Smart Money Guides

Welcome to our latest issue.

Nobody wants to consider what would happen if they became too ill to support their family financially. Financial protection is essential to creating a secure future for your loved ones, but understanding what cover you may need can be confusing. On page 08, we discuss whether you have considered the implications financially if you or someone in your family were unable to earn money, became ill or were to die prematurely. It’s not something we like to think about, but if you have left regular employment and are now either retired or have become self-employed, then any previous protection you received from an employer becomes your responsibility.

On page 05, we delve into a new analysis of FCA figures. Since 2015, individuals over the age of 55 with defined contribution (DC) pension pots have enjoyed full freedom to decide how to manage their pensions; purchasing an annuity (a guaranteed income for life) is no longer mandatory. We examine how people have utilised these newfound freedoms and the tax implications that have followed.

On page 11, we look at ways to potentially reduce a Capital Gains Tax (CGT) liability, from using your annual exemption to saving in an Individual Savings Account (ISA). Cuts to the CGT exemption mean that arranging your investments as tax-efficiently as possible is more important than ever. Trusts are a powerful tool for estate planning, providing flexibility and control over asset distribution. Properly structured, they can address various scenarios and requirements, ensuring that your legacy is managed according to your wishes long into the future. Read the full article on page 06. The results of the 2024 Election had not been announced when this issue was published. Our next issue will explore how the outcome could affect personal finances.

As we embark on the new tax year, on page 08, we consider why reviewing your pension savings strategy presents an opportune moment, setting a solid foundation for future financial stability. Early attention to your private pension at the onset of the fiscal year is not just about cultivating beneficial saving habits; it’s also about ensuring you take advantage of the benefits and allowances available to you.

Individual Savings Accounts (ISAs) offer a versatile and tax-efficient way to save for the future, whether for yourself, your children or grandchildren. Now that we have entered the new financial year, significant changes to ISAs have been introduced. From 6 April, savers and investors now have a more flexible approach to using their ISA allowance. For the first time, individuals can open multiple accounts of the same type of ISA within a single tax year, from 6 April one year to 5 April the next, provided they do not exceed the annual ISA limit. Read the full article on page 06.

The financial implications of care in later life are often underestimated, leaving many unprepared for the substantial costs associated with care homes. On page 05, we look at why establishing a thorough wealth strategy is key to ensuring financial readiness for long-term care needs. Inheritance Tax (IHT) represents a significant consideration for anyone looking to pass on assets to the next generation. With the IHT threshold frozen until at least April 2028, understanding how to manage your estate’s potential IHT liability is more crucial than ever. Turn to page 10 to read more.

Welcome to the Winter 2024 quarterly issue of The Mortgage & Property Magazine.

As we entered the new year, some mortgage lenders initiated rate cuts, making new deals more affordable for homeowners. It’s important, however, for homeowners to scrutinise the details of these offers. When lenders announce rate reductions, they don’t uniformly apply these cuts across all products.

Due to substantial shifts in the financial landscape over the past couple of years, mortgage rates are projected to stay elevated compared to what many have grown used to. Approximately 1.6 million homeowners will witness their current fixed-rate deals expire this year, with a potential for a notable increase in their monthly payments.
Nevertheless, the competition amongst lenders could help mitigate these costs, ensuring the impacts are not as severe as initially feared. This competitive landscape may provide some relief to homeowners navigating the evolving mortgage market.

Considering a change of scenery this year? We’ve often heard the saying that ‘Home is where the heart is’, but what happens when your heart’s destination isn’t quite clear? You may be pondering a nationwide move due to an enticing job opportunity, or the charm of countryside living is beckoning you away from the city’s hustle and bustle. Regardless of your reasons, it’s undeniable that moving can be a daunting endeavour. If you’re considering such a move, we have provided some crucial points to remember on page 90.
A complete list of the articles appears on pages 03 to 05.

As mortgage experts, we support you every step of the way, no matter what you need. We’ll give you all the information you need and be a helping hand to get you through the process of buying a property. We hope our magazine gives you the insights you need to make informed decisions. To learn more about how we can help you with expert professional mortgage advice, please contact us to discuss your requirements – we look forward to hearing from you.

We hope you enjoy reading this issue.