How do we close the advice gap?

That’s the million-dollar question I’ve heard debated time and again since I joined Money Marketing.

The consensus is that artificial intelligence and the introduction of new technology will free up advisers’ time and enable them to take on and serve more clients.

But could it be the banks that hold the key to closing the gap?

After the Retail Distribution Review was introduced in 2012, most UK banks stopped offering financial advice to all but their wealthiest clients. This was mainly due to the higher risks and costs now involved.

If this means that more people can get access to financial advice, it’s not necessarily a bad thing, says Ball

Their departure created a big opportunity for Hargreaves Lansdown, St James’s Place and other wealth managers. But the tide could now be turning.

In August, HSBC announced plans to double its assets under management to £100bn and become one of the top-five wealth managers in the UK in the next five years.

“In order to fulfil this vision, we are growing our national team of wealth advisers and relationship managers at scale,” it said.

But it’s not just HSBC. Barclays and Lloyds have also made moves back into wealth management. And, according to two experts, that can only be a good thing.

Mass-affluent market

Many advice firms no longer touch anyone with less than £250,000 in assets because it is not profitable for them to do so.

So, could banks help solve the problem? Hoxton Wealth chief executive Chris Ball believes so.

We should embrace the banks with open arms if we really want to close the advice gap

“These banks are focusing on the ‘mass affluent’ market — as in people with £75,000 to £250,000 in deposits,” he says. “There’s a massive opportunity here, because this group of clients need advice nearly as much as the ultra-high-net-worth individuals do.”

NextWealth managing director Heather Hopkins agrees.

“NextWealth research shows that the average portfolio size for financial advice firms is over £400,000. There is a huge, untapped market out there,” she says.

“One of the challenges we face as a nation is that people don’t seek out advice. The more firms that shout about the value and availability of advice, the more people will seek it out.”

The resurgence of the banks may put some wealth managers’ noses out of joint, but Hopkins says they needn’t worry.

Many advice firms no longer touch anyone with less than £250,000 in assets

“Demand for advice far outstrips supply, so I don’t see banks competing with traditional wealth managers.”

Ball agrees that banks do not pose a threat.

“If it means that more people can get access to financial advice because the banks make it cheaper to do so, I don’t necessarily see that as a bad thing.

“As a profession, we should really focus on the positives of what we are doing and not the negatives of what the banks are doing.”

Independence

Ball thinks the banks will have tied products, and “a lot of it will be around product sales rather than giving proper, holistic financial planning”.

The resurgence of the banks may put some wealth managers’ noses out of joint, but Hopkins says they needn’t worry

Therefore, his message to wealth managers is simple: “Keep doing what you’re doing — giving great, independent financial advice. That independence bit, I think, will be key.”

The Lang Cat consulting director Mike Barrett agrees.

“For these types of services, advice is rarely the product. It’s about the banks wanting to sell more of their own funds.

“As a consequence, the vast majority of the advice profession should have nothing to fear from these offerings.”

When I spoke to the FCA’s Nick Hulme, head of advisers, wealth and pensions, he told me the regulator was open to banks entering the sector.

“Financial advisers can do their bit — they are already active in the market and very knowledgeable.

It’s not just HSBC — Barclays and Lloyds have also made moves back into wealth management

“If there are other players that are going to come in to help reduce that advice gap, which this country really needs, then we’re agnostic to who that is.”

Hulme added that the regulator was “absolutely on board and behind anyone with the right intentions and motives”.

As for an old friend we haven’t seen for a while, we should embrace the banks with open arms if we really want to close the advice gap.

Dan Cooper is news editor

This article featured in the November 2024 edition of Money Marketing. 

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MCDONALD’S is shaking up its menu and launching a festive-themed range including two new items within days.

The chain is unveiling 12 items in total on November 20 and some old favourites including the Big Tasty and Cheese Melt Dippers are back.

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But when I got to visit McDonald’s HQ in London to try the new festive range yesterday, I had the two newbies in my sights.

The duo in question were the new Cheesy McCrispy and Terry’s Chocolate Orange Pie.

Shoppers will be able to get the Cheesy McCrispy from £7.79, while the Chocolate Orange Pie will be on sale for £1.99.

The first comes with a chicken breast fillet in a crispy coating served with lettuce, crispy onions, pink pickled onion chutney, bacon, two slices of cheese and cheese sauce.

The latter combines crispy chocolate pastry with the classic Terry’s Chocolate Orange-flavoured ganache filling – a blend of chocolate and cream.

How did they taste though? Here’s what I thought.

