While many of us focus on drinking less and exercising more at this time of year, it is also a great time to consider your planning strategy, ensure your investments are on track and that you have the right protection and life insurance in place.

After a volatile year for the stock market in 2025, investors may be wondering whether 2026 is the year to take the plunge, particularly as the FTSE 100 climbed above 10,000 points for the first time since it was created in 1984 earlier this month.

The Chancellor would certainly approve if we did – she is said to want more of us to move our money out of cash and invest in British business by buying stocks and shares instead. In her delayed November Budget, she ended months of speculation by slashing the amount that can be saved in cash individual savings accounts (ISAs), with only £12,000 of the £20,000 allowance allowed to be held in cash accounts from April 2027. However, if the saver is over the age of 65, they will retain the full cash allowance.

While this was unwelcome news for those who prefer investing in cash ISAs, Ms Reeves had better news for farmers and business owners, announcing just before Christmas that the inheritance tax threshold for Agricultural and Business Relief will be set at £2.5 million from April 2026, instead of the previously announced £1m. While this was welcomed by many, those with a larger agricultural or business asset base will likely still have plenty of estate planning to do.

Below, we ask SPF’s Antony Cousins, Head of Wealth Management, and Life and Inheritance Tax Insurance adviser Rob May, what investors need to bear in mind this year (and beyond) and how best to prepare.

Investment – Diversification is Key

2025 was a bumpy year for investors, from Donald Trump threatening tariffs and concerns over the AI bubble. However, despite some volatility, stock markets performed strongly in 2025, with the FTSE 100 rising by more than a fifth – the question is whether it could do similar this year. However, Antony Cousins explains that while the FTSE 100 is an index of the largest UK companies listed on the London Stock Exchange, that doesn’t mean their earnings are made here: “Over 80% of the FTSE 100 is comprised of companies from overseas, so while it is performing well, it doesn’t necessarily reflect exactly what is going on in the UK.”

Antony adds that the composition of the FTSE is very “old school – financials, banking, industrials and pharmaceutical companies”. It is not that tech-heavy, making it a potential hedge for investors concerned about the valuations of tech companies.

The outlook for 2026 certainly feels more positive than the autumn of 2025, which was plagued by uncertainty amid pre-Budget speculation of a raid on the housing market in the form of higher taxes. What came to pass wasn’t as bad as many had feared or been led to believe, although there was a notable lack of encouragement or impetus from the Government to help first-time buyers – the lifeblood of the market – onto the property ladder through some form of revised Help to Buy scheme or Stamp Duty concession.

Improving transaction levels by encouraging first-time buyers to purchase their first home, enabling second-steppers and beyond to move up the ladder, is crucial to a thriving housing market which also benefits the wider economy – and we hope this is something the Government looks to address this year.

Interest Rates

With the Budget out of the way, confidence has improved now we have some clarity. A base-rate cut to round off last year – following quarter-point reductions in February, May and August – also helped sentiment.

Now that the Chancellor has delivered her second Budget, Chief Executive Mark Harris and Antony Cousins, Head of the Wealth Management team at SPF Private Clients, discuss the measures and how they might impact the housing market and our investments.

Introduction of a ‘Mansion Tax’

As widely trailed in the media beforehand, the Chancellor introduced a ‘Mansion Tax’. This will impose an annual levy on homes worth more than £2 million, hitting London and the South-East hardest. Savills estimates that over 60% of homes over £2m are in London, with just under 20% in the South-East. The Government expects this to raise around £400m to £450m per year, involving a revaluation of homes in the top council tax bands F, G and H.

With the Chancellor due to deliver her budget on 26th November, Chief Executive Mark Harris and Antony Cousins, Head of the Wealth Management team at SPF Private Clients, discuss the rumoured measures impacting the housing market and our investments, and assess what it all means.

Increase in Income Tax

In its election manifesto, Labour promised not to increase Income Tax but the dire state of the nation’s finances resulted in rumours that this promise would have be shelved. However, the Chancellor has since ruled out a hike in Income Tax. Mark Harris says: “While she would have been breaking a manifesto pledge, we feel this would have been the most prudent approach to take. It could have been positioned as a necessary yet temporary measure, perhaps something that could be repealed in a couple of years once the economy has recovered. It would quickly raise a lot of money and would be very straightforward. I don’t think anyone would have been too critical of that.”

