One of the basic rules of thumb of property buying is that you want to be able to put down as big a deposit as you possibly can. One reason for this is that bigger deposits are looked on very favourably by mortgage lenders and can help you to get a better mortgage deal. In fact in the light of the Mortgage Market Review, the size of your deposit might make a difference to whether or not you get a mortgage at all. Help to Buy ISAs were created specifically to help first-time buyers put together that all-important deposit. What is a Help-to-Buy ISA? The term ISA stands for Individual Savings Account. It was originally created to describe a general savings and investment product, which was (and is) available to all adults resident in the UK. The defining feature of a Help-to-Buy ISA is that the government will top up each £200 the saver deposits with £50 additional credit, up to a maximum of £3000. To get the £3000 you would need to save £12,000, giving you a deposit of £15,000. That is per person, so if two (or more) people were to buy together, they could pool their allowances. It's important to understand that you can make a total contribution of £3400 in the first year after opening an ISA and then up to £2400 each year after that until you reach the cap of £12000. This means that you would need a minimum of about four and a half years of saving to receive the full £3000 credit. Who qualifies for a Help-to-Buy ISA? Help-to-Buy ISAs are intended to help adults (in this case defined as people over the age of 16) to buy their first home in the UK. The key words to note here are first and home. Help-to-buy ISAs are only available to first-time buyers who intend to live in the property they purchase. The terms of the scheme explicitly forbid it from being used to purchase a buy-to-let property but there is nothing forbidding it from being used in conjunction with the rent-a-room scheme in which landlords who are resident in a property can receive up to £4,250 per year tax free by letting out furnished accommodation in their main home. It should be noted that this allowance is per property, rather than per person. In other words, if a couple buy a flat together and let out the spare room the £4,250 allowance would be between them rather than each. Are there any catches to Help-to-Buy ISAs? Help-to-Buy ISAs can only be used to purchase a property with a price of up to £250K or £450K in London. That is to say even if the buyer can raise a deposit of more than £18K and/or has sufficient income to make payments on a higher-priced property, they will still only be able to use the funds from their help-to-buy ISA to buy a property up to the permitted price. Whether or not this is an issue in practical terms will depend very much on personal circumstances. Younger first-time buyers looking to buy a starter flat well away from London may find this more than adequate. Older first-time buyers looking for a family home in the Thames Valley area may find it more of a challenge to find something suitable on this kind of budget. It should also be noted that those saving for a deposit have to make a direct choice between a help-to-buy ISA and a normal cash ISA. It is only permitted to open one or the other in any given tax year. General https://www.moneyadviceservice.org.uk/en/articles/a-guide-to-help-to-buy-isas https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/413899/Help_to_Buy_ISA_Guidance.pdf Tax concessions are not guaranteed and may change in the future. We charge a fee of between NIL and 1% of the loan amount. Typically this will be £295. Your home may be repossessed if you do not keep up repayments on your mortgage.

The value of a state pension is set by the government. Currently it is based on the amount of National Insurance contributions retirees have paid during their working life. The value of a private pension pot depends on three basic factors. Firstly, how much money has been saved into it. Secondly, how long the money has been invested. Thirdly, how well the investments have performed. In both the state-run and private schemes, you may be given the opportunity to top up your contributions. If you are in this position, it is important to think carefully about whether or not this is a good choice. The State Pension National Insurance contributions are paid by people in employment (above a certain earnings threshold) and are paid by the government on behalf of those in receipt of certain benefits, e.g. Job Seeker's Allowance. Those who fall outside of these categories, e.g. people who take a gap year from employment but do not claim JSA, can sometimes choose to top up their state pension by paying contributions voluntarily. The first point to note is that you need 35 qualifying years of National Insurance contributions to claim the full new state pension. If you have fulfilled this requirement then regardless of whether or not there are “missing” years, you will still receive the maximum possible amount of state pension. There is a separate scheme which allows anyone who reaches state pension age on or before 5th April 2016 and qualify (this means they are entitled to the Basic State Pension or Additional State Pension and be either a man born before 6/4/1951 or woman born before 6/4/53) to buy up to £25 per week of extra state pension by making a lump sum payment on or before 5th April 2017. This is known as State Pension Top Up. If you have less than 35 years' NI contributions and/or are considering making use of the State Pension Top Up scheme, then there are two key questions to ask before taking a final decision. The first is: how much faith do you have in the long-term future of the state pension? Government schemes and benefits can and do change. Governments might prefer to avoid making changes which lead to state pensioners