Archive for August, 2009
Written by richard on 28 August 2009
For Abbey Life Pension holders the date of the 6th
April 2010 has even more significance as the minimum age you can draw your Pension is increasing.
I have already covered many of the issues in relation to Abbey and a few other providers here Abbey Life Pension.
The Pension Age is increasing with effect from April of next year 2010 which means that you could be locked into a Poor Performing/High Charging Pension for a lot longer, unless of course you start to consider your options beforehand.
The reality of the situation is this:-
If you act soon you could be drawing benefits before age 55.
You could be looking at owning a Low Charging, Better Performing Pension Plan rather than the poor value Abbey Life
Pension (there are others).
You will have a good deal more flexibility with a more modern Pension Contract.
The action you need to take is to call on 0845 226 9106 – ask for Richard Smith – the Abbey Life Pensions expert who is also an
Independent Financial Adviser and I will give you some further guidance.
Please don’t leave it until April!
Richard Smith
0845 226 9106
Related Links
Posted in Abbey Life, General Financial News, News - Updates, Pensions - News | Comments Off
Written by richard on 25 August 2009
Something you might want to take up with your MP over the coming few months is the issue of the reduction of our E U Contribution Rebate which is said to be worth at least £257 per British Household.
You may remember this, part agreed because of the Common Agricultural Policy (CAP) as it was argued that as we in the UK have a far smaller Farming Base than the rest of Europe, given up in part by Mr Blair – looks like his job will be safe in Europe! And now it seems the final part is being given up by Mr Brown as his Swansong.
You may wonder why I am commenting on this here, well we are seeing increasing levels of taxation from all angles, and this extra will have to be funded from somewhere and no one has any idea how this additional, substantial amount is going to be funded.
Drop a line to you MP see what that have to say.
Richard Smith
http://www.thefinancezone.co.uk
Posted in General Financial News | Comments Off
Written by richard on 22 August 2009
| Updates from the Council of Mortgage Lenders (CML) indicate that an increased number of new house are getting help from parents to enter the market.
This might not be good news in itself, however when shown together with the facts that lending criteria stopped tightening which means that Mortgage Lenders are being more flexible in their approach which can only be a good thing.
First-Time buyer deposits remain unchanged. And the typical first-time buyer needed to borrow 2.97 x Salary.
The good news here is that activity in the Housing Market looks set to continue moving in the right direction which must be good news.
Mortgage Lenders are increasingly looking to lend to better customers and the massive number of potential borrowers who need some kind of extra underwriting due to ‘credit problems’ are increasing as the Credit Crunch moves forward.
You really should take action to get hold of your Credit Reports from the likes of Experian (do not order the expensive online version) get the ‘Statutory Report’ for £2.
Make sure you check this for errors and correct any you find.
Meanwhile keep saving that deposit if you are a potential first time buyer and if you currently have a mortgage ensure that you reduce your Mortgage as soon as possible.
http://www.independent.co.uk/money/pensions/wealth-check-what-should-i-do-about-my-pension-1761192.html
Mortgage Reduction is a popular rant of mine, but it is the one item of Financial Planning that always makes sense. |
Tags: Mortgage Advice, Mortgage Planning, Mortgages Advice in Copthorne Crawley and East Grinstead
Posted in General Financial News, Home Buyers, Mortgage Arrears | Comments Off
Written by richard on 21 August 2009
| According to the Rightmove House Price Index the average asking price for a property increased by 0.6% in July to £227,864, up from £226,436 in June.
In a period where Doom and Gloom are the overriding factor for any good news that may be around.
I have republished the entire overview below, for those of you interested in the Property Market will find it an interesting read.
Rightmove’s market overview
This month sees a return to rising average asking prices, albeit up by a more modest 0.6% compared to the more dramatic price rebounds seen in the earlier months of 2009. This follows on from the previous month’s slight fall of 0.4%, suggesting we will see the housing market remain in a ‘steady state’ during the second half of 2009.
The benefit of hindsight shows that the lowest ebb of prices, and thus the best time to pick up a bargain, was last winter. Prices were in freefall in the second half of 2008 as desperate sellers reduced prices by circa 2% a month, yet most buyers still held back leading to a 50-year low in transactions. As in most market corrections, there was a price undershoot that appears to have rectified itself this spring, with average rises of circa 1% a month. The window of opportunity to pick up the best buys in popular areas in this phase of the market is therefore closing.
