Financial advice isn’t just for the super-rich with complex tax situations and offshore bank accounts. It can be invaluable for anyone with financial goals.

Whether you're saving for your future, buying your first home, remortgaging or want to protect your home and income – speaking to an expert can make all the difference.

Saving for your future

Robyn and Tim met in their late 20s and soon got married. They were keen to get on the property ladder so spoke to a financial adviser who helped them form a savings strategy.

They both opened a Lifetime ISA and opted for a Cash ISA (rather than stocks and shares) as they were not willing to risk the value of their savings falling in return for a higher potential gain.

Their adviser also encouraged them to review their pensions. As both of their employers matched anything they paid in, it made sense to maximise their pension contributions – even though retirement felt a long way away.

Buying your first home

They saved the maximum amount of £4,000 a year into their Lifetime ISAs, topped up by the government's 25% bonus. In just 3 years they saved the £30K deposit needed to buy a £300K home. But before they could start house hunting, they needed to secure a mortgage.

A good mortgage adviser can scour the market, chase the provider to keep your application on track and guide you through the home buying process – invaluable if you’re a busy professional buying for the first time.

Their adviser helped them understand the different mortgages available and which most suited their needs. As a result, they bought their home knowing they could comfortably afford their monthly repayments.

Remortgaging

Robyn also owned a flat with her Dad that she lived in before she met Tim. She now lets it out but wanted to remortgage and release some funds.

Armed with more knowledge, she initially researched the market herself – but found that most Buy to Let mortgages are only available through brokers.

She found a specialist Buy to Let mortgage adviser who managed to secure her a low fixed rate mortgage which also released £40K of her equity. Her monthly repayments only increased marginally, and she has peace of mind that they won’t rise for the duration of the fixed term.

Understanding your tax position

Although Robyn and Tim didn’t exceed the first-time buyer stamp duty threshold of £300K for their new home, as Robyn already owned a property, they were not considered first time buyers. So they had to pay 3% of the house’s value in stamp duty. Had they got tax advice before getting married, they may have reconsidered their options.

When Robyn remortgaged her flat and replaced her Dad’s name on the deeds with Tim’s (a condition of the new mortgage) her solicitor warned they may be liable for more stamp duty – as she was gaining 50% of the property from her Dad, then Tim was receiving 50% from her.

As this was a complicated situation, Robyn sought specialist tax advice. As a result, they avoided paying a large amount of additional stamp duty.

Protecting your home and income

When you take out a mortgage it’s not just the building and its’ contents that needs to be insured. You should also consider what would happen if you or your partner lose your job, become critically ill or die.

Robyn and Tim spoke to an adviser to discuss protection. As a result, they can both now relax, knowing they will be able to pay off their mortgage and stay in their home, should the worst happen.

If you want to learn more and receive advice tailored to your personal circumstances, please get in touch.

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

Tax advice is not regulated by the Financial Conduct Authority.

Key takeaways

• Financial advice can be invaluable, whatever your income and whatever stage of life you’re at.
• A mortgage adviser not only recommends a mortgage that best suits you but also guides you through the home buying process.
• You should always consider tax implications before big life events – such as getting married, buying a home, or separating from your partner.
• When you take out a mortgage you should also make provisions for if you were to lose your job, become critically ill or die.