Here are some areas to discuss with our financial planners.

Financial planning with your pensions.

Currently, it is possible to pay up to £2,880 (2023/24) a year into a pension for each of your children. With tax relief at 20% added this goes up to £3,600.

You can also pass on what remains in your pension pot when you die. If you die before the age of 75, this can go to your children or grandchildren tax-free. If you die after the age of seventy-five, they will have to pay income on the pension at their marginal rate.

Furthermore, this flexibility is not available if you have already bought an annuity or in most cases if you have a defined benefits pension. Defined benefits pensions are other referred to as a final salary scheme.

Gifting money.

Giving money to your children and grandchildren is a great way of reducing your estate. You can handover as much as you like without any immediate tax implications. An issue only arises if you die within seven years of making the gift. The amount gifted will then be added back to the value of your estate for inheritance tax (IHT) purposes. Tax will then be charged at a sliding rate depending on how long you live after making the gift.

Some gifts are completely exempt. A parent can give to children up to their £3,000 (2023/24) a year free of IHT or £6,000 if no gift was made the previous tax year.

Parents can also give their children £5,000 ( 2023/24) towards a wedding or civil partnership. In addition, grandparents can give £2,500 (2023/24).

Additional gifts can be made provided they are made from your income and does not affect your standard of living.

Financial planning property perks.

What most children are looking for is a helping hand onto the property ladder. So, cash gifts can be made but be aware of the IHT implications previously discussed.

If you cannot afford to give your children cash, there are several financial products you could consider. Family springboard mortgages or guarantor mortgages are all designed to help. Our team of mortgage advisers will be able to recommend the most suitable.

Lending money to your children to help them purchase a buy-to-let property is another way to create an income from the profits. You will need to draw up a legal document to cover when the money is to be repaid and what happens if the property sells for a profit or a loss.

How we can help you to gift money.

The above information is for guidance only. We would recommend that you arrange a meeting with one of our expert financial advisers. At the first meeting, we will get to know your situation and what you are trying to achieve. This first meeting is at our expense.

Meetings can be arranged at a time and location that is convenient for you. Furthermore, you can meet at our office or your home.

Our Head Office is  located at-

• Kettering, Northamptonshire.

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

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

Finally, if you want to find out more about how to gift money, why not arrange a meeting today?

Our expertise covers all aspects of financial planning including pensions, investments, and mortgages.

If you have any thoughts or comments on this article, “How to gift money in a tax efficient way.”, then it would be great to hear your views.

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. 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 REPAYMENTS.

When your existing fixed-rate or discount mortgage rate comes to an end you should review your options. This may be changing to a new deal with your existing lender or moving your existing mortgage to another lender to take advantage of a better deal. This is known as a remortgage.

We would always recommend that you take independent mortgage advice when reviewing your existing mortgage deal. The mortgage market is presently very competitive.

Doing nothing should not be an option. If you stay with your existing lender without taking out a new deal you will be moved on to their Standard Variable Rate (SVR). This could result in higher monthly mortgage repayments.

If you stay with your current provider and take out another deal with them, this is called a product transfer. It is worth remembering that despite what your existing lender tells you, this rate is unlikely to be the best deal for you. The chances are that your home will have increased in value, and you may be earning more money. All factors that will help you get a better deal elsewhere.

When recommending a remortgage our advisers will always take into account the costs, if any, of changing lenders.

Remortgaging affordability tests. What are they?

The Mortgage Market Review (MMR) which came into effect in 2014, introduced far stricter lender assessments to check whether you can afford the mortgage you are applying for. This also includes remortgaging.

The lender will look at your income and expenditure. Some lenders work on national or postcode averages, others will want more detailed personal figures. If you are looking to remortgage, it’s best to get your finances sorted out at least three to six months before. This gives you plenty of time to make changes to your cash flow which may help your application. The lender will also want proof of your identity and address details. This is usually a driving license or passport together with a recent utility bill showing your current address. Remember, mobile phone bills are not normally accepted. Credit reference agency checks will also be carried out.

Can everyone remortgage?

