Banks and Building Societies have been encouraged by Chancellor Jeremy Hunt to offer more flexibility if you are finding it difficult to make mortgage payments. Mortgage lenders, the FCA, the Government as well as organisations such as UK Finance and the Building Societies Association have come together to provide you with a new Charter to give you reassurance and support through these tough times. The Charter was introduced in June 2023. Lenders have an extensive range of measures they have agreed to, to help you if you’re finding it difficult. Lenders don’t want to repossess your home; repossession is either a last resort or when it is in your financial interest. Under the new Charter, lenders’ promises include: • Helping and guiding you if you’re worried about your mortgage repayments without it affecting your credit file. • Supporting you in switching to a new mortgage deal at the end of your existing fixed rate without needing another affordability check, if you’re up to up to date with payments. • Providing timely information to help you plan if you’re approaching the end of your current deal. • Offering you tailored support if you’re struggling, such as extending your term to reduce your payments, with the option to go back to your original term within six months. A range of other options are available depending on your circumstances such as switching to interest only payments for six months, temporary payment deferral or part interest, part repayment. • You won’t be forced to leave your home without your consent, within a year from your first missed payment, and only in exceptional circumstances. • If you’re approaching the end of a fixed rate deal, you will have the option to secure a new deal up to six months ahead. You can also request a better like-for-like deal that’s available with your lender up until your new term starts. We are here to help you with any mortgage payment concerns you have. If you are currently in arrears, our advisers can work with your lender to get the support you need. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.

Navigating the mortgage landscape can often seem like a daunting task. However, when your current mortgage deal approaches its conclusion, two primary avenues emerge: a product transfer or a remortgage. Each option comes with its unique set of advantages and considerations. Let's delve into the differences and the implications of each. What Exactly is Remortgaging? Remortgaging entails switching your existing mortgage to a different lender. Typically, homeowners consider this route when their ongoing mortgage agreement nears completion, especially if they believe they can secure a more favourable deal elsewhere. Defining a Product Transfer On the other hand, a product transfer is a more internal shift. It involves transitioning to a different mortgage deal, possibly with an altered interest rate or a renewed fixed period, but all within the confines of your existing lender. To Stay or To Switch: Which is Best for You? The decision point arrives when your current mortgage concludes. At this juncture, you might wonder whether to continue with your present lender or seek options anew. Opting for a product transfer might provide the financial predictability you desire, particularly if you're considering a deal with a longer fixed interest term. Conversely, remortgaging may offer the versatility of different rates, terms, and loan amounts. While remaining with your current lender may provide a comforting familiarity, it doesn't necessarily guarantee the optimal deal. It's prudent to explore the market to find a mortgage tailored to your needs. Seek Expertise for Informed Decisions The cornerstone of this pivotal financial choice is being well-informed. This is where our expertise becomes invaluable. As seasoned mortgage specialists, we have an expansive network of lenders at our fingertips. This allows us to present you with a spectrum of options, including the latest offers from your current lender. Additionally, we ensure you sidestep potentially higher standard variable rates. We urge you not to postpone this significant financial choice. Working hand-in-hand with you, we will assess all your options and help you make the right choice for you and your individual circumstances.

