The Rise of the Grandlord
Back in April, as part of the annual budget, the Chancellor revealed plans to reform the current pension system and allow the older generation to take all their pension cash at retirement. With these changes due to come into effect next April, many experts predicted pensioners would abandon traditional annuities and use the money to put a hefty deposit down on rental properties. However, it seems the rise of the Grandlord has materialised sooner than expected.
In response to a number of lenders removing their upper age limits for borrowers, there has been a surge in buyers in their fifties and sixties taking out buy-to-let mortgages. Seen as an ideal opportunity to boost income in retirement, banks are currently handing out more than £2 billion a month in buy-to-let deals – a rise of 60 per cent more than last year. With the average return on a buy-to-let property standing at 5.1 per cent it is expected that the Grandlord market will only continue to grow.
Read more in our latest Blog – Property for pensions: ‘From 2015 the world is your oyster. Just please think twice before you buy that Ferrari’ Click here to read more….
BUILDINGS & CONTENTS INSURANCE
Price comparison sites failing customers
Recent Financial Conduct Authority findings suggest that, instead of helping customers, comparison websites may in fact be confusing them.
In a recent BBC news article the Financial Conduct Authority has found that many comparison websites are failing regulatory standards, meaning customers are potentially buying insurance without fully understanding all of its features, including excess levels or levels of cover.
All is not how it seems
Life it seems revolves around money. When we walk around town or browse our local shopping centre we are engulfed by enticing offers aimed at the money in our pocket. Whilst no one can deny it is a great feeling when you pick up a bargain, what do we lose sight of whilst searching for one?
The internet has undoubtedly transformed the way we approach shopping, making browsing for those bargains more convenient but it can also produce a false sense of security. Nowhere is this more apparent than aggregator sites. Seemingly giving you the opportunity to compare the best deals, it is what you aren’t able to compare that should be considered.
Buying cheap unfortunately does not always mean buying wisely. Cheap can come at a price, a price that normally needs paying at the least convenient of times. It is not uncommon for policies sold through these sites to strip out key areas of cover and include higher excesses payments.
Think before renewing your home insurance products. It shouldn’t be a case of one size fits all; it should be a case of protecting your needs.
Our Buildings and Contents specialist will ensure you have the right policy to meet your needs, contact Catherine Hope on 01173 736200. email@example.com
MEET THE TEAM
Catherine Hope recently passed her CEMAP 1 and has taken on the role of Buildings and Contents consultant. If you haven’t had a review of your Buildings and contents then do get in touch.
We have a new addition to the team. Gemma White joined Fox Davidson in July and will be providing administration support to Shaun Bond on the protection side of the business. Gemma will be shadowing Shaun and taking her protection exams with a view to providing clients with protection advice in the not too distant future.
You can view the meet the team page here.
Do you own a business or have a Ltd company? If the answer is yes, you should read the following:
Although we arrange and advise on a whole host of protection products there is one area that we cannot shout loud enough about and that is business protection and in particular Relevant Life Policies.
WHAT IS A RELEVANT LIFE POLICY?
Put simply it is a Life Assurance contract taken out on the life of the Director of a Ltd company but held in the name of the Ltd company.
The premiums are made by the Ltd Company and are offsettable as a business expense for tax purposes. The saving is twofold, firstly the premium is offsettable for tax purposes and secondly by implementing the cover this way the individual is not paying the premiums from their own income which would have already been taxed by HMRC.
The cover is not just limited to the company director either, the relevant life policy can be set up to provide cover for the employees of a company too.
Quite simply if you own a Ltd company and have life cover in your own name or wish to provide a death in service benefit for your employees then please do get in touch with our protection team Bond and have a chat about the advantages of a Relevant Life policy. Contact Shaun Bond on 01173 736200 or email firstname.lastname@example.org