2022 Financial Year

2022 Financial Year Recap & Our Holiday Hours

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The 2022 financial year has been a roller coaster

2022 really has been a tale of two halves. The first half of the year was a carry on from the bustling and busy marketplace of 2021. There was financial recovery and a lot of activity in the property market. The Bank of England had already started raising rates but it was at such a slow rate that it didn’t really impact the market. The 2022 financial year then got a very sharp adjustment in the second half of the year. With war in Ukraine, global supply chain issues & skyrocketing fuel prices to say the least, this then caused inflation to spiral out of control.

With this record inflation not seen for decades came interest rate hikes at a rapid rate. This is the bank’s way of trying to ease inflation. All in all, this caused a lot of turbulence in the property markets which then was not helped by the Autumn mini budget sending swap rates through the roof. Off the back of this we saw lenders withdraw from the market all together and send rates through the roof. Compared to the first half of the 2022 financial year this was somewhat of a circus. Luckily the new government led by Rishi Sunak and chancellor Jeremy Hunt has brought some calm and consistency into the end of the year.

Our thoughts heading into 2023

Wouldn’t we all love to have a crystal ball at this stage? With the cost of living crisis, high interest rates, a slowing property market & turbulent markets it’s really a tough one to predict. There’s a few constants that we can sort of rely on though. Inflation can’t last forever. When it does eventually come down, you will see rates start to calm and the property market in particular start to level out. There is bound to be a market correction in property prices. Lending has just gotten twice or even three times more expensive in the last six months. With that, people’s budgets are squeezed and moves that seemed easy are no longer going to be affordable for families. This drop in demand will inevitably create a drop in prices as sellers seek to find buyers at a price that suits their new budgets.

How long will a price correction last and how much will the property market drop? It’s hard to gauge. There are so many factors at play that you can’t really give an accurate prediction on that. Although some will definitely try. In terms of investments and pension side of things, the higher bank of england base rates will see savings rates increase. You will get slightly more bang for your buck in terms of savings accounts. Will this be enough to beat inflation? Almost certainly not. Consulting an investment and pension advisor for a bespoke plan for your wealth is always the best way forward.

The need for professional advice

Now more than ever, there is a real need for proper advice. The news have done a great job at creating fear and uncertainty in the markets. We understand that this can all be quite overwhelming. That’s why it’s so important to pick up the phone or arrange a meeting with one of our advisers. In this market there is nothing better than someone who has their ear to the ground and knows the market. With our over 40 years of combined experience there is nothing we haven’t seen. Speaking to a real person can help calm those nerves and provide you with clarity going forward.

Get in touch with us and we are happy to speak to you. Our advisors are on hand and will happily speak over the phone or in person. The initial consultation is always free of charge and you can pick our brains on subjects from mortgage rates, to the housing market right through to how best to invest your money to escape inflation.

Office hours over the festive period

We will be closed on all of the bank holiday’s as you would expect. Ashley will be off as of Friday 16th December and will not return until the New Year on 3rd January. He will be contactable by mobile and sporadically checking emails but don’t expect too much from him. He’s trying to wind down after a busy year! Tony & Sue will still be around the home office but understandably will be having days off here and there.

Regulatory Statements

Equity Release

Equity Release plans are not right for everyone. And it is important that you fully consider your options and receive independent financial advice before making a decision. It is also important that, if you do decide to use an equity release product, you choose one that meets your needs.

Remember that taking an equity release plan is generally a long term option. However, there are flexible plans available that may fit your varying needs and some will allow you to repay in the future without penalties.

Buy to Let Mortgages

Some Buy to Let Mortgages are not regulated by the FCA.

Mortgages

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE

Investments

All investments involve a degree of risk of some kind. This section describes some of the risks which could be relevant to the services we provide you. We may provide further risk information during the course of our services to you, as appropriate.

Our services relate to certain investments whose prices are dependent on fluctuations in the financial markets outside our control. Investments and the income from them may go down as well as up and you may get back less than the amount you invested. Past performance is not a guide to future performance.

True Advice Financial Services is a trading style of TA and SE Hollom Ltd. Which is an Appointed Representative of New Leaf Distribution Ltd. Which is authorised and regulated by the Financial Conduct Authority : Number 460421.

Registered Office : New Leaf Distribution Limited, 165 – 167 High Street, Rayleigh, Essex, SS6 7QA

Ashley Hollom
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