Choosing the right mortgage is a crucial decision that impacts your financial well-being for years to come. Homeowners have a variety of mortgage types to consider, each with its features and benefits. This blog delves into three popular types of UK mortgages: interest-only, fixed-rate, and repayment mortgages. By understanding the characteristics of each, you can make an informed choice that aligns with your financial goals and circumstances. Interest-Only Mortgages: Managing Monthly Payments Interest-only mortgages allow borrowers to pay only the interest on the loan amount for a specific period, typically 5 to 10 years. This means your monthly payments are lower compared to other mortgage types, making it an attractive option for some. Here's a closer look at the pros and cons of interest-only mortgages: Benefits: Lower Monthly Payments: Interest-only payments are lower than those of fixed-rate or repayment mortgages. This can free up cash for other expenses or investments. Investment Opportunities: With lower monthly payments, borrowers might have the flexibility to invest in other ventures, potentially earning higher returns than the interest rate on the mortgage. Considerations: Principal Repayment: While interest-only payments are lower, you're not paying down the principal amount. This means the loan amount remains the same, and you'll need a plan to repay the principal when the interest-only period ends. Potential Equity Gap: Since you're not paying off the principal, you won't be building equity in your property. This could affect your ability to move or remortgage in the future. Fixed-Rate Mortgages: Predictable Payments Fixed-rate mortgages offer borrowers a set interest rate for a specific period, usually 2 to 5 years. This means your monthly payments remain consistent throughout the fixed term, regardless of changes in the Bank of England base rate. Here are the advantages and considerations of fixed-rate mortgages: Benefits: Stability: Fixed-rate mortgages provide predictability in monthly payments, allowing you to budget with confidence and avoid surprises due to interest rate fluctuations. Long-Term Planning: If you value long-term financial planning and want to avoid the uncertainty of potential interest rate hikes, a fixed-rate mortgage offers security. Considerations: Early Repayment Charges: Most fixed-rate mortgages may have penalties for repaying the loan early or remortgaging before the fixed term expires. Initial Rates: The interest rate of a fixed-rate mortgage may be slightly higher than variable rates, especially if you're locking in for a longer period. Repayment Mortgages: Building Equity Over Time Repayment mortgages, also known as capital and interest mortgages, involve monthly payments that cover both the interest on the loan and a portion of the principal. Over time, the outstanding loan amount decreases, and by the end of the mortgage term, you'll have fully repaid the loan. Let's explore the benefits and considerations of repayment mortgages: Benefits: Equity Growth: With each payment, you're reducing the outstanding loan amount and building equity in your property over time. Clear Debt: At the end of the mortgage term, you'll fully own your property, and you won't have to worry about repaying the principal or any lump sums. Considerations: Higher Initial Payments: Repayment mortgages generally have higher initial monthly payments compared to interest-only or fixed-rate mortgages. Budgeting: While the consistent monthly payments help with budgeting, they can be higher than the initial payments of other mortgage types. Conclusion When selecting a mortgage in the UK, it's essential to consider your financial goals, risk tolerance, and long-term plans. Interest-only mortgages offer lower initial payments, fixed-rate mortgages provide payment predictability, and repayment mortgages allow you to build equity over time. Evaluating the benefits and considerations of each type of mortgage will help you make a well-informed decision that aligns with your financial situation and homeownership aspirations. Consulting with a mortgage advisor or financial professional can further guide you toward the most suitable mortgage option based on your unique circumstances. Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on your mortgage The value of investments and any income from them can fall as well as rise and you may not get back the original amount invested.

The bank of mum and dad has expanded to become the bank of family. Its expansion has enabled it to underwrite an even bigger percentage of the UK’s mortgages. This means it has developed even more influence on the UK’s property market. This influence is, however, somewhat controversial given that not everyone has access to it. How the bank of family came about The term “bank of family” appears to have been coined by Legal & General. Recently, they undertook a study that highlighted the importance of non-parental assistance in house purchases. Grandparents in particular tend to be generous contributors. Potentially, this is because they are in a strong position to do so. For example, they may be downsizing themselves and therefore be cash-rich. Moving this money to younger family members could reduce their estate’s liability for inheritance tax. It may also reduce their exposure to care-home fees later. Younger members of the family are, however, also increasing the help they provide. Separate research from Hamptons estate agents and Skipton Building Society suggests that siblings made up a record 11%, more than