being worse off, but in theory at least, it is a possibility. The second is: what else could you do with the money? In other words, could you get a better return on investment elsewhere? Private Pensions Private pensions come in two basic forms – workplace pensions and personal pensions. Under current laws, all qualifying employees must be enrolled into a workplace pension unless they actively choose to opt out. Both the employee and the employer make contributions into the employee's pension fund (plus the contributions are eligible for tax relief), these contributions are then invested on the employee's behalf and released to them when they are due to retire. In this case the opportunity for “free money” from an employer does generally make a compelling case for making the most of any workplace pension scheme. As always you would need to ask yourself if you could make better returns elsewhere. If you do find an opportunity where you could feasibly achieve higher returns, the next question to ask would be whether it realistically offers a comparable lack of risk. Personal pensions do not benefit from employer contributions, but the fact that tax relief is available up to a certain level of contributions, means that saving for a pension can be an attractive way of planning financially for retirement. Up until recently, this had to be balanced against the fact that the majority of a pension pot had to be used to buy an annuity. This requirement has, however, been removed as part of a drive towards “pension freedom”. The result it that people currently saving towards a pension can make the most of the “free money” offered by tax relief, while enjoying a much greater degree of flexibility regarding what they can do with the resulting funds. For Pensions we act as introducers only. Info on state pension - https://www.moneyadviceservice.org.uk/en/articles/state-pensions Info on workplace pensions - https://www.moneyadviceservice.org.uk/en/articles/automatic-enrolment-into-a-workplace-pension Info on personal pensions - https://www.moneyadviceservice.org.uk/en/articles/personal-pensions

The NHS is part of the fabric of UK life and yet there is also a thriving private health insurance industry. Why is this and should you be looking at private healthcare insurance for you and your loved ones? Healthcare insurance may give you more control over when you are treated While TV dramas may focus on people being rushed to hospital in ambulances for emergency surgery, the reality is that accident and emergency services are only one part of healthcare. Other forms of treatment can be and are scheduled. Those with insurance may be able to take advantage of their cover to arrange for treatment at the time which is most convenient to them (or at least has the minimum inconvenience) rather than simply having to accept the slot allocated to them by the NHS. Likewise those with healthcare insurance may be able to see a relevant specialist more quickly to have their symptoms and/or concerns assessed. In other words, if there is a need for further medical treatments, this can be identified more promptly. Healthcare insurance may make it possible to access treatment at a more convenient location An obvious example of this is dental treatment. Private dentists may or may not accept NHS patients at all and if they do they may have limited spaces available for them. Having private health cover may make it possible for you to access a private dental clinic near to you rather than having to find the nearest NHS dentist with availability. Having private healthcare insurance may also make it possible for you to access purely private hospitals which do not accept NHS patients at all. Healthcare insurance may give you a higher standard of care By care we mean general care, rather than clinical treatment. As an NHS patient you may find yourself sharing a ward with other people and eating from a menu which is restricted for reasons of practicality rather than for clinical reasons. Having private healthcare insurance may enable you to have a private room and a better choice of food options. It may also mean you get access to amenities such as WiFi while you are in hospital, possibly making it easier to keep in touch with loved ones (or at least stave off the boredom of bed rest). It may even make it possible for you to receive visitors whenever you want, rather than being restricted to designated visiting hours. Healthcare insurance may offer treatment options outside of what the NHS can offer The NHS is designed to cater for essential treatment and to provide essential supporting equipment. The key word here is essential as opposed to simply beneficial. Private healthcare can help to bridge this gap. For example it may pay for extra physiotherapy sessions and/or help to upgrade you to a more comfortable wheelchair until you are ready to walk again. Would you and your loved ones benefit from health insurance? Ask yourself a simple question. If you did not have your health, how would you and your family cope? There are really two aspects to this question. One aspect is practical and in particular financial and the other is emotional. Taking steps to resolve practical issues and to ensure that you and your family are supported financially and can afford whatever you need to help you regain your health as quickly as possible, can go a long way towards mitigating the emotional challenges of dealing with health issues. In addition to private healthcare insurance, you may also want to look at other types of insurance to support you in periods of ill health such as payment protection insurance and critical illness cover. You may also wish to review your life insurance to make sure that those you love are adequately protected from the financial impact of anything happening to you.

