with the right products for you. Get in touch today.

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:

• With financial uncertainty nowadays, advisers can help you create a plan to profit in the good times and weather the storm against any possible downturns.
• Financial advisers can help you choose the right investments to suit your needs.
• Set clear investment goals and monitor progress when saving for the future.
• The earlier you start saving, the better shape your financial assets are likely to be in when you need them.
• 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 23/07/2024.

Searching for your first home can be an overwhelming experience, but when it’s the biggest purchase of your life, you need to ensure that it’s right for you. There are so many things to consider, so to help you with one of the biggest decisions in your life, we have drawn up some helpful tips and guidance when finding your first home.

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

Mortgage advisers can give you an idea of how much you will be paying monthly on certain properties, taking various fees and rates into account. They will also be able to tell you whether your budget is enough to get you the property you want and what deal they believe is best in light of interest rate developments.

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

Approved by The Openwork Partnership on 14/03/2024.

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!
• Speaking to a mortgage adviser can help make the process of finding your first home as smooth as possible.
• YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.

Despite having saved up a good deposit, friends have warned the couple they would have no chance of getting a mortgage due to their working situation. Sam is a self-employed, successful roofer, but has 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 Harry’s income alone. Harry works as a hairdresser and his salary is nowhere near enough to secure the kind of mortgage they’re hoping for.

The value of mortgage advice

Harry and Sam should resign from listening to their friends as when making such an important financial commitment like this, the only guidance they need is from a qualified mortgage adviser. Here are five ways they can make a difference to a mortgage search:

They know the market

If, like Harry 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. They know the lenders who are willing to consider buyers in your situation and will 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.

They know what a good deal looks like

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. They 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. They’ll also highlight any additional expenses like administration and booking fees, and valuation costs.

They do the hard work for you

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

They’re professionally qualified

They’re fully qualified to advise you on a wide range of lenders and products unlike high street banks and lenders. This way you’ll gain from genuine choice coupled with quality advice.

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

Approved by The Openwork Partnership on 26/03/2024.

Key takeaways:

• Don’t rely on friends’ advice for such a huge investment. 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.
• When making such an important financial commitment like this, the only guidance you need is from a qualified mortgage adviser. YOUR HOME MAY BE REPOSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.
• A mortgage adviser can help with more than just choosing the right deal, they can ensure the whole house-buying process runs as smoothly as possible.YOUR HOME MAY BE REPOSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.

The earlier you start investing, the better. Time is a powerful tool when it comes to investing, and the longer you have, the more time your money has to grow. Even if you can only contribute a small amount each month, starting early can make a big difference in the long run.

What investing opportunities are available?

In the UK, there are numerous different ways to invest in a child’s future. The main ones are:

• Junior ISA – Junior Individual Savings Accounts (JISAs) are a tax-efficient way to invest for your child's future. Junior ISAs have a tax-free allowance of £9,000 per tax year, which can be invested in cash, stocks and shares, or a combination of both. The funds in a Junior ISA are locked in until the child reaches the age of 18, at which point the account will convert to a standard adult ISA.
• Savings accounts – Many banks and building societies offer savings accounts for you to set up on a child’s behalf. You can start an account with as little as £1 for any child aged up to 18. There are two types of savings accounts: regular and instant access. Regular savings accounts are designed to encourage children to save an amount every month, and often run for a set amount of time whereas instant access allows you or your child to withdraw or deposit money at any time.
• National Savings and Investment (NS&I) Premium Bonds – NS&I Premium bonds are investments placed in a savings account that allows penalty-free withdrawals. There is no interest earned, instead the interest rate funds are placed in a monthly draw and any prize won is tax-free.
• Junior Self Invested Personal Pensions (SIPP) – Your child’s retirement may seem a world away, but you could consider opening a Junior SIPP to invest for their future. Parents can benefit from the tax relief associated with Junior SIPP as they can invest up to £2,880 each tax year with a 20% government top up. This amounts to the £3,600 annual contribution limit.
• Child Trust Funds (CTFs) – Even though Child Trusts Funds (CFTs) are no longer available, you can still contribute up to £9,000 a year into an existing CTF account. If a child was born between 2002 and 2011, they might have a Child Trust Fund. These can be transferred into a Junior ISA.

It’s important to remember that investing is a long-term game, and that staying consistent with your contributions will pay off in the long run. Even if you can only contribute a small amount each month, it's better than nothing. Consistency is key when it comes to building wealth over time.

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.

Approved by The Openwork Partnership on 19/05/2024

Cybercriminals use a wide range of tactics to con people out of their money. Stay one step ahead with these five crucial tips to avoid financial scams.

1. Stay informed

Knowing how to spot a financial scam is your first line of defence. Fraudsters are constantly changing their tactics so regularly educating yourself about common approaches like phishing, identity fraud and romance scams are crucial to staying one step ahead.

Action Fraud and other consumer protection organisations offer a wealth of valuable resources and updates on emerging scams. You could also subscribe to newsletters from trusted financial news outlets like The Financial Times, attend webinars on financial safety, or follow reputable financial organisations on social media.

2. Secure your personal information

Practising good information security is another vital step for warding off financial fraud. Insecure personal information is highly valuable for scammers, and they’ll go to great lengths to acquire it. Implementing strong security practices can significantly reduce the risk that your data will be stolen and used against you.

Use complex, unique passwords for each online account and update them regularly. Enable two-factor authentication wherever possible and be cautious about the personal information you share on social media and public platforms.

Remember to secure your offline data too. Shred documents containing personal information before you bin them, avoid writing your passwords down, and consider keeping important documents in a secure location such as a safe.

3. Do your research

Scammers rely on you taking them at face value. Research the claims made by anyone who contacts you out of the blue, even if they seem legitimate. Genuine organisations will understand if you want to verify the details of a situation.

Unexpected contact, a sudden change of details or time-sensitive opportunities are all indicators of a scam. Search online to see if other people have experienced a similar situation or contact an organisation directly to confirm if the circumstances are genuine. If someone contacts you claiming to work for someone you trust, such as a solicitor or financial adviser, stop the interaction and contact that person directly.

4. Take your time

Criminals want you to act without thinking. They usually try to play on your emotions or rush you into decisions. They may tempt you with time-sensitive opportunities or claim that other consumers are already benefiting from their offer.

Take a step back to assess the situation objectively, do your own research and ask someone you trust for advice. Scammers want you to act quickly and may refuse to provide contact details or threaten to withdraw an offer if you don’t. Remember that if something seems too good to be true, it probably is.

5. Report suspicious activity

If you think you’ve been the victim of a financial scam you should immediately report it to the police. You should also contact your financial institutions to freeze your accounts, seek advice, and potentially prevent fraudulent transactions.

You should still report scam attempts even if you haven’t become a victim of a scam. You can report suspicious activity to Action Fraud and other consumer protection organisations to increase awareness of new scams and criminal tactics.

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.

Saving for your child’s university education requires careful planning and budgeting. By starting early, considering investment opportunities, encouraging your child to save, looking for scholarships and bursaries, and planning, you can make saving for university a manageable goal and give your child the best possible start in life.

What is the cost of university?

It costs roughly £66,560 to go to university in the UK. This figure comes from tuition fees costing most students £9,250 a year. As most courses last around 3 years, this amounts to around £27,750 over the course of their time at university.

As well as a tuition fee loan, students can get a maintenance loan to help cover living costs like accommodation, travel, food, and books. The average maintenance loan is approximately about £6,116 a year, so there will more than likely be a significant shortfall that parents will need to cover. However, the exact cost of university can vary depending on where your child studies and the course they choose.

It’s important to consider the following when saving for your child’s university education.

Start early

How you save for your child’s university costs will depend on how long you’ve got before the money will be needed. For example, if your child is due to start university in the next few years, sticking with cash savings is likely to be your best option so the money is readily available and there’s no investment risk.

Consider Investing

Investing some of your savings can help you achieve higher returns, but it also comes with higher risks. It's important to understand what investment options you have before making any decisions. These options include:

• Stocks and Shares ISA – 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.
• Junior ISA – Junior ISAs have a tax-free allowance of £9,000 per tax year, which can be invested in cash, stocks and shares, or a combination of both. The funds in a Junior ISA are locked in until the child reaches the age of 18, at which point the account will convert to a standard adult ISA.

Encourage your child to save

Teaching your child about the importance of saving and encouraging them to save for their own education can help reduce the financial burden on you. Encourage them to take on part-time work and save some of their earnings towards their university education. They can use the following to help them save:

• Regular Savings Accounts - Many banks and building societies offer savings accounts for you to set up on a child’s behalf. Regular savings accounts are designed to encourage children to save an amount every month, and often run for a set amount of time.
• Instant Access Savings Account – Instant access savings accounts allows you or your child to withdraw or deposit money at any time.

Scholarships, Grants and Bursaries

Each university offers their own scholarship, grant and bursary programmes to help students pay for their education. Different universities offer different financial aids, so it is worth doing your research beforehand. Your child may be eligible for financial support based on academic or sporting achievements.

Plan Ahead

Creating a financial plan and setting goals can help you stay on track and make saving for your child's university education more achievable. Work out how much you need to save, how much you can realistically contribute each month, and how long it will take to reach your goal.

