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Hi everyone! 
Welcome to the December edition of our newsletter which revolves around family with a delve into 'Investing for the Next Generation' and a look at how the interest rate changes have affected the housing market.


Investing for the Next Generation: A Guide from Danbro Financial Planning

In today's rapidly changing financial landscape, investing for the next generation has become more critical than ever. Here at Danbro Financial Planning we understand the importance of making informed investment decisions to secure a brighter financial future for you and your loved ones. In this article, we will guide you through the key principles and strategies for successful long-term investing, tailored to the unique needs of the next generation.

Setting Clear Financial Goals

The first step in investing for the next generation is setting clear financial goals. Whether you are saving for your children's education, a down payment on a home, or your retirement, having well-defined objectives will provide you with a roadmap for your investments. Consider both short-term and long-term goals to strike a balance between meeting immediate needs and building wealth for the future.

Establishing an Investment Time Horizon

Investing for the next generation involves a longer time horizon than many other financial goals. With the potential to accumulate wealth over decades, it's essential to choose investments that align with your time frame. At Danbro Financial Planning we often recommend a diversified portfolio of stocks, bonds, and other assets to help weather market fluctuations and take advantage of compounding over time.

Embracing a Long-Term Perspective

One of the most valuable lessons we share with our clients is the importance of a long-term perspective. The stock market can be volatile, and short-term fluctuations are a natural part of the investing journey. Staying focused on your long-term goals and not reacting to every market hiccup is key in building wealth for the next generation.

The Power of Compound Interest

Compound interest is a powerful force that can significantly impact your investment returns over time. By reinvesting your earnings, you can see your wealth grow exponentially. As independent financial advisors, we often stress the importance of starting early to take full advantage of compounding. Even small, regular contributions can make a substantial difference in the long run.

Diversification and Risk Management

Diversification is a cornerstone of successful investing. Spreading your investments across different asset classes can help mitigate risk and protect your portfolio from severe downturns in any one sector. A well-diversified portfolio can provide stability while still allowing for growth opportunities.

Tax-Efficient Investing

Tax efficiency is another critical aspect of investing for the next generation. In the UK, there are various tax-advantageous accounts, such as ISAs (Individual Savings Accounts) and SIPPs (Self-Invested Personal Pensions), which offer tax benefits for long-term investors. As an independent financial advisor, I can help you make the most of these tax-efficient investment options to maximise your returns.

The Financial Conduct Authority does not regulate Tax advice.

Regular Portfolio Review and Rebalancing

Your investment portfolio should evolve over time to reflect changes in your financial situation and goals. Regularly reviewing and rebalancing your portfolio is crucial to ensure that it remains aligned with your objectives. As independent financial advisors, we can help you make necessary adjustments to stay on track.

Teaching Financial Literacy

Investing for the next generation is not just about accumulating wealth; it's also about passing down financial knowledge. Educating your children and grandchildren about financial literacy and responsible investing can empower them to make informed decisions about their financial future. It's an investment in their financial well-being that can pay dividends for generations to come.

Ethical and Sustainable Investing

An increasing number of investors are prioritising ethical and sustainable investing. By aligning your investments with your values, you can make a positive impact on the world while growing your wealth. We can help you explore sustainable investment options that resonate with your principles.

Seek Professional Guidance

Finally, investing for the next generation can be complex, and the financial landscape is constantly evolving. Seeking professional guidance from an independent financial advisor can provide you with the expertise and insights needed to make informed decisions. An advisor can help you create a personalised investment strategy that aligns with your goals and risk tolerance.


Investing for the next generation is a critical undertaking that requires careful planning, a long-term perspective, and a commitment to financial education. As independent financial advisors, we are here to assist you in navigating the complexities of the financial markets and creating a sustainable wealth-building strategy. By setting clear goals, embracing a long-term perspective, and staying informed, you can secure a brighter financial future for yourself and leave a lasting legacy for the generations to come. Remember, the key to successful investing lies in the patience and discipline to stay the course, even in turbulent times.



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Please note: Your capital is at risk. The value of your investment (and any income from them) can go down as well as up and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance. Investments should be considered over the longer term and should fit in with your overall attitude to risk and financial circumstances.

How Interest Rates Affect the UK Housing Market: An Independent Mortgage Broker's Perspective

The UK housing market has been through a turbulent period in the last few years, with the impact of the Covid-19 pandemic, Brexit, stamp duty holidays, and supply shortages. But perhaps the most significant factor that influences the demand and affordability of housing is the level of interest rates.

Interest rates are the cost of borrowing money, and they affect both mortgage lenders and borrowers. When interest rates are low, borrowing becomes cheaper and more attractive, which stimulates the demand for housing and pushes up house prices. Conversely, when interest rates are high, borrowing becomes more expensive and less appealing, which dampens the demand for housing and puts downward pressure on house prices.

The Bank of England (BoE) is the institution that sets the official interest rate in the UK, known as the Bank Rate. The BoE uses the Bank Rate as a tool to control inflation, which is the general increase in the prices of goods and services over time. The BoE has a target to keep inflation at 2% per year, which is considered to be a healthy and stable level for the economy.