With the new year nearly upon us, here are some resolutions to make for 2016 and to keep for the whole year and beyond. Start by looking after your pennies You know the old saying “Look after your pennies and you pounds will take care of themselves.”. It is not entirely true, you do need to manage your pounds too. It is, however, only too true that small expenses here and there can add up to a surprising amount when you actually stop and examine your spending. This in turn can have a long-term effect on your finances. Make some time to look at how you could reduce your spending without much, if any, impact on your lifestyle. For example could you make your own coffee to drink on the train instead of buying it every day? If so, the savings you make can be put to other work. Learn to love budgeting Budgeting essentially means keeping track of your income and expenses and taking steps to ensure that you always have the money you need available when you need it. As a minimum you should have a budget which will see you from one pay day to the next, ideally with some money left over. It can, however, also be helpful to create an annual budget, since some times of year can be noticeably more expensive than others. Christmas is an obvious example of this and, for parents, school holidays can be another. Some people may also have variable income, e.g. those who earn commission and will therefore need to ensure that they save money during their peak earning periods to balance out the times when they earn less. Pay off debts Sadly debts do not go away by themselves. Compound interest is wonderful when it works in your favour (i.e. on your savings), unfortunately it can be brutal when it works against you (i.e. on your debts). Before you get to work on paying off what you owe, you need to have an emergency savings pot set aside. This will essentially act as a buffer to help stop you needing more credit (which you may or may not get). How big this pot needs to be depends on your personal circumstances. As a minimum, think about which of your possessions would cause you the most pain to have to replace at short notice and have a plan (and finance) in place to deal with this worst-case scenario. Realistically you should ideally also have enough money set aside to tide you over in the event that you lost you job. In blunt terms this needs to take into account how long you are likely to need to find another one. With this emergency pot safely set aside, only to be touched if absolutely needed, you then need to start tackling your debts, beginning with the highest-interest ones, such as credit-card balances. Start making financial goals What do you really want to do with your life and how much money will you realistically need to finance your dreams? Saving and investing can seem so much more rewarding when you are undertaking them with a concrete goal in mind. If your goal seems huge, overwhelming even, see if you can break it down into smaller pieces. At the very least try to give yourself little rewards along the way. It can sometimes help to keep track of your progress in a very visible way, such as a physical chart on a wall, where you can tick off each milestone and literally see how you are getting closer and closer to achieving your goal.

Christmas comes but once a year. Sadly its financial effects can be felt for a lot longer. Ideally Christmas should be paid for out of a budget you can afford. This could be through savings you make throughout the year. In reality however it is very easy to overspend at Christmas. If the children have set their heart on something... If there is a great company night out that is just a bit more than you wanted to pay... If you need to travel and miss the more affordable fares... The reality is that after Christmas you may well need to make it a priority to pay off debt. Here are some options for you. Use Christmas to Pay Off Christmas In other words, sell your unwanted gifts. While you are about it, see if you have other stuff you could clear out for cash as well. The obvious place to clear out stuff is eBay. It may, however, be worth thinking about whether this is the best option for you. You may be able to list your item for free, but you can expect to pay fees if the item sells. You are also going to have to be realistic about postage costs and the practicalities of posting items. There is also the possibility of dishonest buyers abusing eBays protection schemes. With that in mind it may be worth looking into alternatives such as Gumtree, Craigslist or local selling sites. You could even try a car-boot or just spread the word and see what happens. Give up Small Temptations (at Least for a While) Small expenses can add up. The cup of coffee bought on the way to work... The shop-bought sandwiches instead of a packed lunch... The takeaway when you are too tired to shop for food... Cutting down on these little expenses can go a long way to boosting your finances. Likewise resist the New Years sales. They might have some genuine bargains, but there are deals all year round for savvy shoppers. You Can Lose Weight Without Joining a Gym Yes Christmas is a time when pounds can easily move from the wallet to the waistline. Yes you may need to lose some weight. No, you do not have to join a gym to do it. In fact now may be the time to ditch the gym membership you never use. It might also be a good time to review your other regular bills and see if you are still getting value for money from them. For example, if your mobile contract is up and you are happy with your handset, then now could be the time to switch to SIM-only or PAYG (Pay As You Go). If you are a smoker, then giving up is a win for your wallet and your health. Get Savvy with Your Shopping Before you reach for a well-known brand, take the time to look at the budget alternatives. Sometimes there will be a difference in quality. You may feel it is worth paying the extra for the premium brand. Other times, however, you may be surprised to discover how little difference there is. You may even find you prefer the budget brand. Switch Nights Out to Nights In Nights out can be great fun, but they can also be very expensive. There is the headline cost of whatever you want to do. Then there are the extras which can sneak in. January may be the perfect time to give yourself a little social down time. Of course, you can still keep up with your friends, just socialize in a budget-friendly way. You may well find that your friends are in the same situation as you. They may be more than happy to have a chance to keep their own costs down.

