After a month of new beginnings and resolutions, it's time to focus on maintaining and strengthening them. February is the perfect time to revisit your financial goals and make sure you're on track. With Valentine's Day around the corner, it's also a reminder to show love and care to your finances by creating a budget and sticking to it.
From saving for a future trip to protecting your assets, we've got you covered. Let's make the most of this month and make it a financial success story. Our team is here to assist with any questions and support you need.
First-time homebuyers may find it difficult to secure a mortgage due to the high cost of a deposit. However, there are several government-backed schemes available to help first-time buyers purchase a property.
The Help to Buy Scheme, which was launched in 2013 and allowed first-time buyers to purchase a property with just a 5% deposit, is no longer available. However, the Help to Buy ISA, which is a government-backed scheme that helps first-time buyers save for a deposit, is still available for those who have already opened an account. Under this scheme, savers can pay in up to £200 each month and the government will top up their savings by 25% (up to £3,000) when they buy their first home.
If you are buying with someone who also has a Help to Buy ISA, both of you will get the 25% bonus. The ISA can be paid into until November 2029 and the 25% bonus can be claimed until November 2030.
Another scheme that is less well-known is the Deposit Unlock Scheme; A Deposit Unlock Scheme is a government-backed scheme in the United Kingdom that helps first-time home buyers purchase a home by offering them a loan to cover the deposit. The loan can be used in conjunction with a mortgage and other financial assistance, such as the Help to Buy equity loan, to help buyers meet the upfront costs of buying a home. The goal of the scheme is to make it easier for people to get on the property ladder, particularly those who might not otherwise be able to afford the deposit on their own.
Shared ownership is another option for first-time buyers who are unable to afford to purchase a property outright. Under this scheme, the buyer purchases a share of the property and pays rent on the remaining share. As their financial situation improves, they can gradually increase their share in the property until they own it outright.
Additionally, the government also offers Starter Homes initiative. It is a scheme aimed at first-time buyers under 40 years old and allows them to purchase a new-build property at a 20% discount.
Lastly, there is also the Right to Buy Scheme, which allows council tenants in England to purchase their council home at a discount.
All of these schemes can help first-time buyers overcome the challenges of purchasing a property, but it is important to research the different options and understand the terms and conditions before making a decision. It is very important to discuss your needs with us, so we can help determine which scheme is most suited to your individual needs.
Your home or property may be repossessed if you do not keep up repayments on your mortgage. You may be charged a fee for mortgage advice.
If you’re planning to move abroad, there are many things to consider, from where you’re going to live, to possibly learning a new language or finding a new job.
International private medical insurance (IPMI) can help put you at ease about your health while living overseas. Some countries may not even allow you to enter unless you have adequate insurance cover in place.
Let’s take a look at international private medical insurance and some of its benefits for those living or working abroad.
What is international private medical insurance?
This type of insurance is designed to cover your medical costs whilst you’re living, studying or working abroad. It can give you fast access to diagnostics and eligible medical treatment, as well as peace of mind that you and your loved ones’ health is protected while you are living in a different country.
Private health insurance providers can offer you wide-ranging cover, which can incorporate medical evacuation, cancer treatment and outpatient specialist consultations to name only a few benefits.
Benefits of international private medical insurance
It may be a pre-requisite
In some cases, you will need to have medical cover to enter a country. It may also be required when applying for a visa in certain locations.
Research the entry requirements of the country you’re moving to, as it is essential you complete all the necessary preparation in advance of your relocation.
You must also make sure that the insurance provider you choose meets the regulatory requirements of the country you wish to move to.
Plenty of choice
With some insurance plans, you can be attended to by a doctor of your choice. There is also the option of shorter-term plans if you are going away for a fixed period. Or if you are moving permanently, you could opt for long-term cover.
Additionally, you might be able to travel to your home country for medical help if this is what you want. In some cases, you could make the decision as to which hospital you stay in for your treatment.
Protects you from financial loss
If you are not covered by an international private health insurance plan when you are overseas, the cost of private medical treatment may come as a shock. For instance: in the UK a knee replacement can cost anywhere between £11,400 and £15,4001.