Antony Cousins agrees: “Most people would think the fairest approach to raise money would be to add a penny or two on Income Tax for everyone, while at the same time cutting expenditure.”

Unfortunately, sticking to the manifesto promise will mean lots of tweaking of lots of taxes and upsetting a lot of people along the way, while not raising the money she needs.

Mark adds: “There is an opportunity to be bold, but fears she won’t be brave enough to take it.”

Introduction of a ‘Mansion Tax’

With an Income Tax increase off the table, the Chancellor needs to raise money by other means. A ‘Mansion Tax’ has been widely rumoured, with the suggestion of an annual levy on homes worth more than £2 million, hitting London and the South-East hardest. Savills estimates that over 60% of homes over £2m are in London, with just under 20% in the South-East.

However, while a ‘Mansion Tax’ may be popular among backbenchers, it will be difficult and time-consuming to implement, rather than a quick fix to the shortfall in the country’s finances. Properties will need to be valued and then homeowners are likely to challenge those valuations. It is suggested that such a levy might cost owners of properties worth £2.5m an extra £5,000 a year in tax, while a £3m home could generate an annual £10,000 bill. Those living in large houses who have equity tied up in their homes but don’t have cash to spare to pay an annual tax, will struggle to pay this levy.

Reforming Council Tax bands

It almost certainly looks as though there will be some changes to Council Tax. Potentially those in the top three Council Tax bands – F, G, and H – will see their properties revalued with higher levels of Council Tax introduced. However, this is unlikely to happen overnight with homeowners also likely to challenge these valuations. And the big question is whether it will raise enough money to fill the blackhole.

Capital Gains Tax on the sale of main residences

Currently, Capital Gains Tax (CGT) is payable on the sale of second homes and rental properties, but the Government is said to be considering introducing this on the sale of expensive primary homes. Critics have said this will slow down the sale of these homes, so it wouldn’t raise as much as the Government would like, and in recent weeks this rumour has died down a little, perhaps suggesting a change of heart.

Abolition of Stamp Duty

The Conservatives have pledged that they will abolish Stamp Duty if they are elected and Rachel Reeves may decide to steal their thunder. This would undoubtedly encourage housing transactions, which are essential for the overall health of the market, rather than what is happening with property values. Mark says: “Stamp Duty has become so complex and off-putting – when it was 1% for all, it was much easier to understand and not a deterrence to people moving home. Moving now is so expensive – the old days of moving round the corner to a slightly bigger property with an extra bedroom is long gone. It just doesn’t make financial sense. And yet activity in the market is so important not just to estate agents and solicitors, but mortgage brokers (!), lenders, removals people, decorators, builders etc.”

Some form of assistance for first-time buyers

Following on from the point above where transactions have slowed because of the cost of moving, another way to encourage more market activity is to do something to assist first-time buyers onto the housing ladder. Mark says: “While Help to Buy was criticised for giving homebuilders too much of a boost, a scheme which isn’t restricted to newbuild homes but enables first-time buyers with low deposits to choose between a newly built or a period home, would boost transactions and help those further up the ladder who are struggling to find a buyer. It will help jobs and social mobility which is good for the wider market and economy.”

Reduction in cash ISA allowance

Savers can currently invest up to £20,000 tax-free in any tax year in a Cash ISA but Rachel Reeves is said to want to reduce this allowance to encourage more people to invest in stocks and shares. Antony says: “The Government has to be careful – if the elderly, who lean more towards investing in Cash ISAs, are persuaded to put that money into stocks and shares, the client outcome could be considerably worse. You could end up with people getting into investments they don’t have an attitude for. This won’t be an issue for our clients as they get proper advice, but for those who only have a modest amount to invest and don’t take advice, that could be a problem.”

Cap on salary sacrifice contributions to pensions

Another rumour to emerge is a potential cap on salary sacrifice contributions into pensions. Antony says: “If a £2,000 a year cap on the amount of pension saving that can be done through salary sacrifice without National Insurance is introduced, that will put more costs on the employer which is a concern, particularly as it comes so soon after the employer NI hike in the last Budget.”

