As any mortgage broker in Bournemouth will tell you, mortgage interest rate is very important if you are planning to buy a house. Since a lot of buyers cannot afford to pay for a new house upfront, they prefer to take out a mortgage to finance the purchase. The mortgage has to be paid back to the lender at a certain interest rate. The mortgage rate is thus a very important consideration when purchasing real estate.
All homeowners want to get the best deal on their mortgage rates. The lower the rate, the higher the cost savings. Here are some ways to get a good mortgage rate:
Make sure the moneylender does not conduct a credit check until you’re sure you will be using their services. Your credit score will decrease every time a credit check takes place.
Make sure to take the necessary time to go over all your options. Do not just settle for the financial institution you normally bank at. Look up other moneylenders online and see what rate you are likely to get with them. While choosing your regular bank may seem like the safest option, it is not always effective in the long run. Weigh in other alternatives as well before making the final decision.
These are some effective ways of getting the best possible mortgage rate. Make sure to consult a reliable mortgage broker Bournemouth for expert advice and assistance.
Financial planning is imperative for securing your present and future. Just like you should set aside a regular amount of income for running expenditures and savings, you should also regularly pool in some money in a retirement plan. Retirement plans ensure you save a regular amount of income for the sake of your future –a comfortable and steady income in necessary when you choose to retire, and a retirement plan will help you contribute towards this. However, before you start looking for the best retirement planner Bournemouth has to offer, it is important you know the basics of retirement plans in the UK, so you can get started with your planner in a comfortable and knowledgeable manner.
In this article, we are going to review the three popular retirement plans in the UK, and how these should be selected on the basis of your profession.
Pensions for Self-Employed
If you have your own business or are self-employed in any manner, your retirement plans are going to look different than those who are employed by some organisation. Pension plans for the self-employed can be chopped down into two categories. And while these are the routes of choice for the self-employed people, even those who are employed by an organisation can benefit from it.
1. State Pension
State pension, as the name suggests, is the pension or retirement plan that is offered to you by the Government. The Government starts paying you a regular pension income when you reach the age of retirement that has been stipulated by the state. However, for this to happen, you need to invest in National Insurance at a certain level. State pension can be availed by people of all professions, and it is most beneficial with those who have no set stream of work. So if you do the odd jobs, it is better to invest in a state pension. Get in touch with any retirement planner Bournemouth has, and seek professional advice regarding your state pension plan. The rules for these pension plans keep changing every year, so it is best to consult the government website for the new rules. However, the downside of these state-based plans is that they are not very flexible.
2. Personal Pension
If you are looking for flexible plans, personal pension plans may work with you. These retirement plans are saving schemes that are set up by personal groups with the help of a professional retirement planning advisor. As in any other plan, you have to pay the regular amount of money, however, you have control over where the money is invested. There are many types of personal pension plans and you can even start one yourself. However, to determine what kind is best for you, you need the help of the best retirement planner Bournemouth can give you.
Pensions for Organisational Employees
If you are not working in a self-employed system, usually your employer organisation will provide you with a retirement plan. These organisations have different types of plans, such as the Define contribution Schemes and the Defined Benefits Schemes, and before choosing one, you should get in touch with any of the professional retirement planners Bournemouth as this will help you make an informed choice.
For organisational employees, it is better to opt for workplace retirement plans than personal plans. However, you should always get in touch with a professional before making a decision.
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The story of taxes can be summarised under three key terms; the good, the bad and the ugly. The good is the fact it keeps your country up and running, while also keeping you out of trouble with HMRC. The bad is the fact that you have to pay them. The ugly is the sheer stress that the entire experience brings with it. To make the whole scenario a tad bit better, we have complied a list of tips that’ll help you to get to the other side.
1) Organisation is key
In the UK the tax year ends in April. That means you need to be prepared for that awful time of year, every year. To help you on your way are the lovely people who work as personal tax specialists. However, that doesn’t mean that you can dump all your problems in their lap. If you had any problems in April 2017 sort them out now, because 2018 is creeping up on us all!
