cheat sheet for the New tax year
The articles are for information only and do not constitute advice
1st Financial Group Ltd is authorised and Regulated by the Financial Conduct Authority
The bank of mum and dad
1st Financial Group Ltd
Phil Higginson - Director
Sav is a real people person. He has great experience in interacting with people, which he has developed over the course of his career.
Jan joined 1st Financial Group in 2016 and has been an IFA since 2008. In her spare time she enjoys spending time with her family in the sun.
01823 410 044
your advisory team
Financial Adviser with over 25 years experience. His consultative style supports clients to achieve their financial goals.
Keen golfer and ex senior banker. Martin knows the industry backwards. With over 30 years of experience he is a seasoned adviser.
Amateur international explorer, Matthew uses his vast financial knowledge to ensure his clients receive appropriate advice.
"Parents are simply not told they have more options thAn putting the house up' - MArtin Ross
Independent financial adviser
3 Other Options for the bank of mum & DAD
Mark uses Wales as a base to serve clients all over the country. When not working he enjoys sports and time with his young family.
Soussan has over 20 years experience in finance and recently qualified in Equity Release. She enjoys walking, cycling and crime dramas.
The bank of Mum and Dad put up over £6.5 Billion last year (Legal and General, 2017) to help their children buy homes. However, this can create financial and psychological stress across the family. Martin Ross succinctly states "Parents are simply not told they have more options than putting the house up”. Here are a few choices from around the office.
1. Prior Planning – Mark Weymouth
Millennials may find they don’t need to rely on the bank of Mum and Dad, if they had taken advice two years earlier. This can save avoidable delays when purchasing.
First time buyers may also find saving for a deposit and obtaining credit less onerous had they received appropriate advice at an earlier stage.
2. Springboard Mortgage - Soussan Sech
Some providers are offering Family Springboard Mortgages that allow family members to provide a 10% deposit that they get back, with interest, if all payments are made within a set period. The borrower can get more from the mortgage lender and the "parent" does not “loan” the money directly to the family member involved.
3. Two-on-One Mortgage – Martin Ross
Joint borrower sole proprietorship mortgages are a great solution for young people looking to get on that first rung of the property ladder and who have family members who are willing to help them out until they are earning enough to support the mortgage themselves. A larger deposit is normally required of about 10% and the helping member will be jointly and severally liable for the mortgage, but receive none of the benefits (rent or increase value of property).
David has a keen interest in the latest financial technology trends. Outside of work he enjoys cooking and cricket.
Mark Weymouth - Director
Mark has a penchant for motorcycles and mortgages. He works diligently to ensure his clients get and stay on the best deals.
Every 6th of April changes reverberate from the Treasury across the financial sector. Here is a cheat sheet of some of this year's changes:
Rise in the state pension by £4.79 a week or £249.06 per year
Pension lifetime allowance rises to £1.03 Million in line with inflation
Personal allowance increase from £11,500 to £11,850
The dividend allowance rate has been cut from £5,000 to £2,000
Higher rate tax threshold for 40% increases from £45,000 to £46,350
Raise in the marriage allowance by £35 to £1,185
Auto-enrolment minimum contribution increases to 5%
Diesel supplement increased from 3% to 4%
The capital gains tax allowance increases to £11,700 from £11,300
They also stated they will be publishing consultations in 2018 on the following:
Royalties withholding tax
Securing debt in insolvency
1st Financial Group has received an average of 4.9 out of 5 stars on VouchedFor.com in nearly 100 reviews.
VouchedFor is the premier platform for showing genuine client reviews of financial advisers. They go to extraordinary lengths to ensure the reviews are not edited, cherry picked and are fully verified. It also helps that we offer advice from across the market.
Mark says, “The entire team is geared towards providing the best customer experience from start to finish. It also helps that we offer across the market advice. In many instances we can save our clients time, money and effort on all of their mortgage needs."
Need south east (london) advice?
4.9 out of 5 STARS
Sourced from ons.gov.uk March 2018
If you are looking at purchasing a property in the South East, remember 1st Financial Group offers a UK wide service.
As an ex-Londoner, Sav frequently arranges mortgages and protection for the London and South East area and is just a phone call away.
