What happens if the institution that looks after your savings goes bust? While memories of the 2008 banking crisis are receding with each passing year, there will always be a concern that money placed with any bank or other institution could be at risk.
So, is your nest egg really at risk in 2024? After the 2008 banking crisis, the Government stepped in to minimise the risk to your savings when and if banks go bust.
Furthermore, from 2019, it became UK Law that to separate core retail banking services (including current accounts, mortgages and savings) from their investment and international banking activities – known as ring-fencing. This means that savers’ money deposited with banks cannot be used to fund other parts of their operation that might be involved with their more speculative activities.1
Many people have a rough idea that they will be compensated if the institution which holds their money goes bust, but it is not an all-encompassing ‘get out of jail free’ card. There are conditions for compensation that govern what kind of investment, where it is deposited and how much is covered.
The body which acts for those of us whose bank or institution has gone bust is the Financial Services Compensation Scheme (FSCS). Set up in 2001, it ensures that in the event of a catastrophic event, depositors can get their money back.2
If you hold money with a UK authorised bank, building society or credit union that fails, the FCFS will automatically compensate you:
up to £85,000 per eligible person, per bank, building society or credit union.
up to £170,000 for joint accounts.
To discover whether your investment is eligible for compensation if the worst happens, you can visit https://www.fscs.org.uk/check/
The FSCS does not cover other investments such as stocks and shares, so be careful when you are investing to check that not only the institution you are using is a member of the FSCS but the investment is of the right type.
All the information in this article is correct as of the publish date 30th May 2024. The opinions expressed in this publication are those of the authors. The information provided in this article, including text, graphics and images does not, and is not intended to, substitute advice; instead, all information, content and materials available in this article are for general informational purposes only. Information in this article may not constitute the most up-to-date legal or other information.
If you have a trip booked this summer, the last thing you want is to worry about your home security while you’re away. You’ve worked hard all year and deserve a well-earned break. Holidays are important, and it’s likely you have something planned that you’re looking forward to. The last thing you want is a phone call saying your home has been burgled while you’re enjoying your holiday.
If you often worry about home security, we can help put your mind at ease with our top tips to ensure your property is well-protected. This way, you can relax and enjoy your holiday with greater peace of mind.
1. Tilt Your Blinds
The debate on whether to leave your blinds open or closed when away from home is ongoing. Some suggest keeping them closed to prevent potential burglars from peering inside, but this can also signal that no one is home.
The ideal outcome may be to have trusted neighbours, friends or relatives to visit your property occasionally during your holiday to move blinds or curtains to show signs of occupation, however one alternative is simply to obscure the view of any valuable items that may be seen from outside – don’t let your home become a ‘shop window’ for burglars.
Alternatively, if you’re willing to invest, there are moveable blinds available that can be operated electronically – whether on timers or remote control and linked to smart phone apps.
2. Control Lighting
Making your home appear occupied is crucial when you’re away. Light timers are an effective tool for this. Set them to turn lights on and off at times you would normally do so, creating the illusion of activity.
For added security, consider smart light switches that can be controlled via an app on your smartphone. This allows you to turn lights on and off sporadically, mimicking human activity and making it harder for thieves to determine if you’re home.
3. Good Neighbours
Are you on good terms with your neighbours? This can really help at times when you’re going away, having extra pairs of eyes and ears on your property whilst you’re out of the area. They can help by keeping an eye out for any suspicious activity or noise, through to parking their car in your driveway or even helping with activities such as moving unattended bins after collection, to give the appearance that you’re still there. By offering your services to them first, you may find you can build up a good rapport and hopefully they may do this for you!
4. Avoid Publicly Posting on Social Media
While it’s tempting to share your holiday excitement on social media, it can alert potential burglars that your home is empty. If you have a public account, be cautious about tagging locations or checking in. Instead, adjust your privacy settings and only share your plans with close friends and family. Wait until you’re back home to post holiday photos.
5. Complete a General Security Check Before You Leave
Before heading out, double-check that all windows and doors are securely locked. Ensure sheds, garages, and outbuildings are also locked. Items like ladders and tools can assist burglars in gaining access to your home.
