July 2026

We hope you are enjoying your summer! This month brings lots of change and big news on several fronts — hopefully by next month we’ll have some news on the Prime Minister and an update on what it means for you.

In this monthly recap, we share new Government updates that may help you, equity release hitting record highs, and the UK's protection gap finally getting the attention it deserves. Whether you're thinking about remortgaging, reviewing your life and health cover, unlocking property wealth, or simply making sure your home and car insurance aren't quietly costing you more than they should, now is a great time to take stock.

Read on for the latest news across mortgages, protection, equity release, private medical insurance, and general insurance. And when you're ready to talk through what it means for you, get in touch for a free, no-obligation review. We promise we aren’t going anywhere!

In this month’s newsletter:

Brighter Days Ahead: Why This Summer Is a Good Time to Sort Your Finances
Could the New Government Updates Help You Buy?
The Protection Gap
Your Home Could Be Your Greatest Financial Asset — Here's How to Use It
Tired of Waiting? Here's What Private Medical Insurance Really Costs in 2026
Is Your Home Insurance Auto-Renewal Costing You?

It's been a tough few years for household finances, but the data coming out this summer tells a more encouraging story than the headlines might suggest. Here's what the latest figures show, and why they matter for your money.

Real wages are growing again, just barely. ONS figures for the three months to March 2026 show regular pay rose 3.4% year-on-year, against CPIH inflation of 3.3% — meaning earnings are edging ahead of prices, even if only modestly. It's not a windfall, but it marks a meaningful shift from the sharp real-terms wage falls of 2022–23, when inflation regularly outstripped pay by several percentage points.

Mortgage rates continue their downward drift. The Bank of England base rate has fallen to 3.75% from its August 2023 peak of 5.25%, and major lenders are reducing fixed rates in June. For the roughly one in five UK mortgage holders still sitting on a Standard Variable Rate, averaging around 7.13% this June, the gap between inertia and action remains substantial.

Consumer confidence, while still negative, has stopped falling. GfK's long-running confidence index sat at -23 in May, up from April's -25. It's not exactly buoyant, but the direction has turned, and personal financial confidence has, in places, held up better than views on the wider economy.

Property wealth is working harder than ever. The equity release market grew 11% in 2025 to £2.57 billion, and the Financial Conduct Authority has launched a fresh market study into later-life lending in 2026. This is a sign that regulators are taking property-based retirement income increasingly seriously.

None of this amounts to an all-clear. Inflation pressures haven't fully cleared, and confidence remains fragile. But for anyone reviewing their mortgage, weighing up protection cover, or thinking about what their property could do for their retirement, the numbers this July are more favourable than they've been in some time.

Want to know what these trends mean for your finances? Get in touch for a free, no-obligation review — we'll cut through the headlines and tell you what genuinely applies to you.

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The new June announcement from the UK Government could be one of the most significant changes to the homebuying process in England in years. If implemented as proposed, the reforms aim to tackle the biggest frustrations buyers and sellers face: long delays, failed transactions, hidden information and duplicated paperwork.

What is changing?

Upfront sales packs

Sellers and estate agents will be expected to provide key property information from the start. This should help buyers make informed decisions earlier and reduce surprises later in the process. They include:

Property condition
Leasehold costs and obligations
Chain status
Other essential legal and ownership details

Earlier binding agreements
The government plans to introduce measures that make it harder for parties to walk away from a transaction without good reason, potentially reducing the number of collapsed sales.
New standards for estate agents
A new Code of Practice is planned, alongside consideration of mandatory qualifications for estate agents.
Digital homebuying
The reforms place a strong emphasis on technology. The aim is to reduce paperwork, speed up communication and cut fraud risks. It includes:

Digital property logbooks
Digital sales packs
Electronic signatures
Digital identity verification
AI-assisted conveyancing

What could this mean for buyers?

For first-time buyers in particular, the reforms could bring:

Greater certainty during the purchase process
Faster transactions
Fewer unexpected costs
Better visibility of potential issues before making an offer

The government estimates homebuying times could be reduced by around four weeks and save first-time buyers an average of £650.

What could this mean for sellers?
Sellers may need to do more preparation before listing their property, but the trade-off could be:

More committed buyers
Fewer fall-throughs
Faster completions
Reduced risk of transactions collapsing late in the process

Why is reform needed?
According to the government, the average home purchase currently takes around 120 days, with roughly one in three transactions falling through. This is estimated to cost sellers £400 million annually and the wider economy up to £1.5 billion each year.