double the 5% share seen five years ago. Family members, especially parents, may also provide non-cash assistance. In particular, they may allow young adults to stay with them rent-free while they save for a deposit. The bank of family’s lending in figures This year alone, the Bank of Family is set to give £8.1 billion to homebuyers, and support 47% of all homes purchased by buyers under the age of 55. As you might expect, the assistance is unevenly distributed. Firstly, there is a clear and understandable bias towards first-time buyers. Onward movers certainly face challenges but they at least can benefit from building up equity in their home. Secondly, there is a clear divide between regions. Possibly surprisingly, the East of England was the area where the bank of family provided the highest level of support. London came in a close second. Moving out of these areas and into the Midland and North, the level of assistance dropped. The overall impact of the bank of family The bank of family clearly plays an important role in getting individuals on the housing ladder. By doing so, it stimulates demand for property and, per the law of supply and demand, helps support house prices. Ironically, however, this is really only a benefit to people looking to downsize. Onward movers looking for bigger property would benefit from it being priced more affordably. It wouldn’t necessarily matter if their existing homes also reduced in value. First-time buyers would certainly benefit from lower house prices. In fact, even those not in a position to buy would potentially benefit from lower house prices. If landlords paid less for their buy-to-let properties, they would be able to offer lower rents. This in turn would make it easier for renters to save for a home of their own. Realistically, however, the shortage of property in the UK is a strong incentive for people to buy if they can. At a minimum, buying gives people a greater level of stability than renting. At most, it can be an astute financial investment that can literally benefit generations. The personal cost of the bank of family For some people, the bank of family really is a straightforward, no-strings-attached benefit of generational wealth. For others, the strings attached are simply stronger versions of the strings that were attached anyway. In general, family members do whatever they can to look after each other. That’s part of what makes a functioning family. For some, however, the price of accessing the bank of family can be uncomfortably high. It can result in obligations people would rather have avoided. It can result in feelings of guilt if recipients know or feel that people are donating more than they can really afford. Ideally, therefore, the bank of family will be, if not put out of business, then at least given a restricted role in the UK’s housing market. The best, if not only, way to achieve this, is to increase the availability of housing stock. One possible way to do this (and fairly quickly) could be to repurpose office units that have become obsolete due to remote/hybrid working. For advice on mortgage matters, please get in touch The FCA does not regulate some forms of IHT planning. For IHT planning we act as introducers only. Your property may be repossessed if you do not keep up repayments on your mortgage.

As a rule of thumb, when you renew any contract, you should be prepared to move from your current provider. That does not, however, necessarily mean that you should move from your current provider. In fact, if you’re remortgaging, there can be a lot to be said for staying with your current lender. Here is a quick guide to what you need to know. The basics of remortgaging In the context of mortgages, there are two key dates all borrowers need to keep in mind. The first is the mortgage amortisation date. In other words, the date when the mortgage is fully paid off. The second is the mortgage terms. In other words, the date when your current deal comes to an end. It’s vital to have a new deal ready to go when that happens. If you don’t, you’ll be put on your lender’s standard variable rate (SVR). This is their default rate for customers who don’t have a specific offer. It’s often significantly higher than any of their mortgage deals. The process of getting a new deal is known as remortgaging. The practicalities of remortgaging If you move to a new lender, the process of remortgaging itself will be virtually if not completely identical to the process of taking out your previous mortgage. If, by contrast, you stay with your current lender, the process can be much more streamlined. This has three main advantages Reduced costs The fact that remortgaging is the process of switching from one mortgage supplier to another. Even though you're not moving house, when you remortgage, you will need to have some set of costs to pay. These are likely to be higher than they were last time if only because of inflation. If, however, you stay with the same lender, the administration can be kept to a minimum. This means you can expect the costs to be a lot lower. They will probably be well aware that keeping existing borrowers costs less than attracting new ones. The reduction in costs is particularly relevant if you need to roll the mortgage set-up costs into the cost of the loan. You’ll not only save the headline sum but also save the interest you would otherwise have paid on it. Reduced administration Staying with your existing lender can also save you time and, potentially, stress. Remortgaging with a new lender will involve doing all the