The Mortgage Advisor will preferably be part of a team of dedicated Mortgage Advisors that will search the whole market to find the best possible deals for you. A good, independent mortgage advisor will offer a wide range of help and advice.

For most people, a mortgage is the key to buying your own home. And it’s also probably the biggest financial commitment you’ll ever make. A good mortgage advisor is impartial and able to help you make an informed decision. When you take out a mortgage, you should consider items such as; what are the benefits of a mortgage, what commitment do you need to make and you should be given advice on other things to think about before you commit.

The main benefit of a mortgage is that it helps you to own your own home!  Also, unlike renting, owning your home can be a significant investment as house values have historically increased.

If the value of your home does increase you get ‘equity’ that can be used to climb the property ladder, to make home improvements or to contribute towards your pension. You will be advised that your biggest commitment is to make the agreed mortgage repayments. A good mortgage advisor will work with you to ensure you can afford them. You will need to give out personal details such as your monthly outgoings. You will also have your credit history checked with a credit reference agency.

As with any other loan, you pay interest on your mortgage. The amount you repay depends on your deal and how long you take to pay back your mortgage.

The longer you take the more interest you pay over the life of the loan. You will be provided with a Key Facts Illustration with a breakdown of your deal including any fees. Premier Plus may charge a fee of £250 for arranging your mortgage, payable on application, plus a commission from the lender in the region of 0.3% of the advance. Alternatively you can opt to pay a fee of 1.5% of the advance on completion of the mortgage. If you choose a deal with Early Repayment Charges you will pay a fee if you switch to another deal during a fixed period.

You can repay the mortgage one of two ways. As a repayment or interest-only mortgage. With a repayment mortgage you pay off part of your mortgage and part of your interest each month. Initially you pay off more interest than the mortgage. With interest only mortgages, you only pay the interest on your mortgage not the mortgage itself. Although your monthly payments are lower, you must have enough money to repay the full amount borrowed at the end of the term; for example, with an investment or savings plan.

You must consider how you will cope if your repayments were to increase, for example, if there were any change to the interest rate. Also, what will you do if your circumstances change, for example, if you lose your job? You can discuss ways to protect you and your mortgage.

A good mortgage advisor will work for you, not for a multinational conglomerate. They should be happy to see you when it is best for you, they should be able to call and see you at home, work, or at their offices. They should also be happy to visit you in the evening if you prefer. After all, you are the client and we aim to please! Our qualified Mortgage Advisers can help you through the entire process.

Always remember, your home may be repossessed if you do not keep up repayments on your mortgage.

This week sees inflation jump from 1.9% to 2.9% meaning that a standard rate tax payer now has to earn at least 3.63% to break even, while a higher rate tax payer has to earn at least 4.81%. A level that for the first time ever, no variable rate account on the market can beat and one only a few fixed rate deals can achieve.

The only positive news for savers this week is that the 2010 ISA season has really started to gather pace with a number of provider launching new deals. In contrast to other types of savings account where rates are now falling, ISAs rates are slowly increasing as providers look to attract savers’ tax free allowance.

For the first time since their launch in 1999, the best buy ISA rate is below that offered on standard savings accounts.

The majority of the new ISA deals being launched are fixed rate deals requiring between a one and three year commitment. This is a trend that is likely to continue in the weeks ahead as providers look to tie savers money in by attracting them with more competitive rates than those available on easy access ISAs.

Also of course Equity based ISA’s are available for those willing to invest for the longer term, the markets have improved somewhat since the turbulence of the last couple of years.

At Premier Plus we have 10 portfolios of funds designed to match your risk profile which we monitor on a quarterly basis, these range from Defensive to Adventurous. If you are fed up with the poor returns on cash and feel you can invest for 5 years or more please call us and we can arrange an appointment to discuss your needs.

We offer ISA advice to anyone but we work mainly in these areas.  Cambridge, Ely, St neots, Peterborough, Huntingdon
, Bedford, Stamford, St ives, Thrapston, Kettering, Corby, Newmarket, March, Chatteris

The pension planning age change - Ignore it and you could lose out!