The bigger picture
The reforms form part of the government's wider housing agenda, led by Keir Starmer, Steve Reed and Rachel Reeves. While the proposals will take time to implement and many details are still to be confirmed, the direction of travel is clear: a more digital, transparent and efficient homebuying process.
Are you looking to buy soon? Let’s chat about what these changes mean for you and how we can provide individual, personalised advice.

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

Did you know most families are one crisis away from financial hardship? Unfortunately, there are some devastating numbers out there. A parent of children under 18 dies every 20 minutes in the UK, equating to around 127 children newly bereaved of a parent every day. We couldn’t believe these statistics, and we just wish it wasn’t true. But equally, every day on Britain's roads, more than 80 people are seriously injured. And sadly, more than 403,000 people in the UK are now diagnosed with cancer each year; the highest number on record. We are not trying to scare you. But in our line of work, it’s our job to protect you and make sure your family and livelihood are looked after.

Research published in 2026 by CIExpert, the most comprehensive study of its kind, drawing on the views of 10,000 consumers, found that around seven in ten people had seen or heard nothing about Income Protection in the past year. The same proportion had had no exposure to Critical Illness Cover. This represents an enormous protection gap, and it has barely moved since the equivalent study in 2024.

Three Pillars of Financial Protection: Life Insurance, Critical Illness Cover, and Income Protection are three distinct but complementary products and understanding how they work together is key to building a robust financial safety net.

Life insurance pays a tax-free lump sum to your family if you die during the term of the policy. It is the cornerstone of financial protection. It ensures that a mortgage can be repaid, debts can be cleared, and your family's standard of living can be maintained. Critical Illness Cover pays a tax-free lump sum if you are diagnosed with a serious condition such as cancer, heart attack or stroke. Policies typically cover 40–50 listed conditions. Income Protection pays a regular monthly income, usually 50–70% of your gross salary, if you are unable to work due to illness or injury. Unlike critical illness cover, it is not limited to a specific list of conditions: it covers any illness or injury that prevents you from working.

The Survival Gap — and Why It Matters More Than Ever

Cover is far more affordable than most people expect. Policies can often be determined solely by the answers in your application form, without a medical examination. And the earlier you arrange cover, the lower your premiums will be. Don't be part of the 70% who have never considered their protection options. Speak to us today for a personalised review of your life insurance, critical illness and income protection needs. It takes less than an hour and could make all the difference when it matters most.

A Note for the Self-employed and Business Owners
If you run your own business, the stakes are even higher—there is no employer sick pay to fall back on. But there are also significant tax advantages available to you. Relevant Life Insurance, Executive Income Protection and Key Person Insurance are all company-friendly products that could save you substantial sums while delivering vital protection.

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The UK equity release market grew by 11% in 2025, with total lending reaching £2.57 billion according to the Equity Release Council—up from £2.3 billion the year before. The average amount released by customers in the final quarter of 2025 rose by 5.7% year-on-year to £123,174. This is not a niche product for the few: equity release is rapidly becoming a mainstream pillar of retirement planning.

Almost four in ten people approaching retirement are on track to have an income below the Pensions UK 'minimum standard'. More people are reaching later life still carrying mortgage debt, often on fixed or reduced incomes, trying to make their money stretch further. For many homeowners aged 55 and over, the wealth tied up in their property represents their most significant financial resource.

What Are People Using Later Life Lending For?

The uses are as varied as the people themselves. In 2025, 26% of equity release customers used funds to clear an existing mortgage, while 21% went towards home improvements and 13% was gifted to family members. Often helping children or grandchildren onto the property ladder or through key life events. Many customers are motivated by a combination of these goals.

Equity release has never been more tightly regulated or better designed. In the first quarter of 2026, the Financial Conduct Authority launched a focused later life lending market study, examining how property-based solutions can better support consumers borrowing into retirement. This signals that regulators and government recognise the growing importance of property wealth in funding later life.

Equity release is not right for everyone, and it is essential to take proper independent advice before proceeding. Compound interest means the amount owed can grow over time, and equity release will reduce the value of your estate. It may also affect means-tested benefits. These are all important considerations that a qualified adviser will work through with you in detail.

Thinking about releasing equity from your home? Our later life lending specialists can help you understand all your options — from lifetime mortgages to Retirement Interest-Only products — and ensure any decision is the right one for your circumstances. Get in touch for a confidential, no-obligation conversation.

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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 you want your family to inherit it. If you are in any doubt, seek independent advice.