Additionally, unplug any electrical appliances to reduce fire risks and save energy.
6. Invest in Home Security
Effective home security provides peace of mind, whether you’re on holiday, walking the dog, or sleeping at night. A visible alarm bell box can deter burglars by emitting a loud siren and alerting neighbours if a break-in occurs.
CCTV cameras are also powerful deterrents. The mere presence of an outdoor camera can discourage most criminals. Modern alarm systems often allow remote activation and deactivation via a smartphone app, so you can secure your home even if you forget before leaving.
There’s also a whole range of video doorbells available that can provide an extra layer of security, letting you view your street, from the comfort of your sun lounger and record footage of any unwanted activity on your property.
Depending on your home and the level of protection desired, it is possible for a third-party security company to connect your property to their remote monitoring system where it can be watched over 24/7, with alerts to yourself and authorities if needed.
By following these tips, you can significantly reduce the risk of burglary while you’re away, allowing you to focus on relaxing and enjoying your holiday.
All the information in this article is correct as of the publish date 30th May 2024. The opinions expressed in this publication are those of the authors. The information provided in this article, including text, graphics and images does not, and is not intended to, substitute advice; instead, all information, content and materials available in this article are for general informational purposes only. Information in this article may not constitute the most up-to-date legal or other information.
Buying a home is one of the most significant purchases you’ll ever make. While it’s exciting to imagine your new space, it’s crucial to keep your finances in check. Here are some fun and practical ways to save money during your home-buying journey.
Know Your Budget and Stick to It
Before you start hunting for your next property, determine how much you can afford. We’ll help you find out what the estimated monthly payments could be on properties, by looking at your exact circumstances and making recommendations tailored to you. This can help you set a realistic budget and prevent you from falling in love with a property that’s out of your price range. Remember, your budget should include not just the purchase price, but also key costs you’re likely to face – be it council tax, any new build estate fees if applicable, insurance, maintenance, and other related costs for example.
Get Pre-Approved for a Mortgage
A mortgage pre-approval, or decision-in-principle, can help to give you a clear picture of how much you can borrow and shows sellers that you’re a serious buyer. This can give you an edge in negotiations and possibly save you from the heartbreak of losing your dream home due to financing issues. If you’re serious about your intentions, talk to us to see how we can assist you in this and get you a step closer to buying your next home.
Get Bespoke Mortgage Advice for Your Exact Needs
We’re experts at giving professional advice to help recommend the mortgage that fits your exact needs. We’ll take time to get to know your latest financial situation to help us to recommend the deals that could give you the solution you need – and we’ll be able to search from a wide range of deals that aren’t available on the high street. Your existing lender will be likely to contact you with offers but be sure to seek our professional advice before making any decisions.
Consider a Renovation Project
Buying a down-trodden property can represent a way to save money if you have the energy for a renovation project and are willing to put in some elbow grease to potentially save some serious money along the way. These homes often sell for less than move-in ready properties, but with some DIY skills and a bit of investment, you can transform a rundown property into your dream home while potentially increasing its value.
The Value of a Thorough Home Inspection
It’s easy to fall in love with a property you’ve found, but it pays to conduct some thorough surveys and inspections of the building before it’s too late. It may seem like an extra expense, but it can save you a lot of money in the long run. A good inspector will identify potential issues that could cost you thousands in repairs. Use this information to negotiate a lower price or ask the seller to fix problems before you close the deal.
Negotiate Everything
Effective negotiation may help you save money along the way – whether it’s the sale price of your dream property, the cost of services or materials to fund a renovation – never be afraid to ask for a deal, you might be surprised at the result!
Negotiation is an art itself, and it’s worth learning about some best practice tips and tricks you can start to use, both in daily life and in scenarios such as buying a home.