The topic of retirement savings has had a lot of publicity recently. The introduction of the auto-enrolment scheme was accompanied by a series of adverts highlighting the importance of “saving for my pension”. The withdrawal of the requirement to buy an annuity has also made headlines and sparked plenty of debate. The ability to leave part of a pension fund invested while withdrawing some income from it (known as income drawdown) gives retirees new options for financing their retirement. At least, that is the theory. Those with workplace pensions may find that the reality is somewhat more complicated. Please note prior to taking any action it is extremely important to seek advice on pensions and transferring them before you do so. Workplace pensions – an employers perspective All employers have to comply with the requirements of the auto-enrolment scheme. At this point there is nothing which legally requires employers to run workplace pension schemes which support income drawdown. This means that businesses will look at the matter from a cost/benefit perspective in the same way as other business decisions. Companies which are introducing workplace pension schemes purely because they have to, arguably have little incentive to look beyond the cheapest and/or simplest option which keeps them on the right side of the law. Companies which view workplace pensions as a means to attract and retain staff do have to consider the issue of employee satisfaction, but this has to be balanced against any costs and resources involved. What this means in practice for people currently saving towards a workplace pension For those who currently have some time to go before retirement, it may be far too soon to make a definite decision as to whether or not income drawdown is the right way to go. It may, however, be the perfect time to see whether or not the existing workplace pension scheme supports income drawdown and if not if there are any plans to change it so that it does. If the answer to both questions is no, then it may be worth seeing whether other people would also like this option and if so speaking to management/HR about the matter. What this means in practice for people close to retirement If you're close enough to retirement to have made plans which involve either income drawdown or simply leaving your pension pot invested for some time after your retirement from paid employment, then it can be very helpful to check just how that pension pot is being invested. If the management company is working on the assumption that you are going to be buying an annuity in the near future, they may well be pursuing a different investment strategy for you than they would if they knew that your plan was to keep your pension fund (or part of it) invested over a longer period. It is probably also a good idea to check with whoever is managing your progress towards retirement, what the process is for transferring your pension pot to a provider who does support it and how long it will take. One last and very important point As we mentioned at the start of this article, the changes to income drawdown is new and exciting and has generated a lot of interest. Now everyone over 50 has the option to drawdown their income. For some people it is a superb way to finance retirement. For others, however, annuities or an annuity plus a lump sum may still be the more appropriate options. Either a lump sum or the income from an annuity can be invested however the retiree sees fit. For some people this approach may provide a better balance of flexibility and security. Income Drawdown carries significant investment risk as your future income remains totally dependent on your pension fund performance. The value of your investment and any income from it, could fall or rise and you may not get back the full amount invested.