Miles Shipside, commercial director at Rightmove comments: “There is now clear evidence that there were some fire-sale prices last winter, when a few brave buyers correctly called the bottom of the market. In most parts of the country prices have consistently improved during spring. With growing confidence that we’ve passed the bottom, buyers are more active, although they may discover that many of the best buys have gone.”
Buyer activity remains strong, with traffic on Rightmove’s website remaining much higher than we would expect during the months of June and July which are typically quieter. Last year traffic peaked in March then reduced significantly as summer approached. However, in 2009, the tail-off has been almost nonexistent. This year the number of pages viewed remains at 97% of its spring high, compared to 79% in 2008. Indeed, some agents are reporting some of their best weeks’ sales so far this year.
The increased confidence and activity is tempting more sellers to test the market, as they seek to take advantage of the smaller price difference to trade up to a better home. Normally two-thirds of sellers are also buyers, though they have proved reluctant to come to market while their main asset is still falling in value. With initial asking prices up by 6.7% since the beginning of 2009 and better prospects of finding a buyer, the number of new sellers measured is the highest so far this year. This month’s average is 21,364 a week and, while still well below the historic norm of circa 35,000, it represents a 20% increase in sellers coming to market compared to the previous year-to-date average |
So there you have it, everything seems to be on the UP.
Richard Smith
http://www.house-buying-guide.co.uk the incisive guide to making the right decisions
Tags: House Buying, Property, Property Prices
Posted in General Financial News, Home Buyers, Mortgage Arrears | Comments Off
Written by richard on 19 August 2009
Home Buyers Guide – New Research shows that ambition cannot be contained.
New research from Alliance & Leicester Bank reveals that the recession has not affected the financial ambitions of young people today compared to two years ago, when the economy was in better shape.
The research findings reveal:
- The average earning expectations of 16-21 year old men is £44,600 in 10 years time, with the average earning expectations of young women being £34,800 (the current average national wage is £25,123)
- Seven in ten (71%) 16 to 21 year olds still expect to get on the property ladder by the time they reach 30, compared to 72% two years ago30% expect to be debt free before they are 34 years old compared to 32% two years ago
- One in four (27%) believe employers are more interested in experience than qualifications, with 15% believing employers prefer qualifications
Andy Bayes, head of Abbey and Alliance & Leicester Current Accounts commented: “With so many young people looking to maintain their financial and lifestyle aspirations during these tough economic conditions, it is essential that those looking to start their career have access to good sources of advice, information and inspiration.”
Thanks for that Andy, however this is the simple plan for all First Time Buyers.
Getting on the Property Ladder has never been easy. Ask your Parents.
Saving the Deposit is a struggle, working longer hours and spending less for months on end. Is the pain worth it? Of course.
Finding the right property could take months use the time you have now to research areas and property types. The longer the buying decision the better it will be. Ask any Millionaire.
As always I hope this helps.
Richard Smith
Tags: House Buying, Property Prices
Posted in News - Updates | Comments Off
Written by richard on 15 August 2009
Survey: 24% settle for second best property
Not sure why this should apply to anyone, I had written a Home Buyers guide to ensure that your did not end up buying a “DOG” of Property and getting a Bargain to boot.
The Home Buyers Guide covers nearly all of the information you need in order to check a property thoroughly and make it a risk free as possible.
The article below alarmed me a little as it does not have to be like this.
A survey by Abbey revealed that for many Brits, a dream home remains a fantasy – with 24 per cent stating they had settled for accommodation which was not their number one choice.
Some 22 per cent also stated they were not living in their preferred location.
Head of Abbey bank accounts Gillian Almond explained settling for second best in a major area of life is usual for most people.
“Some of these can be difficult and time-consuming to put right, other elements of your day-to-day life can easily be put right,” she noted.
People looking to get their foot on the first rung of the property ladder could visit a mortgage adviser to see what options are available to them.
They may also be able to seek parental help in getting the money together for a deposit or look into joint ownership with someone else.
Before you start making decisions get the Home Buyers Guide, start making some decisions about where, when and how and then of course you can really make the right decision about the property to purchase.
Tags: Home Buyers Guide, House Prices, Property
Posted in General Financial News, Home Buyers, Mortgage Arrears | Comments Off
Written by richard on 14 August 2009
As a Financial Adviser and Commentator on Financial Matters you sometimes see things and shout to yourself NO! That’s wrong, and this is one of these stories.
