By Rachel Efetha, Charter Financial Planner at Anstee & Co.

For a lot of people, an Inheritance can come in very handy.  It can pay off a lump towards your mortgage, allowing you to shorten the term and retire early.  It can be used to buy the motorhome you have always coveted, or it can be tucked away until it is needed.

However, some people receive an inheritance that they simply will never spend because their assets are enough to meet their lifetime needs.  An Inheritance might just sit in their estate until their death and then be subject to 40% Inheritance Tax (IHT).

In some cases, the people above might gift their Inheritance to their children for a deposit on a property.  But this means that they must survive for seven years for it to come out of their estate for IHT purposes.

What is the solution?

What if there was another way of doing things?  With a Deed of Variation, a Will can be re-written as if the Testator had written it that way themselves.  That way, the gift to the Testators grandchildren can go directly to them and never touch the parents’ estate and exacerbate their own IHT problem.

What if your children are not able to Inherit now?  They are a bit young/ financially irresponsible/ not ready to settle down and buy a house?  Or what if you cannot be sure that you will not need the money yourself in the future?  Then the Deed of Variation can be used to direct the money into a Discretionary Trust for the benefit of you and your children.  You can be appointed as a Trustee and therefore control when the payments are made and to whom.

What are the advantages of doing this?

The Trust is also a great way of protecting family assets from future divorce settlements and bankruptcies.  Because it is discretionary, no one is absolutely entitled to anything and therefore, it does not form part of their assets.

A Deed of Variation needs to be executed within two years of the Testators death and all beneficiaries to the Will must agree.  They can be written by a solicitor.

How Anstee & Co can help you with your Inheritance planning.

We are a firm of  Independent Financial Advisers (IFA’s). This means that we offer you unbiased financial advice. We look at all the options available to you from the whole of the market. So, why not contact us today to start your inheritance tax and estate planning. The initial “getting to know you” meeting is at our expense and is without obligation. Our experience covers all aspects of financial planning including pensions, and investments.

Our Head Office is located at-

• Kettering, Northampton

Additionally, our financial planners live and make use of meeting rooms in-

• Bedford, Bedfordshire
• Market Harborough, Leicestershire
• Northampton, Thrapston and Wellingborough in Northamptonshire.

Also, we can make full use of video conferencing facilities such as-

• Microsoft Teams
• Facetime

We can also arrange a conference telephone call. There is no need to visit an office as all work can be handled remotely if you prefer. The choice is yours.

If you have any thoughts on this article, ” Have you received an Inheritance that you do not need?”, then we would love to hear from you.

Finally, the information contained in this article is for information purposes only and does not constitute financial advice. Anstee & Co. is authorised and regulated by the Financial Conduct Authority (FCA).

If you are nearing retirement you might feel a little rattled after all the changes that are happening.

What type of pension do you have?

If you are lucky enough to have a defined benefits pension, sometimes referred to as a final salary scheme then your pension income in retirement will be unaffected. However, for most workers with a defined contribution pension, it is a different story. While recent stock market volatility has highlighted that the responsibility lies with us to manage our pension for our retirement.

If you are nearing retirement.

It is worth checking your defined contribution pension provider to see if they are automatically moving your funds into less risky investments the closer you get to retirement. This is known as “life styling”.

Before the 2015 pension freedoms, most people used their pension pot to buy an annuity. An annuity provides you with a guaranteed income for life. Over recent years these have become less popular as rates have fallen. Annuities are still worth considering and are worth looking at if you are in ill health.

Many people are now considering the flexibility of “drawdown” plans. This is where your pension remains invested in the stock market after they retire, and they draw a percentage of their pension fund as income. Also, this option still leaves you exposed to any fluctuation in your investments within your pension fund. So, it is important to plan early for your retirement with the expectation that you will need to take some risks on long-term investments for the chance of a better return in the future.

How Anstee & Co can help you with retirement planning.