The mortgage market review led to the introduction of new mortgage rules. In very simple terms these rules obliged lenders to observe stricter mortgage lending practices. Buyers now need to prepared to demonstrate that they are capable of paying back mortgages over the very long term. This includes accounting for possible changes in personal circumstances. It also includes possible changes in interest rates. Realistically speaking any changes to interest rates could only be in one direction – upwards. With this in mind, buyers may like to look at the option of fixing the interest rate on their mortgage. This raises three questions and here are our thoughts on them. Should I get a (new) mortgage at all? If you are currently renting are you sure you are ready and able to buy? You may be able to afford a mortgage, but are you absolutely certain it is the right choice for you in your current situation? Home ownership offers stability, but renting offers flexibility. Which are you likely to find more useful over the next 5+ years? If you are thinking about remortgaging your current home then it is important to understand that the answer to the question “How much can I borrow?” may have changed dramatically since last time. Assuming you can clear this hurdle, you will then need to ensure that you completely understand any and all costs associated with remortgaging your home. For example, do you need to have a new survey done? Then you need to do the sums to see whether or not remortgaging will save you money and if so how much. If switching is only a small gain, then only you can decide if it is worth the effort. Should I look at a fixed-rate mortgage? While fixed-rate mortgages have the obvious attraction of stability, you need to look at your overall situation to decide whether or not they are right for you. Remember that there are three main types of mortgages: repayment, interest-only and offset. With repayment mortgages, you pay off both the sum borrowed and the interest. With interest-only mortgages you only pay off the interest on the loan and it is up to you to find a way to repay the sum borrowed at the end of the loan period. Offset mortgages are essentially massive overdrafts, which allow you to put in and take out money very flexibly. The basic idea is that you give up earning interest on your savings in order to pay less interest on your mortgage, thus gaining overall. In theory any of these options could be offered as fixed-rate. In practice you will need to see what is available on the market at the time you are looking to (re)mortgage. While the idea of fixing your rate may seem attractive, you may find that there are simply better deals out there at the time. How long should I fix my rate for? If you are still in the market for a fixed-rate mortgage, you need to think about how long to fix the rate for. Again, the theoretical answer to this question may be very different to the practical one. While you might want to lock in a low rate for as long as possible, possibly the entire time of your mortgage, banks are businesses, which want to make a profit. With that in mind, you will need to look at each of the available deals and see what the overall cost is (including, for example, any set-up fees). You are also going to need to look at the situation after the fixed period comes to an end. In other words, will you still have a good deal or, realistically, could you find yourself either dealing with a poor mortgage or having to go through the remortgaging process and take the risk of being turned down? Your home may be repossessed if you do not keep up repayments on your mortgage. For Residential & Buy to Let Mortgages, our typically processing fee is £395 and we may receive commission from the lender.

A quick internet search on the costs of raising a child brings up plenty of results. In real life, however, how much it costs to bring up a child depends largely on your personal situation. How much is housing in your area? How much free childcare can you get from grandparents? Are the local schools good or do you need to look at private school fees? One fact is, however, absolutely clear – children are a challenge to the family finance. Parenting and Financial Planning While nothing can prepare anyone for the reality of their first baby, there is a lot can be done in advance to sort out practical matters relating to the newborn-to-be. Ideally couples should start putting away some savings as soon as they agree they are seriously interested in having a baby. Putting away a little at a time in advance of the pregnancy can go a long way to dealing with baby-related expenses later. Once the pregnancy is confirmed, baby preparations should also include financial preparations. Planning for Parental Leave It is essential for parents-to-be to know what their employer offers in terms of parental leave. Some employers will only provide the statutory minimum. Others may offer more generous terms. Future parents will also need to think about the “post-leave” stage. Will one parent stay at home or will both work? If the latter, who will look after the baby? If one parent gives up work, there will obviously be a loss of income. If both parents work, there may be childcare costs. Depending on circumstances these may be paid out of income or financed in another way. For example parents may use their savings or may have been investing for this time. Securing a Child is Long-Term Future It may not seem like it at the time, but sooner or later the sleepless nights, dirty nappies and teething do come to an end. Parenting, however, is a long-term job and children are long-term commitments. Even if local state schools are good, there is still university and other expenses like driving lessons and first cars. Depending on where you live and what your child wants to do with their life, having a car (and a