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...

It’s not worth having a workplace pensionNot true! Most people receive more back than they contributed. They also receive contributions from their employers and in most cases tax relief.My property is my pensionNot everyone wants to sell their home when they retire to live somewhere smaller. Bills still need to be paid.I’m too old to start a pensionIf it’s a workplace pension, you’ll miss out on “free money” in the form of a contribution from your employer. Secondly, saving into a pension is probably the most tax efficient way to saveI’m too young to start a pensionStarting early makes a huge difference thanks to the magic of compound interest.I can’t afford itWith auto enrolment, if you opt out you’ll be re-enrolled again every three years when hopefully your financial situation will have improved.My pension will be lost if I die before retire...

 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...

Having worked with practice managers for nearly 9 years in reducing insurance costs I have to admit that I am not envious of the challenges they face running or managing a modern medical practice. I am fortunate to have a good relationship with many who explain to me the different challenges they face, often to meet their budgets in an organisation where the ‘goal-posts’ are forever changing. One wonders whether this profession is becoming specialist in its own right and I wonder how long it will be before a University recognises this and creates a degree around the vocation? However the downside of paddling furiously in any organisation is often things that ‘roll over’ for another year are often the ‘small fish’ to slip through the net and this is where as a financial professional I am concerned. More often or not a review of Surgery and Locum In...

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...

Please see below some useful information on the COVID-19 and financial planning.Furloughed Employees Owner Managers/Director Clients and the Job Retention Scheme FCA Guidance on Pensions Advice: Covid-19 Gifting wealth Funding ISAsPlease find below a summary of the latest thinking on pension contributions and revised patterns of income. Many of your clients and/or their family members/friends will be impacted by the recent government announcements and their pension provision is an important part of their employment package. Below is a brief summary of the key pension points and some additional clarification on individuals that have been furloughed. Furloughed Employees   For employers that are furloughing their employeesThey can claim up to £2,500 per month in salary for each furloughed employee. There is a ceiling of 80% of the employees’ salary as at February 2020. Th...

Mortgages If you are struggling to pay your mortgage as a result of your finances being impacted by coronavirus, you can apply for a three-month payment holiday. Interest accrued during the period will be added to the outstanding balance of your loan and can be repaid over the rest of the mortgage term. To apply for the payment holiday, you need to contact your lender, either by telephone or online. You do not need to prove that you are in financial difficulties. If you bought your property through the help to buy scheme, you can also apply for a three-month payment holiday on interest on the equity loan.Renters If you are renting and you’re worried you cannot pay your rent, there is help for you too. Legislation  has been put in place to stop you from being evicted for at least three months. To take advantage of the scheme, contact your landlord as soon as possible and...

As a medical professional, you are very aware of the plethora of the related expenses and intricacies of enlisting the services of a Locum Doctor to cover key absences in your Practice. Whether such absences involve GPs or Practice Managers, they can often be unexpected and unplanned for due to accidents, bereavements, or illnesses. Otherwise, anticipated absences such as adoptions, Jury Service and maternity and paternity leave allow you the time and resources to secure suitable absence cover, yet still entail hefty price tags.   Locum Insurance cover will typically include:Deferred period on accident claims reimbursed Jury Service Cover GP Suspension Cover Family Illness cover Maternity leave single benefit Adoption and paternity leave covered Worldwide Accident and SicknessWhatever your particular extenuating circumstances are, the show simply must go on in the medical ...

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 ...

Working in financial services you are aware that sometimes that we haven’t had the best of press with certain financial products! Endowments, with profits, PPI etc. It is therefore a real pleasure to be advising on a product, locum insurance, where it meets the needs of your clients and the market place. It is also a real sense of achievement to help medical practices save money on unecessary insurance costs; money that can be reinvested into patient care and essential staffing needs. Having advised on locum insurance for nearly 8 years I have seen massive changes within this niche industry. Changes I am glad to say have been for the better. 6 year ago I was working for a company who effectively held the monopoly for this type of cover across the UK. In my opinion the policy was insufficient in the level of cover it gave and its premiums were inflated and unfair. Fortuna...