Cheesy McCrispy

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The Cheesy McCrispy is a twist on the classic McCrispy, except it comes with a load more ingredients like crispy onions, cheese slices and pink pickled onion chutney.

I was a big fan of the McCrispy when it was first released because of its simple list of ingredients.

So when I was first handed the Cheesy McCrispy, my first thought was how overloaded it looked.

I tucked in, and while the chicken was crispy and cheesy sauce added a nice gooey texture, I felt there was just too much going on.

And even with all the ingredients packed in, the burger was lacking overall depth in its flavour.

I can see what McDonald’s is trying to do with the burger in giving the McCrispy a gourmet uplift, but it wasn’t for me.

Terry’s Chocolate Orange Pie

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I’m a big fan of Terry’s Chocolate Orange, particularly at Christmas, and was excited to see how this hybrid item would taste.

One concern was that it would be far too sweet, though.

So, I was pleasantly surprised when, after taking a first bite, it was pretty delicious.

The crunch of the chocolate coating and the gloopy, warm Terry’s Chocolate Orange-flavoured ganache spewing out made for a nice textural contrast.

The sauce had just the right amount of orange flavour to it without being too zesty and overpowering.

If I had to choose between this, and the original Terry’s Chocolate Orange, I’d definitely go for the McDonald’s pie.

How did everything else taste on the Christmas menu?

Ten other items are returning back to menus from November 20, but I hadn’t actually tried all of them before so was keen to give them a go.

First, were the Camembert Cheese Melt Dippers, which come in two sizes costing £2.49 and £6.79

They were a definite stand out for me – the salty Camembert cheese wrapped in crunchy coating with smoky Rich Tomato Dip made for the perfect, moreish combination.

They’re ideal if you’re looking for a quick cheap bite as well as the cheapest savoury item on the Christmas menu.

The returning Big Tasty with bacon hit the spot too, with the smoky sauce, fresh tomatoes and beef combining for a tasty burger, but it was hard to keep all the ingredients from spilling out.

McFlurry fans will be keen on the returning Galaxy Caramel McFlurry, which costs up to £2.19.

Two of the returning items that were a big no from me though the Galaxy Caramel latte and Galaxy Caramel Hot Chocolate, both priced at £2.69.

The hot chocolate was rich and velvety but, with the cream on top, just far too sweet and I couldn’t stomach more than two or three sips.

The same went for the Latte, which was just far too sickly to even consider finishing the whole thing off.

In other news, McDonald’s has brought back the McRib after 10 years.

Plus, it recently unveiled the Double Chilli Cheeseburger in restaurants. Customers can get the item for around £2.49.

How do I find my nearest McDonald’s?

If you’re planning on taking a trip to McDonald’s, you’ll want to know where your nearest branch is.

The chain has a restaurant locator tool on its website you can use to find your nearest one – and check what time it opens.

Bear in mind that McDonald’s serves breakfast every day until 11am.

After that, the menu switches to the normal menu serving meals such as burgers, chicken nuggets and more.

Do you have a money problem that needs sorting? Get in touch by emailing money-sm@news.co.uk.

Plus, you can join our Sun Money Chats and Tips Facebook group to share your tips and stories

GETTING a foot on the property ladder can often feel like a pipe dream for many, but there are many schemes available to make it easier.

A shared ownership scheme can help you to buy a home of your own even if you think you cannot save for a deposit or keep up with mortgage payments.

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Instead, you can buy a share of the property and pay rent to a landlord on the rest.

You can apply if your household income is £90,000 a year or less in London or £80,000 a year or less in the rest of the UK.

More than 103,000 shared ownership homes have been built and sold in the last decade, according to the National Housing Federation.

However, experts have warned that shared ownership comes with several hidden dangers such as high service charges, short leases and even the risk of being evicted.

Here, we explain the positives and negatives of shared ownership so you can decide if it is right for you.

Benefits

Low deposit

One of the big advantages of shared ownership is that you only need a small deposit.

This is because by owning a share of a property rather than the whole thing you can apply for a smaller mortgage.

For example, if you want to buy a property worth £250,000 then you would need a nest egg of £25,000 to put down a 10% deposit.

But if you buy a 45% share in a shared ownership property worth £250,000 then you would only need to save £11,250 for a deposit.

Some shared ownership properties will also let you put down a 5% deposit.

For the same house this would mean saving just £5,625.

Do not need to be able to afford the whole house

Another benefit of shared ownership is that you do not need to be able to afford the full market value of a property you are interested in.

Instead, you buy a share of the total property, which is usually between 25% and 75%.

But you can buy a share worth as little as 10% on some homes.

For example, if you want to buy a 10% share of a property worth £300,000 then you would need to take out a mortgage for just £30,000.