First of all, our team of financial advisers will help you understand the options available to you. As we are Independent Financial Advisers (IFA’s), the financial advice we provided is unbiased.  This is unlike some financial advisers who offer only their own products or work from a limited panel.

The initial “getting to know you” meeting is at our cost and without obligation. Why not arrange a meeting with us today to see how we can help you plan the retirement you deserve? Meetings can be arranged at a time and location that is convenient to you.

Our Head Office is based in-

• Kettering, Northamptonshire.

Also, our financial advisers live and make use of meeting rooms in-

• Market Harborough, Leicestershire
• Bedford, Bedfordshire
• Northampton, Wellingborough and Thrapston in Northamptonshire.

We also make use of-

• Teams
• Facetime

Telephone meetings may also be arranged. Whatever is best for you.

Finally, if you have any thoughts or views about this article, “Are you nearing retirement”, then please let us know.

The information contained in this article is for information purposes only and does not constitute advice. No action should be taken based on this information alone. Furthermore, Anstee & Co is authorised and regulated by the Financial Conduct Authority (FCA).

In the eighties until 2009, an interest-only mortgage was a popular option.  Now, however, many of these mortgages are coming to the end of their term and money must be found to pay off the original capital sum borrowed.

So, what should you do if you have an interest-only mortgage?

Firstly, you need to ascertain how much you owe and if you will have enough to pay off the amount borrowed at the end of the loan term. Your options may include investments, savings and pension funds.  It is important to check on how your investments are performing and to ensure that the best available interest rates are being earned on your savings.

Some other possible ways of repaying your mortgage are:

• Convert to a repayment mortgage
• Downsize your property
• Extend your mortgage term
• Make overpayments on your mortgage
• Release equity that has built up in your property

There are pros and cons to all these options, but one thing is certain – it is important not to just do nothing!

How Anstee & Co can help you with your mortgage.

Our experienced and well-informed mortgage specialists at Anstee & Co will be happy to discuss in more detail the options available and assist you in deciding the best way forward for you.

We are firm of Independent Financial Advisers (IFA’s). Being independent is important. This means that we will look at all the options that are available to you. This is often referred to as “whole of market” advice. Some mortgage advisers will offer only their own products or work from a limited panel of lenders.

Why not book a review meeting today. A meeting can be arranged at a time a location that is convenient for you. This could be at your home or a weekend. This initial meeting is at our expense and without obligation.

Our head office is located at-

• Kettering, Northamptonshire

Also, our team of advisers, live and make use of meeting rooms in-

• Market Harborough, Leicestershire
• Bedford, Bedfordshire
• Northampton, Wellingborough and Thrapston  in Northamptonshire

Finally, if you have any view or comment about this article, “Interest-only mortgage. It’s time to act!”, then let us know.

AS A MORTGAGE IS SECURED AGAINST YOUR HOME, IT COULD BE REPOSSESSED IF YOU DO NOT KEEP UP THE MORTGAGE REPAYMENTS.

The first question our mortgage advisers are usually asked is “How much can I borrow”?

In the past, mortgage lenders based the amount you could borrow mainly on a multiple of your income. This was often referred to as the loan-to-income ratio. Mortgage criteria have now changed.

This worked by looking at your salary and then multiplying it by three, four or even five times to give you the amount you could borrow. Not a very scientific way of lending large sums of money.

This all came to an end with the introduction by the Financial Conduct Authority (FCA) of the Mortgage Market Review. The FCA now requires the lenders to look at affordability as well. Can you afford the monthly mortgage repayments?

What is the affordability assessment?

Lenders must now assess what level of monthly payments you can afford. They will consider your personal and living expenses, not just your income. They will assess what level of monthly payments you can afford, after considering your personal and living expenses as well as your income.