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 22/05/2024

On 30 October 2024, Chancellor of the Exchequer Rachel Reeves announced the UK Government’s Autumn Budget alongside the Office of Budget Responsibility’s economic and fiscal forecast. The measures aim to raise more than £40 billion in taxes, plugging an alleged £22 billion black hole in public finances left by the previous government. Reeves committed to drive economic growth, but also said that the Government wouldn’t borrow to fund current spending whilst maintaining the Bank of England’s inflation target of 2%.

Commenting on the Budget, Reeves said: “This Government was given a mandate to restore stability to our economy and begin a decade of national renewal. To fix the foundations and deliver change through responsible leadership in the national interest. That is our task, and I know we can achieve it.”

So, what are the potential impacts of these new measures? Below we outline who stands to benefit from these changes and who might be negatively affected. Let’s start with the positives.

The Winners

The NHS

The Chancellor pledged to significantly increase public spending on the NHS. Reeves promised a £22.6 billion increase to the “day-to-day" budget of the NHS alongside a £3.1 billion boost to its capital budget over the next two years. The Chancellor commented that this would be the “largest real term increase in NHS spending outside of COVID since 2010.”

Sustainable transport and energy

Reeves also announced that the National Wealth Fund would be used to invest in key areas like gigafactories and green hydrogen plants across the country. Meanwhile, over £2 billion will be invested in supporting the automotive sector’s transition to electric vehicles.

Property developers

Funds for the Affordable Homes Programme will increase to £3.1 billion to help Labour deliver on its promise to build over 1.5 million homes. Reeves said the Government would hire hundreds of new planning officers and make reductions to Right to Buy discounts, putting more money into the pockets of local councils. This news could incentivise investment in the UK’s property market and make it easier for property developers to build new homes in the UK.

Drivers

Reeves confirmed that the freeze on fuel duty will continue for another year, meaning drivers could save approximately £60 a year at the pumps. The freeze will cost £3 billion a year, but the Chancellor was clear that she wanted to ease “the burden on motorists”. This move could help relieve the fiscal pressure on delivery drivers, couriers and supply chains throughout the country. 

Young and low-income workers

The Chancellor announced that the Government is increasing the National Living Wage for workers aged 21 or over by 6.7% to £12.21 an hour (which could be worth up to £1,400 a year for a full-time worker) and increasing the National Minimum Wage for 18–20-year-olds by 16.3% to £10 an hour. Reeves also confirmed that National Insurance won’t be increasing for workers. Increases to the National Living and Minimum Wages are intended to provide much-needed support to those on the lowest incomes.

Small businesses

The employment allowance for business will increase from £5,000 to £10,500, reducing the National Insurance liability of small businesses. The Chancellor said that this would mean around 865,000 would pay no National Insurance in 2025, providing welcome relief for SMEs who are struggling to retain an effective workforce and attract applicants without a hit to their profits.

The Losers

Employers

Reeves confirmed that employers' National Insurance contributions will increase to 15% from April 2025. The Government is also reducing the threshold at which employers start paying National Insurance from £9,100 to £5,000 per year. Furthermore, the Chancellor announced that the current freeze on income tax thresholds would end in four years. From 2028, personal tax bands will be updated in line with inflation.

These changes will have a direct impact on British employers, but they could also have a knock-on effect for employees. Many businesses use savings on National Insurance to fund pension contributions or employee benefits. If the increased burden of National Insurance contributions proves too harsh, employees could lose these benefits as a result.

New businesses and investors

The Chancellor announced an increase in the lower rate of Capital Gains Tax (CGT) from 10% to 18% and the higher rate from 20 to 24%. She noted that, even with these increases, the UK will still have the lowest capital gains tax rate of any European G7 economy. But some analysts argue that the move could alienate investors and even decrease tax revenue overall if investment is pulled from UK startups.

Foreign investors

Reeves also announced sweeping changes to the tax status for non-domiciled high-net-worth individuals operating in the UK. The Chancellor said that Labour would “abolish the non-dom tax regime, and we will remove the outdated concept of domicile from the tax system from April 2025."

The government is also set to extend the Temporary Repatriation Relief to three years with the aim of bringing billions of new funds into the UK. The independent Office for Budget Responsibility estimates that this could raise £12.7 billion over the next five years.

Second homeowners

The Stamp Duty land tax for owners of second homes (known as the Higher Rate for Additional Dwellings) increased to 5% from 31 October 2024. The Chancellor said that the move is designed to “support over 130,000 additional transactions from people buying their first home or moving home over the next five years." However, this increase could have an impact on landlords, property developers, and the owners of holiday homes and other rental properties.

Private schools

All education, training and boarding services provided by private schools will now be subject to VAT at the standard rate of 20% from 1 January 2025. Private schools also won’t be able to claim back VAT on the supplies and services they pay for.

What’s Next?

The Autumn Budget contained several key changes that are likely to have significant impacts on individuals and businesses across the UK. There’s a lot of information to process and it may not be immediately clear how the changes set out in the Budget will affect you. If you have any questions about whether you are a winner or a loser from the Autumn Budget, and how it will affect you and your finances, please 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.

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 30/10/2024.

Stamp Duty relief not extended for buyers – what you need to know before rules change

In Labour’s first Budget since taking office, the Chancellor announced her plans to fix the so-called ‘black hole’ in the UK’s public finances and increase investment in public services, setting out £40 billion worth of tax rises.

While changes to stamp duty did form part of her plans, an extension or permanent change to stamp duty relief for movers and first-time buyers was sadly not included. So, what does this mean for those looking to move or buy?

What is stamp duty?

Stamp Duty Land Tax (SDLT) is the tax you pay when you buy a property or piece of land. How much you pay depends on the value of the property, whether it is your first home or if you own any other property. It is also a devolved tax, meaning costs and bandings are slightly different in Scotland and Wales as they are able to set their own rules.

How much is stamp duty now?

Currently, if you buy a property worth less than £250,000, you do not have to pay stamp duty. This was doubled from £125,000 by Liz Truss in the mini-budget. At the same time, the threshold was also raised for first-time buyers, meaning they do not pay stamp duty on purchases of up to £425,000.

This discount is due to end on the 31st March 2025, with many hoping the Chancellor would make this permanent in the Budget, or at the very least extend the relief. This sadly was not the case and the thresholds will now revert back.

What is changing?

With the thresholds returning to £125,000 and to £300,000 for first-time buyers, stamp duty will be charged at 5% on any amount above this. If you buy a house for £250,000 for example in April 2025, you will pay stamp duty on the additional £125,000. For first-timers, it is on the amount above the £300,000 threshold.

According to research by Leeds Building Society, the move will mean that stamp duty will be paid on 93% of properties for sale in England, and will cost house buyers up to £2,500 - according to The Times.

What does this mean for buyers?

For those looking to avoid paying this extra tax, purchases need to be completed before the end of March 2025. While this date may seem far away now, it’s important to remember that transactions can take from 6 weeks to 6 months to complete.

As we have seen previously with other stamp duty deadlines, the rush of buyers all looking to complete can gum up the house buying process and place additional pressures on the wider chain and key government departments, such as HM Land Registry. For those intending to buy, the advice would be to bring forward your moving plans to avoid any delay or disappointment.

For those looking to move or buy, staying on top of changes to the likes of stamp duty is really important, especially as it could help bring down the cost of your overall move. No matter your situation, mortgage and protection advisers are best placed to help you explore the options available and answer any questions you may have about stamp duty.

To book your appointment with a mortgage adviser, please call us on 01926 332231 or email enquiries@leamfinancialservices.co.uk.

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

Approved by The Openwork Partnership on 31/10/24.

We work hard to build a comfortable life for ourselves and our loved ones, but what happens if the unexpected happens and we become too ill to work. How can we ensure that our security today and our financial legacy remains intact for the next generation?

One of the most effective ways to protect our wealth is by incorporating income protection and critical illness cover into our financial planning. These two insurance options provide a safety net during challenging times, offering financial support when we need it most.

Together, these two types of insurance complement each other to offer comprehensive financial protection:

• Income protection provides a proportion of your income, approximately 60-70%, in case of illness or injury, ensuring you have a reliable source of income to sustain your lifestyle and your financial plans.

• Critical illness cover offers a tax-free lump sum payment upon diagnosis of a specified serious illness, providing a financial cushion to take a huge weight off your mind at a difficult time.

By combining income protection and critical illness cover, you can protect your wealth, protect your lifestyle and protect your financial legacy in the face of unexpected health challenges.

• Maintaining your lifestyle
  Both income protection and critical illness cover can help you continue your lifestyle by providing financial support. Whether it's paying the mortgage, paying bills, continuing your pension and investment contributions, these insurance options offer flexibility, security and peace of mind.

• Preserving your savings and investments
  You won't need to dip into your savings, sell investments or reduce your pension contributions to maintain the lifestyle you're accustomed to and are planning for. With income protection in place, you'll have a reliable source of income to cover your expenses during times of illness or injury. This means you can preserve your savings for future goals and emergencies, without the worry of depleting them.

• Protecting your legacy
  By protecting your financial stability, income protection and critical illness cover can ensure that your wealth remains intact for future generations. You can pass on your assets and provide for your loved ones without worrying about unforeseen financial setbacks.

