Topic 5

Question 1

How do state benefits affect financial planning

Answer 1

State benefits can affect the need for financial planning essentially the difference between the level of income or capital required and the level of cover already available

Financial circumstances can affect entitlement to benefits as certain benefits are means tested

Question 2

What is support for mortgage interest loans

Answer 2

Support mortgage interest loans will pay interest on a mortgage up to an upper threshold payment is made direct to the mortgage lender at a standard mortgage rate that may be more or less than the actual rate on the mortgage

Question 3

How is a support for mortgage interest loan secured

Answer 3

A support for mortgage interest loan is secured on the property by way of a second charge and is subject to interest

Question 4

When is a support for mortgage interest loan repaid

Answer 4

The loan is repaid when the property is sold or ownership transferred

Question 5

What is the triple lock guarantee

Answer 5

Once in payment both basic state pension and the new state pension increase each year by the higher of

earnings measured by the average weekly earnings index
Prices brackets CPI
2.5%