Children are back at school. Students are back at university. Strictly is back on TV. All the signs, therefore, point to summer being over and autumn getting started. Now, therefore, seems as good a time as any to look at what that could mean for the housing market. Increased reliance on listings and virtual viewings The UK has several months of short, cold days ahead of it. Buyers (and sellers) have become accustomed to using listings and virtual tours due to COVID19. Putting these two facts together raises the possibility that virtual viewings could become commonplace this autumn/winter season. Buyers as a whole may not, yet, be quite willing to buy a property without seeing it in person. They could, however, potentially be willing to attend a virtual open house. If the outcome of this was favourable, they could then attend a real-world viewing. Using this approach might also help to prevent COVID19 from flaring up again. COVID19-related hold-ups Hopefully, the main brunt of COVID19 is now well and truly over. The condition itself, however, is very much still around. Vaccinations and less dangerous variations have thankfully brought down the number of fatalities. It is, however, entirely possible that people are going to get sick with it and need time off work. It’s also very possible that sellers (and buyers) could become wary of this and reinstate COVID19 protocols. Overall, it’s hard to see how the UK could get through the cold seasons without some kind of spike in COVID19 cases. It, therefore, seems fairly safe to assume that there will be some level of COVID19-related delays. Individually, these may only be minor. Put together, by contrast, they may slow down the housing market significantly unless everybody involved with it pulls together. Difficulties selling older property Rented properties already have to meet minimum energy efficiency standards (MEES). Older properties may need significant upgrading to meet these. As a result, they may already be of, at best, limited interest to investors. They may also be or at least become challenging to mortgage. The Department for Business, Energy and Industrial Strategy has already proposed setting mortgage-lenders targets for energy performance. The consultation period for this ended last February (2021). So far, nothing appears to have come of it. That does not, however, guarantee that nothing will come of it in future. Even without regulation, however, older property may still, effectively, become extremely hard to mortgage. Buyers have to be able to demonstrate that they can afford their mortgage repayments without compromising their essential bills. Older properties can require a lot of fuel to heat (due to their energy inefficiency). This can make it harder for people to meet a lender’s affordability criteria. Alternatively, older properties may simply become less popular. This may not result in them going unsold. People still need housing. It may, however, result in them receiving lower offers due to potential buyers factoring in the cost of upgrading them. New demand for city properties Not all jobs have gone fully remote. Hybrid and on-site jobs still require the holder to be in the workplace at least some of the time. So do many degree courses. Even for totally on-site jobs (or courses), commuting is often an option. The further outside the city you live, however, the more arduous a regular commute becomes (and vice versa). What’s more, living in the city isn’t always just about having a shorter trip to work. It can be a lifestyle choice too, particularly for younger adults in their pre-child years. With COVID19 restrictions now largely gone, cities have the opportunity to remind people just how much fun they can be. This could help to fuel organic growth in the demand for city properties. For mortgage advice, please get in touch On clicking the third-party website links, you will leave the regulated site of The Mortgage Network. Neither The Mortgage Network nor Sesame Ltd, is responsible for the accuracy of the information contained within the linked site

Back when COVID19 was still in full force, the UK government instigated a Stamp Duty holiday. This prompted a buying frenzy and, unsurprisingly, house prices rose. Since then, the pace of house-price growth has slowed. Overall, however, property prices are still rising. Why is this and what does it mean? The forces driving high prices in the housing market The two main forces driving house-price growth and inflation and lack of supply. The impact of inflation Probably the most obvious explanation for continued house-price growth is the impact of inflation. Inflation is, literally, the rate at which prices increase. Right now, it’s particularly high. The direct impact of high inflation is the fact that a high tide floats all boats. The indirect impact of it is that it encourages people to buy now in case they can’t afford to later. This indirect impact is likely to be particularly strong in the housing market. There are two main reasons for this. Firstly, owning a property is a widespread ambition in the UK. Secondly, in the UK, property purchases are often financed by mortgages. That means buyers have to pay interest on what they borrow. Interest rates have been trending upwards in the UK. This puts buyers under a certain level of pressure to lock in a fixed-rate deal now. If they don’t, they could find themselves trying to buy property when both house prices and interest rates are high. The mechanics of supply and demand In addition to the overall shortage of housing stock, there are more subtle issues with the supply of housing. For example, some of the UK’s properties are in places where it is challenging to find work nearby. The trend toward remote-/hybrid working may address this to some extent. It is, however, debatable how soon this will be. The key point to remember here is that most remote-/hybrid roles depend on a solid