Month: August 2018

It used to be that people’s estates could be settled in a standardised way: a search through the deceased’s filing cabinet would yield most of the information necessary to put their financial affairs in order. Their letters would still arrive through the door, allowing their family to take care of their communications after death and, where appropriate, advise their contacts of their passing.

Alas, nowadays much of our financial life takes place online – with traditional paper bank statements fading into oblivion, it can be difficult for an executor to know what accounts you hold and where to find them.

What’s more, unless you inform someone of your passwords, your email and social media accounts will become inaccessible and any information on them will be lost. Inaccessible social media accounts mean that the deceased’s family are unable to close the account or inform friends of their relative’s passing.

If we do not plan for our death we can cause our family a logistical nightmare which, on top of the emotional stress of bereavement, may be overwhelming.

That said, there are important steps you can take to help your family wind up your digital affairs smoothly.

Keep an inventory with a close friend or relative that includes the location of any digital devices you own, in addition to your USB drives and external hard drives. This should also contain a list of all your social, personal, financial and business account details, including usernames, passwords and security question answers.

Finally, some of your online accounts have features in place for the account holder’s death. Google, for instance, gives you the option to set up an “Inactive Account Manager”, a trusted contact with access to certain aspects of the account, such as Gmail or Google Drive. Features such as these give a trusted person a level of control over your digital afterlife and can lessen your loved ones’ distress at a crucial time.

If you are on a variable rate ‘tracker’ mortgage, your repayments will increase. For example, if you have a £100,000 mortgage, this will add £12 to your monthly repayments.

It’s important to highlight that if you are on a fixed rate mortgage, your payments will stay the same until your base rate comes up for renewal. The Bank of England’s announcement does not mean that your rates immediately rise.

For prospective borrowers, the interest rate rise signals a change in the Bank of England’s tone. Further rate rises are a definite possibility. However, the Bank’s governor took a rather cautious tone which indicates that there are unlikely to be any more rises until 2019.

For the time being, base rates on mortgages are unlikely to rise above 3%. That said, the demand for rate fixes will be higher than usual this year.

Unfortunately for those of you going on holiday, after the announcement the pound fell by 0.9% against the dollar. This is due to the extreme political uncertainty surrounding the sterling with Brexit taking an unchartable track.

Reactions from U.K. businesses have been a mixed bag. The Institute of Directors, which represents about 30,000 members in the U.K., has said, ‘the Bank has jumped the gun’, whilst the British Chamber of Commerce similarly described the decision as ‘ill-judged’ at an uncertain time.

This negative perspective wasn’t unanimous among all lobbying groups. The Confederation of British Industry, the country’s biggest business lobby, welcomed the rise saying the case for higher rates had been building.

A small rise of 0.25% is likely to have a minimal impact on your finances. However, larger hikes down the line could have a substantial effect on the British financial landscape.

Ultimately, it is this which will determine whether or not the pound remains weak against the Euro – something that will have a large effect on how our future holidays feel.

In light of all this dreary information, looking outside of the eurozone for your future holidays may be your best bet for your wallet.

This is because the pound has not fallen equally against all currencies. In fact, it has actually gained against some. These countries are generally long haul destinations, although there are a few closer to home.

For instance, since Brexit, the notoriously flukey Argentine peso has fallen 72% against the pound. So, if you want a really good value holiday, your best bet is a 14 hour flight to Buenos Aires.

For those of you who prefer culture and history to warm seas and white sand, Russia should be on your agenda. E.U. and American sanctions have hit the Russian economy hard since part of their Army “accidentally” invaded Ukraine in 2014.

This has meant Sterling has gained 13% on the Ruble, excellent for those of you who don’t mind swapping St Petersburg for Santorini.

Closer to home – but equally lacking in quality sunbathing – Iceland is significantly cheaper than it was a year ago: The Icelandic krona has fallen by 11% on the pound.

Traditionally pricey Switzerland is also cheaper than usual. The Swiss franc is 7% weaker than it was a year ago. If skiing is your thing, the sliding franc makes Switzerland a viable option.

Unfortunately, landlocked Switzerland and freezing Russia and Iceland have very little to offer those of you who want a beach holiday.

Luckily, the pound has risen by 10% on the Indian rupee, so the sandy beaches of Goa and Kerala are an affordable option. What’s more, the Brazilian real is 18% weaker than it was last year. So, for those of you hankering for warmer climes, these may be your best bet.