Figures for the first quarter of 2012 show that Lloyds Banking Group is downsizing its mortgage lending activity, with its lending falling by 5% to £538 billion. The move to downgrade its market share is being driven by the need to address the rising cost of its own funding, which is no doubt also behind a similar move from Santander, which has announced plans to retreat from interest-only and high loan-to-value loans.

Somewhat surprisingly, partly state-owned RBS has immediately jumped in to fill the gap, or so it would seem, by unveiling plans to expand its mortgage book. The bank has stated its intention to mop up the market share being dropped by its rivals, but it will be interesting to see exactly what mortgage business RBS targets. It recently tightened up its interest-only mortgage criteria, so it would be surprising if this sector was a key focus.

If these recent developments don’t underline the importance of expert mortgage advice and the value of a specialist mortgage adviser who can see across the market, then news of further mortgage rate rises will. Despite the Bank of England holding the base rate at 0.5%, Halifax has increased its rate by 0.3 percentage points, with RBS-owned First Direct, Nottingham Building Society and Norwich and Peterborough making a similar move.

With reports of banks asking for higher deposits also making the headlines, getting the best mortgage deal is becoming increasingly challenging and this is why independent mortgage advice has become so important.

To find out more about Independent Financial Solutions’ services, contact us on 0800 980 4316 or by using our enquiry form.

Please note:

Your home may be repossessed if you do not keep up your repayments on your mortgage.

The FSA does not regulate certain types of Buy-to-Let mortgages.

The threat of strike action over changes to pension benefits and, in particular, to final salary pension schemes is nothing new. Indeed, it is only a couple of months since doctors threatened industrial action over the government’s plans to reform their final pension salary scheme. A doctors’ strike would have serious ramifications for the public healthcare system and, should the Ford workers go through with their strike plans, it could set a worrying precedent for major private sector companies.

We’ll have to see what steps the Ford workers take, and indeed if doctors and other medical professionals continue at loggerheads with the government, but, taking a step back, it is difficult to see a future where final salary pension schemes are widely available. Given the recent trend, it would come as little surprise if Ford closes its final pension salary scheme altogether. Many major private sector employers have already made this move: it has been reported recently that around 80% of all private sector companies have closed their defined benefit schemes to new employees.

So, what’s the future for private sector employees? The government is attempting to establish a new pensions infrastructure, with the company pension automatic enrolment scheme due to being in October, but with recent reports suggesting that almost 70% of workers have little or no knowledge of these plans, there is a big question mark over the initiative.

These figures highlight a growing trend in the UK: workers are increasingly being required to take responsibility for their own retirement planning and this is why the spotlight on independent pension planning services and expert pension advisers is growing. More and more people are going to have to organise their own finances for old age and they will need proper guidance in putting the right plans in place.

To find out more about Independent Financial Solutions’ services, contact us on 0800 980 4316 or by using our enquiry form.

The HMRC’s victory in stopping a film investment partnership gaining £117 million in tax reinforces the government’s tough stance on tax avoidance and comes only weeks after it made another high-profile move to close two Barclays tax planning schemes. The involvement of Sir Alex Ferguson and Sven-Goran Eriksson in the complex tax relief vehicle has helped the Disney-linked case gain wide coverage.

Notably, while the film investment partnership has vowed to appeal, the verdict has potentially wider ramifications for the future of such tax schemes and corporate tax planning strategies. It is reported that HMRC is investigating other similar film investment partnerships and it would surprise few if this avenue of tax relief was more emphatically dealt with. However, as yet, this remains a single case, and as the outcome of the case is digested, it will be in the weeks ahead that expert tax advisers will earn their corn.

Tax relief vehicles operated within the law play a vital role in helping businesses and individuals manage their finances in as tax efficient manner as possible. As the government’s stance becomes increasingly strict, achieving this goal is becoming more challenging. Hence, an independent tax planning adviser who can expertly guide clients through a changing landscape is worth his or her weight in gold.

The group of football managers, banks, chief executives and hedge fund managers involved in Eclipse 35 are going to fight the ruling, but whether they win their appeal or have to chalk the case up to experience, they are unlikely to change tax efficiency strategies and, as they go forward, they’ll want the best possible tax advice.

To find out more about Independent Financial Solutions’ services, contact us on 0800 980 4316 or by using our enquiry form.

New figures show that mortgage lending for house purchases rose by 20% for the year to February 2012. The marked spike in mortgage lending is undoubtedly a one-off, with the end of the stamp duty holiday in March playing a key role, but many commentators would have you believe that the sharp change in direction in terms of lending strategy by banks and building societies will stifle any hopes of real growth in lending.

What started with the introduction of stricter criteria for interest-only mortgages and then expanded into a rise in standard variable mortgage rates has become an increase in mortgages rates across the board. All this has taken place over a matter of weeks. It would seem that lenders have decided that they can no longer rely on the Bank of England base rate rising in the foreseeable future. Hence, they are prioritising higher rates by a variety of means, including dropping products with lower rates and using minor clauses in mortgage contracts to increase rates.

Such tactics are doing little to improve the popularity of banks and building societies – just read a few of the articles in the mainstream press – but it does underline the value of an independent mortgage adviser, who, among other things, is capable of seeing across the market. The mortgage landscape in April 2012 is very different to that in September 2011, and with lenders moving to protect their profit margins, getting a good deal looks set to become harder and this is where expert mortgage advice comes to the fore.

To find out more about Independent Financial Solutions’ services, contact us on 0800 980 4316 or by using our enquiry form.

Please note:

Your home may be repossessed if you do not keep up your repayments on your mortgage.

The FSA does not regulate certain types of Buy-to-Let mortgages.