internet connection. Even today, in some places, the UK’s digital infrastructure needs significant improvement. Similarly, on-site work usually depends on transport infrastructure. Again, the extent and quality of this are highly variable throughout the UK. In principle, using personal vehicles can go some way to addressing this. In practice, that leaves the problem of finding parking when you reach your destination. Even when housing is in a viable location, there may be limits on its practical usefulness. For example, a lot of the UK’s housing stock was built long before accessibility became a consideration. Some of these can be adapted but many cannot. Energy efficiency is also an issue. Again, this is largely due to the average age of properties in the UK. As with accessibility, sometimes these issues can be addressed but often there is a limit to what can be done. What’s more, when improvements are possible, they are often expensive. Obviously, this is a disincentive to potential buyers. What does this mean for buyers and sellers? Buyers should be very careful to avoid overstretching themselves. It is hugely unlikely that the UK property market will crash. It is, however, very likely that it will end up running out of steam at some point. When it does, buyers who can keep paying their mortgages can just sit back and let time do its work. Those who can’t, however, may find themselves forced to sell at a loss or even to deal with foreclosure. Sellers should make sure that buyers are actually capable of making good on an offer before they accept it. Remember that sales are only secure once they are complete. Even after contracts have been exchanged it’s still possible for buyers to pull out. They may prefer to swallow a relatively small loss than to risk a larger one. For mortgage advice, please get in touch. Your property may be repossessed if you do not keep up repayments on your mortgage.

It’s probably not a surprise that the housing market has slowed down over the course of the past year. The extent of the slowdown may, however, come as a surprise. HMRC recorded 55.1% fewer sales in June 2022 than in June 2021. Here is a quick look at the three main factors that may lie behind this and what they mean in practice. The end of the SDLT holiday Quite possibly, the single biggest driving force behind this drop is the end of the SDLT holiday. The decision to pause Stamp Duty may have done a lot to keep the economy relatively strong during the pandemic. It was, however, almost inevitably going to result in a post-holiday financial hangover. The holiday period was a massive incentive for people to push forward buying and selling decisions. As such, it was effectively setting the scene for at least some level of housing slowdown after it ended. Realistically, only time can address this. Over time, life events will require (or at least encourage) people to move. This will help to set the housing market back on a “business-as-usual” footing. Broader housing cycles Home sales are generally compared to sales at the same time in the previous year or years. The reason for this is that the housing market goes through recognisable micro-cycles. In a typical year, spring and autumn are much more active periods than summer and winter. On a broader level, however, the housing market goes through larger-scale macro-cycles. At the start of a cycle, house prices are low. This engages buyer interest and causes prices to rise. Eventually, prices reach a point where they are no longer affordable. Buyers then drop out of the market and prices flatline or drop. Occasionally, they crash but this is highly unusual. Over time, wages catch up with house prices and the cycle begins again. This cycle is a constant in the housing market. Last year, however, its progress was influenced by the SDLT holiday. The buying and selling frenzy this created pushed up house prices well beyond normal levels. So far, they appear to be holding steady. This suggests that, going forward, there will be fewer transactions but at higher prices. Again, only time can address this. Inflation and interest rates Post-COVID19 (and post-Brexit), the UK is definitely not the only country dealing with uncomfortably high inflation. It is now looking increasingly like the Bank of England is going to take a fairly hard stance with it. The BoE may not be in a rush to raise interest rates. At the same time, they are clearly not going to risk being seen as hesitant about it either. Realistically, the actions of central banks can be as much about sending a message to the markets as about directly influencing inflation. With that said, the BoE still has to maintain its credibility. In other words, if it says, or even indicates, that it will do something in a certain set of circumstances, then it needs to show itself willing to follow through. What that means in practice, therefore, is that the UK can expect the BoE to keep on raising interest rates until inflation is clearly within tolerable levels. This is obviously going to increase the cost of borrowing in general and mortgages in particular. It may not affect existing home-owners. Many of these are likely to have locked in fixed-rate deals. It will, however, affect first-time buyers. On the plus side, higher interest rates will also increase the returns on cash deposits. This could be very helpful for people saving for deposits. At a minimum, it will help their savings to grow more quickly. At best, it could even provide people with extra motivation to prioritise saving. For further advice please get in touch