What’s changing?
From 6 April 2010 the minimum age that pension benefits can be taken rises from 50 to 55.

For many of people this change could well have a significant impact on their retirement plans as they may not be able to access their pension benefits when they want. And many  people don’t even realise this fact. Plus, there is no transitional period, so this seemingly small change could have severe consequences for your retirement plans.

What does this mean for you?

For clients between the ages of 49 and 54 this could have a huge impact. If you don’t act before this date access  to your pension benefits will be restricted. 49-54 year olds need to act now.

Those younger than 49 years old need to consider reviewing their personal circumstances as they could still be affected.

Do you know you can switch your pensions much like you can switch your car insurance?

Now you’ve got your pension in place, you stick with the same one until you want to retire. Right?

Perhaps. But have you ever thought about switching your pension plans?

Sticking with the same pension product or pension plans until you retire might not necessarily be the best option for everyone. If you have an outdated pension plan, you may benefit from moving to a modern flexible pension, with lower charges, more choice in how you invest your savings and which can be monitored online.

More and more people are happy to look around for the best deals and switch their credit cards and mortgages to save money, but when it comes to switching their pension to get the best deal, very few people have done so. Are you one of those people?

Okay, you may think it’s a bit of a hassle changing financial products, and sometimes it seems easier to leave things as they are. But you could be missing out if you choose to stay in your existing pension plan.

Also, if you have a number of different pensions, perhaps relating to employment with different companies, it can often be beneficial to consolidate these in a single pension plan. This makes it easier for you to put a value on your total pension savings and may allow you to benefit from lower charges and an overall investment strategy tailored to your individual needs.

Of course the decision to switch pensions requires careful consideration and it may not be in your best interest to switch, therefore it is important that you receive financial advice from a professional adviser before deciding to move your pension.

Why switch pensions?

The decision to switch your pension plan can be a complex and time-consuming exercise.

As with credit cards and mortgages, there are many products to choose from, all offering competitive rates, increased flexibility and more options. So it’s no wonder switching can seem a bit confusing. In reviewing your existing arrangements, you may discover that there are better returns available from switching to a newer, more modern pension plan. For example, you may have a personal pension that you took out some time ago, in which case it may be worth comparing what features a newer, more modern style plan could offer.

If your plan has one or more of the features in the ‘old plan’, it may be in your interests to have your plan reviewed, and look into the option of switching.

It should be noted that transfers depend on personal circumstances and may not always be in your best interests.

There may be valuable guaranteed benefits attached to your current plan which you would lose if you transferred. Your financial adviser will be able to provide further information about whether this applies to you.

Points to consider when switching…

Although switching pensions might give some people more money at retirement it’s not necessarily the best option for everyone. Reduced charges may play a major role in the decision to switch your benefits, but other aspects of the plan could be of more value to you.

Flexible options relating to your circumstances or access to a wider choice of investments may be of more importance. For example, you might be prepared to pay higher charges to benefit from potentially better investment performance. But remember, investment returns may fluctuate and are not guaranteed. The price of units can go down as well as up.

Weighing up the potential costs and benefits of switching can be crucial in determining how big your pension pot will be at retirement. The checklist below should provide some useful points to consider when deciding to switch or not.

If you answer ‘yes’ to any of the questions below then switching your pension may be a suitable option for you.

Although the checklist highlights some of the key points, there are other questions that need to be considered. For example, should you switch your existing funds or just new payments? And will you lose any valuable guarantees if you switch?

You must also consider the increased complexity involved in transferring out of an occupational pension scheme. With this kind of transfer there is a lot more to consider, and so it is important that you seek professional financial advice to be sure it’s right for you. Production of a transfer value analysis is a necessary requirement of the transfer process.

• Does your current pension plan have high ongoing charges?
• Does your current pension plan offer limited or no fund choice?
• Does your current pension plan have exit penalties or any other deductions on switching?
• Has the performance of your current pension plan been poor?
• Does your current pension plan offer self investment options?
• Does your current pension planning have additional features, such as payment protection?
• Can you view information about your current pension plan online?
• Can you access your pension benefits early, without penalty?