In Singapore, the cost of private medical treatment is also high. You can pay between £11,800 & £20,000 (or more!) for the same treatment.2
In Turkey, where healthcare is generally more affordable, you’re likely to pay around £4,500 for a knee replacement surgery.
International health insurance can be especially helpful if you need to be taken to a different location for treatment. You could face large costs if you’re uninsured, which could mean a delay in receiving the medical help you need.
Fast access to diagnostics and eligible treatment
Another benefit of international private health insurance is that you can get speedy access to treatment when you need it most. Many public healthcare systems are under heavy strain, with waiting times increasing across the globe. Figures from October 2022 show that a staggering 2.91 million people were waiting more than 18 weeks to receive treatment from the National Health Services in the UK alone.
When you seek private medical treatment, waiting times are usually much shorter than that of public healthcare systems.
Common exclusions
There are some things that may not be covered, including:
• Pre-existing medical conditions
• Cosmetic treatments
• Alternative medicine
• Assistance with reproductive treatments
It is important to do detailed research before you choose your insurance provider to find what cover is most suitable for you and your personal circumstances.
Speak to us today so we can help you to access to the most suitable plan for your needs.
Equity release has gained popularity among homeowners who are in their retirement years and wish to access the equity in their home without having to sell it. The cost of living continues to increase, and inflation has hit double digits, making equity release a valuable solution for supplementing retirement income. According to a recent study*, around £3.3bn of the total £5.58bn released in 2022 was used to repay unsecured or secured debt as new customers focused on strengthening their finances as rising interest rates and inflation ate into retirement budgets.
Let's take a closer look at some of the most common uses of equity release:
Home improvements
One of the most popular reasons for using equity release is to fund home improvements. This can range from small cosmetic updates to larger renovation projects. By using the equity in their home, homeowners can make the necessary updates to their property without having to take out a loan or deplete their retirement savings.
Gifting
Equity release can also be used for gifting to family members. This can be to help children with a down payment on a house or to provide financial support to aging parents. By accessing the equity in their home, homeowners can gift money to their loved ones without having to dip into their retirement savings.
Debt repayment
Debt repayment is another common use of equity release. With customers focusing on debt repayment during the year spending on other uses of equity release fell – around 20% of customers used some or all of their property wealth to gift money to relatives compared with 21% the year before. By accessing the equity in their home, homeowners can use the money to pay off debts, such as credit cards or personal loans, and reduce their monthly outgoings. This can provide much-needed financial relief and help them manage their finances more effectively.
Supplementing retirement income
Finally, many homeowners use equity release to supplement their retirement income. With the cost of living continuing to rise and pension funds not always providing enough income to meet the needs of retirees, equity release can provide a valuable source of supplementary income. By accessing the equity in their home, retirees can maintain their standard of living and continue to enjoy their golden years.
Equity release is a valuable financial solution for many homeowners who have reached retirement age and want to access the wealth tied up in their property. With its ability to fund home improvements, gift money to family members, repay debts, and supplement retirement income, it's no wonder that equity release has become a popular solution for many retirees.
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.
Accident, Sickness and Unemployment (ASU) Cover is an insurance policy designed to help people who are unable to work due to injury, illness, or unemployment. The policy provides financial support to help cover living expenses, such as rent or mortgage payments, utility bills, and food. This type of insurance is becoming increasingly popular as people become more aware of the potential financial impact of unexpected events that could leave them unable to work.
Many people who are considering taking out ASU Cover may be on the fence about whether it is the right choice for them. Here are some reasons why securing ASU Cover could be a smart decision:
- Peace of mind: The unpredictability of life means that accidents, illnesses, and unemployment can happen to anyone, at any time. With ASU Cover, you can have peace of mind knowing that you and your family will be financially protected if such an event occurs.
- Financial stability: ASU Cover provides financial support when you need it the most, helping to cover living expenses when you are unable to work. This can help prevent the stress of financial difficulties and ensure that your family's lifestyle remains intact.