The smaller your mortgage the lower your monthly repayments will be.

Increase the proportion you own over time

You can increase the amount of the property you own up to 100% through a process known as “staircasing”.

You may want to do this if your circumstances change, for example if you get a pay rise or are given some money from a friend or relative.

For example, you could start by buying a house with a 25% share then staircase to 50%, then 75% and finally buy the whole home.

Usually you can buy shares of 10% or more at any time but this will depend on your lease.

Some older leases may only allow you to staircase by 25% or more but newer leases may let you buy shares for as low as 5%.

Every time you staircase the housing association will carry out a property valuation of your home. 

This is to ensure that you buy each share at the current market price, not the price at the time you bought the first share of your home.

If the value of your home has risen this could mean that you pay more for additional shares in your home than you did in the first share.

You will also need to remortgage, which is when you take out another mortgage with a new lender or stay with your existing one.

Meanwhile, you will also have to pay stamp duty on the whole value of the property when the portion you own equals or exceeds 80%.

This could cost you thousands of pounds on top of the cost of buying additional shares.

Mobeen Akram, New Homes Director, Mortgage Advice Bureau, warned: “If you increase your share through staircasing, your rent will decrease but the other fees will likely remain the same.

“You may also need to pay additional costs associated with getting a mortgage when you staircase, such as valuation fees and legal costs.”

Value of the portion of your home you own may increase

House prices constantly go up and down depending on the property market.

Usually house prices grow steadily over time, which could mean that the proportion of the home you own may also increase in value.

If this happens then you have built up equity in a property, which you could use to take the next step on the property ladder.

For example, if you bought a 50% share in a property which is in total worth £300,000 then your share is worth £150,000.

If the value of the property increases by 10% then its new market value will be £330,000.

Your share is still 50% but it is now worth £165,000.

Drawbacks

High ground rent and service charges

When you buy a shared ownership home you usually need to pay a service charge which covers the cost of cleaning and maintenance.

This can be charged monthly, yearly or twice a yearly.

You can ask your landlord for a summary showing how the charge is worked out and what the money is spent on.

The cost of the service charge does not depend on the share of the property you own.

This could mean that even if you own a 25% share you will still pay the same level of service charge as someone with a 75% share.

The initial service charge fee is also not fixed, which could mean that the cost soars after a few years.

Beware of short leases

Shared ownership properties are leasehold, which means that you own the building for a set number of years.

Unlike freehold properties, you also do not own the land that it is on.

When the term of the lease expires, the property will belong to the landowner unless you extend the lease.

Applying for a lease extension from your landlord could cost tens of thousands of pounds.

As the number of years left on the lease gets shorter the property becomes harder and harder to sell.

You could be forced to reduce your asking price to encourage someone to buy the property.

It may not be cheaper than getting a mortgage

High monthly mortgage payments and rent could mean that you do not save any money compared to just getting a mortgage.

Typically, your annual rent is charged at 2.75% of the portion of the property that you do not own.

For example, if you bought a 25% share of your property, your monthly rent would be 2.75% of the remaining 75% share.

If you buy a new-build shared ownership home then the rent limit is 3% of the value of the share the landlord owns.

But for resale homes the starting rent will be set at the same level as the previous shared owner was paying.

The landlord will review the rent at a time set out in your lease, which is usually once a year.

The rent may go up when it is reviewed but it will not go down.

You are still a tenant

As you pay rent on the portion of the property you do not own you are still a tenant of your landlord.

This means that you could be evicted on many grounds, for example if you fail to pay rent, sub-let your home or are a nuisance.

If you are evicted then there is a risk that you could lose the proportion of the home you have already bought as you do not own it fully in the eyes of the law until you have staircased up to 100%.

The housing association is not legally obliged to reimburse you if you are evicted.

Instead, you are only legally entitled to be paid for your share on the sale of the property.

You must make sure that you can afford your mortgage payments and rent before applying for shared ownership.

Do you have a money problem that needs sorting? Get in touch by emailing money-sm@news.co.uk.

Plus, you can join our Sun Money Chats and Tips Facebook group to share your tips and stories

IT’S a service used by more than four million people nationally that radically changes lives, but youth work remains one of the UK’s most underrated careers.

The sector currently employs around 70,000 people in 8,500 organisations, helped by an army of 180,000 volunteers.

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Taking place in youth clubs and other community settings, youth workers provide support, guidance, life and employability skills for young people aged eight to 19, and young adults up to the age of 25 with additional needs.

Despite demand for youth work services rapidly rising — with two-thirds of organisations reporting more young people turning to them – most are struggling to attract new staff.