What do I do now?

So you’re now aware of the main issues and opportunities surrounding switching your pension, but you’re still not sure if switching is right for you.

So what’s the next step?

Contact a financial adviser at Premier Plus who will be happy to discuss your finances with you and will help you to decide whether switching is right for you.

Advisers may charge for any advice given but will confirm the cost of this at outset.

It has been reported on Ifaonline.co uk that the Conservatives have announced their plans for Long term care in the future, the article states:-

A scheme to prevent older people being forced to sell their homes to pay for long-term care has been announced by the Conservatives.
 Under the proposed Home Protection Scheme, people could avoid residential care costs for life by paying a one-off fee of £8,000 when they hit 65. The policy was announced at today’s Conservative Party conference.

AdvertisementThe Association of British Insurers (ABI) has said it would support the plan, though ‘the details will need to be examined carefully’:

“The ABI has long advocated a partnership between the public and private sectors to deal with the crucial, and costly, issue of providing long-term care for the elderly.

“This proposal has many merits and we support its aims in principle - we’re pleased that the Conservatives are addressing this issue in a serious way. We look forward to working closely together on the scheme’s development.”

Andrew Moss, Aviva global chief executive, said he was ‘encouraged’ by the plans:

“Providing a better level of care requires a clear, fair and sustainable funding system to give people the reassurance that they will be well looked after beyond their retirement.

“We believe this can best be provided by insurers and the government working in partnership and we look forward to working through the details of the proposal”.

Ministers have criticised the voluntary scheme as ‘flawed and hasty’.

Labour’s own plans for a National Care Service focus on ensuring those with the ‘highest needs’ get the care they require while remaining in their own home.

If you have any issues with Long term care for yourself or your family contact us we may be able to assist.

You can subscribe to Moneywise by visiting www.moneywise.co.uk This article is reproduced for your information only and does not necessarily reflect the opinion of Premier Plus Ltd and should not be construed as advice.

Five ways to benefit from low inflation

“Inflation has a bigger impact on our finances than many people realise. For a start, the Bank of England’s Monetary Policy Committee (MPC) sets the base rate each month with a view to meet its 2% inflation target.

Secondly, it measures the price we pay for goods and services, from food and petrol to hotel rooms and gym membership. Significantly, it also impacts wage growth.

The Consumer Prices Index (CPI) - the official measure of inflation in the UK - is currently just 1.8%, having fallen from a peak of 5.2% in September last year.

Where it heads next is a hotly debated subject. Some economists believe the economic downturn, which has already prompted the sharp fall in inflation, will continue to push this down.

Vicky Redwood, UK economist at Capital Economics, says the fact that inflation didn’t fall during July is not a sign that the UK is about to see a rise in the cost of living.

She still believes that inflation is set to remain low for some time, and also warns there remains a “serious risk” that CPI could turn negative down the line.

“We still think that inflation will fall below 1% later this year and could drop to very low, or even negative, levels in 2010 and 2011,” says Redwood. “Overall, then, these figures do little to alter our view that deflation remains a serious risk.”

Others, however, argue that the measures such as quantitative easing (the creation of new money) will prompt a sharp increase in inflation either this year or the next. The fact that VAT will return to a rate of 17.5% from January, plus the recovering cost of crude oil, could also push up inflation.

Economists from Barclays Capital Research say July’s CPI figure reinforces the view that the recession might not be as disinflationary as predicted. They also warn that, as a result, the MPC might increase the base rate sooner than previously expected.

And David Page, economist at Investec Securities, is predicting a fall to below 1% over the next two months, before inflation rises back to 2%. In terms of the impact of this on the base rate, he says: “The MPC will try to look trough this temporary volatility. We envisage a subdued inflation background over the coming years. But we also expect the MPC to start tightening policy [i.e. increasing the base rate] from early next year.”

But what does this all mean for you - and what steps can you take now to make the most of low inflation?

