Interest rate cut: Winners & Losers

win concept, think differentFollowing the decision by the Bank of England to cut base rate to 0.25%, whilst at the same time, offering additional financial support to banks and other lenders, we look at who are the main winners and losers after the change. Winners Some existing mortgage borrowers: If you have a tracker rate mortgage, which pegs the interest rate you pay to the Bank of England base rate, you will see a reduction in your mortgage payments. Around 20% of all mortgages are arranged on a tracker basis. If yours is ...

Retirement: Annuity rates drop following Brexit decision

Brexit exit emergencyAs the political fallout from Brexit continues with almost daily resignations, the effects on your personal finances are starting to filter through. One of the key groups who will feel an almost immediate effect are those people approaching retirement. Decision time As you get nearer to retirement a number of decisions need to be made, perhaps the most pressing is how to turn your pension pot into an income. Despite the introduction of Pension Freedom in April 2015, using an Annuity, which provides a guaranteed income for the rest of your ...

Retirement: With rates at an all-time low, why would you buy an Annuity?

With rates at an all-time low, why would you buy an Annuity? Last week research was published by Moneyfacts which revealed that rates on standard Annuities, which do not take into account your health, are at an all-time low. Furthermore with gilt yields falling and Pensions Freedom reducing the number of people choosing this option, it’s worth asking, why would you buy an Annuity? Since the Budget last year, and the announcement of Pensions Freedom, the humble Annuity has been tainted as something of a toxic product by some sections of the financial ...

Annuities: Rates at their lowest ever level

Annuities: Rates at their lowest ever levelHot on the heels of Pensions Freedom, pensioners who still want to buy an Annuity have been dealt a blow, as new research has revealed Annuity rates have fallen to their lowest ever level. The research from Moneyfact has found that standard Annuity rates have fallen by 5.9% for a 65 year old with a £10,000 pension pot and by 6.4% for someone with a larger £50,000 fund. A 65 year old with a £50,000 pension pot, will now be able to secure an income around ...