However, inflation has been much higher than the target in recent months. This is mainly due to the rising costs of energy, food, and raw materials, which have been affected by global supply chain disruptions, labour shortages, and geopolitical tensions. High inflation erodes the purchasing power of money and reduces the real value of incomes and savings.

To combat high inflation, the BoE has raised the Bank Rate several times since 2022, from 0.1% in March 2022 to 2.25% in November 2022 and it now stands at 5.25% as of October 2023.

How does this affect the UK housing market? Well, higher interest rates mean higher mortgage rates, which are the rates that lenders charge borrowers for taking out a mortgage. Mortgage rates are usually linked to the Bank Rate, but they also depend on other factors, such as the type and duration of the mortgage, the loan-to-value ratio, the credit score of the borrower, and the competition among lenders.

According to, the average two-year fixed mortgage rate hit 6.46% in October 2022, while the average five-year deal was 6.32%, the highest level since the financial crisis in 2008. These rates are significantly higher than the record lows seen in 2020 and 2021, when the average two-year fixed rate was below 2% and the average five-year deal was below 3%.

Higher mortgage rates have a direct impact on the affordability of housing, as they increase the monthly repayments and the total cost of borrowing for homeowners and prospective buyers. For example, a £200,000 mortgage with a 25-year term and a 2% interest rate would have a monthly repayment of £848 and a total cost of £254,493. The same mortgage with a 6% interest rate would have a monthly repayment of £1,289 and a total cost of £386,640. That’s a difference of £441 per month and £132,147 in total6.

Higher mortgage rates also affect the demand and supply of housing, as they influence the decisions of buyers and sellers. On the demand side, higher mortgage rates may deter some buyers from entering the market, especially first-time buyers and those with low incomes or deposits. Higher mortgage rates may also reduce the amount that buyers are willing or able to pay for a property, as they have to factor in the higher cost of borrowing. On the supply side, higher mortgage rates may encourage some homeowners to stay put and delay selling their property, as they may not want to lose their low-rate mortgage or face higher repayments if they move to a more expensive property. Higher mortgage rates may also discourage some landlords from investing in buy-to-let properties, as they may face lower rental yields and higher taxes.

The combined effect of lower demand and lower supply is likely to result in lower house price growth, or even house price falls, in the UK housing market. According to the latest forecasts from JLL, a global real estate consultancy, UK house prices are expected to fall by 6% in 2023, before recovering in late 2024, as interest rates fall back and inflation is contained. This is a sharp reversal from the 13-year housing market boom that saw UK house prices rise by 86% between 2009 and 2022.

As independent mortgage brokers, we have seen the impact of rising interest rates on the UK housing market first-hand. Many of our clients have been affected by higher mortgage rates, either directly or indirectly.

We have been able to help many of our clients navigate the changing mortgage market and find the best deal for their situation. As a whole-of-market broker, and specialists in contractor mortgages, we have access to a wide range of mortgage products from over 120 lenders, including some exclusive deals that are not available on the high street. We also have expert knowledge of the mortgage market and the criteria and preferences of different lenders. We can advise clients on how to improve their chances of getting a mortgage, such as by improving their credit score, saving a larger deposit, or choosing a more affordable property. We can also handle the entire mortgage process for them, from searching for a deal to applying and communicating with the lender on their behalf.

If you are looking for a mortgage in the UK, whether you are a first-time buyer, a home mover, a remortgager, or a buy-to-let investor, we can help you find the best deal for you. we offer a free initial consultation and a no-obligation quote.

To find out more about how we can help you, please contact us today. We look forward to hearing from you and helping you achieve your property goals.

Festive Message

Danbro financial Planning would like to wish all of our clients a very merry Christmas.

Now is the time to feel festive and to celebrate with family and friends, however if you would like to discuss your financial circumstances in the New Year then please do feel free to book a call with one of our expert advisers.

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Blog written by
Liam Winstanley
Director & Independent Financial Advisor at Danbro Financial Planning | Website

Liam Winstanley is a Chartered Financial Planner and Independent Financial Advisor. He has worked in financial services for well over two decades, specialising in wealth management and financial planning including things like pensions, investments, retirement planning, financial protection and estate plans.

Liam is the Director of Danbro Financial Planning and is passionate about delivering the very highest standards in service, ethics and professionalism within the financial sector.

Away from Danbro, Liam is an avid long-distance runner and also turns out for his local cricket side, Brinscall CC. He lives in Lancashire with his wife and son.


Important Information

The value of your investment can go down as well as up and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance. Investing in shares should be regarded as a long-term investment and should fit in with your overall attitude to risk and financial circumstances.

The Financial Conduct Authority does not regulate tax advice.

Danbro Financial Planning Limited is an appointed representative of the Sense Network Limited, which is authorised and regulated by the Financial Conduct Authority. Danbro Financial Planning Limited is entered on the FS Register ( under reference 796167. The information contained within this website is subject to UK regulatory regime and is therefore restricted to consumers based in the UK.

The Financial Ombudsman Service is available to sort out individual complaints that clients and financial services business aren’t able to resolve themselves. To contact the Financial Ombudsman Service, please visit

Company number 11009261 registered in England. Danbro Financial Planning Limited Registered office address: Jubilee House, East Beach, Lytham St. Annes, United Kingdom, FY8 5FT.