Incorporating income protection and critical illness cover into your financial planning strategy is a proactive step towards protecting your financial legacy for the future. Speak to us to secure your financial well-being for now and for generations to come.

Call us on 01926 332231 or drop us an email on enquiries@leamfinancialservices.co.uk

Approved by The Openwork Partnership on 02/10/24.

Movers face upcoming changes to stamp duty relief – what you need to know

If you’re looking to move house, there’s an important date to mark in your calendar – Monday, 31^st March 2025. This is the day that the current stamp duty relief will end and thresholds will change in England and Northern Ireland.

But what does this mean for your house move? How much stamp duty will you have to pay? Keep reading to find out all the important answers.

Remind me, what is stamp duty?

Depending on when you last moved or when you bought your house, you may need reminding what stamp duty is. Stamp Duty Land Tax (SDLT) is the tax you pay when you buy a property or piece of land.

The amount you pay is based on the property’s value, with different bands depending on how much you agree to buy it for. It is also determined by whether it is a second home or additional property, and by its location in the United Kingdom. Costs and bandings can be different in Scotland and Wales as the devolved nations are allowed to set their own rules.

How much is it now?

Thanks to stamp duty relief introduced as part of the mini-budget, buyers in England and Northern Ireland, of homes worth less than £250,000 do not have to pay any stamp duty. This was increased from £125,000.

For any purchase over £250,000, buyers will pay 5% in stamp duty on the amount above this value. This applies right the way up to properties worth £925,000.

On purchases in excess of £925,000, buyers pay 10% in stamp duty up to £1.5 million. Anything above this is charged at the highest rate of stamp duty at 12%.

How is it changing?

After the 31^st March 2025, stamp duty relief will end and thresholds will revert back to where they were prior to the mini-budget. This means stamp duty will now paid be on purchases above £125,000.

A 2% rate of stamp duty will return and will be payable on the next £125,000 – the portion between £125,001 and £250,000.

After this, the bands remain the same with 5% stamp duty on the amount above this value – up to £925,000 – and so on right up to £1.5 million and above.

The result, according to research by Leeds Building Society, means that more than nine-in-ten properties on the market (93%) will now be subject to stamp duty.

What does this mean for movers?

For those climbing the ladder and moving into bigger, more expensive properties, the change is likely to add an additional cost to your move. With the average property in England costing £309,000 in September, the same is likely true for downsizers too.

For example, if a house is purchased for £300,000 before the end of March, the stamp duty bill would be £2,500. After March 31^st though, that figure doubles to £5,000.

Some buyers may decide to bring their plans forward in response to increasing costs. It’s important to remember though that transactions must be completed by the end of the March. With purchases currently taking anywhere between six weeks and six months to complete, those hoping to do so will need to act with real urgency.

Getting the right advice

Staying on top of changes to stamp duty is just one example of how buyers and movers can make informed decisions and manage any costs associated with their move. While it can be difficult to navigate changes to the likes of stamp duty, mortgage and protection advisers are well placed to help you understand what costs are involved and answer any burning questions throughout the process.

To book your appointment with a mortgage adviser, please call us on 01926 332231 or email enquiries@leamfinancialservices.co.uk

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

Approved by The Openwork Partnership on 27/11/2024.

No matter your mindset for 2025, now is a great time to review your financial goals and plans for the year ahead. Whether it’s finally getting onto the property ladder, safeguarding your family’s health and financial wellbeing, or thinking about plans for retirement, the right advice can help you on the path to identifying new opportunities and achieving your goals.

With so much to explore and understand, good advice has arguably never been so important. So what should you be considering as you look ahead this year?

Where should you prioritise?

• Mortgages: Whether you’re looking to buy or remortgage, a mortgage adviser has access to a wide variety of mortgage options as well as an extensive panel of lenders to identify the right product that suits your individual needs.
• Protection: With a mortgage often being our biggest financial commitment, the right protection is important should you become ill or unable to work, helping to safeguard yourself and your family.
• Retirement planning: Making those retirement dreams become a reality, ensuring you can maintain the lifestyle you desire after you finish work.
• Wealth management: Helping your money work for you through financial planning and a clear investment strategy.
• Tax planning, including inheritance tax: A financial planner can build a strategy to help minimise your tax liabilities efficiently and in a way that is fully above board.  
• Estate planning including wills and Lasting Power of Attorney: Organising all your affairs and assets to make sure loved ones are supported and your wishes are carried out if you become incapacitated or you pass away.
• Private Medical Insurance (PMI)*: With continued pressure on our health service increasing the length of wait times, PMI helps you and your family access private healthcare quicker.
• Home Insurance and conveyancing: Home insurance is essential in safeguarding your home should the worst happen. Just as important are quality conveyancers who will manage the legal process of transferring ownership when you decide it’s time to sell.

Finding a good recommendation

Whether some or all of the above are relevant to you right now, it can feel quite daunting to start the process of seeking advice. That is especially true if you’re expecting to speak to eight different companies about each individual topic.

One of our greatest strengths, is we are part of The Openwork Partnership, which is one of the biggest financial advice groups in the country. This means that at whichever point you enter; whether it’s discussing mortgages, protection, pensions or investments, your individual adviser is supported by thousands of others who will be able to help answer any other needs you may have.

Not only is it great to have a good recommendation, it also means you can access expert advice in every area and build a comprehensive plan that covers all aspects of your financial plan. Best of all, you have the peace of mind and convenience of dealing with one expert network.

Get in touch today

A holistic approach such as this ensures that all your bases are covered and helps minimise the risk of any potential gaps or missed opportunities.

So whether you have a priority or a clear goal in mind for 2025, advisers are able to work together and with the bigger picture in mind to help you identify every opportunity and make good progress towards your financial goals this year.  

To book your appointment with an adviser, please call us on 01926 332231 or email enquiries@leamfinancialservices.co.uk.

*Private Medical Insurance is available via a referral service to a specialist.

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

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.

Will Writing, Lasting Power of Attorney and Conveyancing are not regulated by the Financial Conduct Authority.

Approved by The Openwork Partnership on 03/01/2025.

Planning for the future involves more than setting money aside with financial investments and savings; it requires consistency and commitment. Yet, life's unexpected events, like illness or injury, can disrupt your investment journey. These curveballs might make it challenging to maintain your planned investment contributions.

That's why it's essential to consider how you can protect your investment contributions, ensuring they remain steady and uninterrupted if the unexpected were to happen.

Income protection is essential for your investments

Income protection insurance can provide a vital safety net. It pays a proportion of your income, approximately 60-70%, in case of illness or injury and can help you uphold your financial commitments, including contributions to your investment portfolio, if you're unable to work.

Here's why income protection is important for protecting your investment contributions:

• Continuous investment growth: Life can throw curveballs and unexpected events like illness or injury can disrupt your ability to earn an income, but your investments don't have to suffer. With income protection, you can keep contributing, maintaining the momentum towards your financial goals.
• Stay financially stable: If you're unable to work due to health issues, income protection kicks in to provide a steady income. This means you can pay your bills and keep investing, even if you're not bringing in your usual income. It keeps your financial boat steady when the waters get choppy.
• Protect your long-term wealth: By making sure you can keep investing; income protection protects your financial future. It means you can keep growing your investments over time, no matter what health challenges come your way. So you can still aim for that dream retirement, even if life takes a detour, ensuring you can reap the rewards and enjoy financial security in the years to come.
• Peace of mind: Knowing your investments are backed-up by income protection can bring peace of mind. You can focus on growing your money without worrying about what might happen if you can't work for a while. It's like having a safety net for your financial goals.

Talk to us to explore your income protection options and we can tailor a plan that meets your specific needs and circumstances. With income protection in place, you can enjoy peace of mind knowing that your investment options are protected against life's uncertainties.

Call us on 01926 332231 or drop us an email on enquiries@leamfinancialservices.co.uk

Approved by The Openwork Partnership on 26/07/2024.

Every six weeks or so, all eyes are on the Bank of England and its Monetary Policy Committee (MPC) – the group that decides whether interest rates will be increased, held or cut. How they choose to act has an impact on how much it costs banks to borrow money and what rates they can offer to savers and borrowers.

With all this in mind, what does an interest rate cut actually mean for mortgage holders and for those weighing up their options as they come to buy or move?

Will my mortgage now be cheaper?

For those borrowers that currently have a tracker mortgage – one where the rate closely follows the bank base rate (BBR) – they will see their monthly borrowing costs reduce almost immediately. This is because you will be paying less interest on your mortgage.

It is a similar scenario for those that are currently on a lender’s standard variable rate (SVR), which is a changeable rate set by the lender that typically comes into effect after a fixed rate period ends. These too are likely to be reduced following a cut, although it is important to note that lenders are not obliged to do so.

These types of mortgages only account for less than 1.5 million of the total outstanding mortgages (or 17%)[1], meaning that for the majority of mortgage holders, they won’t feel the benefit just yet.

What about my fixed rate mortgage?

The main reason is that the majority of mortgages in the UK are taken on a fixed-rate basis. This means that your monthly payments are fixed for set a period – typically, two, five or ten years. Whether interest rates rise or fall, the amount you will pay stays the same.

The only time this will change is when you come to change to a new deal, or do you nothing when your fixed rate ends and you to move to your lender’s SVR.

What does it mean for new mortgages?