Additionally, mortgage lenders are required to “stress test” your ability to repay the mortgage. This involves considering the effect of possible interest rate rises and changes to your lifestyle, such as-

• Losing your job
• Starting a family
• Taking a career break
• Retirement
• You cannot work due to illness

If the lender feels that you won’t be able to afford your mortgage payments in these circumstances, they will limit the amount you can borrow.

So, before applying for a mortgage, you now need to think about more than just whether you can afford the monthly repayments. Mortgage lenders will look at your income and outgoings to see if you can keep up with the repayments if your circumstances change or interest rates change.

What will the mortgage lender consider?

When working out how much you can afford to borrow, the lender will look at-

Income

• Your basic salary together with overtime, commission or bonus payments or a second job and any freelance work.
• Regular pension or investment income
• Child maintenance and financial support from ex-spouses

In all cases, you will need to provide pay slips and bank statements as evidence.

If you are self-employed you will need the following-

• Bank statements
• Business accounts
• Income tax you have paid

Outgoings

This may include-

• Utility bills such as water, gas, electricity, phone, broadband
• Credit card and Loan repayments
• Maintenance payments
• Insurance – building, contents, travel, pet, life, etc
• Some lenders ask for estimates of your living costs such as spending on clothes, basic recreation and childcare.

The lender will check the payment against your recent bank statements and figures from the Office of National Statistics.

Remember to check your credit report

It’s a good idea to check your credit report before applying for a mortgage. You can do this for free with Experian.

Checking your report now will give you time to correct any mistakes. Adverse entries such as County Court Judgements (CCJ’s) or missed loan or credit card payments will not be looked upon favourably by the mortgage lender.

How Anstee & Co can help you met the mortgage criteria.

Our mortgage advisers will help you to understand how you will be viewed by a mortgage lender. Their experience of the lender’s, mortgage criteria will save you time and money. Your mortgage adviser will work with you to provide the most suitable mortgage.

Why not arrange a meeting today. The meeting can be made at a time that is convenient for you. This may be at a weekend or early evening. We have an office located at-

• Kettering, Northamptonshire

Additionally, our mortgage advisers live and make use of meeting rooms in-

• Bedford, Bedfordshire
• Market Harborough, Leicestershire
• Northampton, Thrapston and Wellingborough in Northamptonshire.

AS A MORTGAGE IS SECURED AGAINST YOUR HOME, IT COULD BE REPOSSESSED IF YOU DO NOT KEEP UP THE MORTGAGE REPAYMENTS.

We are being attacked from every direction by fraudsters, including, investment scams. Below are details of how to protect yourself from investment fraud.

Stopping Investment Fraud

Figures from the City of London Police (the UK's National Lead Force for Fraud) indicate that criminals stole £879.8 million through investment fraud, averaging about £1,675 stolen every single minute

One of the most common methods used by fraudsters is to pressurise potential investors to make a quick investment decision. A so-called "time-limited" investment offer. The research from the FCA showed that just over half (53%) of the over 55s believed acting quickly can be the key to getting a good deal. This highlights how many could be vulnerable to this trick.

Around a third (34%) said it is best not to discuss investment decisions with others and fewer than half (48%) said they would be likely to seek impartial advice before investing. These attitudes are seized on by fraudsters, who often urge their target to keep the offer a secret, to prevent others from dissuading them from investing.

45% of those aged over fifty-five surveyed agreed that investment opportunities are more attractive if you know of others who have made similar investments. Fraudsters may exploit this by saying that others want in on the deal or have already benefited.

What to look out for with Investment Fraud.

Below are some of our tips on how to protect yourself from the tactics used by fraudsters-

• Offering lucrative returns above the market rate and downplaying the risks of the investment
• Using flattery to make potential victims feel good, such as praising them for being such a knowledgeable investor.
• Saying the deal is only available to the target and asking them to keep it a secret.
• Saying that other clients have invested or want in on the deal (known as "social proof").
• Putting you under pressure to invest in a time-limited offer.