Keep an Eye on Hidden Costs
Be mindful of other expenses like moving costs, new furniture, utility deposits, and homeowner association fees or estate fees for new-build homes, for example. Budget for these costs in advance so they don’t catch you off guard. Look for ways to save, such as renting a van instead of hiring a full-service removal firm or buying gently used furniture to cut costs on getting the final look you’re seeking.
Think Long-Term
While it’s essential to find a home that meets your current needs, consider how your needs might change in the future. Buying a home that you can grow into can save you the costs and hassle of moving again in a few years. Additionally, investing in energy-efficient appliances and systems can save you money on utility bills over time.
Final Thoughts
Buying a home doesn’t have to break the bank. With careful planning, savvy shopping, and a bit of negotiation, you can find a home you love without overspending. Remember, the goal is not just to buy a house, but to do so in a way that keeps your financial health intact. Happy house hunting!
All the information in this article is correct as of the publish date 30th May 2024. The opinions expressed in this publication are those of the authors. The information provided in this article, including text, graphics and images does not, and is not intended to, substitute advice; instead, all information, content, and materials available in this article are for general informational purposes only. Information in this article may not constitute the most up-to-date legal or other information.
This month welcomed the new Tax Year, that started back on 6th April. We look at a number of checks you can make to ensure your finances are given the ‘spring clean’ for the year ahead.
Tax codes
New tax codes for the financial year ahead came into force on 6th April. However, it’s worth checking if they are correct for you and your current circumstances – especially as it’s your responsibility to check that it’s correct, rather than your employer, or HMRC1.
If you are in a self-employed role, the recent changes to National Insurance (NI) mean you should check how much to set aside in the wake of changes to NI contributions in the March budget.
Changes to the Individual Savings Account (ISA) rules
This tax year there’s no limit to the number of ISAs you can open. It’s one of the biggest changes to the rules to come into effect on 6 April; previously you could only open one of each type every tax year.2
Lifetime ISAs (LISA)
One of the less well-known ISAs is the LISA or Lifetime ISA, which can be used to help buy your first home or save for later life. You must be 18 or over but under 40 to open a Lifetime ISA.3
You can put in up to £4,000 each year until you’re 50. You must make your first payment into your ISA before you’re 40. The government will add a 25% bonus to your savings, up to a maximum of £1,000 per year.3
The Lifetime ISA limit of £4,000 counts towards your annual ISA limit of £20,000. You can hold cash or stocks and shares in your Lifetime ISA or have a combination of both.
When you turn 50, you will not be able to pay into your Lifetime ISA or earn the 25% bonus. Your account will stay open and your savings will still earn interest or investment returns.
You can withdraw money from your ISA if you are:
buying your first home
aged 60 or over
terminally ill, with less than 12 months to live
However, you will pay a withdrawal charge of 25% if you withdraw cash or assets for any other reason.3
National Savings & Investments (2024) What do the new ISA changes mean for you?. Available at: https://www.nsandi.com/isa-changes [Accessed 17th April 2024]
All the information in this article is correct as of the publish date 25th April 2024. The opinions expressed in this publication are those of the authors. The information provided in this article, including text, graphics and images does not, and is not intended to, substitute advice; instead, all information, content and materials available in this article are for general informational purposes only. Information in this article may not constitute the most up-to-date legal or other information.
In these challenging economic times, an interesting report has revealed that one in six people are choosing property investment as a pathway for generating income, so we look further into the drivers behind this.
The Appeal of the Property Sector
Analysis from Market Financial Solutions (MFS) has recently revealed that a notable portion of adults in the UK, roughly 16%, have chosen property investment as a pathway for generating income.[1][2]
According to MFS, the property market continues to attract attention as a prime option for investors, spurred by a recent poll indicating an upbeat mood among those investing in property – whether it be residential rentals, holiday homes or business premises.
The survey also revealed that more than half of UK property investors (53%) are confident about the future performance of their investments, contrasting with the 14% who hold a negative outlook, leaving the rest with a neutral point of view.1
The Market Outlook
MFS’ survey has shown a rise in positive sentiment surrounding the UK property market since early 2024, together with a boost in the volume of properties listed in the year to date, along with hopes of a stable economic forecast and predictions that mortgage rates may settle and start to fall towards the end of the year.