The NHS has just had its best year on record for elective care, with waiting lists at a 3.5-year low and the number of year-long waiters almost halved. But the median wait to start treatment still sits at 11.9 weeks. Well above the pre-pandemic norm of 7.2 weeks. Around 100,000 people are still waiting more than a year for the treatment they need. That gap is exactly why more people than ever are turning to private medical insurance. Not to abandon the NHS, but to buy themselves certainty, choice and speed when it matters.

So, What Does It Actually Cost?

Here's the number most people get wrong: private medical insurance for a single adult on a comprehensive plan averages just £79.59 a month in 2026—less than most phone contracts. Couples pay around £145.77, and a family of four sits at £166.52. Young, healthy non-smokers can find entry-level cover from as little as £28 a month. Want it cheaper still? Bump up your excess, and you could cut your premium by 20% or more, without sacrificing the cover that matters.

Why Premiums Keep Climbing (and How to Outsmart It)

No sugar-coating here: UK medical insurance premiums have been rising faster than general inflation, with private medical cost inflation running at 8–12% a year. Expect 6–12% increases in renewal rates in 2026 and 2027 if you do nothing.

The fix? Don't just nod along and pay your renewal. Reviewing your policy every two to three years, and genuinely comparing the market, can claw back a real chunk of that drift. Just one rule: talk to an adviser before you switch, because changing insurer can affect how pre-existing conditions are treated on a new policy.

What's In — and What's Out

PMI is built for acute conditions: the things that come on suddenly and respond well to treatment, like a hernia, cataracts, or a new injury. Expect cover for private consultations, diagnostics, surgery and inpatient stays.

What it won't touch: chronic, ongoing conditions like diabetes or asthma, anything pre-existing conditions, or A&E emergencies. That's still the NHS's job. Want mental health, dental or optical thrown in? Most insurers offer it as an add-on, typically for an additional 10–15% of your premium.

Paying more than you should? Or not sure if PMI is even worth it for you? We'll compare the whole market for you, for free, and find cover that fits your life and your budget. Get in touch today. It costs nothing to find out.

How do you treat your insurance renewal email? It could be costing you more than you think — in some cases, twice over. Here's what's really going on, and why five minutes of checking now could save you a lot more than money down the line.

The FCA's 2020 market study found that home insurance customers who stuck with the same provider for over five years were paying £287 a year on average, compared with just £165 for new customers buying identical cover. That's a markup of more than 40%. Since January 2022, insurers have been required to offer renewing customers a price no higher than that charged to new customers for the same risk. But research shows that since the reform, switching still saves UK homeowners £80–£200 a year on average.

We’ve pooled together some common questions to help you get the best insurance—and cost—for your needs:

Q: How many people do shop around?
Not many. Consumer Intelligence data shows only around 35% of home insurance policyholders switched provider in the first three quarters of 2025. The other roughly two-thirds just let the renewal go through.

Q: Is it worth the hassle?
Yes, because you might be underinsured. It’s when the figure used to calculate what your insurer will pay out no longer matches what it would cost to rebuild your home or replace your belongings. UK construction costs have risen by almost 40% over the past six years, but most people haven't kept pace. Which? found that only 45% of homeowners had checked or updated their rebuild cost figure in the past two years, and 18% admitted they'd never reviewed it at all.

Q: How would this affect my claim?
If your home is insured for less than its true rebuild cost, most insurers won't just refuse to cover the shortfall on a total loss. They'll proportionally reduce any claim you make, even a small one. Insure your home at 80% of its real rebuild value, and a straightforward £10,000 claim could be cut down to £8,000—automatically, regardless of how minor the damage was. One industry estimate suggests around 76% of UK buildings are underinsured, by an average shortfall of 37%.

Q: Should I check my contents insurance as well, or is it just buildings?
Both. Contents policies are usually "new for old," which means your sum insured needs to rise in line with what you've accumulated. Like the new furniture, the new TV, or the bike you bought last spring. Auto-renewal just rolls over whatever figure was on the policy last year, regardless of whether it still reflects reality.

Q: What should I do about it?
Don't let the renewal sail through unchecked. Most insurers are required to give at least 21 days' notice before renewal. Use that window to compare the market on price and double-check that your buildings and contents sums insured genuinely reflect today's rebuild and replacement costs, not whatever figure was carried over from years ago.

Here’s our question for you: When did you last check your home insurance?
We'll review your cover, compare the market, and make sure your sums insured reflect what your home and belongings are worth today. No cost, no obligation. Peace of mind knowing you're properly covered and not overpaying for it. Get in touch today to make sure your insurance, and its price, is up to date.

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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