To prepare for the tax payments you and your account should;
- Plan when you will sit down and work out the taxes.
- Not leave it too late.
- Keep a record of all your finances.
- Keep all the papers organized in a filling system.
- Separate the personal from the business finances
These tips may not change the amount of taxes you have to pay but they will reduce the money spent on preparing for that crucial time of year. You want to avoid the penalties that come with late payment. Sure you can file a Form 4868 but as any one of the personal tax specialists in Bournemouth will tell you, that requires some extra cash too!
2) Use a software
Computers are there to make our lives easy, so why not take advantage of them? You don’t want to get fined for handling your taxes incorrectly! A payroll tax software avoids the ‘human’ error and will do everything from calculating to filling the taxes for you!
3) Go for the independent, not the dependent
You can make tax savings by hiring independent contractors. This is because you won’t have to pay the ‘payroll taxes’, or provide them with the other benefits that come with hiring staff. Just make sure that your contractor doesn’t fit under the legal definition of an employee or you’ll be in trouble!
4) Take advantage of the ‘dependents’
Did you know that having a child that depends on you can be an advantage? Well it’s true, at least where taxes are concerned. You will get a specified tax exemption for every dependent. Just be careful if you are divorced, the issue gets a lot messier as only one of the parents can claim their children as ‘dependents’!
In the end, remember to pay your taxes on time no matter how exuberant they seem! If you don’t you’ll have to pay them, and the penalties, in 2019. If you have any doubt about the whole issue, search for personal tax specialists Bournemouth.
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Before we look at the types of alternative investment out there, we need to understand what it is. Alternative investments are unconventional opportunities, complex in their nature and limited in their regulations. Be warned that an investment adviser may steer you away from most types, as they are commonly held by high net worth individuals and institutional investors. However, that doesn’t mean that the general public can’t reap the rewards that this form of investment has to offer!
Why should I consider alternative investments?
The simple answer is that they provide you with more opportunities and thus present a way of diversifying your portfolio. The longer one involves a discussion on the complexity of the alternative investments, and how all these opportunities aren’t open to the general public. For more information on this subject, contact an investment adviser in Bournemouth.
Types of Alternative investment opportunities:
1) Private equity
This option is for private companies and it involves an entire spectrum of investment in the private capital market. Typically, private equity firms will gather funds from a range of investors and invest them in a private company. The investors make a profit after an exit event.
2) Venture capital
This is a form of private equity, which specialises in investments involving companies that are in between the early stage and the growth stage of their business. This form of capital is quite important to start up, and early stage, companies but it is risky for investors. Saying that, if the company is successful than the investment can yield outsized returns.
3) Direct investments
This form of investment is simpler. Investors directly invest in companies, an action which is called ‘angel investing’. There is a lot of risk involved in this option, as the startup companies they invest in could fail. This risk can be avoided though by investing in a mature company that seeks capital.
4) Real Assets
This refers to assets like oil, agricultural land, precious metals and real estate. They are known as ‘physical’ assets and have a lot of value. You can invest in them directly or through a fund that specializing in physical assets.
5) Fund of Funds
This represents the capital collected to trade in other alternative opportunities. It helps investors to diversify their portfolio, limiting the risk involved in investments.
6) Private placement debt
Believe it or not, people actually invest in debt. The ‘mezzanine debt’ is form of capital used to finance private companies while maintaining the investor’s cash flow. However, these bonds can’t be traded publicly.
These are just a few of the types of alternative investment opportunities out there. The one you consider depends on your position and the resources at your disposal. If you are in doubt about which one to choose, search investment adviser Bournemouth.
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Your credit score is very important if you are thinking about buying a house. The interest rate you pay on your loan is largely determined by your credit score. The higher the score, the lower the rate of interest on the mortgage. In fact, if your credit score is below a certain threshold, you might not qualify for the mortgage at all. Therefore, it is very important to improve your credit history if you want to get a good deal on a mortgage.