licence and insurance) may make a world of difference to their chances of employment. Investing for a Child There are a number of ways to help finance your child is path to adult life. One obvious route is Junior ISAs. At current time you can invest up to £4080 per year. Other relatives and friends can also put money into the pot. Junior ISAs can be held in cash or invested in the stock market (or both). In either case the returns are tax free. Once your child turns 18, the money becomes theirs outright. Junior ISAs can be attractive but there are a couple of points about them parents need to understand. First of all, unlike their adult counterparts, the money in Junior ISAs is effectively locked away until the child is 18th birthday. There is absolutely zero flexibility in this. Therefore if you want to save in a way which allows withdrawals, you will need to look at other options. There are child savings accounts without the tax advantages but with much more flexibility. Another potential issue is that the whole sum is available to your child on their 18th birthday. If you save the full amount each year, that is £73,440 plus any returns. Your child could use it responsibly. If you have taught them good financial management maybe they will. But if they go out and blow it all on wine (wo)men and song, there is absolutely nothing you can do about it. If this is a concern for you, you may wish to look at creating a trust for your child. This might sacrifice some of the tax advantages of Junior ISAs but could give you much more control over how the money is eventually released and spent. The value of investments and any income from them can fall as well as rise.  You may not get back the amount originally invested. HM Revenue and Customs practice and the law relating to taxation are complex and subject to individual circumstances and changes which cannot be foreseen https://www.moneyadviceservice.org.uk/en/articles/junior-isas https://www.moneyadviceservice.org.uk/en/articles/childrens-savings-accounts https://www.moneyadviceservice.org.uk/en/articles/setting-up-a-trust

In an ideal world, buyers and sellers would work together to reach a deal with which both were happy. In the real world this does sometimes happen. Sadly it also happens that sellers try to take buyers for as much as they can get. What is more they can use very underhand tricks to achieve this. Here are a few (and what you can do to avoid them). Dynamic Currency Conversion http://www.theukcardsassociation.org.uk/individual/dynamic-currency-conversion.asp Some shops, restaurants and cash machines abroad now offer a service called Dynamic Currency Conversion. This one only applies in specific circumstances, but it can be such a nuisance, it is worth looking out for it. Dynamic currency conversion is when a price is advertised in a foreign currency but charged to your card in your own currency – at the merchants exchange rate. This is supposed to be an extra, add-on service. It is meant to give added convenience to international travellers and online shoppers. To be fair, it can be used entirely transparently and accurately. It can also be a useful way for buyers to avoid foreign-exchange fees. Unfortunately it can also be used to increase an item’s price in a subtle way. If you are looking to get the absolute best deal, you can check the merchant’s converted price against an independent exchange-rate calculator. Then you can decide whether to accept it or just take the hit with foreign-exchange fees. Alternatively you could look at getting a card in the currency of the purchase, i.e. a travel-money card. Forgetting to Cancel after Trial Periods Some companies offer a free trial of their add-on services. They may take your billing details up front so that they can start to bill you after the trial is over, unless you actively remember to cancel. Likewise some products, such as credit cards, offer introductory benefits for a certain period. They will then apply their standard rates at the end of this period unless you actively cancel. On a similar note some contracts are for a fixed length of time after which they renew automatically unless you actively opt out. There are two ways this can hit you in the wallet. Companies increasing fees without you noticing (in time). Companies failing to inform you that they have better deals available. The way to avoid all of these extra costs is to stay on the ball. Make a note of when introductory offers and contracts come to an end. A paper calendar or diary is one way to do this. In this age of smartphones, however, you can put a note in an electronic calendar. Then you can set yourself a reminder to take action in good time. This is particularly useful for services such as insurance policies. In these cases you may well need the service but will want the best price. Give yourself time to shop around. “Untick the Box” Charges You buy an item for £10 but when it appears on your statement it is £12. You query this and discover that this was an optional extra. The box was helpfully ticked automatically and you never unticked it. There are lots of variations of this trick. One is to make customers go through the entire purchase process and then add in an effectively unavoidable fee at the end to complete the purchase. Yes, customers could click close and walk away, but by that point there is a good chance they will just grit their teeth and pay. Then of course there are add-on fees for items you might have expected to be included. Charges for hand-luggage on planes are one example of this. The strategy for avoiding these is a combination of alertness and determination. You need to stay alert to what is and is not included in any purchase. You also need to be realistic about when to walk away from a transaction. If you saw a headline price of £20 but “extras” bump it up to £40, is it still a good deal?