same paperwork you did when you got your previous mortgage. This in itself is both tedious and time-consuming. It can also be stressful, particularly if you’re working to tight deadlines. What’s more, these may be forced upon you by delays outside your control. Existing relationship with the lender If you’re generally happy with your existing lender then this is a reasonable point in their favour when deciding who should get your custom. Keep in mind that the nature of mortgages makes it quite difficult for customers just to take their business elsewhere. Exiting a mortgage deal early to go to another provider is often even more expensive than a standard remortgage. This means that, in the real world, customers often just have to grit their teeth and deal with their lender until the end of their mortgage term. Getting the best right when you remortgage In theory, getting the right deal when you remortgage may require you to move lenders. In practice, your existing lender may be willing to match another deal for which you qualify. Essentially, the better a customer you’ve been, the more likely it is that the lender will want to keep your business. At the very least, therefore, you should consider giving them the opportunity to do so before you commit to moving your custom elsewhere. For mortgage advice, please get in touch Your home may be repossessed if you do not keep up repayments on your mortgage

Rightmove’s monthly house price index shows UK house prices on a clear downward trend. As yet, there is no sign of a crash. The behaviour is more like a slow deflation. This could be good news for homebuyers. Even so, it’s important to be clear about the implications of buying in a falling market. Here is a brief guide to what you need to know. Be prepared to commit for the very long term It’s standard practice to advise potential home buyers to hold off purchasing until they are sure they can commit over the long term. A typical guideline is around five years but at least three. In a falling market, however, five years is arguably the absolute minimum commitment. Ideally, you should be looking at 7+ years. Buying a property is a significant undertaking There are two main reasons for giving this advice. Firstly, the process of buying property is still very labour-intensive. It therefore carries high transaction costs, especially if you need a mortgage. The longer you stay in a property, the longer you have to amortise those costs. Secondly, property is a very illiquid asset. A simple property transaction can easily take six weeks to go from offer to completion. A complicated one could take over a year. The longer it takes to complete a sale, the higher the risk of buyers pulling out. If there is a chain of buyers and sellers involved in a transaction then this risk becomes even higher. The risks of buying in a falling market If you buy property in a falling market and have to sell up quickly, you may be forced to accept a significant financial loss. Firstly, you’re not going to be able to amortise your initial transaction costs in any meaningful way. Secondly, you’re unlikely to get back what you paid for your property. Thirdly, you may have to wait much longer to find a buyer, during which time your money will stay tied up in your property. In fact, you may find yourself having to carry two mortgages or one mortgage and rent. Assess the location very carefully More specifically, assess the location in the context of what changes will and could happen in your life over 5+ years. In particular, think about your work situation. If anything happened to your current job, how would you go about finding another one? Fully remote work is still an option for some people. For the time being at least, however, it would probably be safer to stay within feasible commuting distance of an employment hub. This would open up options for hybrid and/or fully on-site work. Neither may be your ideal but they could be useful temporary safeguards. Also, consider your personal situation. If you have older relatives, their situation could change significantly over the course of 5+ years. If you have younger children, they will definitely change significantly over that time. Are you confident that the area you’ve chosen will still be suitable when these changes happen? As a final point, think about the area itself. See what trends, if any, you can identify. For example, are any new infrastructure projects planned? If so, what impact could they have? Be careful of pushing sellers too hard One advantage of buying in a falling market is that many sellers are likely to be highly motivated to sell. At the same time, buyers should not expect sellers to be throwing themselves at their feet begging for money. In the UK, falling markets are generally a sign that house prices have become unaffordable for people who want to buy. It does not mean that demand for property evaporates. If, therefore, you make an excessively low offer, you can expect to have it turned down. For further advice, please get in touch Your home may be repossessed if you do not keep up repayments on your mortgage