A child’s first day at school is a big moment for both them and their parents. For most parents, however, it’s also a relief, especially financially. Even so, time flies and it really won’t be too long before they’re grown up and looking to leave school. At that point, a parent’s life can start to get expensive again. The costs of young adulthood These days, very few people walk out of school and into full-time jobs aged 18. It is now practically impossible to do so at the age of 16. This means that most young adults will need to continue their education and/or training in some way. They may also need, or at least, very much want private training in key life skills such as driving. After this, there’s the challenge of getting on the housing ladder and potentially having children. It would be nice to think that both houses and childcare will be much more affordable by the time today’s generation of children are grown up. Realistically, however, it’s risky to bank on this. If nothing else, creating a nest egg for your children gives you (and them) the reassurance of knowing that there is money there for them if they ever need it. If they don’t, you or they can always use it for something else, like having fun. Insurance is your starting point Before you start thinking about investing for your children, make sure you have adequate insurance. This protects you, your children and anyone else who matters to you, from short-term shocks. The key policies you need to consider are life insurance, income-protection insurance and critical-illness cover. If you are earning an income, then you should probably have all of these policies. If you’re employed, you may find that you get at least some level of cover through your employer. You may, however, still want to take out extra cover. If you’re a home-maker, you still need life insurance and, if possible, critical-illness cover. You may not be earning an income as such but the work you do certainly has value. If you become unable to do it, somebody else will start charging for what you currently do for free. You need to be prepared for that. Finally, also remember to insure your key assets if you possibly can. In particular, think of protecting anything that may generate medical bills (human or animal) or legal bills (ditto). Pets are an obvious candidate for insurance. Cars are often candidates for insurance above the legal minimum. Homes and their contents also generally benefit from insurance. Growing funds for your children When thinking about how to grow funds for your children, there are two key questions you need to answer. Firstly, how long can you afford to lock away money? Secondly, how much control do you want to have over the money? Answering these questions will generally highlight which options are most suitable for you. For example, at one end of the time scale, there are basic savings accounts. These aren’t great for growing money. In fact, they are highly unlikely to beat inflation. They do, however, keep money both safe and easily accessible. At the other end of the scale, there are pension funds. These keep money locked away until your children are of retirement age. They can, however, set them up comfortably for their later years. Likewise, at one end of the control scale, there are Junior ISAs and at the other, there are trust funds. Junior ISAs belong to your children, not you. That means funds are locked away until they turn 18. They are then released to your children to use as they wish. Trust funds, by contrast, are set up according to your instructions. That means the money can be released as, when, how and only if you say so. I can help you and your family find the right product mortgage or protection policy to suit your needs and financial situation, please get in touch to speak to me. An ISA is a medium to long term investment, which aims to increase the value of the money you invest for growth or income or both. The value of your investments and any income from them can fall as well as rise. You may not get back the amount you invested. For pet, motor, building and contents insurance we act as introducers only

The UK’s property market is notoriously resilient. Crashes are very few and far between. There are occasional low periods. In practice, however, all these mean is that house-price growth slows and properties can take a bit longer to sell. Demand for rental property is generally strong. With that in mind, here is a quick guide to buy-to-let mortgages. What is a buy-to-let mortgage? A buy-to-let mortgage is a mortgage to purchase a property intended for use as a standard residential letting. You do not need a buy-to-let mortgage if you want to let out a room in your own home. With that said, you will need a standard residential mortgage that allows this. Likewise, a standard buy-to-let mortgage is not suitable for buying commercial property. This includes property that is intended to be used for short-term letting (e.g. staycation property). If this interests you, then you need a mortgage for commercial property. What buy-to-let mortgages are available? As with mortgages for residential property, you can get both repayment and interest-only buy-to-let mortgages. In complete contrast to the residential-property market, however, interest-only mortgages are commonplace rather than niche. The main reason for this is that they are more affordable at the outset. Over the long term, however, repayment mortgages can easily become the more economical option. This is because repayment mortgages, as the name suggests, repay the capital as well as the interest. This means that, over time, the amount owed reduces. As it does, the amount of interest charged also reduces. The end result is that you can end up paying less interest overall. You also build up equity in the property and end up owning it outright. This can be an important point. Landlords should not rely on selling a property to pay off a mortgage. Also, as with the residential property market, landlords can choose from variable-rate and fixed-rate mortgages. Both deals are available for various lengths of time. The benefits and disadvantages of variable- and fixed-rate mortgages are essentially the same as for the residential property market. In