Antony says he understands charging Inheritance Tax on pensions, which was introduced last year, as pensions have only been out of the estate since 2015. “Putting them back into a person’s estate is not a great outcome, but I understand it – I don’t understand the salary sacrifice cap. This undermines the credibility of the whole pension system. It means basic-rate taxpayers will be proportionately worse off: how can that be better? It will impact a lot of people.”

However, while there have been rumours about a potential reduction in the tax-free lump sum pensioners can take at age 55 (rising to 57 from April 2028), Antony does not feel this is under threat in this Budget. That said, he says the damage has already been done. “It can now take 25 days to process a request, up from two or three days, owing to the sheer number of people who don’t need the cash, who are drawing it regardless. If the rules don’t change, they will find that they are now in a worse position. The Government should have released a statement saying it is not going to go down this route. I have been getting two or three clients a day emailing about this… it has been truly irresponsible.”

Time will tell

With just a few days to go until the Budget is revealed, at least one thing we will get next week is some certainty. But many feel that the delay in the timing of the Budget, combined with months of rumours and kite flying, means the damage has already been done. “The indecision and the worry mean many clients are not doing anything,” says Antony. “They are not moving house, corporates are not hiring – everyone is waiting to see what happens. It must be costing the Government billions of pounds, which is the one thing we know it doesn’t have.”

While it is difficult to make strategies for the future when you are dealing with the unknown, the team at SPF are here to help you make sensible decisions and react accordingly to any changes in the Budget which impact you. Get in touch for more information.

The Chancellor of the Exchequer has announced that her budget will be on 26 November 2025. While it is still some way off, there is already much speculation as to what might be included, with Rachel Reeves reportedly having a far larger multimillion-pound black hole to fill than was the case with her maiden budget a year ago.

Having ruled out raising income tax, employee national insurance and VAT, the Chancellor has not left herself with many options.

Mark Harris, chief executive of SPF Private Clients, says: “With trillions of pounds of wealth tied up in the housing market, it is perhaps unsurprising that the Chancellor has it in her sights. However, she needs to tread carefully because even rumours can have a big impact on confidence. This delay until the Budget, and all the speculation and uncertainty that will likely circulate until then, will inevitably mean that buyers and sellers put decisions on hold. Not only will this stifle activity in the housing market, it could have a detrimental knock-on effect on the wider economy too.”

Below, we run through the main changes to property taxes which are being considered.

Imposing capital gains tax on sale of high-value main homes

Currently Capital Gains Tax (CGT) is charged on the increase in value of an asset when you sell it and as far as property is concerned, it is only charged on additional or second homes with main homes exempt from the tax. By imposing CGT on pricier homes, any gains on the sale of those homes would be subject to 24% tax for higher-rate taxpayers and 18% for lower-rate taxpayers. Critics argue that charging CGT on higher-value homes would slow down the top end of the housing market, so in reality it may not raise as much money as the government forecasts.

Replacing stamp duty and council tax with an annual property tax

Stamp Duty Land Tax, which is paid on the purchase of a property worth more than £125,000, is said to reduce mobility as it deters people from moving up or down the housing ladder. The Treasury is reportedly planning to replace stamp duty and council tax with a single new property tax set as an annual percentage of the value of your home, levied on homeowners with properties worth more than £500,000.

The annual rate would be set by government but a report for Onward, a centre-right think tank, suggests it should be a 0.54 per cent tax levied on homes worth between £500,000 and 1m when bought, and a higher rate for any home valued at more than £1m. Those purchasing homes costing less than £500,000 would not pay anything.

One of the problems with council tax as it stands is that it is based on what the value of your home was in 1991, when the tax was introduced. There is much opposition to what is perceived to be the unfairness of the current council tax system whereby for example, two people with homes of the same value may end up paying differing amounts if they live in different council areas.

National insurance levy for landlords

Currently, most landlords do not pay National Insurance but the Resolution Foundation has previously suggested that all landlords pay the tax at a basic rate of 20 per cent and an additional rate of 8 per cent for property earnings above £50,270 a year. This would not apply to properties held within a company structure.