A change in your financial circumstances can also affect your chances of getting a competitive remortgage. This may be that you have gone from a two-income household to one or going from employed to self-employed.

If your home has increased in value from the last time you took a mortgage deal you may be able to get a better rate. If your loan to value (LTV) has got better you may be able to borrow at a more competitive rate. This may also allow you to release money from your property to complete home improvements such as an extension or a loft conversion.

What about Early Repayment Charges?

It is essential to check your mortgage documents for the Early Repayment Charge (ERC). Our mortgage advisers can help you with this. This will help you find out if it will cost you to move to another lender before your mortgage deal finishes. We normally recommend that you start looking six months before your existing deal finishes.

From a regulatory point of view, lenders must treat customers fairly. This means they will have to contact you at least a month before your deal matures, to let you know about any changes and options available.

The lowest rate does not always mean the best deal.

The best mortgage for you doesn’t necessarily come from the one with the lowest rate. You should always look at the total cost of the borrowing over the term of the deal.

You need to be aware of any other fees as part of the remortgage. Such as legal fees or survey fees.

Fees free deals offered by some lenders are attractive and popular. Unfortunately, the service offered by some of the legal firms they appoint can be poor. If you are looking to remortgage quickly and with less hassle, you may be better off taking the “cashback” option. This allows you to appoint your own local conveyancer or solicitor and use the “cashback” to cover their fees.

You can start your research by checking out the top remortgage deals on our website. The rates are updated daily.

It’s also important to be aware that some banks and building societies won’t lend less than £25,000. They will also want the mortgage repaid by a set age.

How Anstee & Co can help you with remortgaging.

We are a firm of independent mortgage advisers. This means that the advice we offer is unbiased. We look at all the financial solutions available to you from the “whole of market”. All our mortgage advisers are fully qualified with many years of experience. They work with our “mortgage support” team based in Kettering.

Meetings can be arranged at a time and location convenient to you. This may be a home visit, an early evening meeting or at a weekend. Why not arrange a meeting today to see if we help you save some money by remortgaging? Our Head Office is located at-

• Kettering, Northamptonshire

Our mortgage advisers live and make use of meeting rooms in-

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

We can also arrange a meeting online so there is no need to visit an office. The choice is yours.

If you have any thoughts or comments on this article, “Should you be remortgaging to a better deal?”, then we would love to hear your views.

Finally, the information contained in this article is for information purposes only and does not constitute financial advice. No action should be taken based on this information alone. 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.

By John Cossons, Mortgage & Protections Designer with Anstee & Co.

With the recent announcement that the Bank of England has increased the bank base rate for the first time since August 2018 is it time to consider a long-term fixed rate for your mortgage?

A mortgage is a long-term commitment, and with the ever-increasing price of property outstripping average incomes, most new mortgages that I write are over a term of 35 years.

Although the bank rate has only increased to 0.75% and has been below 1% for the last 13 years this does not mean that it will stay this way and we need to remember that historically rates have been much higher. The rate 14 years ago, in January 2008 was 5.5% with the highest bank rate in the last 35 years being 14.88% in October 1989. In the 15 months from June 1988 to October 1989, the rate increased by 7%! Some of us, of a certain vintage, remember the pain associated with this.

Whilst no one is expecting rates to rise to these levels in the foreseeable future a rise of just 1% could have a significant impact on your budget when your fixed rate ends.

What are the other implications of fixing your mortgage rate for five years or longer? 

The first thing to consider is that the rate is usually higher the longer it is fixed as the banks hedge against possible rate rises. This is all well and good if the rate does go up, but what if they don’t? you would be tied into a higher rate for longer.

What if you want to move, or repay a large lump sum during the fixed-rate period? There is always a penalty for repaying a fixed rate earlier than planned and the longer the fix the higher the penalty.

If you are moving you may be able to port the mortgage, move the rate and terms of the existing mortgage to a new property without any penalty, but this ties you to your current lender and there may be a better offer available from another lender.

Everyone’s situation is different and using a mortgage advisor to help you to arrive at the right decision can be invaluable in this situation.

