This month, we are sharing our wealth of knowledge to get you sorted before the end of the year. We dive into myth-busting mortgage hurdles and what this could mean for you. How to access more health insurance benefits, and important information on beating those insurance premiums rising! For income protection, we discuss why not just the breadwinner should be protected financially. And do you know how much you could borrow with a lifetime mortgage?
On top of our usual topics covering insurance and mortgages, we have also included some top tips on how to save money this festive season. Take the stress out of your financials this year, and all year round, with an advisor you can trust. We are here for confidential advice whenever you need us.
The silly season is approaching, and from all of us here, we wish you a restful and joyful holiday season!
Here are common mortgage myths debunked to help you navigate the home-buying process confidently. Chat with us to go into these in detail and for advice specific to your circumstances.
Myth: You Need a Huge Deposit (at least 20%)
Reality: While a larger deposit can get you better rates, many mortgages are available with lower deposits:
- 95% Loan-to-Value (LTV) mortgages require just a 5% deposit.
- Government schemes like Help to Buy, Shared Ownership, or the First Homes Scheme support buyers with small deposits.
Myth: You Need a Perfect Credit Score
Reality: Lenders assess your overall credit history, not just your score. Even with some missed payments or defaults, you may qualify for specialist mortgages. Improving your credit profile with small steps (like paying bills on time) helps, but it's not the only factor.
Myth: Self-Employed People Can’t Get Mortgages
Reality: Self-employed applicants need to provide more evidence of income stability, such as:
- At least 1-3 years of accounts or tax returns.
- A reference from an accountant.
- Bank statements.
Many lenders offer products tailored for the self-employed, freelancers, and contractors.
Myth: Student Loans Will Disqualify You
Reality: Student loans in the UK are treated differently from other debts. Lenders factor your monthly repayment into your affordability calculations, but it doesn’t count against you as heavily as other liabilities.
Myth: You Should Always Choose a Fixed-Rate Mortgage
Reality: Fixed-rate mortgages offer stability, but they may not always be the best choice.
- Variable-rate mortgages (e.g., tracker or discounted rates) may be cheaper in certain interest rate climates.
- Consider your plans—if you’re moving soon, a shorter-term deal might save you money.
Myth: You Can't Get a Mortgage with Bad Credit
Reality: Specialist lenders cater to those with poor credit histories, though rates may be higher. Over time, improving your credit can help you remortgage to a better deal.
Myth: It’s Impossible to Get on the Property Ladder as a First-Time Buyer
Reality: First-time buyers have access to schemes like:
- Help to Buy ISA or Lifetime ISA (LISA) for savings boosts.
- Shared Ownership, letting you buy a portion of a property and rent the rest.
- First Homes Scheme, offering discounts on selected new-build properties.
Myth: Changing Jobs Means You Can’t Get a Mortgage
Reality: While job stability helps, it’s not a dealbreaker. Lenders often ask for 3-6 months of payslips, but some will accept a new job with an employment contract as proof.
Myth: The Bank You Bank with Is the Best Choice for a Mortgage
Reality: Loyalty doesn’t always mean better deals. Shopping around for mortgages and using a mortgage broker can uncover better rates and products tailored to your needs.
Myth: You Can’t Overpay Your Mortgage Without Penalties
Reality: Many UK lenders allow you to overpay up to 10% of your outstanding balance annually without penalties. Check your specific mortgage terms.
Myth: You Can’t Get a Mortgage After Bankruptcy or Debt Issues
Reality: Bankruptcy or CCJs (County Court Judgments) don’t permanently bar you from getting a mortgage. Specialist lenders consider applicants 1-3 years after bankruptcy discharge, especially if you’ve rebuilt your financial stability.
Myth: Renting Is Always Cheaper Than Buying
Reality: While buying involves upfront costs, monthly mortgage payments are often lower than rent, especially as rents rise. Homeownership also builds equity over time, making it a worthwhile investment.
The mortgage market has options for a wide range of circumstances. If you're unsure, consulting us can help you find the best solution for your needs. What specific concerns are you dealing with? Hit reply-to to find out more!
Let’s create a bespoke health insurance policy – just for you!
Did you know that using an advisor like us that you trust (rather than a comparison site) means we can offer real advice? Without all the confusing language and policies that don’t make sense. Plus, unlike a comparison website, we won’t hound you with cold calls and emails, as we are already connected!
With added benefits, you can access the best medical care and advice. Such as a second opinion on a major diagnosis or round-the-clock doctor access. Plus, you’ll have the support of expert therapists for your physical and mental well-being.
Let’s dive into unlocking extra protection benefits:
When you need confidence in your medical decisions: second medical opinion from global specialists.