Buy-to-Let specialist Howard Levy, director at SPF Private Clients, warns that the danger of increasing taxes for landlords, who have already faced a number of changes in recent years and still have the Renters’ Rights Bill to come, is that they will increase rents, or leave the sector entirely: “While we understand that Rachel Reeves needs to raise money and is looking at all ways of doing this rather than increase taxes, any further cost imposed on landlords will inevitably be reflected in rents,” he says. “Landlords need to ensure that their business remains profitable, so any National Insurance payment would need to be factored into the rents they are charging – so would in effect end up being paid by tenants.

“The issue with targeting the private rented sector is that landlords’ net yields have already been stretched over the past few years due to taxation changes, higher costs, licencing changes and higher interest rates. Depending on how high the level of NI the Chancellor looks to introduce, we could see many smaller landlords leaving the market. The upshot of this would then be less stock available to rent which in turn would also increase rents, assuming demand remains the same.”

With so much speculation and very little detail, it would be unwise to use this as a basis for making decisions about whether to buy or sell a property. You should only act now to beat the budget deadline if you were going to move anyway.

A recent report from Henley & Partners, widely reported across the UK press, predicts a major exodus of millionaires from the UK in 2025. Many have left the UK either since, or in anticipation of, the non-dom rule changes announced last April. This was when Long-Term Resident (LTR) rules were introduced, resulting in more individuals having their world-wide assets liable to UK inheritance tax (IHT) at 40 per cent.

The prime central London property market seems to have been impacted considerably, with LonRes reporting 35.8 per cent fewer transactions in May 2025 for high-end properties compared with 2024 and 33.5 per cent fewer than the pre-pandemic average. It has even been reported that Chancellor Rachel Reeves is considering reversing or softening her changes, although many argue that the damage has been done. Reports suggest many non-doms are leaving for more tax-friendly locations such as the United Arab Emirates, or European countries like Italy or Switzerland.

But how can those who want to stay, at least for now, protect themselves from their IHT liabilities? And not just them – with further changes to the rules impacting small business owners and farmers from April 2026, and IHT being levied on pensions from April 2027, those domiciled in the UK may also wish to take a look at their own IHT planning. We asked Rob May and Henry Wood, life insurance advisers at SPF, what they are advising their clients.

Rob explains: “Non-dom clients are looking for longer-term solutions to buy them time to stay in the UK and reduce their tax exposure in the meantime.” Henry adds: “Many have children in school and don’t want to disrupt them, but they do intend to leave at some point.”

Another issue for long-term residents leaving the UK is that they have an ‘IHT tail’ of between three and ten years, depending on the length of time they have been a resident, during which worldwide assets remain within the scope of UK IHT. Rob adds: “A non-dom may have say, a ten-year-old child and wishes to stay until they have completed their schooling, so this could be a 10 to 15-year time horizon when they are UK resident and then potentially a ten-year tail from an IHT perspective where tax still applies, so they can protect that period of time via insurances.”

How Inheritance Tax (IHT) works

IHT is charged on the value of your estate when you die. If you leave everything to a spouse or civil partner, there is no IHT to pay. If you leave it to someone else, the first £325,000 of the value is free from tax; if you pass it onto a direct descendant, such as a child, you may get another £175,000 allowance on top if you have a main residence (though this allowance is reduced where the net estate is over £2,000,000). The £325,000 IHT allowance hasn’t changed since 2009. If you have a multi-million pound estate and are facing a 40 per cent tax bill, which has to be paid within six months of death arising, that can create real issues.

How life insurance can help with Inheritance Tax planning

While you can’t necessarily avoid an IHT bill, life insurance can provide a guaranteed tax-free lump sum on death (or second death) which can be used to settle it, protecting the inheritance for the family. The policy holder pays either monthly or annual premiums during their lifetime; after they die, the policy pays out to a beneficiary. If you have the right level of cover, there should be no need for your beneficiaries to sell any assets, such as property, to settle the IHT bill after you die. As a general guide, £1m of life cover will protect estates with a net value of £2.5m, ignoring any reliefs or allowances.

Planning ahead and reviewing cover

While IHT insurance solutions can be implemented after a client has left the UK, there is a much broader range of products available if they arrange cover beforehand. Henry explains: “Some of those who have left the UK weren’t aware that life insurance was an option and then it’s too late to arrange. It is about making sure people are aware of the options open to them at the time.”