While a change to the bank base rate doesn’t directly impact mortgage pricing, the overall outlook for interest rates does influence the mortgage rates offered by lenders.

Without getting too technical, this is because many lenders will purchase tranches of money to lend to customers, in addition to lending their own if they have the facility. The amount they pay is set using something called swap rates, which are ever-changing and heavily influenced by economic conditions, market expectations and general sentiment.

If swap rates decrease, then so does the cost for lenders to borrow money, allowing them to pass on savings to their customers and stay competitive. Often, but not always, the indication that interest rates are set to be cut – along with greater certainty around the future path of interest rates – can encourage swap rates to fall and reduce the borrowing costs for lenders and new mortgage holders.

Which option is right for me?

There’s no question that the decision made by the MPC plays a role in the mortgage process, whether it’s changing the amount you pay on a tracker or SVR, or what rate a lender may be able to offer you on a new mortgage.

Whether you’re looking to buy, move or remortgage, it can be useful to know what influences and mortgage pricing to make an informed choice. It’s also valuable to know what different options are available to you and how a change in interest rates – either positively or negatively – can change your monthly outgoings.

Working hand-in-hand with you, we will assess all your options and help you make the right choice for you and your individual circumstances. To book your appointment, please call us on 01926 332231 or email enquiries@leamfinancialservices.co.uk

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

Approved by The Openwork Partnership on 14/02/2025.

But is it best to change to a new mortgage product with your current lender via a product transfer or look to remortgage with another provider?

The reality is that there are advantages, disadvantages and differences to whichever route you choose to go down, which is why it’s essential to speak an experienced advisor who can guide you through the options available.

What is a remortgage?

A remortgage is when you replace your current mortgage with one from another lender. This is often done when your existing deal has come to an end, and you’re attempting to find a better deal than your current lender can offer.

What is a product transfer?

A product transfer involves switching to a new mortgage deal, often one with a different interest rate, or one fixed for another set period of time, with your current lender.

Should I stay with my existing lender or move to a new one?

When your mortgage comes to an end, it’s always a big decision to work out what your next move should be.

It may be that a product transfer onto a deal with a fixed interest rate for a longer period offers the kind of financial certainty that best suits your needs. Or it could be that remortgaging with a different rate, a different amount and a different term, offers the flexibility you require.

Staying with your current lender may feel like the saftest option when your mortgage comes to an end, but that’s no guarantee that you’ll be getting the right deal. That’s why we recommend shopping around to find a mortgage that’s fits you.

Take the weight off your shoulders with specialist help

The most important element of the process is that you’re armed with the information you need to make the right decision for you. Which is where we come in.

As mortgage experts, we have access to a wide range of lenders and can look at the options available to you including any new deals from your current lender as well as make sure you don’t end up on their standard variable rate, which tends to be higher than the rates on most other options. So, make sure you don’t leave this big financial decision until the last minute.

We will talk you through all the pros and cons of a both a remortgage and a product transfer. Working hand-in-hand with you, we will assess all your options and help you make the right choice for you and your individual circumstances.

Call us on 01926 332231 or email on enquiries@leamfinancialservices.co.uk

Approved by The Openwork Partnership on 10/01/2025.

If you’re looking for a buy to let mortgage in the current economic climate, the prospect may feel a little daunting. There’s no denying that as a landlord, due to remortgage, you may be facing higher mortgage rates and monthly payments which could put a squeeze on your profits.

But an adviser can help you navigate the difficulties, with the tools and expertise to source a buy to let mortgage that works for you.

To help set you up before you speak to an adviser, we’ve put together a useful breakdown of the key information you’ll need to know before the lending process gets underway.

ICR: a major buy to let consideration

When finding a mortgage product that meets your requirements, lenders will first look at the rental income you receive, the type and value of the property, and your personal income and credit history. They will then use this to calculate your Interest Cover Ratio (ICR), which acts as a safety net to make sure the rent you’re bringing in from the property covers your mortgage.

Calculating the Interest Cover Ratio (ICR)

The ICR is a regulatory requirement set by the Prudential Regulatory Authority. It’s part of a lender’s basic affordability calculation that’s typically applied to buy to let mortgage applications.

Lenders want to make sure your anticipated rental income doesn’t just cover the mortgage payment, but also an added ‘comfort level’ of around 25%, based on the likely mortgage payments at a higher ‘stress’ rate.

A requirement of a typical buy to let mortgage might be that a borrower’s property can achieve rent worth at least 125% of the mortgage payments at a notional interest rate, so the ICR in this example is 125%.

Lenders typically look for a minimum ICR of 125%, which is calculated using an appropriate stressed interest rate. A stressed ICR of 125% based on a higher rate reflects the amount of gross rental income required for landlords to break even. Lenders will also be factoring in the costs of mortgage repayments (considering interest rates), tax and property maintenance.

If the expected yield doesn’t sufficiently exceed the notional interest rate, lenders may look at additional sources of income to assess affordability.

If you’re a higher-rate taxpayer, lenders may assess you against a minimum stressed ICR of around 145%, as you may need more rental income to break even with the increased tax burden.

Planning how to weather rising inflation?

There’s a suite of options available to you that your adviser can go through in more detail, including:

-         Passing on your mortgage costs

-         Extending mortgage terms (repayment mortgages only)

-         Increasing borrowing on another property (if you have a portfolio)

Plan your next buy to let mortgage with the help of an expert mortgage adviser.

When it comes to finding the right mortgage for you, an adviser will use a combination of expertise and search tools to source the lender and buy to let mortgage that meets your needs and fits the lender’s ICR.

Ready to get started?

Call us on 01926 332231 or email enquiries@leamfinancialservices.co.uk

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

MOST Buy to let mortgages are not regulated by the Financial Conduct Authority.

Approved by The Openwork Partnership on 10/01/2025.

If you’re looking to join the property ladder and want to gain the inside scoop on some of the phrases, terminology and jargon you will expect to see, here is a handy guide.

Agreement in Principle (AIP)

Also known as a Decision in Principle (DIP), this is a statement from a lender to say they would be willing to lend a set amount of money to you to buy a property.

These are particularly helpful in the early stages of the homebuying process as they demonstrate to both estate agents and to sellers (also called vendors) that you are a serious buyer. A mortgage adviser will be able to help you secure an AIP or DIP.

Arrangement fee

Mortgage lenders may charge an arrangement fee to set up the mortgage. Depending on the mortgage product and the mortgage lender, the fee can either be paid upfront or added to the mortgage balance, if the lender allows.

Conveyancer

A conveyancer is a legal professional who specialises in managing property transactions in the UK. They manage the property transaction and transfer of property ownership.

Debt-to-income ratio (DTI)

The calculation used by lender to determine how much of your monthly income is spent paying off existing debt. This can include car finance, credit car debt or any personal loans and will be used by lenders to assess your affordability.

Early Repayment Charge (ERC)

Some mortgages, particularly fixed rate mortgages, often come with an ERC. This is the penalty a lender charges if you overpay by more than is allowed, or pay off your loan early. It can also be charged if you choose to remortgage or sell your home before the agreed period.

The amount you pay will vary depending on your lender and the type of mortgage you have, with some ERCs decreasing as the mortgage term progresses.

Energy Performance Certificate (EPC)

An EPC is a document that rates a property’s energy efficiency ranging from A (most efficient) to G (least efficient). Some mortgage lenders may require a minimum EPC rating before approving a loan and some lenders offer better rates or incentives for homes with higher EPC ratings – these are often called green mortgages.

Fixed rate

Fixed rate is the most popular type of mortgage among new borrowers in the UK and means your repayments are made at a fixed interest rate for a set period of time – typically two or five years. One reason for their popularity is your monthly payment is exactly the same for the entire fixed period.

Freehold

When you own the property and the land it is built on. This is compared to leasehold where you own the property for a fixed period of time, but the freeholder maintains ownership of the land it sits on.

Joint Borrower, Sole Proprietor

JBSP is a type of mortgage arrangement where multiple people (usually family members) apply for a loan together, but just one person owns the home.

Loan-to-value (LTV)

Loan-to-value ratio is how much you need to borrow as a mortgage compared to the value of a property. A lender will use this ratio (which is displayed as a percentage) to consider whether to lend to you, how much you can borrow and what interest rate you will receive.

A lower LTV means you need to borrow less in comparison to the value of the property and often means a lower interest rate as there is less potential risk for the lender. With a smaller deposit often comes a higher LTV and a higher interest rate as there is greater risk to the lender. A broker will be able to help you work out your LTV ratio and discuss potential ways to improve this if necessary.

Mortgage offer

A mortgage offer is a formal document from a mortgage lender confirming that they have approved a mortgage application and are willing to lend the borrower a specified amount. It outlines the loan terms, interest rate, repayment details, and any conditions that must be met before completion on the property purchase. A mortgage offer is typically valid for 3 to 6 months and is a key step in securing property purchase.

Overpayment

As the name suggests, this is when you pay over and beyond your usual monthly mortgage payments. Some people choose to do this as a way to shorten their mortgage term or to save on interest. Paying off too much too early can incur a penalty, so it’s important to check what limits your lender has in place. Your mortgage adviser will be able to help with this information.