- Continuity of payments: In the event of an accident, illness, or unemployment, ASU Cover can provide you with a regular income to help cover living expenses. This can help you to maintain your standard of living and avoid falling into debt.
- Customisation: ASU Cover policies are often customizable, which means you can choose the level of cover that most suits your needs and budget. This can help you to get the protection you need at a price you can afford.
Accident, Sickness and Unemployment Cover can be a valuable safety net for anyone who wants to ensure financial stability during times of illness, injury, or unemployment. If you are on the fence about whether to take out this type of insurance, consider the peace of mind and financial security it can provide, and speak to an insurance adviser to discuss your options.
Saving money for the future is crucial for financial stability and security. Here are some top tips for families looking to build their savings:
- Create a budget: The first step to saving money is to know exactly how much you are spending. Create a budget that includes all your monthly expenses and income, and stick to it. This will help you identify areas where you can cut back and allocate more funds towards savings.
- Automate your savings: Set up a direct deposit from your paycheck into a savings account. This way, you can ensure that you are consistently putting money aside each month without having to think about it.
- Take advantage of tax-free savings: The government offers tax-free savings options such as ISAs (Individual Savings Accounts). Investing in ISAs can help you save more money as the interest you earn is tax-free.
- Shop smart: Make a grocery list before you go shopping and stick to it. Impulse purchases can add up quickly and eat into your budget. You can also look for sales and coupons to save on essentials.
- Cut back on unnecessary expenses: Consider cutting back on things like subscriptions, entertainment, and dining out. These small changes can make a big impact on your savings over time.
- Start small: Saving even a small amount of money each month is better than not saving at all. According to a recent survey conducted by the Money Advice Service, starting with a goal to save just £10 per week can help create a habit of saving.
- Start early: The earlier you start saving, the more time your money has to grow. In the UK, the average life expectancy is currently around 81 years old. Starting to save in your 20s can help ensure that you have enough money to last throughout your retirement years.
Saving money is a critical step towards securing your family's financial future. By following these tips, you can start building your savings today and create a more secure tomorrow.
Easter Holidays are a time for rest and relaxation, but they can also put a strain on your finances. With the cost of travel, accommodations, food, and activities, a holiday can quickly add up. Here are some money-saving tips to help you make the most of your Easter break without breaking the bank.
- Plan in advance: Booking your holiday early can save you a significant amount of money. According to a recent study, travellers who book their holiday more than six months in advance can save up to 40% on their total expenses.
- Be flexible with your travel dates: Traveling during the peak season, such as Easter, can be more expensive. Consider traveling just before or after the holiday to save money.
- Consider alternative accommodations: Instead of staying in a hotel, look into alternative options such as holiday rentals or hostels. Holiday rentals can offer more space and amenities than a hotel room, and hostels can be a budget-friendly option for solo travelers.
- Use public transportation: Renting a car or taking taxis can add up quickly. Instead, consider using public transportation to save money and reduce your carbon footprint.
- Eat like a local: Dining out for every meal can be expensive, especially in tourist areas. Consider cooking some of your own meals, or try street food or local cafes for a more authentic and affordable dining experience.
- Look for free activities: Many cities offer free or low-cost activities, such as hiking, visiting museums, or exploring local parks. Do some research and plan your itinerary accordingly to make the most of your budget.
- Consider travel insurance: Travel insurance can provide peace of mind and protect you against unexpected events, such as trip cancellations or medical emergencies.
Taking a holiday during Easter doesn't have to put a strain on your finances. With a little bit of planning and some smart money-saving strategies, you can enjoy your break without breaking the bank. Happy travels!
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* National Library of Medicine, Waiting Time ad an Indicator for Health Services Under Strain, April 2020.
** British Medical Association, NHS Data Backlog Analysis, October 2022.
1 https://eurotreatmed.co.uk/cost-of-knee-replacement-uk/
2 https://www.hcortho.sg/total-knee-replacement-surgery-singapore
3. https://expertchikitsa.com/listing/cost/turkey/knee-replacement-surgery-in-turkey-find-cost-and-reviews
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*Key Market Monitor Q4 2022 Report