It helps to have a second set of eyes. With your protection policy, you can consult with leading specialists around the globe for a second opinion on complex medical cases. This service connects you with highly qualified doctors who can review your diagnosis. Helping you make informed choices about your health journey.
Healthcare in your pocket, anytime, anywhere: 24/7 Doctor Access and Prescription Services.
Need a doctor at 2 AM? No problem. With access to a 24-hour medical helpline, you can speak to a doctor at your convenience – for quick advice, diagnosis, or even to arrange a prescription delivered straight to your door. Whether it's for your children, yourself, or a loved one, peace of mind is just a call away.
Mental and physical health support tailored to your needs: comprehensive therapy support for every condition.
Life can throw challenges at us; sometimes, we need extra support. Our protection policy includes access to a wide range of therapists—whether you’re managing stress, depression, or recovering from an injury. You’ll find personalised care for all conditions, from mental health experts to physiotherapists.
Your health deserves the best care, no matter where you are. Make the most of these added services by contacting us today to learn how to access your second opinion, doctor-on-demand, and therapist support services. Email or call us to chat about what’s available to you.
In this quick overview, we go into the reasons why everyone in the family should have income protection.
Income protection is a policy that will cover you financially if you can’t work due to sickness, injury, or disability. Did you know that in an ideal world, everyone in the family will benefit from full coverage?
From the working parent to the stay-at-home parent. And even policies to take care of your children if they get sick. Your time off work caring for them, plus any bills associated with hospital visits and medical appointments, can be covered.
For example, in a family where one parent works and the other stays at home, you may think just the working parent should have income protection. But what would happen if the stay-at-home parent had an injury where they couldn’t perform their usual role?
Either the working parent would need to stay home (and couldn’t work). Or you’d need to hire, at least, a nanny, cleaner, and cook (and probably a few other roles too… think admin, washing, food shopping, etc). This could all add up!
One key benefit for income protection is preventing debt accumulation. You may have to use loans or credit cards to cover expenses. However, income protection provides a buffer, helping to avoid this debt trap. Likewise, it can reduce the pressure on other family members who’ll take on additional work to make up the shortfall.
Instead, you’ll have peace of mind to just focus on recovery – with your income and medical costs covered under your policy.
Did you know we can create customisable plans? Each family member can choose a policy that fits their specific needs. It’s so flexible and adaptable for all.
Whether you are a high-income earner or someone with a specialised skill set, income protection is personalised to you! We will go through the details. And help you weigh up the costs and policy terms, so you only get (and pay for) what you need. It can be hard and upsetting to think about the scenarios. Let us take care of this for you.
For a resilient household prepared for whatever life might throw at you, we’ll help you prepare for the unexpected! Contact us to safeguard both the present and future well-being of your loved ones.
A lifetime mortgage is a type of equity release. In simple terms, it’s a loan secured against the value of your home that allows you to release tax-free cash without needing to move out. You retain ownership, can still live in the property, and it doesn’t need to be repaid until you die or move into long-term care.
By releasing equity from your home, you can plan for retirement, holidays, and home improvements. Or help a family member financially.
The eventual sale of your house is used to pay off the loan. But you can often set aside some of your property’s value as inheritance for your family. You can either borrow a lump sum or several smaller amounts over time (known as a drawdown).
Get in touch if you’d like to know more!
The amount you can borrow on a lifetime mortgage depends on factors like your age, the value of your property, and your health.
(If you don’t want to take on extra monthly commitments or deplete your savings, you might want to explore equity release as a means of accessing funds. However, getting the right advice is crucial. For some people, a lifetime mortgage is not the best route to take, so getting the right advice is crucial – we can help you weigh up the options.)
Age: The older you are, the more you can typically borrow. Most lifetime mortgage lenders have a minimum age requirement, usually between 55 and 60. Generally, the older you are, the higher the percentage of your home’s value you’ll be able to borrow.
Property Value: Lenders typically allow you to borrow a percentage of your property’s market value. Most lifetime mortgages allow you to borrow between 20% and 60% of your home’s value, with the exact amount based on your age and other factors. High-value properties might qualify for larger loans.
Health and Lifestyle: Some lenders offer enhanced lifetime mortgages, which allow you to borrow more if you have certain health conditions or lifestyle factors (like smoking). Health assessments may qualify you for a higher borrowing amount if they reduce life expectancy, as this shortens the loan term.
Interest Rates and Loan Type: Interest rates on lifetime mortgages are typically higher than on traditional mortgages, and the type of lifetime mortgage you choose (such as a lump-sum, drawdown, or flexible lifetime mortgage) can impact the loan amount. Drawdown options, for example, allow you to take smaller amounts as needed but may limit the overall loan size.