1st financial excel on mortgages
Sourced March 2018 from uk.gov
UK Financial Institutions invested £25,298 million in q3
cheat sheet for the new tax year
changes affecting investors from April 6 this year
Mark's 3 tips on remortGaging
a case study of remortgage with 1st financial
When you purchase goods from a retailer, you may find yourself pressured to purchase an extended warranty, (sometimes in the form of an ongoing care plan). However, be aware that under the Consumer Rights Act 2015 goods should be of satisfactory quality, fit for purpose and last a reasonable length of time. It can be worth checking what additional protection you are receiving, (warranties on white goods can sometimes be 40% of the purchase price - which.co.uk)
If goods are faulty, under the Act you have a 30 day right to reject and may be entitled to a full refund from the retailer. After 30 days and within 6 months you have the right to request a repair or replacement.
If you used a credit card for a purchase between £100 and £30,000, the credit card company is liable under Section 75 of the Consumer Credit Act if the goods purchased are not up to standard. (If purchased on a visa debit you can also request a chargeback from your card provider in some instances).
You can find more information, regarding warranties from the Money Advice Service on their website: https://www.moneyadviceservice.org.uk/
Sourced March 2018 https://www.moneyadviceservice.org.uk
are your insurances right?
snapshot - uk 2017
Consumer Guarantees and Warranties
1. Know where you stand with your current deal
2. Ensure your mortgage is reviewed regularly. A small change can be well worth the time
3. Don't forget to have your protection needs checked
Mitchell and Alexandra Lee, recently re-mortgaged with Soussan from 1st Financial Group acting as the broker. They were at the end of their fixed rate deal and wanted to secure another fixed rate.
They contacted Soussan who found another 5-year fixed rate mortgage that saved them £225 a month, that would have been due on the variable rate mortgage.
This worked for the Lees because they were worried the interest rate might rise soon and wanted a new fixed rate. At the moment variable rates can be higher than fixed rates, so the Lees saved on this remortgage.
“It is worth reviewing your mortgage to see if there are savings to be made on your monthly payments on a regular basis (mainly when your present deal is coming to an end.)” - Soussan Sech - Mortgage Adviser.
saving with a remortgage
The 12-month rate in January for inflation was 2.7% and 3.0% for the consumer price index. (ons.gov.uk)
GDP growth for 2017 was 1.7% (ons.gov.uk)
Overall House prices increased by 2.6% in 2017 (Nationwide)
London prices falling by 0.5% (first time in 8 years) (Nationwide)
Southwest house prices rose by 4.8% (Nationwide)
Mitchell and Alexandra on their wedding day
Insurance is now an add on for a number of products from plane tickets to buying a fridge. Many consumers also purchase insurances also known as "care plans" for individual items already covered under a home and contents policy or by credit card guarantees.
Often, additional fees are out of sight as they are itemised within another bill (for example, mobile phone insurance will often be on the mobile bill as a separate entry).
Some insurances are known to have exclusions or be examples of double cover. It can be useful to check as they add up month to month.
Check how much you pay each month and ensure you aren’t double covered or have exclusions from the cover you required in the first place.
Over the past few weeks the beast from the east managed to shut down much of the country including the 1st Financial office!
Mark and Phil bravely made the journey in on 2 March. They also kindly let the rest of the office take a snow day.
PIC OF THE DAY!
concerned about investments?
1st financial and the beast from the east
1. Keep yourself informed about how Brexit may impact you or your loved ones financially.
2. Check your investment portfolio is diversified to help deal with big shocks
3. Remember to call if you have concerns. It's our job to deal with them
The main issue with Brexit is uncertainty. It is a known unknown and nobody can specifically tell you what will or will not happen at this stage.
Currently the lack of certainty in markets gives the illusion of inertia, though truthfully it is difficult to really pin down if it is currently having a deeper impact. The economy is performing better than the Treasury forecasts stated they would before the referendum.
UK pensioners in Europe currently do not know if they will retain the same annual increases and health care rights they presently enjoy under EU rules. People currently planning to retire to the continent may need to have other arrangements under consideration.
Companies may be delaying projects (construction, deals and leasing etc) until they have regulatory certainty.
Large industries such as transport and international finance are vulnerable to changes in international regulations and treaties.