Acquiring a home is a monumental life milestone, and for most, it necessitates navigating the labyrinth of mortgage applications. However, what should ideally be an exciting journey into homeownership often becomes a source of stress and anxiety. In a revealing statistic, two-thirds of mortgage applicants find themselves grappling with stress during the application process. Let's delve into the reasons why mortgage applications tend to be stressful affairs and uncover the challenges that contribute to this overwhelming experience. The High Stakes Nature of Homeownership The decision to buy a home is not just a financial transaction; it signifies a deeply emotional commitment. For many, a home is the embodiment of stability, security, and the realisation of a dream. Consequently, the stakes are high, and the pressure to make the right choices can induce significant stress. The financial magnitude of homeownership, coupled with the fear of making an irreversible mistake, can weigh heavily on applicants' minds. Complexity of Financial Documentation Mortgage applications necessitate a meticulous gathering of financial documents, including tax returns, pay stubs, bank statements, and credit history reports. The complexity of assembling these documents accurately and comprehensively can be a daunting task. The fear of missing a critical piece of information or making errors in the application process can lead to heightened stress levels. Stringent Lending Requirements Lenders impose stringent requirements on mortgage applicants to ensure their creditworthiness and ability to repay the loan. While these requirements are essential for responsible lending, they also contribute to the stress of applicants. Meeting these criteria often requires a deep dive into personal financial details, potentially exposing any existing financial vulnerabilities. Uncertainty in Interest Rates Interest rates are a significant factor in determining the cost of a mortgage. The ever-fluctuating nature of interest rates introduces an element of uncertainty into the mortgage application process. Applicants may worry about locking in rates at the right time to secure favourable terms, fearing that a sudden rate increase could strain their budget. Fear of Rejection The prospect of rejection looms over every mortgage applicant. Rejection not only dashes the hopes of homeownership but also potentially signifies a lack of financial stability in the eyes of lenders. This fear can contribute to stress, making applicants second-guess their financial standing and the likelihood of being approved. Timeline Pressures The process of securing a mortgage often comes with tight timelines, especially in competitive housing markets. Applicants may feel the pressure to move quickly to secure their dream home or meet a particular closing date. The race against time can exacerbate stress levels, leading to rushed decisions and heightened anxiety. Navigating Complex Terminology Mortgage applications involve navigating a sea of industry-specific jargon, including terms like APR, points, PMI, and more. For those unfamiliar with the intricacies of the mortgage world, the abundance of unfamiliar terminology can be overwhelming. The fear of misunderstanding terms and their implications can contribute to stress during the application process. Conclusion The journey to homeownership should be filled with excitement, anticipation, and the joy of achieving a significant life goal. However, the stress associated with mortgage applications is an unfortunate reality for many. The combination of emotional investment, financial complexity, stringent requirements, and fear of the unknown creates a perfect storm of anxiety. While stress is a natural response, it's crucial for both applicants and the industry to address these concerns. To mitigate the stress of mortgage applications, applicants can seek professional guidance, educate themselves about the process, and prioritise self-care during this time. Working with a financial advisor can help to alleviate many of the points above and offer peace of mind. Ultimately, by acknowledging the sources of stress and working together, we can transform the mortgage application experience into a more manageable and less anxiety-inducing journey toward homeownership. If you need help with a mortgage please get in touch. Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on your mortgage

The more important a decision is, the more important it is to get it right. For the average person, buying a home, even a starter flat, is a huge financial commitment. This means that although the difference between the right mortgage for you and the wrong mortgage for you may boil down to fine details, details you might not even have noticed on your own, those details can make a significant difference to your overall financial wellbeing. What’s more, mortgages can be highly-detailed products, which means that they can be very complicated. The ”go direct” myth To be fair, there is some truth in the general concept of getting the best price by “going direct” and “cutting out the middle man”. The real problem is that the benefits of it are often massively overstated. In simple terms, “going direct” only has any meaningful advantage when a buyer is totally familiar with the market and knows exactly where to go to get the best deal. Given that everyone has their own unique areas of expertise, there are probably some areas of life where you are fully qualified to “go direct”, but for the average person, finding the right mortgage may not be one of them. Even if you feel confident you understand mortgages in general well enough to understand what sort of product you need, do you really want to spend your own time and energy checking deal after deal to make sure you get the best option? Your time has a value too. A mortgage adviser spends their entire working life dealing with mortgages and therefore can be expected to have a familiarity with them which is way beyond anything