Loan-to-Value (LTV) Ratio: The LTV ratio indicates the percentage of your home’s value that the lender will loan you. For example, a 60% LTV means you could borrow up to 60% of your property’s value. Age and health factors influence the LTV a lender will offer.
For example, a 65-year-old with a home worth £400,000, a typical lifetime mortgage might allow borrowing around 25–35% of the property’s value, meaning approximately £100,000 to £140,000. A 75-year-old with the same property might qualify for closer to 40% or 50%, which would be around £160,000 to £200,000.
Remember: You’ll need to consult a financial adviser to take out a lifetime mortgage
Lifetime mortgage products vary by lender, and a financial adviser or equity release specialist can help you understand options specific to your circumstances. Contact us for more information, and let us help you get set up for a relaxing retirement!
This is a lifetime mortgage. To understand the features and risks, please ask for a personalised illustration. Check that this mortgage will meet your needs if you want to move or sell your home or if you want your family to inherit it. If you are in any doubt, seek independent advice.
With insurance premiums increasing, it’s a great time to review your policy. Did you know that if you contact us, we may be able to find you a cheaper deal? Or even, we might be able to find you more benefits for the same fee. That’s one of the advantages of going through an advisor. We can find you a policy that suits your specific needs and budget.
Let’s dive in…
- Is your coverage amount up to date? Maybe your situation has changed? Major life events like buying a home, having children, or changing jobs can impact how much coverage you need.
- How about your type of coverage? Make sure the policy type is still the best fit.
- What about the policy beneficiaries? Ensure that beneficiaries are up to date. Family changes or new dependents might mean adjustments to ensure the right people receive benefits.
- It also might be time to review any added features (such as critical illness, disability, or income protection riders) and check if they’re still beneficial or if new options would be more helpful.
- Could you pay annually? You will often get a reduction for paying your annual bill in one lump sum. Rather than spreading the cost monthly through direct debit.
- You might be able to combine your policies. A policy that covers both buildings and contents insurance is often cheaper than taking out separate policies. Or even adjust your coverage to save costs to match your current needs could lower premiums without sacrificing essential protection.
- And you may even be able to take advantage of a no-claims discount. If you don’t make any claims, you should see your annual premiums fall over time.
- Let us compare policies for you. We might be able to find a more affordable option. Or a new policy with enhanced features that fits your needs.
Give us a call today so we can help tweak your insurance policies, so they are perfect for you!
The festive season can bring all sorts of financial stress. But with these tips, we hope you can take the stress out of it and enjoy the precious time with your family.
Many Brits are feeling the pinch from the rising cost of living, with essentials like fuel, groceries, and running the home on the rise. This holiday season, you might be planning to tighten your belts and spend less on the festivities. Here’s some simple tips to help everyone:
1. Plan ahead and set a realistic spending limit
Before diving into holiday shopping, set an overall spending limit that fits comfortably within your budget. Prioritise the essential expenses and allocate a realistic amount for gifts, food, and activities. Planning early helps prevent unexpected expenses from creeping in.
Remember, gifts do not define this time. Something simple will still show you’ve been thinking of them. Handmade items, home-baked treats, or second-hand finds can be affordable yet thoughtful gifts. Try these:
- Home baking
- Homemade soaps
- Scented candles
- Jams, preserves and pickles
- A mulled wine spice jar
- Handmade jewellery
2. Create a gift list (and check it twice!)
Make a list of everyone you’re buying for, and set a spending limit per person. Knowing exactly who and what you’re buying for keeps you organised and helps prevent impulse buys or last-minute additions that can break your budget.
3. Head online for discounts & take advantage of cashback and discount apps
If you've got your heart set on a gift for someone, running to the nearest shop and buying it might not be the best idea. Instead, consider jumping online and comparing prices from several different sellers.
Prices vary considerably between shops, and spending five minutes researching online could save you hundreds. With nearly all consumers looking for the best deals, cashback and discount apps can help you get more value from your purchases. Look for apps or websites that offer cashback, coupon codes, or discounts on popular retailers to stretch your dollars further.
4. Shop for holiday groceries in stages
Holiday meals can be costly, especially if you buy everything at once. Instead, plan ahead and pick up non-perishables on sale throughout December. This spreads the cost and can help reduce your overall grocery budget.
5. Switch to Secret Santa
Gifting for friends and families is expensive, especially for those with large families. But Secret Santa can help everyone save money.
If you're unfamiliar with Secret Santa, it's easy – simply put your family's names in a hat, then have each member pick a name randomly (without telling anyone whose name they get). They only need to buy a gift for the person whose name they drew. Remember to agree on a budget beforehand so that everyone spends the same amount on each other.
Make this festive season one to remember for happy memories, spending time with family, eating home-cooked food. And don’t forget, we are here if you need help saving money on your insurance or mortgage. Happy Holidays!
