The main reason most people use a mortgage broker is that they take out most of the leg work of looking for a mortgage. They will search the market and compare the different deals that are available to you. A mortgage broker will not only look at interest rates, but also other charges such as valuation fees, which could affect the overall cost of your mortgage. When a mortgage broker makes a product recommendation to a client, they give financial advice, meaning that mortgage brokers must have qualifications in order to operate. They also have a duty of care to their clients, to give the best and suitable advice available.   Some more experienced mortgage advisers could also have contacts at different banks and building societies, this may help to ensure your mortgage application is processed efficiently. They will also have access to ‘broker only’ deals. Mortgage brokers a...

 If you’re a low-earner and your spouse (through Marriage or Civil partnership) is a basic rate tax payer, you can apply to transfer your unused personal tax allowance to them. The higher earning person will receive a tax credit equivalent to the amount of personal allowance that has been transferred to them. The amount is deducted from the amount of tax they would usually have to pay. The full amount that can be transferred is £1,185 and if you decide to transfer any allowance, you must use the full amount. The low earning partner’s pay before tax must be less than the personal allowance – which in 2018/2019 is £11,850. The threshold for basic rate taxpayers in 2018-19 for most of the UK is £11,850-£46,350, so the higher earning partner’s salary must fall between these boundaries. In Scotland, the thresholds for basic tax rates are different, so the higher ear...

Approachable Finance have recently acquired and moved into a new office – we are now situated on the main street of Cross Hills making it easier than ever to see our clients current and new. Our new address is: 24 Main Street, Cross Hills BD20 8TF If you are familiar with the Cross Hills area, then you probably have heard of the very succussful florist, Anne Russell, after 20 years of running the shop she decided it was time to retire and spend more time with family. We bought the shop from her and set about renovating the space into a modern and spacious office.  The former florist looks different now as we have opened the space by knocking down the central supporting wall and blocking up the door behind. The first picture below was taken before Christmas and the building needed time to ‘settle’ as the wall had probably been there for over 100 years!    ...

As an IFA I have often discussed with my clients the possible financial returns and also the responsibilities of considering investing in the ‘Buy to Let’ property market as opposed to Unit linked investments such as ISA’s or a Pension. Recently, the Chancellor has decided to financially hit ‘Buy to Let’ investors quite hard which may tip the balance against this option, encouraging many to invest in other areas. Thus, from April anyone buying a property for investment will be required to pay a ‘special ‘ stamp duty of 3% with a starting rate of zero and this will be in addition to the residential tax duty rates which apply for properties above £125,000. Also, from April 2017 Mortgage Interest Relief is also being overhauled. The changes are being phased in, but by 2020 all mortgage interest on ‘Buy to Let’ mortgages will no lon...

Maximising state pension benefits. A key part of financial planning often overlooked is making sure that you receive the maximum state pension in retirement. To get a state pension forecast simply use the tool on the website https://www.gov.uk/check-state-pension. If there is a shortfall, there are 2 options: –          If there are likely to be tax years in the future where the client will not achieve a qualifying year because of insufficient earnings or Credits, then in those years, it is possible to pay Voluntary or Class 3 NICs. –          If there are historic gaps in a client’s NI record, it may be possible to pay Voluntary or Class 3 NICs as a one-off lump sum to make up any shortfall. A key question however is are Class 3 NICs Good “Value for Money”? The ...

Pension Freedoms. There is an old adage that “Just because you can, doesn’t mean you should” however, according to the Association of British Insurers,  over £3 billion has been paid out in lump- sum cash payments from British pensions. If you choose to access your pension- pot ‘as a lump sum’ then 25% of it is paid tax free which means the remaining 75% you will be paying tax at your standard marginal income tax rate. It is important to remember that, if you are still earning, then any extra pension monies you take out will be included in your total tax liabilities before working out your tax levels. In most cases to lose 20% of your pension fund or, in some cases 40%, in order to have the ‘cash in the bank’ is ill- advised, especially when pensions themselves are efficient tax- saving wrappers. This argument is enforced by the l...

Often when people get married the thought of saving for a home is not far behind. As both an Independent Mortgage Broker and a Financial Advisor I am often asked about the best way to save for a new home and deposit. The government has just announced the launch of the ‘Help to Buy ISA’. This means that the government will boost your savings by 25% so for every £200 you save you will receive a government bonus of £50. The maximum amount of bonus you can receive is £3000. The ISA’s are available to each first time buyer so if you are planning to buy with your partner you could receive a government bonus of up to £6000 towards your first home! To kick start your savings you can save up to £1200 in your first month and then up to £200 per month after that. Something to note that as well as being subject to the usual ISA rules the bonus is applied by your solicitor upon purchasing...

On  Sunday 25th September we featured in the Mail on Sunday listed as “Britains Top Rated Professionals”. This was in association with us being on www.vouchedfor.com a website that allows our clients to review us when we have done some work for them. If you’re looking for expert advice, look no further. VouchedFor.co.uk’s Top Rated award has been created to help you to identify the professionals on VouchedFor who have received the highest volume of positive client reviews in the past 18 months such as ourselves Other Top Rated advisers (including Accountants and Solicitors) included in The Mail on Sunday’s listing are all on VouchedFor’s Professional or Professional Lite plan so can be contacted free of charge through VouchedFor. Many also offer a free initial one hour appointment. Other criteria for inclusion include a boat load of positive ...

Summer Budget 2015 Today the Chancellor presented his second budget of 2015.  There were some well publicised ‘big’ picture stories but also he managed to squeeze in some big changes to the taxes that will affect most businesses: Announcing the point at which people pay tax (National Insurance has lower thresholds) from 6 April 2016 to £11,000 Cutting Corporation Tax – but you will have to wait until 2017 for that! An overhaul of the tax credits system together with changes to the Minimum wage and the Employer’s Allowance A reform of dividends including a £5,000 dividend allowance – this will feature in a future newsletter A consultation on the sustainability (withdrawal?) of tax relief on pension contributions Confirming the planned Annual Investment Allowance reduction to £25,000 in December will not go ahead and be replaced with a ...

I read an article the other day that said that 77% of British adults have no idea of the new ISA rules that came into effect in July 2014. The changes were supposed to make ISAs more attractive to investors and simpler however there is a general feeling that the changes have not been explained well enough. Perhaps the radical changes in pensions and the Lamborghini effect has played its part in distracting us! Here is a summary of what has changed: New ISA annual allowance- the ISA allowance (the amount you can invest each tax year) has risen to £15,240. Improved flexibility- historically there were restrictions on how you could split your allowance between Cash ISAs and Stocks & Shares ISAs. Now you can split your allowance as you choose. New death benefits- investments are normally subject to Inheritance Tax (IHT) of 40%, if the total value of your estate excee...