We all know that the Banks are having to rebuild themselves with increased rates to borrowers and of course lower interest rates generally which make profits fantastic.
Not only that buy we now see the Banks increasing short term borrowing rates to 20 or 30 or 40 times the Bank Base Lending Rate . Which is currently .50% .
So we see Credit Card Interest charged at up 26% and Overdraft rates at over 18%.
I for one think it’s outrageous. Having said that simple money management and budgeting has to be a major part of your Personal Admin or you really will get stung by these punitive rates.
Lenders such as Royal Bank of Scotland and Lloyds are behind some of the highest charges, according to other sources.
Personal loans cost an average of 13.1 per cent, the most since 2004. And average mortgage rates are now at their highest levels of the year. Savers are losing out too because the average deposit account pays 0.15%. Michelle Slade, of Moneyfacts, ‘Despite the Bank base rate being at an all-time low, many consumers haven’t felt the benefit, with many hundreds of pounds worse off than they were a few years ago.
‘Banks are trying to repair their balance sheets and consumers are paying the price through higher costs on all their financial products.’
Michael Saunders, an economist at Citigroup bank, said: ‘Spreads on unsecured loans are extraordinarily high.’
He said the nation faced a lengthy period ‘in which poor credit availability will likely be a drag on economic activity’. Yesterday’s figures showed that overdraft rates have jumped from 17.9% in July last year to 18.9% 12 months later.
Yet the Bank of England has slashed its official rate from 5% to 0.5% over the same period of time.
As my Nan would have said “ never a borrower be” has to be the quote of the day.
Keep budgeting wisely
Richard Smith
Tags: Overdrafts
Posted in General Financial News | Comments Off
Written by richard on 12 August 2009
Links like this one would have you believe that you will now all have to start altering and adapting your plans and probably your adviser, this is not the case.
I will provide a formal update this aspect in due course.
As some of you will have noticed in recent weeks from my rants. The problems with a range of Personal Pension Contracts has not gone away. See the links for some further information.
Richard Smith
http://www.thefinancezone.co.uk
Posted in Abbey Life, General Financial News, NPI News, News - Updates, Pearl Pension, Pensions - News, Royal Sun Alliance, Scottish Provident | Comments Off
Written by richard on 09 August 2009
Yesterday we had a major attack from the Treasury Select Committee over Mortgage Arrears and how Lenders are treating mortgage arrears fees
John McFall MP said he was shocked by the slow speed of the regulator, which of course has put in place whole series of rules and regulations outlining how Customers have to be “treated fairly”, and to this end seems to be blissfully unaware of how to enforce it’s own rules. Surely this has to be wrong.
There are a range of mortgage lenders who levy high charges on customers who fall into arrears, talk about kicking someone when down.
The committee also stated that few lenders were breaking the rules by using repossession as a first resort with borrowers in arrears.
The lenders should be taken to task and soon, importantly if you are starting to fall behind with your Mortgage Payments you should get advice as soon as possible.
Richard Smith
www.thefinancezone.co.uk
Posted in Mortgage Arrears | Comments Off
Written by richard on 08 August 2009
If you have a WINDSOR LIFE Pension you must take action today!
It’s now 2009 and the decade seems to be slipping away, however the old problems of poor performing and high charging Pension Plans do not seem to go away.
Despite the regulator asking more and more of the industry there seems to be no notice taken at all. Should that surprise us. All is not lost though, there is some action you can take.
We have a dedicated page for PENSION reviews and we have a Free Report for you.
For those of you that are taking Financial Planning Advice from many of the major Banks or Building Societies, you should note that what has been provided is not actually Financial Advice, but Product Advice normally from a narrow band of products. It might feel that you have received Financial Advice, however I can assure you it is not. Can I prove it, of course, make contact with me and I will outline the differences.
On a further note:-
If you have Pensions with Windsor Life, Equitable and along with the likes of Guardian and any of the Major Banks and Building Society’s you should act now to have these reviewed before it is too late and you retire. There is a lot to be achieved by moving/reviewing these plans.
Finally – Self Invested Personal Pensions are one of the most oversold and possibly inappropriate kinds of Pension for many. Let me review yours and I will provide guidance. It seems that some (at least one of the major Banks ) are heavily targeting the sale of these and for many they are just not appropriate.
We do not charge for our initial advice and guidance.
As always – 0845 226 9106 to contact me .
Richard Smith
Tags: Windsor Life
Posted in Windsor Life | No Comments »
