Bigger ISAs for over 50s

Over 50s now have bigger ISA allowances.

It's £10 200 in total, with a maximum of £5 100 in a Cash ISA. You can also invest in an Investment ISA..£5100 if you have used your Cash ISA allowance or the full £10 200 if you have not.

The returns from a cash ISA are not that great at the moment, so it may bve worth looking at the Investment ISA option depending on your attitude to risk & investment period.

The limits for under 50s will be increased to the same for over 50s on 6th April 2010.

As always, seek proper independent advice.

Posted by Sean Wilson, APFS, Independent Financial Advisers (IFA), Swindon, Wiltshire.

Will I get a mortgage?

The answer is maybe...

It depends on how a lender sees you as a financial risk. It's much more difficult than the pre-credit crunch days of 2 years ago.

The outcome will depend on

1 Your salary
2 Your outgoings
3 Existing credit commitments
4 Past credit history
5 Size of deposit you can put up

#4 is particularly important. People always look surprised when I reveal to them a lender will be reluctant to give them them £150 000 because they struggled in the past to pay a relatively small credit card or mobile phone bill!

Big salary, low level of outgoings, decent sized deposit.....no problem
Low salary, big outgoings, big debts, no deposit...no comment.

It's worth remembering, the credit crunch began when US banks lent to people who could not afford to make repayments....

Posted by Sean Wilson, APFS, Independent Financial Advisers (IFA), Swindon, Wiltshire.

Vulture & Zombie Pensions

Vulture companies & Zombie pension funds have been in the news again recently..what are they?

A vulture company takes over old pensions and makes a very healthy income from doing nothing much with them. The client still pays a management fee and the company provides an understaffed call centre.

A zombie fund is one that is barely alive...nobody has shown an interest in it for some time and nobody seems to care if the clients money is doing anyhting.

What pension companies are often mentioned in this context?

Pearl, Resolution & Windsor Life. Resolution have just bought Friends Provident.

What should I do if I have a zombie fund?

Speak to your local friendly IFA :)

Posted by Sean Wilson, APFS, Independent Financial Advisers (IFA), Swindon, Wiltshire.

Northern Rock...the mess continues

Nationalised bank Northern Rock announced losses of half year losses of £725 000 000. 22 000 of its mortgage customers are in arrears and 40% of their customers suffer form negative equity.

This is the consequence of Northern Rock's expnasion programme which involved lending to high risk groups of borrowers with 100%+ mortgages.

Not surprsingly Alistair Darling said he was in "no hurry" to try & find a buyer for the ailing bank.

Posted by Sean Wilson, APFS, Independent Financial Advisers (IFA), Swindon, Wiltshire.

Dead Cat Bounce

What is dead cat bounce? A term much used in financial circles these days.

It means that after a large fall in a share price or stock market it can be expected to recover.

It comes from the idea that "even a dead cat will bounce if it falls from a great height".


Posted by Sean Wilson, APFS, Independent Financial Advisers (IFA), Swindon, Wiltshire.

Disappearing Banks

In the aftermath of banking collapses & mergers, there will quite a few bank closures on high streets of Swindon & beyond.

Cheltenham & Gloucester will disappear as a high street presence with the closure of 164 branches with the loss of 833 jobs.

The new Lloyds Banking group now owns the former Halifax Bank of Scotland branches too.

Santander, the Spanish bank now owns Abbey, Alliance & Leicester and Bradford & Bingley. It is likely that the branches in each town will be merged into one.

In Swindon, we have already seen the closure of Portman and Woolwich branches due to mergers in recent years.

Posted by Sean Wilson, APFS, Independent Financial Advisers (IFA), Swindon, Wiltshire.

"An End to Boom & Bust"....

It was Gordon Brown's famous pronouncement in 1997 & over 100 times since. It worked until 2002, the economy was doing well and he kept spending under control as chancellor. 25% of the tax the Treasury received in Corporation Tax (the tax companies pay on profits) was from the City of London

After that things started to unravel, public spending increased dramatically partly because of the cost of wars in Iraq & Afghanistan.

In 2007, the economy started to falter and the model started to falter....


Posted by Sean Wilson, APFS, Independent Financial Advisers (IFA), Swindon, Wiltshire.