Repayment mortgage

Also known as a capital and interest mortgage, this arrangement means your monthly mortgage payments go towards paying the capital (the amount you borrowed) and the interest (the cost to borrow the money from the lender). This is compared to an interest-only mortgage where you only pay off the interest each month and repay the capital at the end of the agreement.

Stamp Duty

Stamp Duty Land Tax (SDLT) is the tax paid when purchasing a property or piece of land. The amount paid depends on its value, where it is located and whether it is your first home or an additional home. Rules are also slightly different in Scotland and Wales so it’s important to speak with your local mortgage adviser to determine how much Stamp Duty you will pay.

Standard variable rate (SVR)

This is the mortgage interest rate that a lender will charge you after your initial mortgage rate ends. This rate can change at any time and is set by the lender. It can often be much higher than a rate achieved through a new deal so it can be best to seek advice and explore your options.

Tracker rate

A type of variable mortgage rate that tracks the Bank of England base rate. Unlike a fixed rate, a tracker rate will rise and fall in line with the base rate, meaning your monthly mortgage payments can go up or down.

Valuation fee

A valuation fee is charged by mortgage lenders to cover the cost of an independent assessment of the property’s value to ensure it meets the mortgage lender’s criteria to provide sufficient security for the mortgage loan.

Expert jargon-busting advice

If you’re not sure about any potential jargon or phrases you come across during the process, as mortgage advice experts, we will be able to provide an explanation, as well as answer any questions you may have. We will be able to guide you every step of the way to your first home.

To book your appointment, please call us on 01926 332231 or email enquiries@leamfinancialservices.co.uk

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

Approved by The Openwork Partnership on 24/03/25.

Life can be full of surprises. You can’t be prepared for everything. You may have some insurance to support you financially if the unexpected happens, but have you considered how private medical insurance might offer you and your family the peace of mind you need if your health takes a turn for the worst?

A growing trend
According to data published by The Telegraph, patients are opting for private healthcare in record numbers as the NHS is blighted by long wait times and strike action. According to government statistics almost 7.64 million people were waiting to start routine hospital treatment in August 2024.

Against this backdrop, it’s hardly a surprise that more people than ever are considering the benefits of private medical insurance including faster access to medical treatment for themselves and their families.

It’s not just speed of access, it’s also about the quality of care you receive, the flexibility of choosing where and when you would like to receive treatment, and the range of treatments, medicines, facilities and consultants available to you. Cost-restrictions in an already stretched NHS mean that not all breakthrough treatments are accessible. With private medical insurance you can sleep easy, safe in the knowledge that the very best care is available.

It’s more affordable than you think 
Avoiding lengthy waits for treatment and quality of care are just two of the biggest attractions of taking a route which has traditionally been seen as too expensive for most. But through our specially selected health insurance partner we can help you find the right policy for your budget. If you already have private medical insurance, we may be able to find you cheaper premiums for your circumstances, and all with a free no obligation quote.

The pandemic provided a reminder to us all of just how precious good health is – and acted as a reset for many. Health became a priority, and continues to be so. Spending money on private medical insurance may not have previously been a priority but protecting you and your family over the long-term means a growing number of people are taking the time to consider a more proactive approach to getting the treatment they may need.

We love our NHS but we know the pressure it’s under
We have nothing but respect for the hard-working and talented individuals who make the NHS what it is. But we also know that the service that has given so much to so many is under unprecedented pressure. We also know that there is often a faster and better alternative.

We can make sure you get all the information you need to decide whether private health insurance is the right option for you.

Call us on 01926 332231 or drop us an email on enquiries@leamfinancialservices.co.uk

Approved by The Openwork Partnership on 21/10/2024

Applying for your first mortgage is an exciting milestone, but it can also feel overwhelming. Lenders assess numerous factors to determine your eligibility, and some seemingly minor financial decisions can significantly impact your application. To help you secure approval, here are six key areas to focus on before applying for your first mortgage.

1. Changes to outgoings
Lenders consider your affordability based on your income and regular outgoings. Making significant financial commitments or increasing expenses before your application can reduce the amount you’re eligible to borrow. Avoid taking on new subscriptions, expensive memberships, or other recurring costs that could make lenders question your ability to manage mortgage repayments.

2. New credit applications
Every time you apply for credit, such as a credit card, loan, or car finance, it leaves a mark on your credit report. Multiple credit applications in a short period can make lenders wary, as it may indicate financial stress. Before applying for a mortgage, avoid taking on new credit and focus on keeping your existing credit lines in good standing.

3. Outstanding debt
High levels of outstanding debt can impact your debt-to-income ratio, a crucial factor in mortgage applications. Lenders assess whether you can comfortably afford mortgage repayments while managing existing debts. Paying down credit card balances, personal loans, and overdrafts before applying can improve your affordability and overall creditworthiness.

4. Electoral roll registration
Being registered on the electoral roll at your current address helps lenders verify your identity and residence history. Not being registered can cause delays in your application or even lead to rejection. Check your voter registration status and update it if necessary before submitting your mortgage application.

5. Employment stability
Lenders prefer applicants with stable employment or self-employment and a consistent income. Frequent job changes or being in a probationary period may weaken your application. If possible, avoid switching jobs right before applying and ensure you have at least three to six months of payslips to demonstrate a reliable income.

6. Excessive gambling
Lenders scrutinise your bank statements to assess financial stability. Regular or excessive gambling, even if you can afford it, raises red flags about risk and financial management. If your statements show large or frequent gambling transactions, lenders may view this as a sign of financial instability, potentially affecting your approval chances.

Final thoughts

Taking the time to manage your finances before applying for a mortgage can improve your chances of approval and secure better loan terms. Avoid excessive gambling, limit unnecessary spending, reduce outstanding debt, and maintain a stable financial profile. If you’re unsure where to start, speaking with a mortgage adviser can help you navigate the process and find the right mortgage option for your situation.

To book your appointment with a mortgage adviser, please call us on 01926 332231 or email enquiries@leamfinancialservices.co.uk.

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

Approved by The Openwork Partnership on 21/03/25.

Any first-time buyer trying to save up for a deposit to purchase their first home may feel daunted by how expensive the housing market is.

There is no doubt that it is much more difficult to get your foot onto the property ladder than ever before. In 2023, House Buyer Bureau reported that house prices today are 8.8 times people’s average earnings, which - it says - has more than doubled since the 1970s.

And in its Home Affordability report, Skipton Building Society found that of the top 25% of earners, just 44% of first-time buyer households could afford to buy in their local area.

So what can first-time buyers do to maximize their savings and earnings, to buy a property to call their own?

Help is at hand!

Successive governments have recognised the need to provide help for first-time buyers in the form of different schemes and savings policies to give them the best chance of owning their own homes.

Introduced by the UK government in 2017, the Lifetime ISA allows people to save £4,000 each year towards their first home, with a tax-free government bonus of 25% capped at £1,000 per year. The Lifetime ISA is now offered by a range of different providers, banks and building societies.

Alongside help to save for your deposit, schemes also exist to help first-time buyers purchase their first home too. Perhaps the most high-profile example of this was Help to Buy, where the government would lend a proportion of the cost of a new-build home as an ‘equity loan’, which was interest-free for five years. This made it easier for first-time buyers to buy with a smaller deposit.

After helping more than 300,000 first-time buyers get onto the property ladder, Help to Buy closed in England and Scotland. However, a version of the scheme is still available in Wales.

What options are available now?

In the absence of Help to Buy, first-time buyers can access the Shared Ownership scheme. This is a government-backed scheme where people buy a home by purchasing a share of the property and then pay rent on the rest. As your financial situation changes, you then have the opportunity to buy a larger share of the property through something called “staircasing”, which reduces the amount of rent paid.

Other alternatives include the First Homes scheme. This allows first-time buyers who are purchasing a new build or a home previously bought through the scheme to buy property at 30% to 50% less than its market value, as long as they earn under a certain threshold and meet the rest of the criteria. First-time buyers can also investigate the Deposit Unlock scheme, which is a collaboration between housebuilders and select lenders where first-time buyers can purchase a new build home with a 5% deposit.

Furthermore, there’s a government-backed mortgage guarantee scheme which also allows buyers to use a deposit of just 5%. It provides lenders with the option to buy a guarantee – almost like an insurance policy – to offer 95% loan-to-value (LTV) mortgages to creditworthy customers.*

Seeking advice can make a difference

While it can be challenging for first-time buyers to make that step onto the property ladder, options and support are available. If you’re looking buy your first home and you’re not quite sure which scheme is best or if you’re even eligible, a good place to start is by speaking with a mortgage adviser.

As well as helping you find the right mortgage deal for your individual circumstances, as expert mortgage advisers, we can suggest other ways to make your money go further when buying your first home.

To book your appointment with us, please call us on 01926 332231 or email enquiries@leamfinancialservices.co.uk.

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

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.

Approved by The Openwork Partnership on 24/03/25.

Making sense of pensions

Pensions remain one of the most effective ways to save for later life, yet, with evolving rules, changing allowances, and a wide range of choices, understanding what’s right for you can be complex. You might already be auto enrolled into a workplace scheme and thinking about how to use a personal pension to widen your options or just looking for some help to consolidate different pots. There’s a lot of moving parts, and it helps to take a step back and look at the bigger picture – how much you’ll need, what you’re already on track to achieve, and how you might bridge any gaps. Whether you’re just starting out or approaching retirement, a clear plan, backed by sound advice, can make all the difference.