However, the report findings also discovered a significant apprehension amongst 56% of property investors, stemming from the economic downturn seen at the end of 2023, and uncertainty over the period ahead, especially the country moves closer to a General Election by next January at the latest.1
Conversely, 54% of those surveyed are anticipating lower interest rates within the year, potentially energising the market. Additionally, 38% foresee a more straightforward experience in managing their property investments in 2024 when compared to the previous year.1
Interestingly, the MFS survey revealed that more than half of engaged UK property investors closely monitor market trends and economic forecasts about property price and rents, to help feed into their decisions on making adjustments to their property portfolio.
The Value of Mortgage Advice
It all goes to show that if you’re considering a new income stream, such as a buy-to-let property, it’s valuable to stay tuned with the market and the bigger picture of what’s going on, to help you make educated decision making on all aspects from funding the portfolio, through to the choice of property, location and much more.
It’s wise however to seek professional mortgage & protection advice before embarking on anything, to find out more about how you can finance and start a buy-to-let portfolio, looking at your exact circumstances and with bespoke advice to fit your precise needs.
The Financial Conduct Authority does not regulate some forms of Buy to Lets.Think carefully before securing other debts against your home/property. Your home/property may be repossessed if you do not keep up repayments on a mortgage or other debt secured on it.
All the information in this article is correct as of the publish date 25th April 2024. The opinions expressed in this publication are those of the authors. The information provided in this article, including text, graphics and images does not, and is not intended to, substitute advice; instead, all information, content and materials available in this article are for general informational purposes only. Information in this article may not constitute the most up-to-date legal or other information.
Early April saw the Government’s 2% reduction in National Insurance on wages take effect, which represents a welcome bonus for many, however we look ahead to a potential risk of tax increases further down the line.
The National Insurance (NI) rate has fallen from 10% to 8% for circa. 32 million employees1 across the UK and is the second cut this year, after a similar 2% drop in January. In terms of what these cuts mean, for example, someone earning £35,000 per year would save around £900 per year, according to data from the Government.2
For the self-employed, Class 4 NI contributions on all earnings between £12,570 and £50,270 were already due to be cut from a rate of 9% to 8% in April. They will no longer pay a separate category of NI called Class 2 contributions.The NI rate on income and profits above £50,270 remains at 2%.2
Taxing times ahead?
However, analysts in some quarters are forecasting a potential future issue. Whilst the cut in NI contributions is, on the face of it, very welcome, a freeze in income levels at which tax is paid until 20283 could leave many with a higher future income tax bill to be paid, as their incomes rise over time.
The financial impact will differ significantly – depending on whether people work, how much they earn, and other personal circumstances.
Known as ‘Fiscal Drag’, when tax thresholds do not keep up with the rising cost of living, more people are pulled into higher tax brackets, and raises a lot of additional money for the Government.4 According to the Office for Budget Responsibility, the two sets of national insurance cuts announced in the 2023 autumn statement and 2024 spring budget do not offset the extra income tax being paid across the population as result of the thresholds being frozen.3
The Resolution Foundation says that anyone earning up to £19,000 will still be worse off than if the personal allowance had been increased in line with inflation. The biggest gainers, it says, are those earning £50,000.3
Only time will tell how the current economic conditions and Government policies pan out, but it’s always worth taking a look behind the top headlines to see the other impacts of key decisions made to assess the impact, and if you do have any specific concerns, we’d always recommend seeking independent financial advice from a trusted professional.
BBC News (2024) National Insurance calculator: How much will the 2p cut save me and what is income tax? Available at: https://www.bbc.co.uk/news/explainers-63635185 [Accessed 17 April 2024]
All the information in this article is correct as of the publish date 25th April 2024. The opinions expressed in this publication are those of the authors. The information provided in this article, including text, graphics and images does not, and is not intended to, substitute advice; instead, all information, content and materials available in this article are for general informational purposes only. Information in this article may not constitute the most up-to-date legal or other information.
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