non-professionals have the time to achieve. Mortgage brokers will understand the total cost and overall value of a product While headline interest rates are, of course, a key factor in any financial product, they are not necessarily the only important factor you should consider when deciding whether or not to make a purchase. In terms of mortgages, you will also want to look at the length of the mortgage term, administrative fees, early-exit fees and the schedule of charges and penalties (hopefully you will avoid them, but it’s usually preferable to know what they are). That’s all once you’ve decided whether you want a standard repayment mortgage or an offset mortgage and whether you want a variable-interest-rate product or a fixed-interest-rate-product. If you opt for a fixed-interest-rate product, you’ll also need to think about the length of the fix and have a plan in place for what you intend (or at least would like) to do when the fix comes to an end. In addition to helping you with all of this, your mortgage broker may be able to help with all the “extra” bits, like finding a valuer and/or surveyor and a conveyancer. You might also need life insurance and some form of income-protection cover to ensure that your mortgage is paid even if you’re not available to work. Mortgage brokers can help with “offbeat” purchases In the context of mortgages “offbeat” can mean anything from self-build mortgages to mortgages for off-plan property, to mortgages on non-standard property such as wooden homes, to homes which lenders may tend to approach with caution, such as homes above commercial property. It can also mean buyers in unusual situations, such as older buyers or expat buyers and off course they can also help with buy-to-let purchases. Even if, however, none of this applies to you, the sheer breadth of knowledge offered by a mortgage broker can be very useful as you may find that the best deal for you is a niche product you would have been highly unlikely to find on your own. Your property may be repossessed if you do not keep up repayments on your mortgage.

For many people, just being able to start on the home-buying process is a significant milestone. It’s therefore understandable that you’ll want to move as quickly as possible. In some cases, you may also be up against time pressure. Here is a quick guide on how to speed up the home buying process and when you shouldn’t. If you’re selling When you’re in a hurry, maximising speed is more important than getting the highest possible price. This means that you need to be prepared to sell. You also need to prioritise buyers who are clearly in a position to buy. These are typically cash buyers and/or people who’ve already been preapproved for a mortgage. You may find it helpful to work with a real-world estate agent rather than an online one. This is because the real challenge of property sales is often managing them through to completion. Real-world estate agents can be much more hands-on here. If you’re really in a hurry, you might want to consider setting a fixed price for your home. If you are prepared to set it on the lower side, you might attract investment buyers as well as residential ones. Investment buyers tend to be looking for bargains but they also tend to be well-organised and able to move quickly. If you’re buying If you’re buying, try to do as much as you can before you actually make an offer on a property. In particular, sell your home and/or get mortgage preapproval. Also, have a conveyancer lined up. Be prepared for conveyancing There are three key factors that influence how long conveyancing takes. The first is the property (and its location). The second is the seller (and how well organised they are). The third is your conveyancer (and how well organised they are). You can influence all of these factors. If you’re in a hurry to move, look for modern property in low-/no-risk locations (e.g. not in a known flood zone or mining area). Make sure that the sellers are committed before you put in an offer. Have at least one conveyancer in mind. Ideally, have two or three options in case your first choice of conveyancer is unable to take on more business. Look for conveyancers with a track-record of keeping their customers updated. If you’re looking at a new conveyancer, see if they give a service commitment to providing regular updates. This is probably the single most important point for separating the best from the rest. It’s also worth paying for, especially if you’re in a hurry. Remember, no conveyancer can ever tell you in advance how long conveyancing will take. They can only give you a guideline based on the type of property you’re buying and its location. They can, however, commit to keeping you updated and informed about any blocks they're experiencing. You can then decide what action, if any, you are able and willing to take. For example, if the issue is the local authority not responding to a search enquiry, you could try contacting your local councillor. Never leap before you look If conveyancing is taking longer than you’d like then you have two options. The first is to grit your teeth and deal with it. For example, you could find a property to rent until the conveyancing is completed. The second is just to abandon the exercise and move onto another property. Again, this may mean renting until you find another property. Never complete a sale on a property without full sign-off from a conveyancer. Firstly, you are risking the money you spend on the property. Secondly, you are assuming all legal liabilities associated with the property. What’s more, you may not find yourself covered by insurance if the conveyancing was not properly completed. For further advice please get in touch

