Use it or lose it when it comes to ISA allowance
QI’M
thinking of topping up my ISA as I haven’t used up the allowance for this tax year. Will I still need to get that deposited before April 6?
AYES
– it’s a case of use it or lose it for your ISA allowance, I’m afraid. You can also usually make the deposit online with most providers, so lockdown shouldn’t be a problem.
QOUR
son is saving for a home deposit in a Help to Buy ISA. He reckons it will take him another few years to get enough saved up.
As these accounts are no longer available, does he need to transfer this to a Lifetime ISA?
ANO.
He can continue to pay into the Help to Buy ISA until November 2029.
Q
I’VE got 10 months left on a five-year mortgage. Now I’ve found a deal that is 1.3% lower than I’m paying and I’m thinking of switching.
Will it cost me a lot of money to get out of my current deal?
ATHERE
is usually an early redemption charge (ERC) on fixed-rate mortgage deals, typically between 1% and 5% of your outstanding balance. Sometimes the percentage reduces as you head towards the end of your deal. Check your key features document which will detail any early exit penalties, or call your mortgage lender to find out how much it may cost you to repay the balance earlier.
the difference between a Direct Debit and a Standing Order?
Standing Order is set up by you to pay a fixed amount every month, while a Direct Debit is set up by a company to take regular monthly payments and the amount can differ each month. Say you want to clear credit card debt off quicker and cheaper, then it would be better to set up a Standing
Order for a fixed amount so as your balance goes down you pay more off it each month. On the other hand, if you set up a Direct Debit to take a percentage off your balance each month, the amount, debited will reduce as your balance goes down – therefore taking longer and costing more to pay it off.
QI’M
in my late 60s, still working and with no plans to retire at the moment. I would like to speak to a financial adviser for some pension advice. Is there a governing body that will help me to find a reliable person/ company?
AGOVERNMENT
service Pension Wise offers a free guidance session on your options around accessing pension savings, but it doesn’t provide individual advice.
To discover more see pensionwise.gov.uk/en or call 0800 138 3944. To find an Independent Financial Adviser in your area try vouchedfor. co.uk or unbiased.co.uk