Usually, if you find yourself messaging someone on a social media website about investments, then you are being groomed as the fraudster's next victim.

Lines of defence specifically for an investment client.

• Reject unsolicited contact about investments
• Before investing, check the Financial Services Register to see if the firm or individual you are dealing with is authorised and check the FCA Warning List of firms to avoid.
• Get independent financial advice before investing.

Caroline Anstee, Managing Director of Anstee & Co said-

"It pays to be sceptical and cautious before investing money. Certainly, the fraudsters are employing more advanced psychological tactics to persuade victims to invest. Do not rush into anything, take your time. Take independent financial advice from a financial adviser who is registered with the FCA. If in any doubt don't invest."

How Anstee & Co can help you stay financially safe.

We are Independent Financial Advisers (IFA's) registered with the FCA. This means, above all, that the advice we offer is unbiased. All our financial advisers have the relevant professional qualifications needed to help you. If you would like a review of your investment why not arrange a meeting today. Also, the first "getting to know you" meeting is at our cost and is without obligation.

Our Head Office is located at-

• Kettering, Northamptonshire

Additional our advisers live and make use of meeting rooms in-

• Bedford, Bedfordshire
• Market Harborough, Leicestershire
• Northampton, Wellingborough and Thrapston all in Northamptonshire.

Also, we are make full use of video conferencing facilities such as-

• Microsoft Teams
• Facetime

We can also arrange a conference call. The choice is yours. There is no need to visit an office as all work can be handled remotely.

If you have any thoughts or views on this article, "Investment Fraud. What to look out for.", then we would love to hear from you.

Finally, the information contained in this article is for information purposes only and does not constitute financial advice. Anstee & Co. is authorised and regulated by the Financial Conduct Authority (FCA).

One of the most difficult conversations you probably will have with your parents is what plans have they made for their financial future. It’s a balancing act between your parents feeling that they are not losing financial control and you being aware that they have some form of plan in place. All this while still respecting their boundaries. Remember that although you see yourself as a responsible adult, your parents still see the child in you.

This is the first of a series of articles about the difficult questions you need to be asking your elderly parents.

So as your parents move into later life consider these topics of conversation.

When did they last review their financial plan?

With the advances in medical science life expectancy for both men and woman is increasing. It may be that your parents have generous inflation-linked final salary pensions (also known as a defined benefit). Something to be aware of is if they are relying on one pension what happens when that parent dies? Usually, the pension reduces but the costs of running the home will stay the same.

They may have savings that are being used to top up their state pension. Will these saving last their lifetime bearing in mind the low returns seen from savings accounts presently?

In the case of an emergency are you aware of who their accountant, financial adviser or solicitor is, if they have one?

Do they have a safe place that they keep their financial documents?

If they have not done so already ask your parents to make a record of-

• Bank Accounts
• Savings accounts
• Pensions
• Investments
• Property
• Any debts.

Ideally, with address and account, roll or reference numbers.

This is the first of a series of articles that will be published over the next few weeks so please like or follow us so that you do not miss out on the next article.

How Anstee & Co can help with financial planning for your parents.

Having these financial conversations with your parents may be difficult so why not encourage them to involve an independent financial adviser like ourselves to provide financial advice and planning? Your parents may feel that the meeting would initially be with them alone but they may find that involving the family is beneficial once they have a plan in place.

As independent financial advisers, our advice is unbiased and we look at all the options available from the whole market. This is not the case with all advisers, who may recommend only their own products or work from a limited panel.

Meetings can be arranged at a time and location that is coinvent to you. This may be at your home or one of our meeting rooms. The first meeting is at our expense and without obligation. It allows us to highlight the areas where we can help your parents and enables them to see how we operate. When we have an understanding of the work involved we will provide your parents with a written quote for the cost if any. We will not undertake any work without their agreement.