Insurance is often looked at in negative terms. In fairness, that’s understandable. Fundamentally, insurance will always be something you buy to protect you against the consequences of a negative event that you hope won’t happen. With that said, however, insurance can offer some positive benefits too. Here are some you might not have thought of. Unconventional health benefits You probably already understand that the fewer claims a policyholder makes, the more profit an insurance company makes from them. As a result, people with lower claims rates tend to be accepted as clients more easily and get better rates. You may not have realised that it often makes sense for insurers that offer health cover to encourage their customers to live healthy lifestyles. The way insurers typically do this is by offering health-boosting, value-add benefits with their policies. As business (often corporate) buyers, insurance companies are often able to commit to high-value and/or long-term contracts. This means they generally qualify for rates that would never be offered to individuals. The insurers can then pass on these discounts to their policyholders in the form of value-add benefits. In some cases, the value of these benefits can be enough to justify the policy. Here are some examples of what that could mean in practice. Priority access to GPs and specialists In the UK, it is currently notoriously difficult even to register with a GP. Waiting times for non-emergency appointments can be lengthy, to put it mildly. With health insurance, however, you can often get priority access to GPs. Similarly, if you want access to specialists such as mental-health consultants or nutrition consultants, then you may have to wait a very long time for access on the NHS. With health insurance, by contrast, you can often be seen quickly. Emphasis on prevention The old saying “prevention is better than cure” is arguably at its truest when applied to health. What’s more, it applies to both individuals and insurers. Again, the more people can do to prevent health issues, the less likely they are to need to claim on their insurance. It’s therefore in the insurer’s interests to help them to stay healthy. That means health insurance often comes with benefits that relate to preventative measures such as screenings (physical and/or mental) and help to stay active (e.g. special deals on gym membership). They may also cover alternative therapies and treatments such as massage. Focus on speeding up your recovery Another reality of the NHS is that it has to ration its resources. This means that it typically provides the minimum level of treatment necessary to achieve what it considers to be a desirable result. This may not be the result you want. With health insurance, on the other hand, you have far more chance of getting the treatment you want. You’re also more likely to get those treatments when you want them because you’ll be able to bypass NHS waiting lists. Another point worth noting is that insurers may offer support with non-medical expenses during recovery or rehabilitation. For example, they may cover the cost of hospital parking. This could make it much easier for you to make appointments. Lifestyle benefits Health insurance is very much a product with a serious purpose. Most of the value-add benefits offered by health insurers also have serious purposes. Increasingly, however, insurers are offering more fun benefits to give their services broader appeal. Often these benefits are health-related (e.g. discounts on workout gear) but this is not always the case. Sometimes these benefits are made available to anyone who takes out a policy. At other times, they have to be unlocked through taking action. These actions are likely to be health-related such as taking a certain number of steps in a certain time. For more information, please get in touch

Protecting your family from loss of income should be a priority at any time. It’s especially relevant now. Even single adults should take the prospect of income loss seriously. At this time of life, your expenses may be minimal. They can, however, still mount up quickly, especially if you’re burning through savings. With that in mind, here are some important points for you to consider. Keep on top of your financial situation The fast pace of modern life can make it only too easy to lose track of exactly where you are in it. When it comes to anything relating to finance, this can have serious consequences. That’s why it’s vital to make a point of taking your financial pulse regularly. At a minimum, set aside time once a quarter to go over your financial situation. If you can make time more frequently, you have less to check each time. You’ll also be able to act more quickly if necessary. Keep some cash savings If you’re only without an income for a short time, having cash savings can be enough to see you through. If you’re without an income for a longer period, your cash savings will at least see you through the early days. This can give you breathing space to work on a longer-term solution. Have a contingency plan The essence of security is to try to stop the worst from happening but to be ready for it if it does. This certainly applies to financial security. Insurance is likely to play a key role in your contingency plan. Cover types such as income protection, payment protection and critical illness can all help to protect you from