Budget cuts mean 4,500 jobs have been lost and 760 centres closed in the last ten years because of lack of local authority investment.

However, the new Government has pledged to rollout a “young futures programme”, which will need an influx of new workers to help young people.

This week is National Youth Work Week, which aims to raise awareness of the life-changing difference youth workers make to young people.

Jamie Masraff is CEO of national youth charity OnSide, which builds multimillion-pound “youth zones” in disadvantaged areas.

He explains: “With so many young people facing anxiety, loneliness and isolation, youth workers have never been more important.

“Youth Work Week celebrates the crucial role youth workers play and highlights how rewarding a career it can be.”

Harry Wills knows how important youth workers can be for young people because they gave him the support he needed as a teenager.

The 31-year-old from West London is now a manager at OnSide’s WEST Youth Zone, based in White City, London, which has more than 2,500 members.

Harry said: “When I was 13, I was getting in trouble at school and was placed in foster care. I felt overwhelmed and worried that my carers might stop looking after me.

“My local youth club was a safe, consistent space in my life and the youth workers were the trusted adults I needed.

“I tried a few different jobs until my social worker suggested a youth work apprenticeship.

“On my first day in the job everything clicked into place. I love helping to build young people’s confidence, helping them on their way to finding out who they want to be, there’s nothing more rewarding.”

There are three main ways to become a youth worker.

Most people begin by volunteering with a local organisation.

To become a youth support worker, you need a Level 2 or 3 certificate, or a Diploma in Youth Work Practice.

These qualifications are great for people already working in a youth setting.

To be a professional youth worker, you’ll need to study for a Level 6 qualification, including the newly launched Level 6 Youth Worker Apprenticeship.

As well as changing lives for the better, youth work can also provide a long-term career.

A recent study by the National Youth Agency, the national body for the profession in England, found that more than half of youth workers have worked in the sector for ten or more years, while 37 per cent are highly qualified professional youth workers.

NYA boss Leigh Middleton said: “There have been some huge challenges, but we are beginning to see a step-change in how youth work is perceived and valued.”

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easyJet proves a force for good

IT’S Remembrance Sunday this week, when we honour the sacrifices made by our Armed Forces.

Around 20,000 people leave the forces each year, equipped with highly transferable skills.

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To support these service leavers, easyJet has now teamed up with ex-forces employment platform weServed to hire morte veterans.

Hugh Andree, of weServed, said: “We’re proud to help create a pathway for UK veterans to explore new job opportunities, from aircraft engineers to cabin crew.”

The campaign is backed by former SAS hero, turned novelist, Andy McNab, who said: “We know it can be a challenge for veterans to find the right career fit.

“But easyJet understands the value of their skill sets and can support them with new and rewarding career journeys.

Time for serious payback

A THIRD of people are seeking to switch to a career with more purpose, with helping others to improve their lives the most popular route.

Careers expert John Lees is working with the Probation Service to promote the role of Community Payback supervisors, who support offenders to improve their communities.

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Here are John’s tips to find a more purposeful career.

1. Find your passion: Understanding what gets you out of bed in the morning is crucial if you’re looking for a career with more purpose.

2. Take some time to list things you’re passionate about and you can find a career that fits almost any passion.

3. Identify transferable skills: Your previous experience can be of use in a totally different industry. For example, if you’ve worked in customer service it is likely that you have the skills to diffuse situations and communicate with empathy.

4. Be creative: Your next role might not be obvious, and you’ll need to think creatively about how you can pair your passion with your career. If you love the outdoors, why not consider a role in Community Payback, where you’ll be able to spend time in nature while you give back to your community.

5. Become your own biggest advocate: Be confident in selling yourself. Note three key skills you have and practise discussing these, then, look through the job description and pick out three requirements for the role that you have experience in. Being able to discuss these with confidence will give you a great chance in any interview.

6. Take your time: The biggest mistake people make when changing careers is making a rushed decision. Take time to consider your options and lean on people close to you who can act as a sounding board.

• Search Community Payback jobs online to find out more

ALDI fans are running to stores to get their hands on 99p packs of Jaffa Cakes that are a very surprising flavour.

A savvy sweet treat fan shared the bargain find on the popular Extreme Couponing and Bargains UK Facebook group, where users frequently post the best deals they find in stores across the country.

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The shopper raved after a country-favourite biscuit – or cake – scanned for only 99p in a “lush” flavour.

Bargain supermarket Aldi are selling Belmont cherry bakewell flavoured Jaffa Cakes – and customers can’t get enough.

The treats appear to have a white icing on the top with stripes of chocolate.