short, variable-rate mortgages can be more economical overall but do leave you exposed to fluctuations in mortgage rates. With fixed-rate mortgages, you have security for the length of the deal. This security can, however, come with a price premium. Qualifying for a buy-to-let mortgage As with residential mortgages, the exact criteria for getting a buy-to-let mortgage typically vary. This is partly down to lenders’ policies (especially their appetite for risk). It’s also partly due to overarching market conditions. In general, however, lenders evaluate applicants for buy-to-let mortgages similarly to applicants for residential mortgages. You’ll be expected to have a deposit. As always, the more you can put down, the more likely it is that lenders will be interested in you. Currently, you should be looking to put down a minimum of 25%. When calculating how much you can afford, remember to allow for transaction costs, particularly the Stamp Duty surcharge. Lenders assess both the income you can expect to receive from the property and your own income. The fact that lenders want you to have an income means they generally want you to have paid off your mortgage by a certain age. Currently, this is around 70-75. It may be increased or removed in future due to the Equality Act 2010 and/or social changes. Remember that lenders will be interested in your net income. That means you will need to show that your calculations allow for maintenance, repairs and voids. Even so, you may be required to have landlord’s insurance and/or life insurance. These are to protect your lender but they can also protect you and your loved ones. If you require mortgage advice and would like to speak to one of our advisors, please get in touch. YOUR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE The FCA does not regulate commercial mortgages and we act as introducers only For landlords’ insurance, we act as introducers only

Most people want to keep their tax bill as low as possible. Now, the cost of living is creating an extra incentive to do so. With that in mind, here are five tips on ensuring you keep as much of your money as possible. Examine your employment conditions If you’re employed, check to see if any of your benefits are taxable. If they are, make sure they’re worth the tax or withdraw from them. Also, consider whether you could afford to save more towards your pension. If you could, then increasing your contributions will reduce your taxable income (within limits). It will also help to give you a more comfortable retirement. If you’re self-employed claim all your tax-deductibles If you’re self-employed, you don’t get benefits the way employees do. On the other hand, you are likely to have a lot more scope for claiming tax-deductible expenses. Make sure you claim everything you can. If you file your taxes yourself, it may be worthwhile to switch to using an accountant. An accountant can also advise on whether it would be better for you to work as a sole trader or as a limited company. This can have major implications for your taxes so it’s definitely worth getting right. Regardless of which structure you use, you can have a pension. Again, it’s worth making the highest level of contributions you can afford. This reduces the amount of Income Tax and NI you pay in the present. It also helps you to enjoy a better retirement in the future. Remember your ISA allowance Depending on your age, you may be able to have more than one ISA. Younger adults can have both a Lifetime ISA and a regular ISA. Whether or not this is a good idea depends very much on your situation. LISAs can be a good way to save for a deposit on your first home. Just be aware that withdrawing funds for any other purpose attracts a hefty penalty. Using a LISA to save for retirement is much more of a grey area. If you’re interested in it, then it’s advisable to get professional advice before you commit. Children aged 16-17 can have both a Junior ISA and an adult Cash ISA (not a Stocks and Shares or combined ISA). Opening a Junior ISA for your child can be a cost-effective way to save for their future. There are, however, two important caveats to remember. Firstly, as with LISAs, once the money is in the ISA, it’s locked away until your child turns 18. You cannot access it at all, not even if you pay a penalty. Effectively, as soon as the money goes into the account, it becomes your child’s not yours. Secondly, this means that as soon as they turn 18, they can spend it however they want. Consider reinvesting your dividends If you don’t need dividend income just now, then you might want to look into the option of having your dividends reinvested instead. Reinvesting dividends can actually bring you better long-term returns than just taking the cash. This is particularly true now since interest rates are still fairly low. Reinvesting dividends also means you avoid paying Dividend Tax. If you do need some dividend income, then see if you can keep it below your tax-free allowance. This currently stands at £2000 per year. Make use of marriage allowances Couples who are married (or in a civil partnership) may be able to lower their joint tax bill by making use of marriage allowances. In particular, someone whose earnings are below the personal allowance can transfer up to 10% of their personal allowance to a higher-earning partner. Similarly, a higher-earning partner can pay into a pension fund for a lower-earning partner. The lower-earning partner is granted the equivalent of the tax relief. For mortgage and protection advice, please get in touch. For savings, investments, pension, and tax planning we act as introducers only The FCA does not regulate some forms of tax planning