Using your allowances

Every tax year offers opportunities to make your money work harder. From ISA contributions to pension annual allowances, and even capital gains or dividend tax limits – using what you’re entitled to can improve your financial outcomes over time. Yet, the rules can be nuanced, and what works for one person may not suit another. Taking advice means you can talk through and weigh up your options, allowing you to make informed decisions – tailored to your goals and circumstances.

Planning ahead for the next generation

Many people also wish to think beyond their own lifetime, considering how best to pass on their assets and wealth. With the right planning, it’s possible to reduce the impact of inheritance tax and ensure more of your estate goes to the people or causes you care about. As with all aspects of financial planning, the earlier you start, the more options you’re likely to have and an adviser can help you navigate them correctly.

A relationship built on understanding

Good advice isn’t just about numbers. It’s about understanding what matters to you, building a plan that reflects your priorities, and being there to adjust it as life evolves. It’s a partnership – offering guidance, reassurance, and expertise at every stage.

So whether want to make the most of your pension, understand your tax allowances, or prepare for the future of your estate, getting the right advice today could help shape a better tomorrow. Get in touch so that we can help you reach your financial goals in a way that works for 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.

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 25/06/2025

1. Stay informed

Knowing how to spot a financial scam is your first line of defence. Fraudsters are constantly changing their tactics so regularly educating yourself about common approaches like phishing, identity fraud and romance scams are crucial to staying one step ahead.

Action Fraud and other consumer protection organisations offer a wealth of valuable resources and updates on emerging scams. You could also subscribe to newsletters from trusted financial news outlets like The Financial Times, attend webinars on financial safety, or follow reputable financial organisations on social media.

2. Secure your personal information

Practicing good information security is another vital step for warding off financial fraud. Insecure personal information is highly valuable for scammers, and they’ll go to great lengths to acquire it.

Use complex, unique passwords for each online account and update them regularly. Enable two-factor authentication wherever possible and be cautious about the personal information you share on social media and public platforms.

Remember to secure your offline data too. Shred documents containing personal information before you bin them, avoid writing your passwords down, and consider keeping important documents in a secure location such as a safe.

3. Do your research 

Scammers rely on you taking them at face value. Research the claims made by anyone who contacts you out of the blue, even if they seem legitimate. Genuine organisations will understand if you want to verify the details of a situation.

Unexpected contact, a sudden change of details or time-sensitive opportunities are all indicators of a scam. Search online to see if other people have experienced a similar situation or contact an organisation directly to confirm if the circumstances are genuine. If someone contacts you claiming to work for someone you trust, such as a solicitor or financial adviser, stop the interaction and contact that person directly.

4. Take your time

Criminals want you to act without thinking. They usually try to play on your emotions or rush you into decisions. They may tempt you with time-sensitive opportunities or claim that other consumers are already benefiting from their offer.

Take a step back to assess the situation objectively, do your own research and ask someone you trust for advice. Scammers want you to act quickly and may refuse to provide contact details or threaten to withdraw an offer if you don’t. Remember that if something seems too good to be true, it probably is.

5. Report suspicious activity

If you think you’ve been the victim of a financial scam you should immediately report it to the police. You should also contact your financial institutions to freeze your accounts, seek advice, and potentially prevent fraudulent transactions.

You should still report scam attempts even if you haven’t become a victim of a scam. You can report suspicious activity to Action Fraud and other consumer protection organisations to increase awareness of new scams and criminal tactics.

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.

Step 1: Don’t Put It Off

Retirement can often seem a long way off, but the choices you make while you’re still working can have an enormous impact on the kind of life you enjoy when you stop.

Our trusted and highly skilled team of advisers are on hand to give you the best possible advice, making a potentially stressful process easier.

Step 2: Be realistic about how much you will need

At a time when final salary pension schemes are rare, the chances are you’ll have to get accustomed to a different pattern of income and expenditure in retirement. That can be a daunting prospect, but planning ahead can help make a potentially bumpy path far smoother. Splitting your expenditure into two distinct categories – essential spending and discretionary spending – means you can work out a plan that best suits your finances. Once you know how much you’re likely to spend in retirement, you can plan accordingly.

Step 3: How much will you have?

It’s a good idea to work out how much of a retirement pot you’re likely to have well before you finish your working life, and there are a number of ways to make that as simple as possible.

Firstly, you can get a State Pension forecast. This will give you an estimate of how much of a state pension you will receive, based on your National Insurance contributions. You can do this by visiting GOV.UK. 

If you have a defined benefit (or ‘final salary’) pension, or a defined contribution (or ‘money purchase’) pension pot, you can ask your pension provider to give you a retirement quote or information on your retirement options. You can also boost that final pension pot by tallying up your savings and investments.

And finally, it’s always a good idea to try and trace any lost pensions through the Government’s free Pension Tracing Service site.

Step 4: Assess your income options

Depending on the type of pension you have, you may need to decide how you take your money in retirement.

If you have a defined benefit pension, for example, you will often be paid a guaranteed income from your normal retirement age. If you have a defined contribution pension, then you’ll have a pot of money which you can begin drawing down from the age of 55*.

You might also have other sources of income that you can draw on in retirement. This might be derived from property, savings, or part-time work.

Step 5: Draw up a plan or contact your financial adviser 

Once you have all the information at your fingertips, you can begin planning, and for more tailored support, please reach out to a financial adviser. 

* Please note, from 2028, this will change to age 57.

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 18/03//2025.

For many homeowners who locked into deals during the interest rate peak of 2022 and 2023, the next remortgage may finally bring some relief. If rates have dropped since you fixed, you could find your monthly mortgage payments going down.

That extra money in your pocket can be a welcome change, but the question is: how best can you put it to use? Rather than letting it simply disappear into everyday spending, this could be a genuine chance to strengthen your long-term financial position.

You may be confused now but, with expert advice, you could turn that into clarity.

Five things you could do with the money you save

1. Boost your savings: Even modest monthly contributions can grow into a meaningful financial cushion over time.  Whether it’s an emergency fund or a pot for future plans, saving regularly provides peace of mind. It’s hugely important too. Recent research by the FCA revealed that one in 10 UK adults have no savings at all, while just over 20% had £1,000 as a rainy day fund.
2. Invest through an ISA or LISA: Making use of your tax-free ISA allowance could help your money work harder. Whether it’s a stocks and shares ISA or cash ISA, these tax-efficient savings and investment accounts can help you grow your money more quickly. For those under 40, a Lifetime ISA (LISA) may be especially valuable and can help you save for later life and your retirement.
3. Review your protection: Life changes quickly, and the protection you put in place years ago may no longer reflect your circumstances. If things were particularly tight when you took out your mortgage, you may not have even taken out protection in the first place. The same research by the FCA found that more than half of UK adults (54%) have no protection in place – such as income protection, critical illness cover or life insurance. Using the money saved to review or enhance cover for you and your family can ensure financial security if the unexpected happens.
4. Consider investing in property: If you’ve been thinking about becoming a landlord or expanding your property portfolio, lower mortgage payments could free up funds to start planning that journey.
5. Put a will in place: It’s something many people put off, but making or updating your will is one of the most important steps you can take to protect your family’s future. If you suddenly have more flexibility in your budget, now could be the right time to prioritise it. This is something your mortgage adviser will be able to help with, or at the very least, be able to provide a suitable recommendation for expert advice.

Making your savings count

How you choose to use the money saved will depend on your goals, priorities, and circumstances. That’s why speaking to an adviser can be so valuable as they only simplify the remortgage process, but shape it around your needs and ambitions. They can help you weigh up the options, consider the risks and benefits, and create a plan that works for the present and the future.

A lower mortgage rate is a welcome change, but it can also be the start of something bigger. With the right advice, those savings can be used to build security, opportunity and peace of mind.

Want to make your savings count? Expert advice can be what you need to turn confusion into clarity.

To book your appointment with a mortgage adviser, please get in touch here 01926 332231.

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

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.

Approved by The Openwork Partnership on 16/09/25                                                                                                                               

What are people expecting?

Some of the major areas where commentators are speculating changes include:

How could our advice help you navigate these changes?

There are some real risks if you wait or act on rumours alone. We can help you:

1. Meet deadlines or allowances: Many tax allowances (ISA, CGT exemptions, pension annual allowances) are fixed and once used or expired you can’t get them back. If you don’t know what’s changing and when, you could lose out.
2. Plan your actions: For example, selling assets now vs waiting until after the Budget could mean paying more tax. Or moving money into or out of a tax wrapper without knowing whether the relief will be kept, reduced or removed means you could miss out down the line.
3. Make use of allowances: You may be able to structure gifts, inheritance planning, pension contributions or other forms of tax planning better, but only with knowledge and foresight.
4. Anticipate changes: If you own property, assets or rental income, changes like national insurance on rental income or taxing wealth or assets currently exempt could catch people by surprise.
5. Take your time: Rumours and speculation can provoke rushed decisions (for example selling off investments, withdrawing pension lump sums) which may not align with long-term goals.