If your current fixed rate is coming to an end, or if you are on a mortgage lenders standard variable rate now is the time to talk to one of our mortgage designers to make sure that you are getting the best mortgage deal for you.

How Anstee & Co can help you with a long-term fixed-rate mortgage.

We are a firm of Independent Mortgage Brokers. The financial advice we offer is unbiased. We look at all the options available to you from the “whole of the market”.

You can review the current best buys from our website which is updated daily. Remember the lowest rate is not always the most suitable mortgage for you.

Why not arrange a meeting with one of our mortgage advisers? The initial fact-finding meeting is free and without obligation. Meetings can be arranged at a time and location that is convenient for you. This includes your home or place of work.

We have offices located at-

• Kettering, Northamptonshire
• London, Greater London
• Stamford, Lincolnshire
• Wellingborough, Northamptonshire
• Market Harborough, Leicestershire
• Towcester, Northamptonshire

Our advisers also live and make use of meeting rooms in –

• Raunds, Northamptonshire
• Bedford, Bedfordshire
• Northampton, Northamptonshire

We make full use of video conferencing facilities such as-

• Zoom
• Microsoft Teams
• Skype
• Facetime

Additionally, we can also arrange a conference telephone call. There is no need to visit an office as all work can be handled remotely.

So, if you have any thoughts or comments on this article, “Time to consider a long-term fixed-rate for your mortgage?”, then we would love to hear your thoughts.

Source:

https://www.bankofengland.co.uk/boeapps/database/Bank-Rate.asp

Finally, 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. 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.

We will look at the cost of moving home, your deposit and solicitor fees. This guide will help you budget for these costs to ensure that you have saved enough to cover all of these upfront costs.

So let’s start with-

The deposit

The deposit is the amount you put towards the purchase price of the property. This may have come from savings, a family gift or if you are an existing property owner the equity built up in your home you are selling. Equity is the difference between the value of your house and any outstanding debts you have against it like a mortgage.

The amount of your deposit is key. The larger the deposit you can put down the more likely you are to be given a mortgage and the lower your interest rate is likely to be. This is always subject to a mortgage affordability assessment by the lender.

Usually, you need at least a 5% deposit. So if you are buying your first house for £150,000 that would be a £7,500 deposit.

Stamp duty

So what is Stamp duty? Stamp duty is a government tax paid on homes being purchased for £125,001 or more.

If you are a first-time buyer you will pay no Stamp Duty on the first £300,000 (2021) for properties worth up to £500,000. However, if you are buying a second property such as a second home or a buy-to-let there is a 3% increase on top of current stamp duty rates.

The easiest way to estimate this cost is to use an online calculator like this one from the Money Advice Service Stamp Duty calculator.

Valuation fee

The mortgage lender will want to have your property professionally and independently valued. The cost of undertaking this valuation will be passed onto you. This may be a direct cost that you will pay or you may not be charged directly, depending on the type of mortgage product you chose. This valuation will establish how much they are prepared to lend you.

The cost can vary between £150 and £1,500 based on the property’s value.

Remember that the lender’s valuation is not a full structural survey. You may what to pay for additional surveys yourself to identify any repairs or maintenance that might be needed. See Surveyors fees in the next section.

Surveyor’s fee

Before you buy a property we would recommend that you have it checked out by a surveyor.

This will help you understand if there are any problems with the property before you buy it. Paying for a survey could save you money on repairs in the long run.

The cost of a survey varies from a basic home condition survey costing around £250 to a full structural survey from £600 or more.

Legal costs

You will need to employ a solicitor or licensed conveyor to carry out the legal work when buying your property. On your behalf, they will undertake local searches, which will cost you between £250 and £400. This is to check whether there are any local plans or problems that will affect your purchase and the value of the property in the future.

You should request a written quote from your solicitor but expect to pay £850 to £1,500.

Electronic transfer fee

This is a same-day transfer of the mortgage money from the lender to the solicitor.

Typically this cost is £35.00.

Estate agent’s fee

The estate agent’s fees are paid for by the seller, not you the buyer.