Your house is basically a pile of bricks and mortar. Your home is whatever’s inside it that matters to you. Obviously, it’s important to insure your house itself appropriately since you need somewhere to live, but it can be easier to determine the insurance value of your house itself than the value of the contents. Here are some tips on protecting what really matters. Take care of the un-insurable Un-insurables are anything which can’t be replaced. In practical terms that means: people, pets, documents, photographs and special possessions. For people and pets, think of how you would get everyone out of the house in the event of a fire or flood blocking your access to your main exit points and make sure you invest in whatever you need for that to happen (for example chain ladders and harnesses which allow you to get large dogs out of upper floors) and make practice runs. For documents and photographs, if possible make digital copies and store them both in the cloud and on a medium you can easily take with you in the event of a fire (such as a portable hard drive). If you still want or need to keep paper copies, invest in a safe which gives protection against fire and flood. Likewise if you have any other possessions, such as jewellery, which would be irreplaceable, look for a safe which can protect them against fire and flood as well as theft. Review your possessions and their storage Life goes on from day to day and it’s easy to lose track of what we bring into our homes and how it can impact our insurance cover. It’s also important to remember that items we own can change their value over time. For example, consumer electronics generally depreciate, but classic IT equipment which may have been stored away and forgotten can actually appreciate in value as can jewellery, collectibles, art, musical instruments, antiques and such like. Therefore it’s important to stop every so often and do a double-check of what you own and how much it is currently worth. Overvaluing the contents of your home will raise your insurance premiums, but undervaluing it can leave you short in the event of a claim. You will also need to look at how your possessions are stored. Garden sheds are probably the single biggest example of what a difference this can make. Some home contents policies exclude them, others will include them but there may be conditions attached regarding security features and the value of the items which can be stored in them. Have an expert review your cover Getting the right cover for your possessions starts with knowing what your possessions are, where they are stored at how much they are worth. After that, however, you may find that you have a number of options open to you and while a standard home-contents policy is likely to feature in the insurance cover you need, you will benefit greatly from getting both the right policy and the right level of cover. In addition to this, you may also find that certain belongings which could be covered by standard home contents insurance would be better covered by specialist insurance or that they are already covered by another insurance policy. For example, those with expensive bicycles might find that they get an overall better deal by going for a specialist cycle-insurance policy and leaving their bicycle out of their home contents insurance altogether. Alternatively, you may find that you have a bank account which offers insurance for your mobile phone and hence you are already covered without paying extra. Picking your way through all this can be complicated, which is why getting expert advice can, literally, pay for itself. For general insurance products such as building and contents insurance, we act as introducers only

In principle, downsizing in retirement, after any children have flown the nest, is often the most financially sensible option for many people. As is so often the case in life, however, there can be a very wide gap between financial theory and real-world practice. Where people are under no financial pressure to downsize, the convenience of staying put can be very attractive. The advantage of staying where you are The main advantage of staying where you are is exactly that. You don’t have to find a new home and then go through everything involved with moving. You particularly don’t have to deal with downsizing your possessions, which can be a practical hassle and sometimes an emotional struggle. The disadvantage of staying where you are The big disadvantage of staying where you are is that you cannot sell your home and use the funds as you wish. While it is true that there are companies which offer equity release and that this may be a suitable option for some people, this approach is not necessarily as simple as it can sound and it is particularly recommended to get professional advice before going down this route. As a minimum, remember that equity-release companies are in business to make a profit for themselves and their shareholders and that therefore may not offer you as good a financial deal as you would have got from a standard sale. It’s also worth remembering that someone will need to go through your possession after your death and so downsizing could be seen as an opportunity for you to take control of the process and possibly to make it part of your estate-planning strategy. The advantage of downsizing The headline advantage of downsizing is the financial benefit of releasing the equity in your current home and the corollary benefit of being able to give your family (part of) their inheritance early, thus reducing, or even eliminating, the inheritance tax which will be payable on your estate. There are, however, many other corollary benefits worth considering. Possibly the biggest of these is that you can buy a home which is suited to your current and foreseeable future needs. Remember that although the term “downsizing” rather implies moving to a smaller home, this doesn’t have to be the case. In fact, depending on your plans for retirement, “downsizing” might actually involve moving into a home with an equivalent amount of space, or even more, just for less money. This may seem like a contradiction, but