FINANCE

MONEY AND SUPERSTITION

“Sell in May and go away,” they say about your shares! Its also known as the Halloween indicator. Apparently over time the stock market has done better between November and April than May to September. There are all manner of peculiar things said and done when it comes to money. Traders in the past would be afraid of the markets on Friday 13th and freeze but nobody told the computers when automatic trading came in so they carried on as normal. Traders have happy pens or lucky pants. Just when we all thought it was a science there’s also mystery. Why is the number eight associated with wealth and success? Property with the no eight is valued greatly in China supposedly and car number plates with eight sell for more. Why do we throw money into a well before making a wish or only pick up a penny if it’s heads up? Why is it unlucky to put your purse on the floor or you’ll come into money if you find a spider in your pocket? If you have a hairy chest or arms you’re going to be financially secure, sorry girls?! It’s financially lucky if a bird poo’s on your head, just as well cows don’t fly then! They say if you see a shooting star and shout money you’ll get wealthy. You mustn’t give someone a wallet as a gift unless you put money in it or they’ll not prosper. Where does all this stuff come from and could it have any truth in it? Would you believe it that people even consult an Ouija board or clairvoyant in search of wealth? Which brings me neatly on to Water Diviners or Dowsers. I didn’t believe a man with a rod in each hand could find water by wandering around your garden, total mumbo jumbo right? I had one up here last week and he found four wells, bit of a humbling experience I can tell you. When it comes to money don’t rely on luck use your judgment and find a good IFA.

PHILIP VAUGHAN Director at Abacus Assurance Financial Services Ltd Porthcawl 01656 772222

‘HARD TO GET’ MORTGAGES OUR SPECIALITY

Whilst the housing market continues to make huge strides in terms of sales, with Wales having the UK’s biggest growth in sales prices during the last twelve months (11.3% increase) it continues to be a difficult time for those people who have either seen their employment situation change over the last year and a half or who are self-employed, as lenders continue to apply stringent criteria to their underwriting processes. In the summer of 2020, we were fortunate to have a new member join the firm, as Karen Ferguson came on board to assist with complex and difficult cases. With 28 years of underwriting experience under her belt, Karen has already been able to obtain mortgages for a number of clients with difficult circumstances and who had failed to get a mortgage sorted elsewhere; she has even been able to help other advisers, who do not have the necessary underwriting experience, to place cases that might otherwise have fallen by the wayside. The word ‘furlough’ has proven particularly difficult as employers have needed to take a close look at their businesses, whilst lenders have become increasingly concerned about the ability of the self-employed to be able to sustain and keep up mortgage payments, especially where businesses have been closed by lockdowns. The irony, of course, is that many self-employed people have had a record year for business, particularly in the ‘key worker’ sectors, where tradesmen especially have been booking work months ahead. Zero hours contracts also have been detrimental to those searching for mortgage finance, yet workers that do certain professions or jobs, can still qualify, depending on the viability and credit records of applicants. That said, we have lenders that actually specialise in helping those who have had difficulties financially, often caused by things such as divorce or redundancy. So, don’t give up; we can’t guarantee to be able to help every applicant but a call to 01656 782545 could be a major step in the right direction. We will return all calls if we’re busy when you call. Call 07768 418308 on weekends and after hours.

PAUL FIELDING Dragon Financial 01656 782545 / 07768 418308

TO OVERPAY, OR NOT TO OVERPAY? THAT IS THE QUESTION

Many readers will have been more than happy with the current historically low mortgage interest rates. However, are you aware of the benefits of overpaying on your mortgage? Each pound that you repay over and above your regular monthly amount can help reduce the debt much more quickly. For example, based on a mortgage of £150,000 with an interest rate of 1.99% over a 25-year term, your monthly repayments would be around £635 a month. If you rounded that up to £700, you could expect to shave almost 3 years from your mortgage term and be mortgage free that much quicker. Overpay by £25 a week and you’ll reduce your term by approximately 4 ½ years! Your monthly payments could then be diverted to other areas, such as funding a Pension or ISA. Of course, this won’t be right for everyone, and beware of overpayment penalties etc. Also, ensure that you have a cash reserve of around 3 months outgoings in case of emergency. It’s wise to seek advice in this area, and I can help. As an Independent Financial Adviser with Tavistock Partners (UK) Ltd, I am happy to provide you with a complimentary mortgage overview, and advise you on your correct course of action. This will include checking that you are on the best possible rate for your circumstances. If you have finished your mortgage fixed rate and are now paying the standard variable rate, please get in touch, as you could be paying more than you need to. I am able to search the whole market, so can source deals that you will not find on the high street. Give me a call on (01656) 771747, or 07859 129580 and let’s see if we can reduce your mortgage term. I’m still able to do video or telephone meetings if required, at a time to suit you best. Your home may be repossessed if you do not keep up repayments on your mortgage.

PHIL PROTHEROE Tavistock Partners [UK] Ltd 01656 771747/ 07859 129580