Insurance can be arranged to cover the tax exposure up to a broad maximum of £150 million but the older you get, the harder it is to get cover. “Once you reach the age of 80 it gets more challenging and if you combine the client’s age and potential health issues, it might not be possible to insure them,” explains Rob. This is another reason why it’s worth consulting a whole-of-market broker such as SPF Private Clients as circumstances differ considerably –advice from someone who knows what they are doing is crucial.

Rob adds: “The benefit of working with us is that we aren’t just life insurance brokers, we are financial advisers and have an awareness and understanding of IHT more broadly, so we can establish the right amount of cover and a solution that dovetails with the client’s other financial planning.”

They also periodically revisit a client’s insurance policies to ensure the level of cover remains suitable. Henry explains: “We might do this every five years, as circumstances change – clients can inherit wealth or do incredibly well with their investments, which often means that more cover is required.”

Life insurance – cheaper today than tomorrow

With further changes on the way as to how farmers and family businesses are liable for IHT from next April, it may seem premature to act now but Rob disagrees: “All this tinkering to the rules creates inertia for planning purposes but my advice is to plan for what we think is going to happen. Get insurance in place now; if the situation changes and tax exposure is less than thought, you will pay less of a premium or can even cancel the policy. Alternatively, if you do nothing and wait until next April, who knows what will happen with your health and insurability? You might have to pay a much higher premium or not be able to get insurance at all. It is far better to put something in place as a backstop and if we need to revisit it we can.”

Henry adds that life insurance is typically cheaper today than tomorrow because the cost increases as you age. Also, one of its advantages is its flexibility so it is easy to reduce or cancel policies: “There is no charge for doing so. If you already have life cover, it is also possible to bolt a new policy on top but it’s worth revisiting existing cover first: pricing may be more competitive now, especially if there were medical concerns at the time the policy commenced. Exploring a new policy may therefore lead to better underwriting terms and therefore more competitive premiums.

Contact SPF if you want to discuss your circumstances and see how we can help.

Please note the above content is based on our current understanding of tax legislation.

A Joint Borrower Sole Proprietor mortgage enables multiple individuals (usually, but not always, parents of the offspring buying the property) to combine their incomes to help their child get the mortgage they need. Crucially, only the child legally owns the property – the parents, or assistors, are on the mortgage but not on the deeds to the property.

What is a Joint Borrower Sole Proprietor (JBSP) mortgage?

A Joint Borrower Sole Proprietor enables clients who may not be able to borrow enough on their own, have a family member or friend on their mortgage to increase their borrowing potential by combining incomes. This is most common between parents and their children. Although all borrowers are equally responsible for repaying the mortgage, the parents are not the legal owners of the property.

This is important as it avoids the stamp duty surcharge payable if you already own a property which would usually be the case if parents buy with their children as joint legal owners. Once the child can demonstrate to the mortgage lender they can afford the mortgage on their own, the parents can be removed from the loan.

Such is the demand for these products that a growing number of lenders have introduced JBSP mortgages, including some of the bigger names such as NatWest and Barclays. Tom Aydon, Mortgage Adviser at SPF says: “Not all lenders offer them, but we have seen some move into this space as demand from first-time buyers (and parents) grows and they become more popular.”

The challenges with older applicants on the mortgage

One thing to watch out for with a JBSP mortgage is that the mortgage term can be restricted by the age of the oldest applicant. Depending on the lender, some have age limits of between 70 years and 80 years old. “If we are reliant on a parent’s income to make the affordability work, and say they are aged 55, the lender might say that feasibly they can only work to age 75 so that would restrict the term of the mortgage to 20 years,” explains Tom. “Of course, the issue with shorter mortgage terms is that you have higher mortgage payments, which is why a first-time buyer in their twenties will typically take out a longer term of 35 or 40 years in order to make the monthly payments more affordable.”

“Essentially, the JBSP mortgage could been seen like an interim arrangement enabling you to get on the housing ladder and assist in those early years of home ownership when money is particularly tight,” says Tom. “The aim may be to use this as way to purchase the property, with the intention down the line to remove the parents from the loan once you are in the financial position to do so. Clients would have the opportunity to look at this for example when remortgaging at the end of the initial term (for example at the end of 2 years if you are on 2-year fixed rate product).”

