Independent Financial Advisers

The most popular way to release equity from a property is a 'Lifetime Mortgage', where you borrow money against the value of your home. You do not pay any interest as it rolls up until the property is sold - normally if you go into care, or on your death. If you did pay interest, your monthly outgoings would increase.

It is estimated that 10,000 people who have taken out these mortgages could re-mortgage now and reduce the amount owing when the property is sold. This is because interest rates have fallen: 7-9 years ago, the interest rate was typically 7.5%-8.25% p.a., and now it is about 6%-6.5%.

Just a few months ago, inflation was the spectre that stalked us all. By September, inflation had soared to 5.2%, fuelled by high prices for food and energy. However, following sharp falls in commodity prices and declining demand for goods and services, inflation no longer appears to be a problem and deflation is the new threat.

Deflation is defined as a persistent and sustained decline in prices. A sustained deflationary spiral can help to exacerbate recession as, although some people might welcome an environment of falling prices – particularly after a period of high inflation – a sustained period of deflation could have very negative consequences for the struggling UK economy.

If you are approaching retirement (and indeed if you have already retired), there are several legal and financial issues that should be considered. Some of them apply at almost any time, but most people don’t think about them until they are at retirement age.

For example, making a Will is important for anyone who has assets that they want to go to a particular person or organisation when they die. It is especially relevant in later life if you have married, or divorced and re-married, and if you have enough assets to be concerned about Inheritance Tax on your estate.

Since the banking crisis began, we have had many conversations with clients advising which banks were part of which group and which counted as one institution and which for two in order to establish the level of protection eligible under the Financial Services Compensation Scheme.

Remember cash deposits are protected up to £50,000 per institution and Building Societies have not been listed in full as they are owned by its members.

To help keep you in the picture, we thought that you may appreciate a summary:

Is your pension at risk? Modern day employment trends mean most of you who have not yet retired and drawn their pension, will have moved jobs on at least one occasion. (The impact of the current economic climate is likely to have this effect on many more). On life’s journey, you may well have had the benefit of being a member of a Final Salary pension scheme, (this being a scheme where your ultimate benefits are determined by your pension-able salary and length of service).

If this applies to you and you no longer work for the employer who provided the scheme, the rules applying to the benefits you have accrued are not the same as those applying to active members, (I.E. those still working for the employer).

I am pleased to announce that I am teaming up with well-known local solicitors, D’Angibau LLP, to give a free seminar to people who are in or approaching retirement.

The purpose will be to explain a number of issues, and there will be no selling of any financial or other products.

Interest Rates have been cut by a further 0.50% today so now stand at 1.50% - the lowest it's ever been in the UK in attempt to curb the current downturn.

This is great news for you all with tracker mortgages (without collars) but perhaps not so great for those who are relying on their savings for capital growth or to supplement your income.

The last few months have been full of doom and gloom, with very few words of financial comfort. Instead, we have seen global economies weakening, banks going bust, and companies having severe trading difficulties. So where do we go from here?

You may believe that this is the end of capitalism, and the input of billions of Pounds, Euros, Dollars, Renminbi etc. from Governments all over the world will not have any effect.

If so, you probably have all your money in bank accounts, with no more than £50,000 in any one account. That way, you won't lose any money, but you may be disappointed with the return in a few years' time.

The shockwaves from the collapse of the US sub-prime mortgage market continue to reverberate around the world and have now claimed a further two high-profile victims. In a single September weekend, Merrill Lynch was unexpectedly taken over by Bank of America, while beleaguered Lehman Brothers shocked the financial community by filing for Chapter 11 bankruptcy protection after talks with potential buyers broke down. Interested parties had included Barclays and Bank of America, but both walked away when the US Treasury refused to underwrite the deal.

When you realise that you can’t look after yourself, the situation is very sad and stressful. You are ill or frail, your family is very worried, and there are lots of complicated new things to deal with.

The Local Authority will be assessing your health, your care needs and your finances. You may have to give someone else the power to act on your behalf and deal with your money. You may be adjusting to the idea of living in a residential care home, and your house may be on the market.

Your first priority will be to pay for care for as long as it’s needed. After that, leaving as much as possible to your family (or other beneficiaries) will be a major concern.

Specialist advice on getting all the State benefits you’re entitled to, minimising tax and helping your money to last as long as possible, can take a load off your mind.

• You could sell the property, and move to rented accommodation, so that you can spend the money from the property sale.
• You could move to a cheaper property, and spend the difference.
• You can stay where you are, and release equity from your property.