1. Pay off your debts

Paying off your debts is good financial advice in most scenarios, but in a period of low inflation, it makes even more sense.

For a start, clearing your debts will leave you better off and will have a positive impact on your credit ratings. Secondly, you’re probably paying a higher interest rate on your credit card, personal loan or mortgage than you could earn in a savings account at the moment.

Increasing your monthly repayments can cut the overall amount you owe and reduce the amount of time it takes to clear this. For example, a borrower with a £1,000 balance on a credit card at 16.9% APR who pays the minimum repayment of 2% for 12 months, will rack up £151.74 in interest - and only bring the total debt down to £920.60 - according to research by moneysupermarket.com.

But the same customer could slash their overall balance by nearly £400 and pay nearly £30 less in interest by increasing their repayments to 5% (£50) per month. Paying 10% per month (£100) would enable the borrower to clear their debt in 12 months and only pay £79.16 in interest.

2. Start saving

Likewise, starting or increasing the amount you save is always a good idea. If possible, you should aim to have a savings pot equivalent to at least three months’ income just in case the worst happens and you lose your job or just need the cash for an emergency.

For savers, the current situation is a mixed blessing. Low inflation in this case also means low interest rates; the Bank of England base rate is currently just 0.5%, and as a result savings rates are well below the levels seen last year.

However, the gap between the base rate and best-buy savings accounts has widened. The average fixed-rate account paid 3.03% in July - that’s 2.53% above the base rate. In comparison, the average fixed-rate account paid 6.06% in July last year, which was just 1% above base. The previous July, both the base rate and the average fixed rate were 5.75%.

An instant access ISA is probably the best home for your ’savings buffer’ as providers will allow you access to your money and it will grow tax-free. You can save up to £7,200 in an ISA each tax year, of which £3,600 can be held in a cash account. From 6 October, the ISA allowance increases to £10,200 for the over 50s, of which £5,100 can be held in cash. This new ISA allowance will apply to younger savers from April next year.

Alternatively, an instant access savings account will do the job, if you’ve already used your ISA allowance.

Once you have built up an emergency pot, you can consider different methods of saving. A fixed-rate deal is ideal if you want to lock away a set amount of money for a pre-agreed period of time. If you haven’t used your ISA allowance, then you can opt for a fixed-rate tax-free account to lock away your cash in. However, withdrawals will not be permitted and you may not be able to make further deposits either.

A regular savings deal is also a good way to build up a savings pot.

3. Overpay your mortgage

The CPI is the official measure of inflation in the UK, but it doesn’t include housing and mortgage costs. This is actually measured by the Retail Prices Index (RPI), which currently stands at -1.4%. This reflects the impact of house price falls.

You can, however, beat the falling value of property by making overpayments on your mortgage - especially if you’re on your lender’s standard variable rate (SVR), have a tracker loan or have benefited from cheaper rates on new fixed-rate deals.

Other than the fact this will reduce your overall mortgage term and the total amount of interest you pay on the loan, overpayments makes sense in a weak housing market. The larger amount of equity you have in your property, the higher the potential that you will be offered a better value mortgage when you next come to remortgage.

Bear in mind, though, that unless you are on an SVR you might not be allowed to make overpayments. Check with your lender to find out how much you are allowed to overpay before you are hit with a penalty.

4. Cash in on falling prices

The falling rate of inflation reflects the fact that some costs are falling, or at least not rising by as much as they were last year. If you have a big purchase to make, then buying it now might just make sense.

European holidays, white goods and TVs, furniture and homeware have all fallen in cost in 2009, although items such as digital cameras, clothing and computer games have risen.

In addition, now could present a greater opportunity for haggling on price. Asking for a discount isn’t just a technique you reserve for when shopping abroad. Haggling over prices is becoming more common in the UK, as people increasingly get up the courage to be a little bit cheeky.

People tend to have their own style of haggling, but generally speaking being polite but firm is a good way to win a discount. Don’t try and push the price down too far - work out a price you’d be happy to pay and then suggest something a little lower. If the retailer doesn’t want to play ball then there is no obligation to buy and you can just walk away.

