Around this time of year, a lot of us will be planning our Summer vacations, whether you're jetting off abroad or heading for a staycation, all that excitement can make even the most financially disciplined of us complacent. Equally, we all know things are not getting any easier, costs continue to rise for many of us, and watching the pounds and pennies is vital for a successful relationship with money.
So whether you're looking for advice on how to protect your most important assets such as your home or health or just need some money-saving tips and tricks, our May update has it all.
We will help you to maintain your financial focus, and look at how your money can stretch further to ensure you have a relaxing Summer.
For more tailored help and support get in touch today.
Home Insurance is an essential policy that provides peace of mind to homeowners by protecting their homes and belongings against unforeseen circumstances. Homeowners Insurance can help cover losses that result from events such as fire, theft, or natural disasters. In this article, we will explore the recent changes in pricing policies for Home Insurance and the importance of having the right coverage for your needs.
One of the most significant changes in Home Insurance in recent years is the ban on price walking. Price walking is a practice used by insurance companies that involves increasing the cost of insurance for customers each year, even if there are no claims made. This practice unfairly targets loyal customers who have remained with their insurer for several years. However, new regulations now prohibit this practice, ensuring that loyal customers are treated fairly and not subjected to unreasonable increases in insurance costs.
When it comes to choosing the right Home Insurance, it is crucial to evaluate your needs carefully. There are two main types of Home Insurance: Buildings Insurance and Contents Insurance. Buildings Insurance covers the structure of your home, including the roof, walls, and floors. It also covers permanent fixtures such as bathroom suites and fitted kitchens. Contents Insurance covers your possessions, including furniture, electronics, and clothing.
For homeowners who rent out their property, Landlords’ Insurance is also an important consideration. Landlords’ Insurance typically includes Buildings Insurance, as well as cover for any furnishings or appliances that are provided to tenants. It can also include cover for loss of rental income in the event of damage to the property.
It's important to note that not all Home Insurance policies are created equal, and it's essential to review the details of any policy you are considering. Consider factors such as the level of cover provided, the excess you will need to pay in the event of a claim, and any exclusions or limitations. Ensure that you have sufficient cover to protect your property and belongings adequately.
Did you know that many Home Insurance policies will cover damage caused by falling satellites? While it's an unlikely scenario, it's good to know that you're covered if the worst should happen. Additionally, did you know that some insurers offer discounts for homeowners who install home security systems? These systems can help reduce the risk of theft or vandalism, making your property less of a risk to insure.
In conclusion, Home Insurance is an essential policy for any homeowner, providing protection and peace of mind. With recent changes in pricing policies, it's more important than ever to review your Home Insurance to ensure you're getting the best value and the right cover for your needs. Take the time to review your policy, consider your options, and don't forget to take advantage of any discounts or benefits offered by your insurer.
Are you struggling to make ends meet in the face of the ongoing cost-of-living crisis? Are you looking for a way to raise funds but hesitant to remortgage and lose your favourable interest rate? If so, a Second Charge Mortgage could be the answer you’re looking for.
What is a Second Charge Mortgage?
A Second Charge Mortgage is a loan that allows you to borrow money against the equity in your home, using your property as collateral. Unlike a remortgage, where you would replace your existing mortgage with a new one, a Second Charge Mortgage leaves your First Charge Mortgage in place and provides a second loan secured against your property.
Why choose a Second Charge Mortgage?
If you’re in need of additional funds, a Second Charge Mortgage could be a cost-effective solution, particularly if you have a favourable interest rate on your First Charge Mortgage. Rather than remortgaging your entire balance at a higher interest rate, a Second Charge Mortgage allows you to borrow only the amount you need and pay interest on that amount. This can be a more affordable option in the long run.
Second Charge Mortgages also offer flexibility, with many lenders providing the option to repay your loan early without incurring any early repayment charges. This gives you the freedom to manage your finances on your own terms.
When is a Second Charge Mortgage a good option?
If you have complex income structures, you may find it more challenging to remortgage with your current lender. In this case, a Second Charge Mortgage could be a viable solution to help you borrow the funds you need.
Second Charge Mortgages are also useful for consolidating debt. If you’re struggling to keep up with multiple payments, consolidating your debt into a single monthly outgoing can make repayments more manageable. By spreading your debt over a longer term, you can reduce your monthly payments, although it’s worth noting that you may pay more interest over time.