Life happens. It has its ups and realistically it also has its downs. Hopefully, overall, there will be more ups than downs. It is, however, wise to be prepared for the more challenging periods. “Am I protecting my family enough?” is a question to keep in mind at all times. Here are four points to look at to keep your family financial secure. Cash Savings This may seem like stating the obvious, but having a cash cushion can help protect you and your family from financial blows. They are particularly useful for what could be called short-term shocks. These may not be covered in other ways, or you may not want to claim on other cover. For example if you are a freelancer and a regular contract is ended, cash savings can tide you over until you replace it. How much you need in the way of savings will depend on your personal situation. Income Protection https://www.moneyadviceservice.org.uk/en/articles/do-you-need-income-protection-insurance No one wants to think about getting ill but it can and does happen. How would your family cope if the main breadwinner were suddenly unable to work? In the short term, cash savings might tide you over. If you are close to retirement and have a pension due, they might be all you need. If, however, you have a longer horizon, then looking at some form of income protection may be advisable. The most obvious candidates for this product are the self employed. Even the employed, however, might want to think about it. Income protection can be taken out to cover you for sickness and injury and provides you with an income until you are back on your feet. Critical Illness Cover https://www.moneyadviceservice.org.uk/en/articles/critical-illness-insurance-do-you-need-it Critical illness cover pays a lump sum if you are diagnosed with one of a specified range of medical conditions. It can be used in combination with medical insurance and income protection to help protect against illness devastating your finances. Income protection cover will take care of replacing your usual income. Medical insurance will take care of getting you the best possible treatment in the shortest possible time-frame. Critical illness cover can help smooth over the extra expenses which can be caused by illness. For example, it could help towards paying off your mortgage, covering additional medical expenses or reducing the financial impact if you were unable to return to work, or anything else you needed. Life Insurance Cover https://www.moneyadviceservice.org.uk/en/articles/do-you-need-life-insurance http://www.legalandgeneral.com/life-cover/existing-customers/online-trusts-tool/ You are irreplaceable but in the event of your death being able to replace your income can give your family peace of mind. Even if you are a home-maker, you still make a financial contribution to the household. In simple terms, someone would have to do what you do in the event of your death. Family and friends will often do what they can to help, but this can be an extra burden on them. It is one they may struggle to manage over the long term. Even when you have a substantial estate, there is another advantage to life insurance. In simple terms it can be written in a way which leaves it ring-fenced from the rest of your assets. This means that it can be released promptly rather than having to go through the (potentially lengthy) process of probate.

There's lots of good advice available on how to get out of debt.  The reality though, is that getting out of debt can be a bit like dieting.  Even though, ultimately, it can do you good, the process itself isn't necessarily a whole lot of fun.  Making it fun may be a bit too much of a stretch, but there are ways to keep yourself motivated.  Who knows, you might even start to enjoy the challenge. Tip 1 – Be Reasonable With Yourself You may have made some stupid mistakes to end up where you are now, but those are in the past. The key point now is to manage the situation you are in and to put yourself into a strong position for the future. If you only have a small amount of debt, you may be able to pay it back by going on a financial crash diet.  In other words, you can pare your lifestyle down to the minimum so as to make the maximum possible debt repayments. There is, however, a limit to the length of time anyone could reasonably be expected to follow a strategy like this.  If you try to keep going with this sort of plan for too long, then you open yourself up to the danger of blowing your budget. At best, you'll have a (major) set-back.  At worst, you'll lose motivation to continue. With this in mind, it can be better to pay back your debt a little more slowly so you have a bit of breathing space. Tip 2 – Work Towards Goals And Rewards You don't have to wait until you are debt-free to celebrate progress. Set yourself goals to achieve along the way and allow yourself an appropriate reward for meeting them. The rewards don't even need to be financial.  At the beginning, you can even just award yourself a certificate.  Pin it on your wall and look at it every time you need a bit of a boost. As time goes by and you begin to get more control over your finances, you can start to divert a bit of money from your debt repayments for small rewards to recognize your achievements so far. You can also start to think about what you'll do with the cash you're currently spending on debt repayments once you're debt free. Tip 3 – Get Creative And Be Flexible To Get Treats Keep your eyes open for ways to get treats at lower prices.  