Beware of the risks and seek advice

Parents going onto the mortgage need to be aware that although they have no legal ownership of the property, they are still responsible should the homeowner miss a payment. Everyone on the mortgage is underwritten so any missed payments will affect everyone’s credit rating.

That’s why lenders require independent legal advice as a requirement of taking out a JBSP mortgage so that everyone knows what they are signing up to. Tom explains: “Any person who is not going to be a legal owner needs this advice, not from the solicitor handling the legal work for the purchase, but from another independent solicitor. The lender will require a certificate to ensure that Independent Legal Advice has been received.

As one would expect, mortgage products can differ considerably between lenders, so it is important to seek advice from a whole-of-market broker such as SPF Private Clients. “Some lenders will allow up to four people on the mortgage, so a couple could buy together with a parent from each side to combine their incomes. Some lenders only accept family members as joint borrowers; others will consider friends. Some will say the family/friends can’t live in the property, other lenders don’t have an issue with this arrangement. There is no such things as the ‘best’ JBSP on the market – they all have their own quirks and differences,” adds Tom.

If you are considering a JBSP mortgage, then the right advice is crucial. Our expert team at SPF can help you find the best option for your circumstances.

Most business owners of SMEs are familiar with traditional financing options, such as business loans and credit cards, yet take-up rate is low. Figures from the UK government for Q4 of 2024 show just 46% of SMEs were using external finance, and over 50% of businesses that invest exclusively use internal or personal funds for finance.* SPF Private Clients have recently launched into the Business Finance space, with the recruitment of Tom Naidu and Craig Ashton to drive this offering into the SME market.

“There’s a whole world of alternative financing solutions that SMEs can leverage to fuel growth, manage cash flow, and navigate challenging periods” says Tom Naidu, commercial finance adviser at SPF Private Finance. “In my experience most business owners often aren’t aware of all the finance options available and so may default to the more common options such as unsecured loans or credit cards.”

Beyond the basics: Understanding your finance options as a small business

When it comes to business funding, many SME owners limit themselves to what they know. But with further investigation and a consultative approach with a broker such as SPF Private Clients, numerous alternatives are revealed. Here, we outline the principal options:

Business Loans

You can have various types of business loans, whether they’re short-term, long-term, or Revolving Credit Facilities. Most reasons for funding are to plug a gap where there is a short fall come the end of the month, where a short-term business loan or Revolving Credit Facility may be useful. If you were looking to fund an acquisition or a growth opportunity, then a longer-term business loan may be a more suitable and viable option.

Craig Ashton, commercial finance adviser at SPF Private Clients explains “Business loans can help when there is pressure on cashflow, such as paying wages, suppliers, VAT / Tax bills, stock purchases, refinancing existing debt, management buy outs, and many others. Revolving Credit Facilities is where you can payback and draw down funds throughout the term of the product.”

For businesses that take regular online or card payments, there’s another option, a Merchant Cash Advance (MCA). In this instance, it’s a loan against the income you’re generating through your online or card payments. Seasonal businesses hugely benefit from this type of product as there are no set weekly or monthly repayments, the loan is paid back through your future sales, helping you manage your loan through your quieter periods through the year or whether you simply only take online or card repayments.

Invoice Finance

For businesses struggling with cash flow due to long payment terms, invoice finance offers a powerful solution. In its simplest form, it allows businesses to secure finance against unpaid invoices, which is particularly useful for cash flow when, for example, some Debtors work to 30 / 60 or 90-day payment terms.

Tom explains “Take for example a recruitment company that provided staff for a big sports brand, working on 90-day credit terms. In this situation, a lender can step in and look to lend up to 95% of the outstanding invoice, knowing there is the security of the debtor being a big sports brand and therefore unlikely to not make payment. This gives a huge level of comfort that the invoice will be paid, therefore the loan getting repaid.”

Asset Finance

Asset finance is an option when it comes to bringing in vehicles, plant, machinery and any other tangible assets into the business. Lenders can also finance the less tangible assets such as office and shop fit outs and equipment.