Here are some effective ways to increase your credit score:
So if you want to increase your score, you need to pay down your credit card balances. Eliminate any small or nuisance balances you may have on some of your credit cards. Then, keep just one or two cards for all your payments. The benefit of this is that your credit report will not be affected by multiple outstanding balances.
These are some useful ways to increase your credit score and land the best possible deal on your mortgage. Remember, a low credit score will not improve overnight. You will need to give it your full time and commitment.
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Mistakes are part and parcel of life, and there is nobody who can progress without them. However, there are some mistakes that can be so weighty that they carry long-term effects which are difficult to get rid of.
Retirement planning mistakes are one such thing. When you inch closer to the age of retirement, it is important that your retirement plan has already been set in action. And while the first step to this is to get hold of the best pension advisers Bournemouth has, another important step is to know the most common mistakes people make in their retirement planning and see if you are doing the same.
Here are the top four mistakes people make while planning for their retirement...
1. Not Knowing How Much Income You Need in Retirement
Many people are blissfully unaware of the cost of retirement. If you ask them how much money they think they would need to maintain their current lifestyle in retirement, they will have no idea. This can have a bad effect because when you don’t have a clear idea of the amount you will
need in your retirement, you will either underestimate it or overestimate it.
In most cases, people tend to underestimate the cost of upkeep during retirement. This is because they don’t put in the inflation factor. Typically, you would need about 80% of your annual income in ylour retirement as well. And this is not a hard and fast rule, in many cases, it may even be more. When people underestimate the cost of retirement, they run into bad financial problems during retirement. This is why you should get in touch with the pension advisers Bournemouth has, and discuss your projected pension income and costs with them.
In the rare cases where people overestimate the living cost in retirement, they are likely to set up unachievable financial targets for themselves and get discouraged. This is why it is important to have a realistic idea.
2. Not Calculating Healthcare Costs
During the early years of retirement, people spend most of their income in travel and entertainment, however as age progresses, healthcare soon catches up and this can be particularly expensive. The biggest mistake people make is to not factor in the big healthcare costs they may have to pay. According to the pension advisers Bournemouth, over the years these healthcare costs are increasing, so when you jot down a pension plan, it is important you put in this factor.
3. Taking Loans From Retirement Accounts
It is very tempting to invest in big choices. And often, when people don’t have money for these investments, they keep on taking loans from their retirement accounts. This is a very big mistake that can cause you much financial distress in your vulnerable years. Most of the times, people are not able to pay back these loans and they end up with a less income than they thought. Or at times, they have to totally opt out of the retirement plan because of these loans.
Even if you are able to pay back the money, it will be a bad choice, because the money you pay back will not grow anymore. When you withdraw an amount, you lost the opportunity for that money to compound and grow into a bigger amount.
4. Becoming Overwhelmed by Choices
And finally, with so many choices out there related to pension plans and investment plans, it can be overwhelming. Many times people get petrified and fail to act. Or act in a haphazard manner. According to pension advisers Bournemouth, this is one of the biggest mistakes. Instead, get in touch with the professionals so they help you take the right action at the right time.
These are some of the top mistakes people make in their retirement plans. Better avoid them!
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When you are out in the market to purchase your first house, the process is often overwhelming. Those who are familiar with everything related to the market find it quite simple; however it can be a little daunting for first timers. Especially the mortgage process, there are certain things that you must know about it and this is where the Bournemouth mortgage advice experts come in.
You should contact a professional before getting yourself involved in home buying. Meanwhile, read the following tips so you can prepare yourself before the actual process starts:
1. What is credit score and its impact on your mortgage?
It is smart to calculate your credit score before finalising the deal. The credit score can make a huge difference on the interest amount that you pay and the kind of house that you can afford. For instance, if you are applying for a £200,000 mortgage, then over a period of 30 years, you will be paying £138,324 in interest with a 750 credit score. However, if you have 650 as you credit score then you would have to pay £173,324. So you see there is a £35,000 difference because of the credit score.
