Greetings!
Hello and welcome to the January 2012 edition of 'Your Money Matters'.
Articles covered in this edition include whether or not you should consider going onto a fixed rate mortgage, our thoughts on Equity Release schemes and how Junior ISA's have an important role to play in investment and tax planning. Find, too, an update on the Government's proposed tax system overhaul .... We are also delighted to announce that Firth & Scott Insurance Brokers Ltd (our sister company) have another member of staff celebrating 25 years service this month. Please click here to read in full the recent news item posted by Justin Hevness about Tracey Wardle who joined the Personal Lines department in January 1987.
One last thing, on behalf of everyone here at Firth & Scott our very best wishes for a happy, healthy and of course prosperous 2012.
|
| Financial Tips | In each edition of 'Your Money Matters' we aim to provide you with financial strategies that we follow when advising clients.
Mortgages - Is it time to Fix?
One of the questions we are always asked is whether a client who has a mortgage should now be considering going onto a fixed rate and if interest rates are going to rise in the near future.
Even though the European Central Bank has increased its base interest rate recently it seems unlikely that the Bank of England will increase our base rate, which has been at a record low of .5% since March 2009. However, if the fiscal and budget cutting measures of our Government do not satisfy international money markets that the UK is a safe place to invest, which could affect our AAA credit rating, this might force interest rates up.
Mortgage rates are not directly tied to base rate (except for tracker mortgages) but are more influenced by inter-bank lending and money market rates. Therefore, it is possible for mortgage costs to rise independently of any Bank of England decision.
The general consensus is that interest rates will stay at this level for a considerable period of time. However, nothing can be guaranteed and therefore the answer to the question : 'Should I be looking at a fixed rate?' depends I suggest on your level of borrowing and whether you can absorb any increases in rates that might occur. It is very much a personal decision and really there is no right or wrong answer - it is just what you feel comfortable with.
If you require any help and assistance in this respect please do not hesitate in talking to your Independent Financial Adviser here at Firth & Scott.
Equity Release Schemes
Recently released figures by Safe Home Income Plans (SHIP), the trade body for Equity Release product providers have indicated that the number of advances their members are making rose during the 3rd quarter of 2011.
New advances were £206.2 m and this was 12% up on the second quarter for the year. In total 4148 new equity release customers signed up during the 3rd quarter period.
Here at Firth & Scott we believe that equity release mortgages do have a place when taken out for the correct reasons and can play a very important part in a client's lifestyle and financial planning.
The average advance during the 3rd quarter of 2011 was £49,703.
Anyone considering an equity release mortgage should take independent advice and here at Firth & Scott two of our advisors have taken the relevant exams in this area and are able to give advice on equity release mortgages.
If this is something you are thinking about in respect of yourselves (or your parents) then please do not hesitate in contacting your Independent Financial Adviser here at Firth & Scott. Article written by Steve Hopkins FCII. |
|
Junior ISA's | |
Junior ISA's were first announced in George Osbourne's 2011 Budget and they have now become available from 1 November 2011.
Initially the maximum amount that could be invested in a Junior ISA was to be £3,000 but this has now risen to £3,600.
The Junior ISA is available for any child under the age of 18 years who does not have a Child Trust Fund Account, for example they were born before 1 September 2002 or after 2 January 2011.
Please click here to read in full Firth & Scott's recent news article about Junior ISA's.
Should you be interested in discussing the advantages of Junior ISA's please don't hesitate in contacting us here at Firth & Scott.
Article written by Steve Hopkins FCII |
|
Tax System Overhaul |
In a previous edition of 'Your Money Matters' I mentioned that the Government were considering the merits of combining the income tax and national insurance contributions system into one. As an update on this situation I am able to advise the following:-
The Government have set up a number of technical working groups to identify and explore the options in respect of the integration of income tax and national insurance contributions.
The aim of the Government is to try and make tax more transparent and easier for people to understand exactly what they are paying and why.
They have also issued a paper called 'Modernising the Administration of the Personal Tax System' on ideas on how people can have better access to information on their personal taxes. The Government is asking for Stakeholders to have their say on this issue.
Article written by Steve Hopkins FCII. |
|
If you wish to discuss any of the points raised in the articles above please do not hesitate in contacting me here at Firth & Scott Financial Services Ltd.
Regards,
The information contained in this message may be confidential and is intended for the addressee only. Any unauthorised use, dissemination of the information, or copying of this message is prohibited. If you are not the addressee, please notify the sender immediately by return e-mail and delete this message. Although this e-mail and any attachments are believed to be free of any virus, or other defect which might affect any computer or system into which they are received and opened, it is the responsibility of the recipient to ensure that they are virus free and no responsibility is accepted by Firth & Scott Ltd, 579 Mansfield Road, Sherwood, Nottingham NG5 2JN for any loss or damage from receipt or use thereof.
Firth & Scott (Financial Services) Ltd, Tel No (0115) 8400 333, are authorised and regulated by the Financial Services Authority.
Registered Address: 579 Mansfield Road, Sherwood, Nottingham, NG5 2JN |
|
|
|  |
Financial Services Ltd
Independent Financial Advisers
Chartered Financial Planners
|
| Meet the Advisers |
To see more details about each of our Financial Advisers please click on the links below
|
|
Business & Personal Financial Planning | |
|
| |  |
The company holds the status of Chartered Financial Planners, an exclusive title only awarded to those firms which meet rigorous criteria relating to their professionalism and capability. As of March 2011 Firth & Scott Financial Services Ltd were one of only 306 firms across the UK to hold this prestigious title, which is granted to the leading professional firms within the financial services sector.
|
|
IMPORTANT NOTE | |
This newsletter is designed to provide you with general information only and does not attempt to give you advice on any particular investment or to recommend any particular investment to you. If you have any doubt as to whether a particular investment is suitable for you you should contact Firth & Scott Financial Services Ltd for advice.
Firth & Scott Financial Services Ltd are independent financial advisers and are authorised and regulated by the Financial Services Authority. |
|
|
