Start of 2014

With the start of 2014 Sovereign enters its 33rd year of trading. As always there were challenges to overcome in 2013 and more coming up in 2014. 2014 starts with an economy which looks to be on the road to recovery and with that cautious optimism comes an improving property market. The market will continue to benefit from the Government’s Help-to-Buy schemes as more first-time buyers and property movers now can buy with as little as a 5% deposit. In 2014 more employers will face having to move over to Compulsory Enrolment whereby they have to bring all of their staff into a company pension scheme and start paying something into the employee’s pension as well. While it represents a worthwhile effort to get people to start saving for retirement, it represents a large new administrative burden on employers. Those with 50 employees or less are not in the firing line until 2015/16. 2013 certainly had Great Britain fully on display with the Queen’s Diamond Jubilee, the Olympics and Para-Olympics, and a Brit winning the Wimbledon Men’s Finals for the first time in a very long time. 2014 may not be as full of spectacular presentations. There are the Winter Olympics in Russia and the World Cup in Brazil, but predictions of great results in either of these are a bit hard to find. 2014 will probably see politicians making many promises in advance of the next General Election in 2015. This was already visible in the Government’s Autumn Budget Statement. The Chancellor made a number of promises not due to start until April 2015 while the General Election is due to take place on 7 May 2015 and he might not be around afterwards!

Warning - plastic may damage your wealth!

As we move into the Christmas spending season, do remember that credit and store cards should be paid off in full each month. Otherwise the outstanding amount owed can hang around for many Christmases to come.

Will Interest Rates Increase?

Think Ahead ! Improvements in the UK economy are good news but are also warning lights for an increase in interest rates. The Governor of the Bank of England's target for unemployment is getting close. It is a good time to lock into fixed rates with your residential mortgage to avoid hikes in your monthly outgoings. We recommend looking at five year deals.