Craig explains “Asset finance can be used when a business needs to fund the purchase of assets but hasn’t got the money to pay for them right now, with the asset itself serving as security for the loan. If you already have the assets in the business, then refinancing these can be a way of bringing additional capital into the business to help cashflow, whether they are unencumbered or financed already.”

Business finance can make a real difference

A consultative approach can help numerous businesses navigate complex financing challenges. “For example,” says Tom, “We’ve recently completed a loan for a business that builds and sells simulators for F1 drivers. They’re moving to a new contract with a go-karting company with centres across the UK, so they needed finance now to be able to purchase the simulator construction parts to be able to later sell them on. Instead of depleting their cash reserves, we were able to secure them finance for £250,000, and they were able to put the contracts out for the parts and pay their suppliers. The benefit being that should things go particularly well, they can pay the loan back early, but it allows them to grow the business quickly while not impacting their cash flow”.

When to consider alternative financing

According to Craig, businesses typically seek financing solutions in two scenarios: business growth, when capital is needed to fund expansion plans; and for managing overhead costs. “When businesses need to lower their overhead costs, alternative financing can help restructure existing obligations,” says Craig. “An effective ways to lower costs is to expand the terms. If a business has 12 months left on a facility, we potentially put a new facility in to pay the old one off and move it to a new five year period, which will significantly lower the monthly repayments.”

The long-term approach to small business finance options

“At SPF, we’re playing the long game and are committed to long-term partnerships,” says Tom. “We’re not just here to put a loan into a company and say goodbye. We aim to help companies expand and grow as they work alongside us so that eventually they only need us to keep their interest costs low or in exceptional circumstances.

For any businesses considering finance options, Craig’s advice is clear. “The sooner we can have those conversations, the easier our job is and often the better priced options will be available.”

By exploring the full spectrum of business financing options beyond credit cards and basic loans, UK SMEs can access the capital they need to weather economic uncertainties and position themselves for sustained growth. Contact our expert team if you would like to discuss the options for your business.

We are a credit broker, not a lender; any credit will be subject to an assessment of the customer’s financial circumstances or status.

Getting on the housing ladder is a challenge, particularly for those who don’t have financial assistance from the Bank of Mum and Dad, so plans to relax affordability requirements could encourage more activity among prospective buyers.

In her Mansion House speech, the Chancellor attempted to address the challenges by announcing plans to cut red tape in financial services. The availability of mortgages at over 4.5 times a buyer’s income is expected to create 36,000 more mortgages for first-time buyers in the first year of the changes. This comes after the Prudential Regulation Authority announced last week that lenders will be allowed to provide more high loan-to-income (LTI) mortgages, whereas this has been restricted to just 15% of their residential lending per year.

Nationwide responded by lowering the minimum income for its Helping Hand mortgage, whereby first-time buyers can borrow up to six times their income, from £35,000 to £30,000 per annum, with joint applicants now needing a combined salary of £50,000 rather than the previous £55,000. This is expected to help an additional 10,000 first-time buyers every year.
Yorkshire Building Society has also reduced the minimum income threshold for its Boost LTI product from £75,000 to £50,000, extending it to first-time buyers borrowing at 95% LTV.

A permanent mortgage guarantee scheme – Freedom to Buy – providing participating lenders offering 95% LTV mortgages with a government-backed guarantee, also aims to boost home ownership and help first-time buyers onto the ladder.

Commenting on the changes, Mark Harris, chief executive of SPF Private Clients, says: “Easing lending rules while ensuring safeguards remain in place is a sensible approach which should enable more first-time buyers to get on the housing ladder. As we know, first-time buyers are important for the overall functioning of the housing market, as they enable those already on the ladder to move further up it.”

“However, there are already a number of mortgage options at 95% LTV for buyers – the problem is that rates are considerably higher than for those with bigger deposits, and it takes us back to the issue of affordability.”

“Further rate cuts and easing affordability will assist those looking to buy or remortgage in the second half of the year. As ever, advice from a whole-of-market broker is essential to ensure you find the best mortgage option available to you.”

How to finance and insure a listed property

Buying a listed home may feel like a daunting prospect, but potential buyers may dream of owning their own little slice of history. These properties often have an important place in our national heritage with distinctive characters and features which need preserving. However, with old buildings you may find they either need repairs or renovations to allow any buyer to comfortably live in them. So, there may be added complications when it comes to raising finance and getting the right level of insurance cover.