What financial advice can do for you now

Engaging with a trusted financial adviser now, ahead of 26 November can make a real difference:

• Tailored review of your financial picture: We can look at your income, savings, property, investments, tax allowances and liabilities. We can model scenarios against possible changes to see what’s likely to hurt or help you most.
• Action plan for tax efficiency: Whether that means making use of current allowances (ISAs, pensions), shifting assets into better-taxed wrappers, or accelerating transactions that make sense.
• Inheritance & wealth planning: If wealth taxes or inheritance tax rules change, preparing earlier (gifts, trusts, estate plans) can reduce the shock and cost.
• Mitigating downside risk: You might not be able to stop a tax increase, but you can reduce exposure. For example, rebalancing investments, delaying or bringing forward certain transactions, or adjusting your business structure if you run your own business.
• Clarity and confidence: Having a professional explain what might happen helps you make decisions calmly rather than reacting under pressure.

Why working with us makes a difference

We believe good advice now is not just nice to have, it’s essential. We’re here to help you:

• Understand the rumours and speculation for what they are, not let them panic you.
• Model likely Budget outcomes, helping you see what works best in your situation.
• Support you to act in a timely way so you can retain as much advantage as possible.
• Keep you updated, clear and confident every step of the way.

Our optimism for the future

Even though Budget changes can feel uncertain or stressful, they also carry opportunity. Smart planning now can protect more of what you’ve earned, help you pass on more to those you care about, and set up your finances to thrive in whatever new rules come in.

If you’d like us to run you through what the latest speculations could mean for you, let’s schedule a call. We’ll work together to map out a plan before the Budget so that you’re ready whatever the outcome.

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.

For specialist tax advice, please refer to an accountant or tax specialist.

Leam Financial Services is an Appointed Representative of The Openwork Partnership, a trading style of Openwork Limited, which is authorised and regulated by the Financial Conduct Authority.

Approved by The Openwork Partnership 30/09/2025

The Chancellor will deliver the Autumn Budget on Wednesday 26 November 2025. This is expected to be the government’s first major fiscal event focused on “an economy not working well enough for working people”. With borrowing pressures still high, you should be prepared for targeted tax rises and a few surprises.

Big-ticket predictions we’re watching

1) Tax rises to tackle the deficit

• Stealth over headline hikes

Independent analysis points toward ‘stealth’ rather than headline increases with freezes to thresholds, targeted levies, and possible changes to wealth or property taxes.

Policy watchers expect more “base broadening” rather than rate hikes in Income Tax, NI or VAT.

• Rental income & mobility taxes

Rumours include National Insurance on rental income and even an exit tax for those moving wealth offshore. No policy yet, but these ideas have been floated by think tanks and economists to raise revenue without headline rate changes.

What this could mean for you:

If you’re relying on property or investment income, you could face higher effective taxation. You should consider reviewing wrappers (ISAs, pensions) and spousal transfers to mitigate exposure.

2) Capital Gains Tax (CGT) & Inheritance Tax (IHT)

• CGT tightening

The 2024–25 Budget already cut the annual CGT exemption to £3,000, and commentators expect further alignment between CGT and Income Tax rates.

• IHT pressure points

Inheritance Tax is also in focus. Analysts predict the freeze on thresholds will continue, dragging more estates into scope.

There are also many rumours about ending the long-standing exemption of unused pension funds. On a person’s death these would become part of the taxable estate for IHT purposes.

What this could mean for you:

Estate planning will climb the agenda. You might benefit from revisiting gifting strategies, trusts and life cover to fund future IHT liabilities.

3) Property-tax shake-up (Stamp Duty & Council Tax)

• Stamp Duty reform

Persistent speculation suggests a reform of Stamp Duty Land Tax (SDLT) potentially replacing it with a proportional property tax, or re-banding council tax.

With property transactions still subdued, the Treasury may opt for changes to stimulate movement while generating steady revenue.

What this could mean for you:

High-value homeowners and landlords could see higher recurring costs, while first-time buyers or downsizers may benefit. If you’re looking at a completion date that straddles Budget day, speak to us for more information.

4) ISAs & Pensions – nudging money into markets

• Investment emphasis

The government has consulted on reforms to encourage savers to invest more productively. A “cash cap” within the £20,000 ISA allowance was explored earlier in the year but paused following sector feedback.

A broader ISA simplification is expected, with incentives for investment ISAs and possible consolidation of product types.

• Allowance reviews

For pensions, some analysts believe changes to tax-free cash or further allowance reviews could be on the horizon as part of deficit management.

What this could mean for you:

You may need to revisit portfolio liquidity with us to ensure you keep accessible emergency savings while maximising long-term growth potential.

5) One surprise to watch

Each Budget brings an unexpected twist. This year’s “rabbit out of the hat” may be a behavioural tax, for example, an online gambling levy or luxury-property charge.

While such moves have limited fiscal impact, they appeal politically and can shift sentiment in certain sectors.

Talking points to discuss with us before the budget

1. Maximise wrappers & allowances now: Use this window before potential changes.
2. Estate readiness: Check wills, nominations, and protection cover.
3. Property timing: Discuss SDLT or council tax reform risks before exchange.
4. Stay flexible: Schedule review calls post-Budget.

Sources

1. HM Treasury – Budget to address economy that’s “not working well enough for working people” (26 Nov 2025 date confirmed) — gov.uk
2. Parliament.uk – Budget and Parliament overview — parliament.uk
3. Fidelity – What can we expect in the Autumn Budget? — fidelity.co.uk
4. Fidelity – Autumn Budget: inheritance tax and other possible changes — fidelity.co.uk
5. LoveMoney – Autumn Budget 2025 preview: inheritance tax, pensions, capital gains hikes — lovemoney.com
6. Gov.uk – Inheritance Tax on pensions: summary of responses (April 2027 changes) — gov.uk
7. Armstrong Watson – Financial planning in a new era: UK tax changes to IHT, CGT & pensions — armstrongwatson.co.uk
8. Saffery – Autumn Budget 2025: what to expect — saffery.com
9. The Guardian – What new UK rules on pension inheritance may mean for you — theguardian.com
10. Office for Budget Responsibility – Inheritance Tax forecasts, 2025–26 — obr.uk

Approved by The Openwork Partnership on 01/10/2025

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. 

For specialist tax advice, please refer to an accountant or tax specialist.

But then something happens. A job loss. A health diagnosis. A bereavement. A family change. A decision you didn’t expect to make.

These “bumps in the road” can throw your thinking off course. And when they do, your finances often become harder to manage because everything suddenly feels more complicated, more urgent, or more uncertain.

That’s where financial advice can make all the difference.

When life doesn’t go to plan, you need a steady, trusted hand. Someone who can help you understand your options, make calm decisions, and feel in control again.

Support when you need it most

There’s a common myth that financial advice is only for the wealthy, or only for “big” decisions like investing or buying a home. But the truth is, advice is most valuable whenever you feel vulnerable.

The FCA defines vulnerability as anything that makes someone more susceptible to harm when making financial decisions. That includes:

• Health changes — physical or mental
• Life events — like a new baby, divorce, bereavement, or redundancy
• Financial resilience — low savings, irregular income, or debt pressure
• Capability challenges — low confidence, digital exclusion, or cognitive decline

You might not use the word “vulnerable” to describe yourself, but if you’ve ever felt out of your depth with money, overwhelmed by communications and paperwork, or anxious about what to do next, then you’ve been there.

A good adviser will:

• Meet you where you are — not where they expect you to be
• Help you process financial choices at your own pace
• Offer reassurance when you feel unsure or overwhelmed
• Support you without judgement, jargon, or pressure

They’ll make sure you don’t have to navigate financial decisions alone. When the outcomes you want feel out of reach – they'll shorten the gap.

Approved by The Openwork Partnership 16/06/2025

At first glance, things like coffee and chocolate might not seem to have much to do with mortgages. But as you might have noticed, both have become noticeably more expensive in recent months.

Don’t worry, this isn’t another lecture about skipping your morning latte or Starbucks trip to save for your house deposit. Instead it’s a call to look behind those higher prices where you’ll find a bigger story about inflation, which has a direct impact on the mortgage deals available to you.

From everyday treats to global markets

Coffee beans and cocoa are traded on international markets, and their prices are influenced by factors like climate change, crop yields, transport costs and global demand.  When supplies are disrupted, as has happened recently with poor harvests in key producing countries, prices rise sharply. For consumers, that means higher costs at the supermarket or coffee shop.

The link to inflation

When everyday goods like food, energy and raw materials go up in price, it feeds into inflation – the measure of how fast the cost of living is increasing. Food prices, in particular, remain one of the biggest contributors to overall inflation.

Higher inflation puts pressure on the Bank of England to act, since one of its main roles is to keep inflation close to its 2% target.

Why this matters for mortgages

When inflation is high or expected to rise, the financial markets anticipate that the Bank of England will hold interest rates higher for longer. This expectation pushes up “swap rates” - the rates at which banks lend to each other.

Swap rates play a big part in determining the cost of fixed-rate mortgages, so if they climb, so does the cost for lenders to borrow money. This means they are less able to offer cheaper deals.

In other words, the higher cost of your flat-white or favourite chocolate bar can ripple through the economy and ultimately influence the rate you are offered on your next mortgage.

