Craig Johnston Asset Management Limited

From the BBC website on Friday 8th December:

Mortgage rates on a typical two-year fixed deal have fallen below 6% for the first time since mid-June, according to Moneyfacts.
The financial information service said the average rate was now 5.99%.
Competition among providers has intensified as they face a battle to attract a small pot of new homeowners, and to maintain current custom

On 26 June 2023, the government published the Mortgage Charter.

The charter is a set of commitments between the government, UK lenders and regulators to give more options and support to people struggling with their mortgage payments.

What the Mortgage Charter means for you:

1. Switch to a new mortgage deal with without an affordability check
2. Secure a new rate up to 6 months before your current one ends
3. Extend your mortgage term to lower the payments
4. Ask your lender for help without affecting your credit rating
5. Stay in your home for at least 12 months even if you're unable to pay the mortgage
6. Coming soon: switch to interest-only payments for six months.

You will no doubt be aware of the unprecedented number and pace of mortgage changes and withdrawals since last week.

Why are banks withdrawing their mortgages?
Following the Chancellor’s mini-budget and the Bank of England Monetary Policy Committee’s decision to increase the base rate last week, the markets have been very volatile.

As a result, I am seeing a number of lenders temporarily withdrawing product ranges to assess the situation prior to re-entering, as well as changes to their product ranges.

How is this impacting you?
This is an unusual market situation for everyone, and presents a number of short-term challenges, especially in product sourcing (i.e finding you the best deal).

There is a risk that due to the number of changes being communicated (with sometimes no prior notice), the information available when I am sourcing products may be out of date of the lenders current range.

For existing cases that have already been submitted, there appears to be no impact on rates currently across the market.

UK interest rates over the last 30 years. Source: Bank of England
*now at 2.25% as of this morning, 22nd September 2022*

How much State Pension will I get?
The latest change to be announced is a 3.1% rise which comes in with the new tax year – starting on 6 April, 2022. This was confirmed in the Autumn Budget and will affect people eligible for the new flat-rate State Pension, which was introduced in April 2016, or the older basic State Pension.
The rise means those qualifying for a full new State Pension will receive £185.15 a week (up from £179.60).
Those who reached State Pension age before April 2016, who are on the older basic State Pension, will now receive £141.85 – up from £137.60.

How do I qualify for a full State Pension?
The amount of State Pension you receive is based on the number of years of National Insurance (NI) contributions you have paid or been credited with and when you start claiming it. There are government websites where you can check your personal NI record and get your State Pension forecast.

Can I make up for any missing years of NI contributions?
Gaps in your work history or being in certain types of pension schemes can mean you won’t have enough NI contributions to receive the full State Pension. But you may get NI credits for years when you’re not employed or have low earnings.
In some cases, claiming benefits such as jobseeker’s allowance can actually help you build and protect your State Pension entitlement.
You might also be able to top up your NI record by paying voluntary national insurance contributions.
You’ll find more detail at www.gov.uk/check-national-insurance-record

Check your National Insurance record Find out if you've paid enough National Insurance to qualify for the full State Pension - check gaps, contributions and credits, get a National Insurance statement, call the helpline

Mortgage news: NatWest has announced that it will acquire and complete legal title of transfer of 13,000 mortgages from Metro Bank on Monday 22nd November.

What does this mean for you? If you're on a variable or tracker rate then please get in touch to see if we can find you a better deal that suits your circumstances.
If you're already on a fixed rate then the NatWest will contact you about 6 weeks before to let you know your options. This is a great opportunity (and a reminder!) for you to get in touch to compare the deals offered by the NatWest with the wider market.
*Your home is at risk if you fail to pay your mortgage or any loan secured on it*

Use this GOV UK site to get in contact with old pensions that you or a previous employer made contributions into.

Find pension contact details Find the contact details for a pension provider by using the Pension Tracing Service

When can you access your pension money?
In autumn 2020 the government confirmed plans to raise the age at which you can access money from your pension savings to 57 from 2028, saying new legislation would be coming “in due course”. But currently if you have a modern, flexible pension plan, you can access your money how and when you choose from the age of 55.

You’ll have a number of options available including taking a flexible income, buying an annuity, taking cash lump sums or leaving your pension plan invested, and you should carefully consider things before making any decisions. If you’re considering taking money from your pension savings as a flexible income, also known as drawdown, it’s important to know how that will be taxed.

Get in contact with Craig Johnston Asset Management to discuss your options.

Some financial adviser related humour👍