Q&A

Mortgages

• What will happen to my current mortgage rate?
If you are on a fixed rate this will not change for the duration your fixed rate lasts.

• My mortgage rate is due to expire within the next 6 months – what should I do?
Make an appointment with your IQ adviser as soon as possible. In most instances we can pre-book a rate based on today’s rates that will take effect when your current rate ends. This provides protection should rates increase further by the time your rate ends, which may happen if you leave it too close to your current product end date. You will not switch until your current rate ends and therefore will not incur any early repayment charges.

• My mortgage rate is not due to expire within the next 6 months – what should I do?
It is recommended that you stay on your current deal and contact your IQ adviser 6 months before the product end date.

We have had clients ask whether it is best to switch rates now and pay an early repayment charge and the most common answer is no. By the time you take into consideration the increase in monthly repayments you would incur between it starting and the end of your current deal and then add on any early repayment charge, it can often leave you in a worse position than sitting tight and reviewing within the 6-month period. Of course, everyone’s situation is different so if you do feel concerned just contact your IQ adviser.

Protection

• I have income protection / mortgage protection / family protection – with everything rising should I cancel these?
Our advice is absolutely do not cancel any protection you have for your income, mortgage or children before speaking to your IQ adviser. These type of policies premiums typically increase based on age each year so it’s very important to take advice before making any changes. To replace the same cover in future you will most certainly pay more and may not even be able to get the same or any cover if you had changes to your health.

With critical illnesses on the rise, this type of cover is more important than ever! If you are concerned, please contact us. We can always review the protection you have in place and see if we can arrange your cover to suit a different budget if required – best advice in this area is just chat to us and let us know your concerns.

• I didn’t take cover when sorting my mortgage – with how things are now, I am panicking, is it too late to sort?
We have had numerous clients panic that with how things are, they now want assurance that they and their family are protected. We can arrange protection for you at any stage so if you feel you would like to sort cover or look to take some additional family protection just speak to your IQ adviser.

Pensions

• I’m not sure if I should be speaking to IQ about my pension / retirement planning. How do I know if this is something I should be looking at?

Old Pension Pots
If you have moved employers in your adult life, it is likely you have old pension pots. These pots still have a value and are being invested. Most clients do not know what their pension values are, how they are being invested or what they are paying in charges for their pensions. It makes sense to sit down and get a review of these pots with your IQ Wealth Adviser in order to make sure your money is working in the best way for you.

Self Employed
If you are self employed and have no pension this is something you should be looking at. Leaving your retirement planning too late can have a massive impact on your retirement income. If you are a Director of a company, it’s important to consider pensions as part of effective tax planning as pensions can often be a good tax saving exercise.

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

The value of an investment with St. James’s Place will be directly linked to the performance of the funds you select and the value can therefore go down as well as up.  You may get back less than you invested.

The levels and bases of taxation, and reliefs from taxation, can change at any time. The value of any tax relief depends on individual circumstances.