in reality, parents with children at home also often have jobs to go to and so have to think about finding homes in areas which have good commuter links as well as good schools. Retirees without children at home can look at property outside of these premium areas and could also potentially look at “fixer-uppers” and/or buying property at auction. Alternatively, they could use (part of) the equity they release to create income and opt to rent. Another benefit of downsizing, which could be significant, is that it allows you to reassess your possessions in the light of your future plans and move on what you do not need, thus saving your children the job and reducing the value of your final estate even further. The disadvantage of downsizing There’s no denying that downsizing takes work and even if you stay in your current local area, it will almost certainly involve some sort of change of lifestyle. If you’re currently under no financial pressure to move, you could look at splitting the difference and undertaking a “virtual downsize” by clearing out your possessions so you know you could move any time you wanted to and making sure that your home and garden are maintained in sale-worthy condition. Then you can enjoy your current home at its best while knowing you are in a good position to downsize properly later should you so choose. Your property may be repossessed if you do not keep up repayments on your mortgage. For Equity release, estate and inheritance tax planning we act as introducers only. Equity Release refers to home reversion plans and lifetime mortgages. To understand the features and risks, ask for a personalised illustration. The FCA does not regulate some forms of estate and tax planning

For most people, if they want to learn about something, the internet is generally their first port of call. It’s a trove of information. Unfortunately, only some of that information is treasure. Some of it can be actively dangerous, even if it’s given with the best of intentions. This is particularly true of financial advice. The rise of the “finfluencer” You don’t necessarily have to be qualified in something to be knowledgeable about it. In fact, some of the best content on the internet is created by enthusiastic amateurs. What’s more, this content often connects with markets and demographics professional content would struggle to reach. To begin with, content creators can and usually do pick a specific target market, often a very narrow one. This tight focus allows them to create content that is highly relevant to that market. For example, finfluencers targeting older demographics will often address fairly mainstream topics such as mortgages and savings. By contrast, influencers targeting younger demographics may address “edgier” topics such as cryptocurrency and disruptive industries. Similarly, finfluencers going for older demographics often present their content in a way that echoes traditional media. Their main channels tend to be blogs and podcasts. Influencers targeting younger demographics are more likely to produce multimedia content. Their main channels, therefore, tend to be social media platforms. The benefits of finfluencers You could make a strong case for arguing that the rise of the finfluencer is a fairly strong indicator of the lack of effective financial education in the UK. Traditionally, children were taught maths at school but schools did not directly teach much, if anything, about personal finance. This meant that, for decades, children either learned about personal finance from other sources or did not learn about it at all. Some of those who did not learn about it at all as children did manage to learn about it as adults. Many of those owe a substantial part of their education to the internet and its finfluencers. Now, schools are starting to provide some level of financial education. It is, however, often severely lacking. This means that a lot of children are getting their knowledge of personal finance from other sources. In some cases that will be parents and family. In others, it will be purely from finfluencers. In many, it’s likely to be a mixture of both. Finfluencers also have much more freedom to adapt their content to customer demand. For example, if an issue makes news headlines, influencers of all kinds will often be quick to jump on it. This helps them get people’s attention and inform them while they educate them. Educators following preset formats (like the national curriculum), simply cannot do this. The drawbacks of finfluencers There are three main drawbacks to finfluencers. The first is that there’s a difference between enthusiasm and knowledge. Finfluencers may have the best of intentions but they may not necessarily understand their subject matter as much as they think they do. The second is that most finfluencers simplify complex topics at least to some extent. Finfluencers targeting older and/or more sophisticated markets can get away with creating information-dense content. They are also more likely to have audiences who understand that general advice does not necessarily apply to every possible situation. Finfluencers targeting younger demographics, by contrast, are much more likely to use very succinct means of communication. These may literally only last a few seconds (e.g. a Tiktok) up to 10-15 minutes (a YouTube video). This effectively forces them to hone in on a very small part of a topic and distil it down to its bare bones. The third is that influencers can end up promoting very questionable products, services and organisations. They are outside the direct control of the FCA although the FCA can regulate the firms that use them. They are also under the control of the ASA and, ultimately, trading standards. As always, we support our clients in doing their own research, but would always advocate for professional help before making any significant decisions regarding your finances.

