December 2021

December has rolled around so fast and many of us are in the final stages of Christmas preparation.

Christmas may not be the same for you this year, given the financial implications of the last two years, but we hope you have the best time you can with your loved ones and manage to get some down time over the festive period.

We look forward to working with you again in the New Year, so please don't hesitate to get in touch.

The pandemic is still raging on across the world and we’re sure many are beginning to assess the damage the past 2 years have caused not only to their health, their loved ones and their socialising, but more so their circumstances and finances.

The furlough scheme while benefiting many has left lots of us facing a financial shortfall, many of whom fall into that over 50 age bracket. Research from Rest Less found that more than 540,000 people had experienced living on a reduced income due to the furlough scheme, and 181,000 are out of work since last year.*

For those with savings at the start of 2020, they’re likely to have seen a decrease in this pot of money given that retirees have often made-up income shortfalls by accessing their savings…so what now?
The economy is far from recovered to its fullest and rising costs of living are likely going to have a further impact on spender’s pockets.

Debts still need repaying, outstanding mortgages demand monthly mortgage payments and even younger generations may be grappling to get themselves onto the housing ladder, but the pot is running dry.
Research form OneFamily concluded that many are looking to delay retirement to make up for the loss in income, but what if this isn’t an option for you, or even more so, what if you don’t want it to be a solution?

Those over 55, could have a solution in the form of Equity Release.
The financial option has risen in popularity in the last year, and is now outdoing pre-pandemic levels with many turning to this option to cover mounting expenses. The loaned amount does not need repaying until death or admission to long term care which provides a lot of reassurance and freedom for those looking to weigh up their financial options.
If you think Equity Release could be an option for you, get in touch to arrange a no obligation chat.

This is a lifetime mortgage. To understand the features and risks, ask for a personalised illustration. Check that this mortgage will meet your needs if you want to move or sell your home or you want your family to inherit it. If you are in any doubt, seek independent advice. A fee may be charged for mortgage advice. The exact amount will depend on your circumstances.

The Buy-to-Let market has gone through some periods of change in the last few years, but there are many reasons a Buy-to-Let could be a great choice for you.

•     You could earn rental income between 3% & 8% depending on the area.**
•     At the same time, you could generate capital growth as your money grows as your property value increases.
•     You can take out insurance to cover against loss of rental income, damage and legal costs.

Another beauty of Buy-to-Let purchases, is that you don’t have to be restricted by geographical location, as you’ll not be living there personally. If you wish to remain a hands-on landlord however, you may wish to pick something local.

So besides remaining a hands-on landlord, how do you know where is a good place to look at purchasing a Buy-to-Let? Take a look at our handy hotspot helpsheet for Buy-to-Lets here.

Get in touch if you’re ready to discuss your buy-to-let mortgage

Your home may be repossessed if you do not keep up repayments on your mortgage. Some forms of Buy to Let mortgages are not regulated by the Financial Conduct Authority. A fee may be charged for mortgage advice. The exact amount will depend on your circumstances.

Home insurance- does it cover the things that matter to you?
Small print. Many of us skim the finer details, but unless you take a proper look at your insurance documents, you might be in for a nasty surprise when you come to claim. Here are a few things from your policy that may not be covered unless you obtain a more comprehensive policy.

Problematic pets
Torn up carpets and chewed up furniture are common sights for owners of pets, but cover under a home insurance policy, is far less common. Research conducted by Which?*** Showed that only 14% of policies covered pet damage as standard. Eight in 10 (78%) didn’t cover it at all and one in 10 (8%) offered it as an optional extra.

Oops moments!
Accidental damage may be the driving force for a lot of us seeking insurance, but there are remarkably few policies where this is covered as standard. Many providers offer it as an optional extra though so it’s worth looking to add that in, especially if you’re spending more time at home as a result of the pandemic.
When it comes to buildings insurance policies, only three in 10 (29%) included full accidental damage cover as standard, and the same number offered it at an extra cost. The majority of buildings insurance policies, though, provided some accidental damage cover as standard, with full cover available as an extra. As for damage to contents in your home, just two in 10 covered it as standard, while four in 10 (42%) offered it as an extra and a quarter provided partial cover with more available at an additional cost.

Mismatching
If you damage something that constitutes part of a set, like that lovely dinnerware set, or a three-piece suite, it's worth noting that only 47% of the policies analysed by Which?*** covered matching sets, and would replace the entire set if damaged. This is especially helpful if it would be challenging to replace a single element of the set.

Trampoline tragedy!
Ensuring the garden is covered in your policy may not be something you’ve considered, but especially when it comes to big ticket items like hot tubs and trampolines, ensuring your garden is included in your policy is essential.
Most policies do cover gardens as standard, but one in five of the policies looked at by Which? Either didn’t include it, or it was taped on as an added extra, so make sure you check!

Outdoor outlaws
The things we store in our outbuildings and sheds can soon mount up to being worth quite a bit of money, from lawnmowers to bicycles and even power tools. So, ensure theft from the shed is covered. Most policies did include this but for one in ten not too, it could be an easy oversight, especially on those cheaper policies.

Your Home (or property) may be repossessed if you do not keep up repayments on your mortgage or any other debts secured on it.

3 little tips to help make magic this Christmas, without breaking the bank

Tammie Cook Director & Co-Founder BA (Hons), Dip.RS, CeMap, CeRER Telephone: 07990 522 770 Email: tammie@home-finance.co.uk	Damion Silcock Director & Co-Founder CeFA, CeMAP, CeRER, CeLTM Telephone: 07941 323 600 Email: damion@home-finance.co.uk