There are actually all sorts of options. Check magazines for old-fashioned, money-off coupons and check online sites for discount codes.  Look for off-peak deals and last-minute offers. If you're in or near a place where students study practical courses, then look out for colleges offering cut-price services carried out by their students. Squeeze extra benefit out of purchases you have to make anyway by signing up for loyalty deals. Try home-made alternatives to purchases you can't afford for now. Have a film night at home with supermarket popcorn instead of going to the cinema (and you can pass on the trailers too). Try your luck with free-to-enter competitions (or ones which require purchases you were going to make anyway).  Somebody has to win. Tip 4 – Keep Some Emergency Funds Available If you're already in debt, then you want to avoid even applying for more credit, always assuming you can actually get it. You particularly want to avoid being in a situation where you are applying to high-interest lenders aka payday loan companies and the like. Leaving aside the impact on your credit score and the expense, this can be a very demoralizing experience after you've worked so hard. Having an emergency fund will help you to cope with life's ups and downs without having to resort to more credit.

These days getting a mortgage is a bit like getting a job. You may know you have what it takes to manage it, but unless you communicate that clearly, the chances are you're going to go away empty-handed. Understanding The Mortgage Landscape The Mortgage Market Review reforms The Mortgage Market Review took place between 2009 and 2012. As its name suggests, it was a major review of mortgage lending practices in the UK. The result of it was new mortgage rules and much stricter mortgage lending practices. In the old days mortgage applicants might have asked themselves “how much can I borrow”, these days, the relevant question is “how much can I afford”. In very simple terms, mortgage lenders today will be looking to see clear evidence that you can afford your mortgage over the long term, through life's changing circumstances. So, how do you get the mortgage you want? (see also http://www.fsa.gov.uk/about/what/mmr) Step 1 – Tidy Up Your Present Getting your financial house in order can have all sorts of benefits in addition to being approved for a mortgage. In terms of improving your chances of being improved for a mortgage, you want to look at your overall debt situation. That includes what you could call potential debt. In other words if you have credit and store cards you rarely, if ever, use, it's time to think about whether or not you really need them. As long as you keep them open, potential lenders will see that you could ring up debt to the credit limit on each card. You may know you're not going to but they don't. If you close them off, however, you will make yourself look more attractive to a potential mortgage lender. Likewise, you may want to put in extra effort to clear off smaller debts, such as personal loans. In addition to this, make sure that you are on the electoral register (see: Why should you register to vote?) at the address you plan to use when submitting your mortgage application. As well as ensuring you will be able to vote if there is an election, this is also a major point with lenders. Step 2 – Tidy Up Your Past Your financial history is summarised in your credit report or, more accurately, your credit reports. In the UK there are three companies provide credit-reporting services. These are Experian, Equifax and CallCredit. As they each use their own systems to create their own reports, you will need to get a copy of each report to see yourself as others see you. On each report, check for any factual errors and, if necessary, have these removed. Then look for anything, which comes under the heading of “true, but”. In other words, look for anything which is factually correct but paints a misleading or outdated picture of your finances and/or financial management. You might not be able to get this removed (although if you have resolved the issue, this may be possible, there's unlikely to be any harm in asking). You may, however, be able to add a note about any special circumstances which led to the problem. As a minimum you can be prepared to explain the situation to potential lenders. Now have a look at the overall picture. Is there anything you could do to make it look better (per the comments in the previous section)? If so aim to do it before putting in your mortgage application. Step 3 – Make your application look good Treat your mortgage application process as seriously as you would treat an application form for a job. If you're applying on paper, make sure your writing is at least legible. If you're applying online, make sure you fill in all the relevant information in all the right boxes. In either case, be realistic about what you can afford in terms of monthly repayments and be prepared to support your application with appropriate documentation. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE For Residential & Buy to Let Mortgages, our typically processing fee is £395 and we may receive commission from the lender.