Some firms have indicated they are stockpiling inventory needed to maintain production in case of shortages. This increases their inventory costs and decreases their short-term profits.
Britain has positioned itself well for bringing inbound investment into the country, whilst in the EU, and hopefully that will remain the case in future.
Most pension funds hold diversified portfolios specifically to buffer against this type of uncertainty.
call us - 01823 410 044
we are here to help
Phil's take aways
Cold calls concerning pensions will soon be banned
In the 2016 Autumn statement, Chancellor Philip Hammond, outlined the need for banning pension cold calls. Fraudsters are using sophisticated over the phone sales tactics that 9/10 people cannot identify, posing a significant consumer risk. The Information Commissioners Office was to be charged with enforcing the potential ban, with the ability to levy up to £500,000 in fines.
In August 2017 the Government reconfirmed its commitment with Economic Secretary to the Treasury Stephen Barclay saying, “It’s utterly unacceptable that people who have worked all their lives to build up a pension pot should be subject to scams which may leave them out of pocket.” whilst introducing draft legislation.
It is now 2018 and the Government has promised the introduction of the legislation before 2020. Until then they advise to be wary of over the phone scam tactics, particularly in relation to pensions.
Sourced from gov.uk March 2018
lifetime mortgages Explained
independent or restricted?
Lifetime mortgages use the capital value of an asset (such as a home) to provide an income stream or lump sum, whilst still retaining the benefits of ownership (usually living in it).
This can be helpful to those who have rising additional expenses later in life.
It does need to be repaid at a later date and that can have inheritance tax planning consequences.
Lifetime mortgages are not something to rush into they can be helpful to those who find themselves asset rich, but income poor.
We look to financial advisers to give us the best advice, relevant to our circumstances. It is confusing that some advisers give "more advice" than others and what that actually means.
At 1st Financial we offer Independent Financial Advice. That means we give unbiased advice across a range of financial products from the different companies available. When a client comes to us we are legally obliged to only offer the best products and advice for their circumstances.
Companies that are not legally obliged to offer best products or services, but offer best from a limited range of products or providers are called Restricted or Tied Agents. They select the products that are most suitable to the client's needs from that range, or do not offer an option at all.
An example of a restricted agent could be when you visit a high street bank and they offer you insurance. They are generally offering a range of products from a single provider. Where as an IFA would search across a range to find a provider that offers the most benefits.
A restricted adviser in an investment firm, can sometimes only recommend products (such as investments) that his company manages.
Pay attention to the disclaimer for an investment firm, it should clearly state if they represent only one group or a panel.
The example below would be for a tied agent.
"Wallace Widgits represents Big Clock Investment Co which is authorised and regulated by the Financial Conduct Authority for the purpose of advising solely on the Group's wealth management products and services..."
At 1st Financial we put our client needs first and are happy to explain the difference between our service and any other firms.
Flourish today call us on 01823 410 044
In July 2015, the Chancellor announced that the Lifetime Allowance will be indexed annually in line with the CPI from 6 April 2018. Since April 2016 there has been a taper to the Annual Allowance for those with adjusted annual incomes, including their own and employer’s pension contributions, over £150,000.
For every £2 of adjusted income over £150,000, an individual’s Annual Allowance is reduced by £1, down to a minimum of £10,000.
Sourced from gov.uk - February 2018 pensions publication
RECENT PENSION ALLOWANCES
pension cold calling ban
What's the difference between independent and restricted advice?
Lane with Spring flowers to Somerset Levels
Weeping willow over the river Tone in Spring
Bluebells and beech trees on the Quantock Hills
The contents in this magazine are believed to be correct at the date of publication (April 2018)
Every care is taken that the information in Flourish is accurate at the time of going to press. However, all information and figures are subject to change. You should always make enquiries and check details and, where necessary, seek legal advice before entering into any transaction.
Some of the products mentioned are not regulated by the Financial Conduct Authority.
The information in this newsletter is of a general nature an does not constitute advice. You should seek professional advice tailored to your needs and circumstances before making any decisions.
All Content © Copyright 2001-2018 1st Financial Group Limited. All Rights Reserved. Registered in England and Wales No. 4206886.
Registered Address: 1 Prockters Farm, West Monkton, Taunton, Somerset TA2 8QN
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Springtime Devonian oak