Can I sort a new deal before mortgage ends?
QMY CURRENT mortgage deal ends in March next year. Do I have to wait until then to sort out a new loan or can I look for something now? And do I have to stay with my existing lender?
A IT CAN take a while to go through the remortgage process, especially now when the housing market is busy with people trying to beat the stamp duty holiday, and many borrowers are contacting lenders to sort out mortgage holidays to ease financial pressures.
It’s best not to leave it until the last minute or you could end up on an expensive Standard Variable Rate.
You can apply for a new mortgage up to six months before your current deal ends – you can arrange with a lender for a new deal to begin as soon as your current term finishes.
You don’t need to stick with your existing lender and can switch if you find a better offer.
Just ensure you know exactly when any new deal can start before you apply.
Q I’VE ended up with lots of smaller pension pots after working for several companies.
Can I put them all into one pension as it seems really complicated having to deal with different firms.
A YOU potentially could, depending on the actual pension schemes you are in.
However, you must weigh up the benefits and consequences of doing so, along with the associated costs and charges.
Speak to an independent financial adviser to ensure you don’t lose out on any guaranteed benefits or end up paying higher charges that will eat into your pot.
You can find an IFA in your area via unbiased.co.uk or vouchedfor.co.uk
Q I NEED to boost my finances as I have had my hours cut at work.
If I access my final-salary occupational pension while still earning, will I pay a higher rate of tax on that income?
A NOT necessarily – it depends on how much you earn. Any income the pension provides will be added to the earned income you receive, and any amount over £50,000, the current threshold, will be taxed at the higher rate of 40%.
Q WE HAVE just had a second baby and my wife is going to be a stay-at-home mum, for the next few years at least.
She won’t have any work benefits such as illness or death in service.
Should we be considering some sort of cover for her?
A PEOPLE don’t often think about covering the non-earner. You may want to consider Life and Critical Illness cover or Family
Income Benefit cover to help your family cope financially if anything should happen to your wife.
You may need to cover childcare costs or reduce your hours or take a career break to give the children some stability if anything did happen.