Homeowners can also use Second Charge Mortgages to fund home improvements. With the proposed EPC regulation changes set to come into effect in 2025, landlords who own buy-to-let properties will be particularly affected. Second Charge Mortgages can provide a means to finance necessary improvements to rental properties, which could prove more beneficial than other short-term finance arrangements such as personal loans or credit cards.
Cost and conclusion
It’s worth noting that Second Charge Mortgages tend to have higher interest rates than First Charge Mortgages, due to the greater risk to the lender. However, rates have been coming down lately, closing the gap in the cost of borrowing. Despite the higher rates, a Second Charge Mortgage could be a more cost-effective option than remortgaging your entire balance at a higher interest rate.
Your adviser is on hand to help you assess whether a Second Charge Mortgage is the right solution for you, taking into consideration changes in affordability criteria, weaker credit scores, or other financial implications brought on by the cost-of-living crisis. While a Second Charge Mortgage may not always be the best solution, it’s worth considering if you’re in need of additional funds, particularly if you don’t want to lose your existing mortgage rate.
Risk warning: Think carefully about securing other debts against your home. Your home or property may be repossessed if you do not keep up repayments on your mortgage or any other debts secured on it.. You may be charged a fee for mortgage advice.
Protect your family when life changes with the right protection policies
Changing jobs can be an exciting time, but it's important to remember that it can also impact your protection policies. Significant life events, such as moving home, having children, or changing jobs, can all impact the effectiveness of your current protection arrangements. Inadequate protection or policies that no longer work for you can leave your family vulnerable.
To ensure that your protection policies remain appropriate, it's important to keep your details up-to-date and accurate. You should also consider what would happen if you couldn't pay your mortgage and how your protection policies would respond in such a scenario.
Many people fail to consider their protection policies despite life events. However, it's critical to make protection policies an integral part of your mortgage and remortgage plans. Some lenders may even require it. That's where we come in. We hold an essential role in educating and supporting clients on the significance of regularly evaluating their protection policies to ensure their continued suitability.
It's also important to inform us of any significant changes in circumstances, such as job changes. By taking a proactive approach to reviewing protection policies, you can ensure that you and your family are adequately protected in unforeseen circumstances.
Remember, changing jobs can impact your protection policies, and it's better to be overprotected than underprotected. Regularly reviewing your policies with us can ensure that your policies remain adequate to protect you and your family. Protect your family's future by ensuring that you have the right protection policies in place.
Did you know that phishing scams are one of the most common ways cybercriminals steal personal information from unsuspecting individuals? According to Proofpoint’s 2022 State of the Phish Report*, 83% of organisations fell victim to a phishing attack last year.
Meanwhile, Verizon’s 2021 Data Breach Investigations Report* found that 25% of all data breaches involve phishing.
Phishing is a type of cyberattack where fraudsters send emails or messages that appear to be from a reputable source, such as a bank or a well-known company, in an attempt to trick recipients into revealing sensitive information, such as passwords, credit card details, or social security numbers. These scammers often use psychological tactics, such as urgency or fear, to convince people to take immediate action and reveal their personal information.
To protect yourself from falling victim to a phishing scam, there are a few things you can do.
- First, be suspicious of any email or message that asks for your personal information, especially if it's unsolicited. If you're unsure if a message is legitimate, do not click on any links or download any attachments.
- Second, check the email address of the sender to make sure it's legitimate. Scammers often use email addresses that are similar to a reputable company, but with slight variations, such as substituting an "o" with a zero.
- Third, look for signs of a phishing attempt, such as poor grammar, misspellings, or unusual formatting. Legitimate organizations typically have a professional image and take care to avoid errors in their communications.
- Fourth, be careful when clicking on links in emails or messages. Hover your mouse over the link to see the URL before clicking on it. If the URL looks suspicious, do not click on it.
- Fifth, keep your computer software up to date, including your antivirus and firewall software. This can help protect you from malware that can be used to steal your personal information.
- Lastly, be cautious when entering personal information online. Only enter sensitive information on secure websites that have a padlock icon in the address bar and start with "https" rather than "http." If you're unsure if a website is secure, do not enter any personal information.
By following these tips, you can help protect yourself from falling victim to a phishing scam. Remember to stay vigilant and always think twice before clicking on links or entering personal information online.
Scams have been on the rise in recent years – recent research by Ofcom shows 41 million people received a suspicious phone call or text message this summer.
Fortunately, there are actions you can take to protect yourself from the scammers. We’ve pulled together our top tips to keep yourself safe.