Our head office is located at-

• Kettering, Northamptonshire

Also, our team of financial planners live and make use of meeting rooms in-

• Market Harborough, Leicestershire
• Bedford, Bedfordshire
• Northampton, Wellingborough and Thrapston, all in Northamptonshire

Why not contact us today to see how we can help.

If you are a parent of grown-up children reading this article and your children have not raised these questions, ask them why they are not taking an interest in your financial wellbeing? You can always arrange the appointment yourself.

If you have any thoughts or views on this article, “Questions to ask your parents”, then please contact us.

For your, protection and peace of mind we our registered with the Financial Conduct Authority (FCA).

By John Cossons, Mortgage and Protection Designer at Anstee & Co.

Firstly, what is a Green Mortgage, and should I have one?

A green mortgage is meant to increase the appeal of owning a green, or energy-efficient, property. On top of the savings, you’ll make on your energy bills each month. Also, the idea is that lenders give you cashback and/or a better interest rate when you take out a green mortgage.

Tell me more about a Green Mortgage.

Green mortgages generally fall into two categories:

• Those that reward you for living in an energy-efficient home. Here, if the property you’re buying or living in has an EPC (Energy Performance Certificate) rating of A or B, you’ll get cash back or a better interest rate on your mortgage.
• Those that reward you for carrying out ‘green’ home improvements. Green improvements could include replacing single-glazed windows, upgrading your heating system, or installing solar panels, for example. So, typically, lenders will offer you a discounted interest rate or cashback on any money you borrow to upgrade your home’s energy efficiency.

Lenders are willing to offer incentives of this nature because they increasingly see energy-efficient properties as less risky purchases and more likely to hold their value. What’s more, if a homeowner is spending less on their energy bills each month, there’s less of a chance they’ll struggle to meet their mortgage repayments.

What is an Energy Performance Certificate (EPC)?

An energy performance certificate is a document which indicates how energy efficient a property is. They are required whenever a property is built or sold, with certificates lasting for 10 years.

The rating system goes from A to G, with the most energy-efficient homes getting an A rating, and the least getting a G. Between October and December 2021, more than 370,000 new EPC certificates were lodged in England, of which 84% had an energy-efficiency rating A or B. Older properties typically have worse EPC ratings, it is estimated that just 10% of pre-1900 homes have at C rating or better.

Details of a property’s EPC rating are normally available online. Use the Gov.UK database if the property you’re researching is in England, Wales or Northern Ireland, and the Scottish Register for properties in Scotland.

Are Green Mortgages a good deal?

Unfortunately, not yet. The reduction in the interest rate is very small and if there is a cashback it is usually somewhere between £250 and £500. It is commonplace to find a better deal from another lender using their standard mortgage range.

How Anstee & Co can help you with a Green Mortgage.

We are a firm of Independent Mortgage Brokers. This means that the financial advice we provide is unbiased. We look at all the financial options open to you from “the whole of the market”. Our expertise covers all aspects of financial planning including pensions, investments, and estate planning.

To find out more and to see how we can help you why not arrange a meeting today. The initial meeting is at our expense and is without obligation.

Our Head Office is based at Kettering, Northamptonshire-

Additionally, we have advisers who live and make use of meeting rooms in-

• Bedford, Bedfordshire
• Market Harborough, Leicestershire
• Northampton, Thrapston, and Wellingborough in Northamptonshire.

We make full use of video conferencing facilities such as-

• Microsoft Teams
• Facetime

We can also arrange a conference telephone call. So, there is no need to visit an office as all work can be handled remotely. The choice is yours.

If you have any thoughts on this article, ” What is a Green Mortgage?”  then we would love to hear from you.

Finally, the information contained in this article is for information purposes only and does not constitute financial advice. Anstee & Co. is authorised and regulated by the Financial Conduct Authority (FCA).

AS A MORTGAGE IS SECURED AGAINST YOUR HOME, IT COULD BE REPOSSESSED IF YOU DO NOT KEEP UP THE MORTGAGE REPAYMENTS.