various types of income loss. If you’re employed, you may get some (or all) of these types of insurance from your employer. If you do, then check the terms and the cover thoroughly. You may find that you’d feel more reassured with additional cover that you arrange privately. As a corollary to this, think about how changing jobs could impact your benefits. You will almost certainly need to arrange your own cover for any time between jobs. You may also need private cover during your probation period. Make sure you have all the insurance you need As a rule of thumb, if you have any kind of legal or medical exposure, it’s advisable to have the backing of an insurance company. When times are more challenging, you are likely to struggle more to cope with unexpected expenses. That’s when insurance can really prove its value. Given that changes in circumstances can happen both unexpectedly and quickly, it can make a lot of sense to be fully insured at all times. Prepare yourself to pivot If you lose your income, ideally, you’ll want to replace it as quickly as possible. This is true even if you have insurance. Remember, the less you need to claim on insurance, the more attractive a client you are. One option is to have a side-hustle alongside your regular source of income. If your regular source of income is lost, you can scale up your side hustle. Scaling up an existing business is likely to be much quicker than starting one from scratch. If, however, you don’t want to commit to a side-hustle, you can pursue a hobby and/or studies that you could potentially monetise if necessary. Ideally, these would be in an area that would be likely to be doing well even if your main professional area is stagnant. For more information, please get in touch

Most people need mortgages to buy property. That means the property is only fully theirs once the mortgage is paid off. Until then, paying off that mortgage has to be one of their top priorities. With that in mind, here are some steps you can take to ensure that you can keep paying your mortgage no matter what. Evaluate your risks Probably the most obvious risks to homeowners are illness and unemployment. At present, however, it’s reasonable to add unaffordability to the list. Mortgage lenders do aim only to lend to people who can afford to pay back their loans. The potential snag with this is that interest rates can rise indefinitely. These rises will eventually feed through to the mortgage market and may pose challenges for homeowners. Always have some cash savings Having cash savings makes you less likely to need credit to cope with unexpected life events. The immediate benefit of this is that it saves you from having to pay interest on what you borrow. The longer-term benefit of this is that managing your borrowing helps to keep your credit score in good order. This has obvious benefits when it comes to getting a mortgage at a favourable rate. Make sure you have appropriate insurance cover Essentially the same comments apply to making sure that you have appropriate insurance cover. Additionally, some types of insurance cover can play a vital role in getting you through illness and/or unemployment. The three most relevant types of cover are critical illness, income protection and payment protection. People in employment generally qualify for all three types of cover. In fact, critical illness cover and income protection insurance are commonly offered as employment benefits. With that said, you may find you want to increase the cover you get with your own, private policy. If you're self-employed, you're unlikely to qualify for PPI but you can expect to qualify for critical illness cover and/or income protection insurance. If you have a partner and/or children then it can make sense to have critical illness cover for them too even if they don’t earn an income. Essentially, this is because their illness could lead to unexpected expenses. In the case of a partner, this could be paying someone else to do what they do. In the case of children, this could be paying for home adaptations or hospital visits. Keep your credit score in good order Generally, you can expect to have some form of mortgage for at least two decades. You are, however, very unlikely to have the same mortgage for all of that time. In fact, keeping the same mortgage for all of that time would almost certainly be a horrendous financial move. Mortgages typically have introductory agreements that run for a relatively short period. This is usually one to five years. After this, they switch to the lender’s standard variable rate (SVR). The SVR is essentially the lender’s default terms when no other agreement is in place. Anyone with a mortgage should be clear on the fact that it's vital to have a new deal lined up before your current one ends. The better your credit record is, the easier this will be. (Using a mortgage broker can be useful too). Build up your equity You may not be allowed to make overpayments on your mortgage during the initial term (at least not without a penalty). You can, however, effectively overpay your mortgage when you come to remortgage. In other words, you can inject extra money into your mortgage to reduce the amount you need to borrow. Of course, you can only do this if you have the extra money, so you will need to do what you can to acquire it while you are paying your mortgage. For example, you could start a side-hustle and/or invest. I’m here to help you with any mortgage payment concerns you have, please get in touch. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.