Assuming the UK sticks to its standard election pattern, the current parliament is almost halfway through its term. This means politicians across the board will be starting to gear up to contest their seats. Boris Johnson’s current raft of housing-related proposals looks like an opening salvo in the Conservative’s electoral campaign. Here is a brief guide to them. For renters Those with longer memories may recall that back in 2017, the government set out its proposals for “fixing the broken housing market”. The wheels of government tend to turn slowly at the best of times. In this instance, they were derailed by Brexit and COVID19. That means a lot of what’s on offer for renters is essentially what’s been on the cards since 2017. Greater protection from eviction The government is now finally starting to take steps towards banning Section 21 evictions, otherwise known as “no-fault evictions”. In tandem with this, they are also proposing effectively to abolish fixed-term tenancies in the residential housing market. The government plans to put all tenancies onto an ongoing, rolling basis. Tenants would be able to break the lease any time they wished. Landlords, however, would only be able to regain the property if they had a specific and valid reason for doing so. Better housing standards The government plans to make it easier for tenants to take action against landlords who fail to maintain housing to an adequate standard. They believe that this will help to raise the standard of housing overall. The right to have pets The government has emphasised that it will be made clearly illegal for landlords to place blanket bans on tenants in receipt of benefits and families with children. The key point to note here is that it already is. Therefore, this measure is not actually new. What is new is that the government also plans to make it illegal for landlords to ban pets without a valid reason. For buyers Some of what’s planned for buyers is essentially “more of the same”. For example, the government (currently) plans to continue with its various Help-to-Buy schemes. There are, however, also some new options on the cards. The expansion of right-to-buy Right-to-buy still exists but has been largely curtailed over recent years. The government plans to expand it again. In particular, it plans to make it easier for Housing Association tenants to buy their properties. This move is an open callback to the Margaret Thatcher era. As such, it’s attracted quite a bit of controversy. Some have praised the move to increase home ownership. Others have pointed out how the mass sale of social housing contributed to the challenges faced by many people today. Benefits to bricks The government plans to make it possible for people to use housing benefits payments to pay for mortgages. This proposal has been dubbed “benefits to bricks” and has certainly been getting its fair share of headlines. Realistically, however, it’s debatable just how much impact it’s going to have in the real world. Quite simply, it’s hard to see housing benefit having much of an impact on the average residential mortgage. It might be useful as a stop-gap measure but probably not as useful as PPI, Income-Protection Insurance and/or Critical-Illness cover. Protection for deposits At present, money held in a Help-to-Buy ISA or a Lifetime ISA is counted as part of a person’s savings if they apply for Universal Credit. The government proposes to ring-fence these funds to protect people’s future deposits (and presumably future pensions too). Coincidentally, this also helps to deal with the criticism of the H2B ISA and LISA withdrawal penalties. These effectively mean that people are charged for withdrawing their own money from these products. The government has made it clear it does not plan to change these penalties. Changing benefits calculations would, however, provide something of a work-around to them. In other words, it would prevent people from being charged to withdraw money they needed due to circumstances.

All things considered, it’s hardly a surprise that mortgage affordability is becoming a growing concern. Some of the factors behind it are largely outside the control of private individuals. Even so, there are still plenty of steps individuals can take to ensure that they get and manage the mortgage they need. Here are some points to consider. Choose your location carefully It’s impossible to overstate the importance of location when buying property. If you want to make the most of your budget, then it makes sense to look for affordable areas on an upward trend. Keep in mind that politicians of all persuasions do seem to be committed to regenerating the UK’s more neglected areas. It could therefore be worth investigating areas you might previously have considered undesirable to see how they are now. You could also look at areas that are benefitting or due to benefit from changes. For example, look for areas that are set to receive infrastructure boosts such as better transport and/or internet. On the flip side, if you believe that you could work remotely or at least hybrid-work over the long term, you could look at areas with limited transport links. Look for a property with the potential to expand Property with obvious potential for expansion does tend to be more expensive than a property without it. On the other hand, it also tends to be more affordable than a property that has already been expanded. This means that it can be a good compromise option for people who want to buy a lower-cost property now but still keep their future options open. Be prepared to think creatively about the options for expansion. For example, if your local area has lots of pubs and cafes, you might be able to use one of them as a remote office. That would have an ongoing cost but could allow you to buy a smaller property at a lower upfront cost. Consider buying property in need of improvement You need to be careful about biting off