View more on these topics

2017 and the savings landscape…

Anyone who is involved in the world of workplace savings will recognise that the last few months have been rather interesting to say the least.

At the start of the year both employers and the pensions industry were braced for major changes to UK pension tax reliefs in the March Budget. Yet shortly before the appointed day the Chancellor announced that no such alteration would be made. The reasons behind this decision are still not fully understood, although it seems likely that the decision was shelved until the dust had settled on the (at that time approaching) EU referendum.

Yet this was only part of the story. Pension changes were indeed avoided, yet Mr Osborne took the opportunity to instead introduce a new savings option in the form of the Lifetime Individual Savings Account (LISA). For those as yet unfamiliar with this new concept/product, please see this summary from the government website. LISA is due to commence in April 2017.

And this week the government introduced the Savings (Government Contributions) Bill including some of the proposals for LISA (and indeed another Budget savings initiative, the Help to Save scheme). So it seems clear that despite the change in government personnel – and of course the EU referendum result – both initiatives are still set to proceed.

It is therefore increasingly likely that Lifetime ISA will indeed be available to savers soon.  At present we remain some way from the final details of the offering, and it is not yet clear whether LISA will (or indeed can) fit within employer sponsored benefit offerings. We will comment on this again nearer the time of launch, and will doubtless also provide our followers with comparisons of LISA against pension savings.

It is however already clear that these new government supported options will add yet further layers of complexity to the world of workplace savings, and as such we would encourage employers to include updates on this topic within their financial education programmes for 2017. For more information on our services in this area please speak to your usual Jelf consultant.

Finally, and not least, it is worth highlighting that the drivers that nearly led to changes within the pensions tax relief system remain present. It would therefore not be unexpected if this issue were once again on the radar come the autumn Budget statement. Again, please speak to your usual Jelf consultant for more details on this issue.

As ever, we will keep you posted on all of the above here on the blog and at our ever popular Jelf Employment Seminars.


Comment: Leasehold clients need extra care

On leasehold properties, ensure the client fully understands the lease they are taking on – or they could pay a high price Recently I found myself dipping into the world of leasehold properties, after a friend inherited her parents’ large flat in a much sought-after area. The term remaining on the lease – not something […]


Keystone cuts classic range fixes by up to 0.40%

Keystone Property Finance has cut all fixed rates in its classic range by up to 40 basis points. Five-year fixed rates have been reduced by 40 basis points and now start at 3.99 per cent to 75 per cent LTV. Three-year fixed rates have been reduced by 20 basis points and now start at 4.09 […]


Coventry Building society increases B2L maximum age to 85

Coventry Building Society is set to increase its maximum age at end of term on buy-to-let lending by ten years, from 75 to 85. The maximum age for applicants will be 75. Coventry Building Society director of intermediaries Kevin Purvey says the mortgage market has to adapt to the changing needs of borrowers. “With more […]


Accord launches 10-year fix for house purchase and remortgage

Accord Mortgages has launched a 10-year fixed rate mortgage for borrowers with a 25 per cent deposit. The 2.88 fixed product can be ported to another property, should the borrower wish to move home during the allotted period. Accord Mortgages national intermediary sales manager David Robinson says: “We have launched this new ten-year fixed rate […]


News and expert analysis straight to your inbox

Sign up

Why register with Mortgage Strategy?

Mortgage Strategy continues to be the market-leading B2B mortgage publication in the UK, and provides trusted, independent insight with the aim of helping, promoting and analysing the latest developments for mortgage professionals.

News & analysis delivered directly to your inbox
Register today to receive our range of news alerts including daily and weekly briefings

Mortgage Strategy Events
Be the first to hear about our industry leading conferences, awards, webinars and more.

Research and insight
Take part in and see the results of Mortgage Strategy's flagship investigations into industry trends.

Have your say
Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

Register now