However, with the right advice it is possible to purchase and enjoy a listed property. We spoke to Spenser Horsfall and Laura Toke at SPF Private Clients, and listed buildings insurance specialist Vikki Rushbrook at Abode, to discover what buyers need to be aware of when purchasing, insuring and renovating a listed property.

What is a listed building?

A listed building is one of special architectural or historic interest with legal protection. Being listed doesn’t mean that owners can’t make any changes or must freeze the building in time, but listed building consent must be applied for if those changes might impact its character as a building of special interest.

In England, latest figures from Historic England show there are over 370,000 listed buildings, which are Grade I, II* or II listed (separate rules and regulations apply in Scotland and Wales – contact Historic Environment Scotland or National Historic Assets of Wales for further information):

• Grade I buildings are of exceptional interest – around 2.5% of listed buildings
• Grade II* are particularly important buildings of more than special interest – 5.8% of listed buildings
• Grade II buildings are of special interest – the most common, accounting for around 91.7% of all listed buildings

Financing a listed property purchase

Broadly speaking purchasing a Grade I or II* is difficult, with many lenders not willing to lend on these properties, and often any planning and consent permissions being more difficult to obtain. However Grade II listed buildings, which make up the majority of listed properties, are typically much easier to obtain a mortgage or finance on with most lenders willing to lend.

The grade of the building will determine what you can do to it, advises Laura Toke at SPF Private Clients. “If you are purchasing a Grade I-listed building needing extensive renovation, then obtaining funding is more challenging due to the number of lenders to choose from. On the other hand, lenders are usually happy to lend on a Grade II-listed property, assuming you have the necessary consents and planning permissions in place for any work that is required.”

Spencer Horsfall adds: “If the buyer needs to do renovations, a lender will give more consideration to the application as certain materials will be required and there will be restrictions as to what can and can’t be done to keep in line with the character of the building. Costs tend to be significantly higher when it comes to renovating a listed building.”

Potential buyers should do plenty of research before buying a listed property, checking with Historic England (or relevant country authority) and a builder as to what can (and can’t) be done. It is also worth paying for a structural survey to obtain as much detail as possible regarding the age of the building and materials used, and whether there is a higher risk of damp or other potential issues. Spencer says: “It is worth paying extra for a survey which highlights potential future costs. Lenders will not insist on this, many just ask for the standard mortgage valuation, but it’s worth getting it done so you are fully aware of what you are getting into.”

Beware of rebuild costs

Buyers should also watch out for the estimated rebuild or reinstatement cost of the property, which will be detailed on the mortgage valuation, and is usually much higher than for a non-listed property. Spencer says: “I recently arranged a mortgage on behalf of a client on a Grade II-listed property, which was on the market for £1.1 million. The surveyor calculated the reinstatement value at £2.8m. We challenged this and it was amended to £1.95m – still nearly double the actual value of the property – because of the cost of specialist materials and labour required to restore the original features, which can be an expensive and complex task.” Laura adds: “Compared to non-listed buildings, the value of a listed building’s materials is relatively/ proportionally higher.”

Using bridging finance for renovations

While your listed building may not require any further renovations, many of those who buy a listed building find they need to undertake significant refurbishment and specialist advice should be sought before arranging additional finance. Laura says: “As long as the property is habitable, you can purchase it using a standard mortgage before securing a second charge bridging loan to cover the cost of the renovation. You can then remortgage to restructure the entire debt once the works are complete or sell the property and repay the loan.”

You could consider other alternatives to a bridging loan such as an unsecured loan, or a further advance from your existing lender. Spencer says: “A further advance tends to be cheaper, and you aren’t as restricted in terms of having to pay it back within a tight timeframe as with a bridging loan, which tends to have a term of 12 or 18 months.” It should be possible to borrow up to 85 per cent loan-to-value, although some lenders will go slightly higher.

Laura adds: “It all depends on what works are required – if it is something more structural, mainstream lenders might be reluctant and therefore bridging finance may be the answer. Also, if you can’t live in the property while the work is being carried out, then you will need bridging finance.”