What you can do

The good news is that while global markets are outside our control, you can prepare for what’s happening closer to home. If your fixed rate is coming to an end, speaking to an adviser early can help you secure a new deal in advance and avoid being moved onto a higher Standard Variable Rate (SVR). An adviser can also guide you through all your options, whether you’re set to remortgage or looking to buy.  

One of the key benefits of using an adviser for this process is that they have a much wider choice of mortgage options available to them – compared to your bank or even your own online search. This means you can be reassured that you’re accessing competitive options that are best suited your needs and circumstances.

Coffee and chocolate may be everyday luxuries, but their rising costs are a reminder of how interconnected our finances really are. Understanding those links, and planning ahead, is the best way to stay one step ahead of changes in the mortgage market.

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

Approved by The Openwork Partnership on 21/11/25.

Following the Autumn Budget, the government has confirmed that from the 2027/28 tax year, the maximum amount you can pay into a cash ISA will be reduced from £20,000 to £12,000 if you are under age 65. Importantly, the overall ISA allowance will remain at £20,000, meaning the balance can still be used across other ISA types such as stocks & shares ISAs.

For many people, this is a significant shift. It reduces the amount of savings you can hold tax-free in cash each year, and it may influence how you think about saving for the future.

But it also creates a natural moment to pause, reflect and consider whether your current approach is still right for what you want to achieve. For some, this will be the time to explore whether investing could play a bigger role in shaping a more confident financial future.

Why the change matters

Cash ISAs have long been valued for their simplicity and safety. They offer a tax-free home for savings without exposure to market fluctuation. From 2027/28, savers under 65 will only be able to put up to £12,000 of their annual ISA allowance into cash.

However, with the overall £20,000 ISA limit remaining intact, more savers may naturally consider using the remaining allowance through a stocks & shares ISA or other ISA products that offer growth potential.

The intention behind the reform is to encourage more people to look at long-term investing. While investing can feel unfamiliar if you have mainly held cash, it also opens the door to exploring how your money could work harder over time.

How this could impact you

This change has several practical implications:

• Less of your ISA allowance will be available for cash savings: This may mean adjusting how you divide your £20,000 overall allowance.
• More of your ISA allowance may be directed toward investments: The remaining portion, up to £8,000, can still be used in a stocks & shares ISA or other ISA types.
• Your long-term planning may shift: The reduced cash limit encourages a more balanced approach between saving and investing.

How we can help

 This is where thoughtful, personalised advice becomes invaluable. We can:

• Review your current ISA and savings approach.
• Help you understand how the new rules from 2027/28 will affect your plans.
• Explore whether a stocks & shares ISA or blended investment approach supports your goals.
• Build a diversified portfolio that balances risk and opportunity.
• Offer wider tax-efficient planning across pensions, investments and emergency cash reserves.

Looking ahead with confidence

While the updated rules may feel restrictive, they may also be the nudge many need to take a more proactive approach to investing. With the right plan, your money can be positioned to support your long-term ambitions, from retirement planning to supporting family or creating financial freedom later in life.

If you’d like to revisit your savings and investment strategy, please get in touch. Together we can build a plan that’s smarter, more tax-aware and aligned with the future you want to create.

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.

Approved by The Openwork Partnership on 27/11/25

Income Tax is the tax you pay on what you earn. How much you pay depends on how much income you have and which tax bands it falls into. 

Your tax-free allowance 

Most people can earn £12,570 a year tax-free. 
This is called your Personal Allowance. 

• You pay no Income Tax on income below this amount. 
• If you earn more than £100,000, your allowance is gradually reduced. 
• Your Personal Allowance is £0 if you earn £125,140 or more. 
• If you’re eligible for Blind Person’s Allowance, you can earn more before paying tax. 

How Income Tax bands work 

After your tax-free allowance, your income is taxed in stages. You do not pay one tax rate on all your income. 

These rates apply in most of the UK. Rates are different in Scotland. 

You only pay higher rates on the portion of income within that band. 

If you’re employed or retired 

You can usually check: 

• Your tax code 
• How much tax you’ve paid so far 
• How much you’re likely to pay by the end of the year 

This information appears on your payslip, pension statement, or online tax account. 

Other tax-free allowances 

You may also be able to earn some income without paying tax, including: 

• Savings and investments

1. Some savings interest 
2. Some dividend income from shares 

• Extra income:

You may not pay tax on: 

1. Your first £1,000 from self-employment (the trading allowance) 
2. Your first £1,000 from renting out property (does not include Rent a Room income) 

You’ll pay tax only on income above these allowances. 

Ways to reduce your Income Tax 

You may be eligible for tax reliefs that reduce the amount of tax you pay, depending on your circumstances. 

If you’re married or in a civil partnership:

• Marriage Allowance: If one partner earns below the Personal Allowance, part of it may be transferred to the other. 
• Married Couple’s Allowance: Available to couples where one or both partners were born before 6 April 1935 (if Marriage Allowance isn’t used). 

Key takeaways 

• Most people don’t pay tax on the first £12,570 they earn 
• Income is taxed in layers, not at one flat rate 
• There are extra allowances for savings, side income, and couples 
• Checking your tax code helps ensure you’re paying the right amount 

Global events can often feel distant and disconnected from everyday financial decisions, but the reality is that the two are closely linked. The recent escalation of tension in the Middle East has raised fresh questions in financial markets about inflation, energy prices and the path of interest rates. For those people currently applying for a mortgage, or thinking about doing so, that uncertainty could matter more than it first appears.

Mortgage rates are heavily influenced by expectations about future Bank of England (Boe) interest rates. Over the past year there had been growing optimism that interest rates may start to fall in 2026 as inflation gradually eased. However, geopolitical instability has the potential to complicate that picture.

Conflict, inflation and interest rates

Conflict in energy-producing regions can quickly affect global oil and gas prices. If energy costs rise again, it can push inflation higher or slow the pace at which it falls. For banks, including the BoE, that makes cutting interest rates a lot more difficult. Markets may begin to price in a longer period of higher borrowing costs, which directly feeds into mortgage pricing.

Why mortgage rates have been edging up again

We have already seen mortgage rates edge upwards again in recent weeks as lenders respond to shifts in swap rates and wider economic uncertainty. Alongside rising rates, we have also seen a number of lenders pulling products, either to relist at higher rates or removing completely. For borrowers who had been hoping that cheaper deals were just around the corner, the global backdrop is a reminder that the path to lower rates is unlikely to be perfectly smooth.

What this means for people applying now

For those currently going through the mortgage process, this environment underlines the importance of acting with a degree of urgency. Mortgage offers are typically valid for a set period, and securing a deal earlier can help protect against further increases in rates if market sentiment shifts again. Waiting in the hope that rates will fall quickly carries an element of risk when the economic outlook is being shaped by unpredictable global events.

Keeping perspective in uncertain times

At the same time, it’s important not to panic. Mortgage markets are influenced by a wide range of factors, from inflation data and wage growth to central bank decisions and global economic trends. A single geopolitical event will not determine the direction of rates on its own. However, it can add another layer of uncertainty at a time when borrowers are already navigating a complex economic environment.

For prospective homeowners, the key takeaway is that global events do have local consequences. The situation in the Middle East may feel far removed from the UK housing market, but its impact on inflation expectations and interest rate forecasts can ultimately shape the deals available on the high street.

In uncertain times, good advice and timely decision-making become even more important. For anyone applying for a mortgage today, staying informed and moving decisively when the right deal appears could make a meaningful difference to the cost of borrowing over the years ahead.

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

Approved by The Openwork Partnership on 17/03/26.

Leam Financial Services is an appointed representative of The Openwork Partnership, a trading style of Openwork Limited which is authorised and regulated by the Financial Conduct Authority.

What’s changing?

Current dividend tax rates:

•          Basic rate: 8.75%

•          Higher rate: 33.75%

•          Additional rate: 39.35%

From April 2026:

•          Basic rate increases to 10.75%

•          Higher rate increases to 35.75%

•          Additional rate remains at 39.35%

Why this matters to you

As a business owner or company director, you may prefer to take profits as dividends because they have traditionally been taxed at lower rates than salaries. However, rising tax rates are diminishing this benefit.

Example case study

Situation: A higher-rate taxpayer earning £20,000 in dividends above the £500 allowance.

 What they will pay: Extra £400 in tax each year under the new rates.

Although this may not seem substantial on its own, the impact becomes more significant over time.

Planning opportunities before April 2026

Although tax changes are coming, there is still time to plan effectively. Consider:

1. Timing of dividends

Bringing forward dividends before the rate increase may be beneficial in certain circumstances.

1. Reviewing your remuneration strategy

Balancing salary, dividends, pension contributions and other allowances may help maintain tax efficiency.

1. Pension contributions

Company pension contributions can be a highly tax-efficient alternative to dividend extraction.

1. Spouse/family share planning

Where appropriate, ensuring dividend allowances across family members are used effectively.

Act early

Tax planning works best when it’s proactive, not reactive. Reviewing your strategy ahead of April 2026 could help reduce unnecessary tax.

If you would like to discuss how the changes may affect you, get in touch with your adviser today.

Sources and further reading:

Changes to tax rates for property, savings & dividend income - GOV.UK

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 11/03/2026

Leam Financial Services is an appointed representative of The Openwork Partnership, a trading style of Openwork Limited which is authorised and regulated by the Financial Conduct Authority.