Equity release to buy Christmas presents? No thank you!

iStock_000011103880XSmallSummer only just seems to have ended, but take a walk around any supermarket and you’ll find aisles stocked with all types of Christmas goodies, from selection boxes to decorations, cakes to presents. Whilst we are growing immune to Christmas starting three months earlier than it used to, we didn’t expect to see one leading national newspaper, as well as a firm of Independent Financial Advisers, both promoting Equity Release as a way of being able to buy Christmas presents for your ...

How to avoid falling into the Interest Only mortgage trap when you retire

No surprise as interest rates on hold for another month_istockNew research, from the Independent on Sunday newspaper, has found that more than a quarter of a million people with Interest Only mortgages could retire by the end of this decade whilst still having the debt outstanding. Popularity of Interest Only mortgages Interest Only mortgages were very popular in the 80’s and 90’s when they were often set up with Endowments or ISAs (Individual Savings Accounts) as repayment vehicles. However, ...

One third of people stop paying into pensions

New research has shown that a third of workers have stopped paying into their pensions as they can no longer afford them. The survey by the Prudential has found that ever tightening household budgets and redundancy were the main reasons for people stopping contributions to their pensions; worryingly almost 50% of those who have stopped making contributions say they have no plans to start payments again. Retirement The reduction in the amount being saved into pensions will have a knock on effect on people’s income when they come to retire and could increase the levels of long term financial hardship. Experts generally recommend that ...