Self-Certification Mortgages

What is a self-certification mortgage? Self-cert mortgages allow you to ‘self declare’ what you earn to a mortgage lender. They came into existence about ten 10 years ago and were originally aimed at self-employed and […]

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Investment Workout

Whether you’re considering a return to stock market investing or you’ve never left it, it pays to check your investment portfolio is up to the challenge. Poor performance and a sloppy technique can quickly turn […]

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Get Your Finances Into Shape

Yes, we all know about switching utility providers and cutting out your morning Starbucks. But just how far can you go in the pursuit of saving money on the little things? Best look to the […]

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Mortgage Dos and Don’ts

Do consider changing mortgages if you are on your lender’s standard variable rate (SVR) or are coming to the end of special deal. Do overpay your mortgage if you can as this can shave thousands […]

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Have You Been Refused Credit?

If you get turned down when applying for credit it can be frustrating and you’ll probably think that there is a mistake on your credit file. In fact, most people are refused credit because their […]

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11 Steps to Remortgage

Step 1 Ask your lender if it could offer you a better deal than the one you currently have Step 2 Check if your lender charges a redemption penalty Step 3 Research new mortgage deals […]

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Equity Funds

Top ten tips

  • Dividends are back in fashion, and with interest rates and inflation low, returns of 3 to 4 per cent look attractive.
  • Regular dividends help get your investment off to a great head start, and you may also get growth on top.
  • Unless you want to invest directly in individual companies, invest in an equity income fund to spread your risk across dozens of different stocks.
  • Equity income funds have performed solidly over the past five years, and you can choose from some excellent, established managers.
  • You can reduce your income tax and capital gains tax bill by investing inside your annual £7,000 Isa allowance.
  • Equity income funds tend to be less risky than many stocks-and-shares funds, because they invest in mostly solid, blue-chip companies that pay dividends.
  • There’s plenty of evidence to suggest that the combination of income and growth helps equity income funds outperform UK growth funds in the long run.
  • They are ideal for retired investors who want to generate a rising income from their capital.
  • Younger investors can also use equity income funds for growth, by reinvesting the dividends.
  • Equity income funds still expose your money to the stock market, so make sure you understand the risks you are taking.