more than you can chew. Major renovations are generally best left to the professionals. If, however, a house just needs a bit of work done, and the price reflects this, it could well be worth a look. Manage your finances actively At a minimum, keep a reasonably close watch on your credit record. Brutal as this may sound this can be an early indicator that you have been the victim of identity theft. On a less unpleasant note, genuine mistakes can happen. When they do, you want them corrected as soon as possible. Aim to minimise your expenses. In particular, think carefully about where it pays to commit and where you want to maximise flexibility. As a rule of thumb, if you’re sure you’re going to need a product or service over the long term, then it often pays to commit to a long-term contract. If you’re not, then it’s generally better to go for flexibility, even if it is a bit more expensive. With mobile phones specifically, remember that handsets can be bought separately from contracts. This is often the way to get the best deal on both. On the flip side, also do whatever you can to increase your net worth, particularly your income. Even free resources can help you to develop your skills and make you more attractive to employers. Many of these are available on the public internet. You could also try your local library. Get the right mortgage deal If you just go by the adverts you see, you might be left with the impression that the UK only has about a dozen or so mortgage lenders. You might also be left with the impression that all of their products were pretty much the same. In reality, the UK has an extensive mortgage market with a huge number of different products to choose from. This extensive range means that it’s very likely there is at least one product out there that is the right match for your needs (and even wants). You may, however, struggle to find it by yourself. That’s why it makes sense to use a mortgage broker. It’s worth noting of course, that mortgage brokers may be limited to working with lenders approved by their financial services network. For help and advice, please get in touch. We have access to a comprehensive range of first charge regulated mortgage contracts from over 65 lenders across the market.p

Up until fairly recently, it was more or less taken for granted that homeowners would have their mortgages paid off by the time they retired. Over more recent years, however, it has become increasingly common for people to reach retirement age with mortgages still active. This means they need a strategy for dealing with it. Here are some options. Keep working Retirement age is increasingly becoming just a number. There are definitely still people who happily down tools and head out into the retirement sunset as quickly as they can. There are, however, now also increasing numbers of people who essentially see retirement age as being just a number. They are therefore quite happy to keep working to some extent for some time (possibly not indefinitely). If you’re one of those people, then you might find it useful to lay the relevant groundwork well in advance of your retirement. If you’re currently employed and wish to remain so, make sure that your employer is happy for you to go on working past retirement age. Even if they are, it’s advisable to think carefully about what you would do if you were made redundant. This is sensible at any age but has particular relevance to mortgage-holders working past retirement age. Make sure to keep your skills sharp and relevant and consider starting a side-hustle as well. Use your pension If you are sure you have enough in your pension to pay off your mortgage, then you’re on firm ground for retirement. It is, however, important that your calculations are accurate. You might, therefore, want to get them double-checked by a financial advisor. Downsize As with working post-retirement, downsizing is seized upon with joy by some retirees but vehemently disliked by others. This is because it’s at least as much a lifestyle decision as it is a practical one. If you’re not sure whether or not downsizing is for you, then you might want to assess your current home’s suitability for ageing in place. If it’s not suitable, or not ideal, then it’s advisable to look into the practicalities and costs of making it suitable. If you discover that adapting it is not practical, then you know that you are going to have to move at some point in any case. You could therefore look at how to manage this move so it fits with all your goals (financial and lifestyle). If your home is suitable for ageing in place, then you need to assess both the financial and practical pros and cons of staying in your own home. You can then compare them with your situation if you downsized. Monetise your home You could try turning your home into a source of income. The obvious way to do this is to rent out a room but there are others. Use equity release Using equity release can square the circle between reduced income and a mortgage. It is, however, a massive decision. It should therefore only be taken with proper, unbiased financial advice. Combine different options All the signs are that reaching traditional retirement age with a mortgage outstanding is likely to become the new normal. People are buying homes later in life meaning that 25+ year mortgage terms are more likely to go past their 60th and even 70th birthdays. Some people may even opt for longer terms to spread the cost of home ownership. None of this has to be a problem but it does have to be carefully managed. It’s therefore advisable to get regular advice from an unbiased financial professional. It’s also advisable to enlist the help of a mortgage broker whenever you take out a mortgage (including remortgaging). Both steps will help to ensure that you get a suitable deal for your money. For help and advice, please get in touch For pensions and equity release products, we act as introducers only