Removal costs

You could save some money by doing this yourself and rent a van. Alternatively, a removal company will charge £400 to £900. This will increase if you are moving out of the local area or have a lot of valuable items.

How Anstee & Co can help you buy your first house.

To help first-time buyers we have produced a series of videos that can be viewed on our YouTube channel.

Why not check out the current best buy mortgage rates available to you from our website. The rates are updated daily. Remember that the lowest rate is not always the most suitable.

We are a firm of Independent Mortgage Advisers. This means that we look at all the mortgages available to you. The advice we off is unbiased.

The initial meeting is at our expense and without obligation. Meetings can be arranged in the early evening or at weekends. We can meet at a location that is convenient for you or you can visit one of our offices located at-

• Kettering, Northamptonshire
• Towcester, Northamptonshire
• Stamford, Lincolnshire
• London, Greater London

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

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

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

• Zoom
• Microsoft Teams
• Skype
• Facetime

Additionally, we can arrange a telephone conference 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, “How much will it cost to buy your first house?”, 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).

What is a Help to Buy ISA?

A Help to Buy ISA is designed to help first-time buyers save up a deposit for their home. The government will add 25% to your savings. This is up to a maximum of £3,000 on savings of £12,000. Remember that this is per person. So, if you’re buying a property with your partner, for example, you will be able to get up to £6,000 (2 x £3,000) towards your deposit.

To qualify for a Help to Buy ISA.

The rules are straightforward-

• You need to be a first-time buyer.
• You must be aged 16 or over.
• You can use it to buy any home worth under £250,000. This increases to under £450,000 in London.
• You can use a Help to Buy ISA with any mortgage. You are not restricted to a Help to Buy mortgage.

You cannot use a Help to Buy ISA for the following-

• If you are planning to rent out the property.
• The purchase of an overseas property.
• You can’t have more than one Help to Buy ISA.
• You cannot open a Help to Buy ISA and a normal Cash ISA in the same tax year.

How Anstee & Co can help you purchase your first home.

Read more about mortgages for first-time buyers on our website. This will help you understand the buying process.

Check out our websites “Best Buy Tables”. These are automatically updated daily from the leading mortgage providers.  Remember that the lowest rate is not always the best mortgage for you.

Why not arrange a meeting with one of our mortgage advisers. The initial fact-finding meeting is free and without obligation. Meetings can be arranged at a time that is convenient for you. This may be at the weekend or early evening.

We have offices located in-

• Towcester
• Kettering
• Birmingham
• Stamford
• London

Our mortgage advisers also live and make use of meeting rooms in, Droitwich, Wellingborough, Northampton and Bedford.

Why not call us today and see how we can help you?

What is changing for these mortgage prisoners?

Fifty-nine of the top lender which covers over 90% of the market are writing to their customers who have previously been told that they cannot switch to a better deal. They are doing this by the end of the year (2018). To qualify for the scheme you must meet the following criteria-

• Be up to date with your repayments.
• Have a mortgage of more than £10,000.
• Have a term of more than two years.
• Be the owner-occupier paying the mortgage on your main residence.

Who will it not help?

The scheme will not help people with mortgages with lenders who are no longer regulated. This includes Bradford & Bingley and Northern Rock customers. This is estimated to be around 120,000 people.

How can Anstee & Co help you with your mortgage?

We would recommend that if this affects you don’t wait for your letter but contact your lender now. Remember, you may also find a better rate with a different lender. Check out the current remortgage best deals on our website which is updated daily. Sometimes the lowest interest rate is not always the best deal for you but is a good place to start. Our mortgage advisers will explain.

We are independent mortgage brokers. This means that we will act on your behalf to find the best rate for you. Our financial advice is unbiased so why not arrange a meeting. We have offices located in-

• Stamford, Lincolnshire
• Birmingham, West Midlands
• Kettering, Northamptonshire
• London, Greater London

Our independent mortgage advisers also live and make use of meeting rooms in-

• Wellingborough,
• Towcester
• Northampton
• Corby

Meetings can also be arranged at your home or place of work. The first meeting is free and without obligation. Why not arrange one today?