2. Don’t Overburden yourself
Just because your credit card’s limit is £4,000 that doesn’t mean that you go all in and spend all of it. Same is the case with your mortgage, maybe you can qualify for a higher mortgage amount but that doesn’t imply that you overextend yourself. Remember, that your mortgage deed will have an impact on your finances so make sure that the new deed isn’t going over your budget and it fits you bank’s standard.
3. Complete your Documentation
Professionals suggest that you prepare your documents before walking into the mortgagee’s office. There are certain things such as your identity, income statement, social security card, W-2s etc. that are required if you are applying for mortgage. These are only a few things that are required, for a detailed list visit Bournemouth mortgage advice specialists. It is better to go prepared so you don’t waste your time.
A mortgage pre-approval is exactly the same as full mortgage approval, however, it is a document that you have without a specific property in mind. Before you start exploring the market, it is better to have a pre-approval. It can be a valuable tool as it holds a lot of weightage. This shows the broker that you are a serious buyer and the payment won’t be difficult. One thing that you should know is that pre-approval and pre-qualification are two different things.
5. Consider FHA loan
In order for any buyer to meet the requirements of conventional mortgage, they must have a minimum of 620 credit score. In case your credit history is a little borderline, then it is better that you consider the FHA loan. This is designed specifically for those who aren’t qualified enough. However, the only problem with FHA loan is that it is a bit expensive compared to the conventional mortgages. If you aren’t qualifying for the mortgage then going ahead with FHA is great.
6. Mortgage Insurance
Private mortgage insurance is paid if you make a down payment on your mortgage that is less than 20 percent. Make sure that you include this in your budget because it can significantly add to your total amount. These rates differ depending on the down payment, mortgage length and credit.
7. Don’t Settle for the First Offer
New and seasonal buyers alike make a common mistake of accepting the very first mortgage offer. You might think that there is a small difference in the offers, however these small digits can add to a lot over the course of your mortgage. You can save up to thousands of dollars in 30 years so it is suggested that you look around and go for the best offer.
8. Going Small Is Good Sometimes
Don’t aim for the big names; look into the small lenders as well. While national mortgage lenders might be your first choice, you might miss out on the unique lending programs set by local banks especially for first timers.
9. 15 Year Mortgage
Choosing the 15 year mortgage plan may help you save thousands of dollars and give you the possession of your house in half time. If you want a less expensive house then this plan will be great for you, if you can afford it.
Buying a new house for the first time can be intimidating but with proper guidance and support you can do it easily. Before you go shopping make sure to keep these tips in mind and consult an expert.
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Investing isn’t rocket science. The investor doesn’t need to be super smart or even study for years. What they do need is a little advise, a ton of self-control and a willingness to learn from others mistakes. Because let’s face it, we are human and that automatically means we make a ton of them. Keep reading to understand more, and learn what not to do.
1) Don’t get emotional
Emotions aren’t you friend. Sure it’s nice to have an adrenaline rush after taking a risk, to feel happy when an investment pays off. But you shouldn’t allow those feelings, the perceived possibility of those feelings, to guide your investment choices. Think, plan and ask the independent investment advisor Bournemouth for help. You should have guidelines for your investments, and discipline yourself to stick to them.
2) Think long, not short
One of the most important things to avoid is looking at things in the present. Part of investing is seeing the long term opportunities; measured over years, not days or even months. When investing, take a step back and think of the bigger picture.
- Will this be too risky?
- Is there a better option?
- Will this over diversify my portfolio?
This last point should be avoided like the plague. Over diversification doesn’t automatically spread your risk out. Instead, it can cause have consequences on your total asset allocation. To avoid this, choose a strategy and stick to it!
3) Don’t ignore the risk
Investments have a lot of risk involved, that’s why it can be good to spread out. Be careful though, as we said before you don’t want to over diversify and there is a thin line separating you from pure failure! To thoughtfully spread out the risk, adopt an asset allocation plan. You could buy in thirds, it will help you to control your investment while limiting the overall risk.