Remember, the worst thing that could happen is they say “no”. You have nothing to lose by asking.

5.  Renovate your home

Whether your plans to move up the property ladder have been thwarted by the credit crunch, or you simply have the money to make some improvements to your home, then 2009 could be the year to renovate. Not only can improving your property potentially increase its value, but it is also an alternative to moving.

And in a period of deflation, the cost of renovating could become cheaper. Builders and other contractors - including architects - could be more open to price negotiations.

Call round several firms in your area and get some quotes. With many businesses suffering during the recession, you may find they are desperate for your business - the fact that the cost of raw materials has also fallen in the past 12 months will also help your case.

As with shopping, don’t be afraid to ask for a cheaper price but, equally, try and be polite about it. Bullying your builder probably isn’t the best way to go about renovating your home.

Before you consider renovating your home, make sure you find out whether you need planning permission. For more details about planning applications and costs, visit www.planningportal.gov.uk

You should also contact your insurer before you start work to make sure you are covered.”

1,425 people between the ages of 30 and 65 were asked about their plans for retirement.

On average, people said they wanted to retire on £15,000 to £20,000 a year. To do this, they would need a pension pot of around £425,000 to £566,000.*

However, the research also showed that:

• 40% of people don’t have any pension provisions at all

• of those who do, 73% don’t know the current value of their pension plans

• only 1% of people who knew the value of their pension said it was worth £300,000 or more

• 61% of 41 to 50-year-olds thought their pensions were currently worth £50,000 or less

Do you know what your pension is worth or how much income you will have in retirement? Why not call us and let us analyse your needs and provision, it may be that a simple switch of plan could increase your retirement wealth or you may find you are not contributing enough towards your retirement.

It is worth remembering that with life expectancy increasing all the time your retirement pot may need to last nearly as long as your working life.

*Figures are for illustration only and assume a male, retiring at 65, with a 1% annual management charge and 7% growth. Figures are quoted in today’s terms.

He says that most UK and US investors have only around 5% exposure to emerging markets within their portfolios, despite sound structural drivers and impressive market performance in these developing markets.

He went on to say ‘It makes no sense to have so low an allocation to such a large and important asset class,’.

Below are Collings’ 10 reasons for investors to increase their exposure to emerging markets.

1. Drivers of global growth
Taken together, the emerging markets, including the Middle East, comprise the largest economic bloc, accounting for around 36% of the global economy in terms of gross domestic product (GDP). According to the International Monetary Fund’s latest estimates, China is the single country that contributes the most to global economic growth, with Russia, Brazil and India also among the top eight contributors. Higher growth tends to lead to higher equity market returns.

2. Favourable demographics
Emerging markets represent approximately 75% of the world’s land mass and house more than 80% of the global population. Most of the future population growth is expected to be in emerging markets, where the population is expected to grow five times as fast as in developed countries. This means that emerging markets tend to have a high, and growing, proportion of young, skilled people.

3. A high and growing number of consumers…
By 2030, more than one billion people in emerging markets are forecast to join the ever-increasing consumer middle class. Currently, personal consumption in China accounts for just 37% of GDP, compared with more than 60% and 70% in Europe and the US respectively*. There is, therefore, scope for significant further spending.
*Source: World Bank, 2009

4. …with money to spend
The world’s savings are concentrated in emerging markets, which hold 75% of the world’s total foreign exchange reserves. Emerging economies are less indebted than their developed peers at a country, company and individual level. Importantly, banks in emerging market countries have emerged from the recent credit crisis relatively unscathed, as they generally had little or no exposure to the ‘toxic assets’ associated with the sub-prime mortgage fallout in the US. This provides strong foundations on which to build future growth.

5. Reduced dependence on developed economies
Emerging markets have a wealth of natural resources, including more than 90% of oil and gas reserves, 70% of coal reserves and 60% of copper, nickel, iron ore and bauxite reserves. ‘South-south trade’ (not involving developed economies) has proved resilient and emerging markets are fast becoming the largest commodity consumers as urbanisation (linking urban and rural populations) continues apace.