And then the inside is filled with what looks to be a cherry jelly.

The shopper’s Facebook post to the UK bargain group received hundreds of likes and comments from fellow chocolate fans.

One user said: “Yes please!”

Another commented: “These look lovely.”

And: “I need them!”

Others were tagging their friends, saying “these have your name all over them!”

Another user commented: “Bet these are nice.”

It comes after Aldi confirmed it axed a popular chocolate treat.

The poster wrote: “Please don’t say that you have discontinued the Moser Roth vegan blonde chocolate??”

The fan favourite, part of Aldi‘s chocolate line Moser Roth, is a white organic cocoa bar made with rice powder and almond paste.

The 100g bars, which are sold out on the Aldi website, sold for £1.49 each.

The poster added: “There are literally forums dedicated to how amazing this chocolate is. Everyone is trying to get hold of it…. Please bring this back!”

An Aldi spokesperson replied to the disgruntled vegan, confirming that the chocolate had indeed been permanently removed from supermarket shelves.

The comment read: “We can confirm this product has been discontinued. We will certainly pass on the love for this product back to the relevant team.”

However, the original poster was left unsatisfied, adding: “Aldi was building a really good reputation for vegan and free-from — but unfortunately in the last 6 months or so that’s no longer the case with more products disappearing.

“Tesco has sadly now taken over this crown.”

To this, the spokesperson reiterated that they were “sorry again for any disappointment caused”.

The update comes after the budget supermarket chain was also forced to axe its much-loved Salted Caramel teabags, which scanned for just 69p a pack.

How to save money on chocolate

We all love a bit of chocolate from now and then, but you don’t have to break the bank buying your favourite bar.

Consumer reporter Sam Walker reveals how to cut costs…

Go own brand – if you’re not too fussed about flavour and just want to supplant your chocolate cravings, you’ll save by going for the supermarket’s own brand bars.

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Shop around – if you’ve spotted your favourite variety at the supermarket, make sure you check if it’s cheaper elsewhere.

Websites like Trolley.co.uk let you compare prices on products across all the major chains to see if you’re getting the best deal.

Look out for yellow stickers – supermarket staff put yellow, and sometimes orange and red, stickers on to products to show they’ve been reduced.

They usually do this if the product is coming to the end of its best-before date or the packaging is slightly damaged.

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Buy bigger bars – most of the time, but not always, chocolate is cheaper per 100g the larger the bar.

So if you’ve got the appetite, and you were going to buy a hefty amount of chocolate anyway, you might as well go bigger.

A FILTHY property has sold for more than £50,000 more than its estimated price at an auction despite rubbish piling up to the windows

A house with waste filling up half the entire room has sold for an eye-watering £153,000 when it’s original price was £100,000.

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The three-bedroom property in Keighley, West Yorkshire, was put up for auction with rubbish strewn all over the place.

In some pictures of the place, bin bags full of waste were piled up – some so high they were reaching the windows.

The house immediately caught the attention of social media and users were quick to comment on the revolting state of it.

One wrote: “Is that one of the council owned skips their closing down?”

Ander added: “Councils should make tenants to pay rubbish they leave behind, they know who they are, don’t waste taxpayer’s money.”

A third user was shocked at the guide price, not knowing it was be increased another £50,000 saying: “£100k they are having a laugh.”

The terraced house on Scott lane is completely filled with old appliances and hundreds of deteriorating carrier bags filled to the brim with rubbish.

On Right Move the listing had stated the filthy property was a nice “renovation project.”

As a semi-detached dwelling that was completely trashed it would certainly need a lot of time to repair.

The listed stated: “Requiring a full scheme of renovation.

“Arranged over two storeys, the property offers three bedrooms and also benefits from gardens to the front and rear and a rear garage, as well as its sought-after location.

“Once renovated, the property would make a pleasant family home.”

Right Move made it clear that the rubbish would not be removed before the property is purchased and is “sold as seen.”

The house was bought by Bradford Council with a compulsory purchase order (CPO) and said the owner had made “very little contact” before it was bought.

It had been stood empty since at least 2014 despite numerous attempts to contact the owner.

The decision for a CPO is made by the Government office and tends to be used a last resort.

In this case it was necessary ass the house was empty for so long and was considered “wasted” in a time of much needed accommodation.

A council spokesperson said: ” “Empty properties are risk assessed by the council, taking many factors into account, and CPO action is only pursued where the council has sufficient evidence to demonstrate that unless it intervenes, the property will remain empty.

“If successful, the council sells properties acquired on the open market, in their current condition so as to avoid incurring any further costs and so as to use public funds responsibly, and this is understandably reflected in the sale price.”

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