Stay alert and follow these three easy steps
If you feel a text or phone call you’ve received is suspicious, trust your instincts. There are three easy steps you can take if you receive a text or call that you’re worried about:
If you receive a suspicious text:
Stop! The text could be a scam. Read carefully and look for any details that don't seem right.
Don't click on any links or give out any personal or bank details.
Report any suspicious texts to 7726 and make your friends and family aware too.
If you receive a suspicious call:
Stop! Do not give out any personal or bank details.
Hang up and call the company they claim to be from to check if it is a scam.
Report scam calls to Action Fraud and make your family aware too.
Remember: 7726
7726 is a number used by most of the major mobile phone companies to allow their customers to report unwanted texts or mobile calls.
You can forward a suspicious text or report a mobile call to 7726 free of charge. When you’ve done this, your mobile provider can investigate the number. Follow the Ofcom guide to learn how to report to 7726.
Check out technical solutions
For mobile phone users, measures can be applied either on your handset or on your mobile phone network to reduce the risk posed by scam messages or malware. Some of these might be pre-installed or managed by your network provider, and some you can put in place yourself.
If you’re unsure whether these solutions are available to you, or to find out more about how they work, contact your mobile or home phone provider. They should be able to give you more information on what technical measures can be put in place to protect you.
See the Ofcom guide for more information.
If you think you’ve been scammed, report it
If you think you’ve been the victim of a scam, report it to Action Fraud as soon as possible. You can do this by calling 0300 123 2040 or visiting the Action Fraud website at www.actionfraud.police.uk.
Action Fraud is the reporting centre for fraud and cybercrime in England, Wales and Northern Ireland. Reports of fraud and any other financial crime in Scotland should be made to Police Scotland via 101.
Spread the word
If you think you’ve seen a scam, don’t keep it to yourself. By telling people you know, you’ll help to make more people aware of scams that are out there, and this could help others to avoid falling victim.
Spreading awareness among your friends and family – or even by sharing on social media using screenshots, for example – means more people will be able to keep an eye out for the scammers’ latest tactics.
More information
As well as scams, there are other types and unwanted calls and messages you might want to protect yourself from. Check out Ofcom’s guidance on how you can do that.
Source Credit: OfCom
- Pay yourself first by saving before spending: This approach involves putting aside a portion of your income into savings before spending on any other expenses. By prioritizing saving, you are less likely to spend money on unnecessary expenses, helping you to save more money over time.
- Avoid paying interest on debt by transferring it to a 0% balance credit card: By transferring your existing credit card debt to a 0% balance credit card, you can avoid paying interest on that debt for a set period of time, allowing you to pay off the balance without accruing additional interest charges.
- Spend mindfully by using cash, money-management apps, prepaid cards or day-to-day spending accounts: By keeping track of your spending using cash, money-management apps, prepaid cards, or day-to-day spending accounts, you can better manage your budget and avoid overspending.
- Keep switching to better deals for regular outgoings: By regularly reviewing your regular outgoings, such as utilities or insurance bills, and switching to better deals, you can save money on these expenses over time.
- Check your workplace benefits for discounts on gyms, cinemas, stores, etc.: Many workplaces offer discounts on gyms, cinemas, stores, and other services as part of their benefits package. By taking advantage of these discounts, you can save money on these expenses.
- Remortgage when your deal ends to save thousands a year: Remortgaging can allow you to secure a lower interest rate, potentially saving you thousands of pounds each year on your mortgage repayments.
- Trace lost accounts and pensions with My Lost Account or the Pension Tracing Service: By tracing lost accounts and pensions with services like My Lost Account or the Pension Tracing Service, you can potentially recover lost funds and boost your savings.
- Avoid impulse buying and splurging on payday deals: By avoiding impulse buying and splurging on payday deals, you can stick to your budget and avoid overspending on unnecessary expenses.
- Cut back on unnecessary subscriptions and memberships: By cutting back on unnecessary subscriptions and memberships, you can save money on monthly fees and redirect those funds toward your savings or other financial goals.
- Buy own-brand products instead of branded ones to save money: Buying own-brand products instead of branded ones can help you save money on your grocery bill without sacrificing quality, allowing you to stretch your budget further.
* https://protectionreporter.co.uk/cirencester-friendly-claims-disclosure-reveals-23-of-claimants-were-aged-30-or-under.html
* https://www.itgovernance.eu/blog/en/the-5-biggest-phishing-scams-of-all-time