6. Equity outperformance
Emerging market equities have outpaced their developed market peers both since the launch of the MSCI Emerging Markets Index in 1987 and over the past ten years, during which they have outperformed by an impressive 166%*.

7. Superior profitability
High GDP growth typically translates into higher return on equity (ROE). As shown in the chart below, the profitability of emerging markets companies is superior to that of companies in developed markets.

8. Similar volatility; higher returns
Investment in emerging markets is often viewed as ‘more risky’ than developed markets. Over the past ten years, however, a blended portfolio of emerging markets and developed markets exposure would have demonstrated a similar level of volatility, but providing far superior returns.

9. Declining volatility
Volatility within emerging markets has actually been trending lower for years, and has consistently remained within a narrower range than both the FTSE All Share and S&P 500 indices. In the recent crisis, emerging markets’ volatility peaked at a lower level than developed markets’ volatility. Subsequently, it has dissipated more quickly.

10. Market capitalisation
Despite their dominance in terms of world population, land mass, foreign exchange reserves and GDP growth, emerging markets have just 10% of world equity market capitalisation. This has been growing over the past decade, and with it equity market returns have risen. This trend is likely to gather pace over the coming years.

The above should not be considered as advice as it is produced for your information only, but if you would like to discuss your investments please give us a call.

The average salary for a Housewife in 2008 in the UK is:

£25,002

Job profile for a Housewife:
cleaner.cook.waitress.washer.nurse.taxi.banker.agony aunt.hair dresser,dog trainer,dog walker.personal shopper Feeding, cleaning, washing, nursing, teaching, guiding, driving, spending…. General slave Looking after the family home!

(source: mysalary.co.uk)

Now we have given you the statistics, ask yourself  the following:

Would your partner stay working, work part-time or quit to look after you?
Could your parents or in-laws provide long-term support?
How much would you need to spend on childcare?
Would you need to purchase special equipment or modify your house?

Perhaps you feel that you should talk to someone to make sure your cover is up to date, just give us a call.

If these two million people had remained in their plans, their employers would have paid around £7.77bn a year into their pensions.

But, according to MGM Advantage, these people are now in defined contribution schemes (personal schemes) and the contribution from their employers is now only around £3.24bn a year.

More and more companies are not only closing their final salary pension schemes to new employees, they are also doing this to existing members.

In order to save money, many employees are being moved into personal (DC) schemes, where the contribution from employers is much lower.

MGM Advantage said that the average contribution from an employer to a Final Salary pension is around 15.6 per cent of a person’s salary, compared with 6.5 per cent to a Personal (DC) plan.

For someone on an average salary, this would mean a difference of around £2,266 a year.

Aston Goodey, sales and marketing director at MGM Advantage, said: “Final salary pension schemes are moving inexorably into extinction. Employers are increasingly looking to move staff on final salary pension schemes to the cheaper option of personal or defined contribution plans.

“Come retirement, this means that people will have smaller pensions. They need to be more focused on their financial planning and also ensure that when it comes to buying an annuity, they seek professional advice and shop around for the best deal for them.”

At Premier Plus we are well positioned to help you achieve the retirement you want for yourself, but, don’t put it off, you need to start to think about it now.

Martin Gahbauer, chief economist at the Nationwide, says at £156,442, the average house price across the UK was still 9.3% lower than a year ago, but this marks the first time since July 2008 that the year-on-year fall has been in single digits.

He says: “The three month on three month rate of change - a smoother indicator of the short-term price trend - turned positive for the first time since December 2007 to stand at 0.9%, up from -0.4% in May. If the pattern of price movements seen in the first half of the year is repeated over the second half, then prices could show only a small single digit fall for 2009 as a whole.

“This would represent a stark shift from trends seen at the turn of the year, when most indicators were pointing to a repeat of the large declines seen in 2008.”

If you are considering moving house or buying for the first time, or are just looking for a mortgage it may be a good time to get in touch with us