4) Don’t over save
After reaching a certain age, everyone is tempted to save for their retirement. It’s like the light at the end of the tunnel; full of relaxation, comfortable living and the opportunity to escape life. The problem is when you save so much for that point in time, that you accumulate a shed load of debt along the way.
It’s important to strike a balance, between the ‘now’ and the ‘later’. Be realistic, add a portion into your retirement plan and keep a bit out for emergencies, bills and all the other nitty-gritty costs that come with life!
5) Don’t get paranoid!
The market is scary. There are ups and downs, crisis and disasters and each one is carefully published in the news. The problem? Fixating on the minute by minute changes can cause you to lose sight of the bigger picture. As we said before, investing is about the long term objectives and possibilities. So, do not obsess or allow the changes to derail your plan! Remember, when in doubt contact an independent investment advisor Bournemouth.
6) Ignoring an investment due to the tax!
Ok, so you need to accept that investing means a tax bill. Any independent investment advisor Bournemouth will tell you that it’ll match the size of your investment, increasing as the value of your portfolio goes up! But you shouldn’t let this stop you from making a return. Remember, you will have to pay taxes sooner or later. So rip off the band aid or risk a drop in the possible return.
In the end, there is always a risk. The important thing is that you think, and anticipate the possible ups and downs as much as you can. This means having a clear head, discipline and avoiding the mistakes outlined above! As Warren Buffet said, success is about controlling the urges that leads to the downfall your follow investors!
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In today’s world where nothing is certain, fixed rate mortgages can be comforting and reliable. Almost all home buyers show interest in fixed rate mortgages mainly because it doesn’t leave the buyer hanging in the middle of a fiasco.
Mortgage brokers Bournemouth wide were public about the fact the 87 percent of buyers applied for the fixed rate 30 year mortgage plans. The interest rate remains the same for the loan tenure making it easy on the buyer.
This is your ultimate guide for fixed rate mortgage, let’s jump right into it:
The fixed rate mortgage is predictable as the payment doesn’t change over the years. It is simple and safe making your experience an easy one. It doesn’t matter what happens, whether the economy takes a down fall or a hike your mortgage won’t budge. However, in case the interest rates drop you cannot enjoy it because the fixed rate mortgages are inflexible. In the long run the fixed rates can cost you more. Before you finalise your plan it is always better to consult a professional who is familiar with the market.
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In a world where Gucci, BMW’s, Caviar and the iPhone X exist, why would you want to control your spending? It’d be so nice to have it all right?
The answer to this is pretty simple- reality isn’t nice. Prices are soaring, wages are dropping and everyone is struggling. So how do you control your urges, cut back and not overspend? You could enlist the help of an independent financial advisor Bournemouth. In the meantime, keep reading for some simple tips that will help you!
We have outlined some easy ways to avoid overspending below:
1) ‘See the money’
It’s easy to look at everything in isolation and justify the cost. This purse is ‘just’ $50, and I ‘just’ received my monthly wage, so why not? The problem is that the more you say ‘why not’ and ‘just’ the price, the more you spend. To avoid this, keep a daily account of your spending, and tally it at the end of the month. Our advice, be ready for a shock! After that you’ll definitely want to cut back.
2) Use cash, not card
Using cash has a similar effect to keeping an accounting record. You actually see the money going from your wallet and into the cashier’s hand, you feel the weight in your purse reducing with every purchase. This also stops you from being physically able to overspend- you can’t buy something if you don’t have the money right?
3) Be clever, run towards the discount
This doesn’t mean becoming a real life Becky Bloomwood from the Shopaholic. It means being realistic, having a list of things you need and waiting to buy them during a sale. If you are a student, you can use your ID to get some great discounts throughout the year. The idea is to be clever, look for the best offers and watch your monthly spending drop!
In the end, it’s all about making a decision and disciplining yourself to stick to it. Remember when there is a will there is definitely a way! Any independent financial advisor Bournemouth can tell you that!
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