As we move into March and the start of Spring, it's the perfect time to give your financial goals a refresh and renew your commitment to achieving them. This season of growth and renewal is an ideal opportunity to focus on maintaining and strengthening your financial habits.
As the flowers start to bloom and the weather warms up, it's important to take stock of your finances and ensure that you're on track. Whether you're saving for a down payment on a new home, planning for retirement, or simply looking to build up your emergency fund, now is the time to check in on your progress and make any necessary adjustments.
With spring comes a renewed sense of energy and optimism, and it's the perfect time to show your finances some love and care. Consider creating a budget to help you stay on track with your spending, and be sure to prioritise saving and investing in your future.
Our team is here to provide support and assistance as you work towards your financial goals. Whether you have questions about budgeting, investing, or any other financial matter, we're here to help. Let's make this spring a time of financial growth and success!
If you're considering fixing your mortgage term, now may be a good time to do so, with mortgage rates dropping below 4% for the first time since last September. Some of the UK's biggest banks have cut rates to offer market-leading deals for borrowers looking to remortgage, with five and 10-year deals below 4%. In this article, we'll explain what you need to weigh up when choosing between fixed-term mortgage deals, and how long you should lock in for.
Firstly, while rates are falling, the last few months have shown how volatile the market can be, so it's tough to know how long you should lock in your mortgage for. Most fixed-rate mortgages are either two or five-year deals. If predictions of continued mortgage rate reductions come to fruition, a short-term fix could be appealing, as borrowers could potentially get a better deal in two years' time. However, without a crystal ball, it's difficult to know for sure.
Five-year fixes provide more stability, as you'll know how much your bills are going to be for a longer period of time. It's important to consider whether committing to a deal for that long fits in with your plans and circumstances. Leaving a deal early could result in early repayment charges. On the other hand, by fixing for 10 years, you're taking fluctuations out of the game, but it may not be the right option for everyone.
Financial forecasters have predicted that the base rate will rise further come the next review this month, but experts believe this could be one of the final increases this year, with the rate not expected to surpass 4.5%. Mortgage lenders are likely to have taken future base rate rises into account with their current offers, so further hikes aren't anticipated to have a significant knock-on effect on fixed-term rates.
When considering how long to fix your mortgage term, it's important to take advice from an independent mortgage broker, who can help you decide what's right for your circumstances. It's also crucial to be wary of early repayment charges, which can be costly.
So, while there are a lot of factors to consider, potentially now could be a good time to fix your mortgage term, with rates currently below 4%. Whether you choose a two, five or 10-year deal depends on your individual circumstances, and speaking to an independent mortgage broker can help you make the right decision.
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.
Interest-only mortgages are a type of mortgage where the borrower only pays the interest on the loan, and not the capital. This means that at the end of the mortgage term, the borrower still owes the original amount borrowed.
In the 1990s, there was a boom in interest-only mortgages, and many homeowners who took out these mortgages during that time will now be coming to the end of their mortgage term with the full or a large amount of the capital needing to be paid off. In fact, it is estimated that almost half a million interest-only mortgages are due to end before 2027*.
This can be a stressful time for homeowners, who risk losing their home if they are unable to repay the mortgage when the term ends.
For some interest-only borrowers, they may have a way of paying off the balance when they reach the end of their term. However, many more do not. This is where an Equity Release Lifetime Mortgage could come in as a potential option for those looking to pay off their interest-only mortgage.
If you're one of those homeowners looking to repay your interest-only mortgage before the term comes to an end, don't worry! There are ways to pay off the balance when you reach the end of your term.
Equity Release allows homeowners to access the equity built up in their home, which they can use for any legal reason, including to pay off their mortgage. It's important to note that an Equity Release Lifetime Mortgage has long-term financial implications, and speaking to an financial adviser is crucial before committing to it.
If you're considering using Equity Release to pay off your interest-only mortgage, you may be wondering if you're eligible. Each provider has its own criteria, but to be eligible for a Lifetime Mortgage, the minimum age is usually 55 years old. You should also know that if you have an existing mortgage or other debt secured against your property, this must be paid off either from the Equity Release itself or before you go ahead with the application.
Another thing to keep in mind is that each provider has its own minimum acceptable property value, which can start at £70,000. If you've experienced credit problems in the past, usually, it won't count against you with Equity Release, unlike with ordinary mortgages, because you aren’t required to make any regular repayments. However, if you have made special arrangements with creditors, such as an IVA, CCJ, or Debt Management Plan, Equity Release providers will have certain requirements. For example, there could be a limit as to how much the debt is, or they may insist it is paid off from the Equity Release money.
If you have any questions or want to explore your options further, please don't hesitate to get in touch! I'm here to help.
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.
Julia is a 42-year-old woman who was recently diagnosed with breast cancer. She had noticed a lump in her breast and decided to get it checked out by her doctor. After a biopsy, she received the news that she had breast cancer.
Julia was initially shocked and scared by the diagnosis. She had never had any health problems before and the news came as a complete surprise. She struggled to come to terms with the idea of having cancer and what it might mean for her future.
Julia's doctors recommended that she undergo surgery to remove the tumour, followed by chemotherapy and radiation therapy. The thought of surgery and chemotherapy was daunting for Julia, but she knew she had to do everything in her power to fight the cancer and get healthy again.
Throughout her treatment, Julia found support in her family and friends, who helped her with everything from driving her to appointments to making her meals. She also sought support from a therapist who helped her manage her anxiety and depression related to the cancer diagnosis.
Julia's treatment was successful, and she is now cancer-free. Although the experience was difficult, Julia says that it taught her to appreciate every day and not take anything for granted. She also credits her strong support system and medical team for helping her through the difficult times.
"I never thought I would be the person to get cancer," Julia says. "It was scary, but I knew I had to fight it with everything I had. I am so grateful to my family, friends, and doctors for helping me through this. I learned so much about myself and what I am capable of, and I will never forget that."
Julia's experience with breast cancer highlights the importance of Private Medical Insurance in the UK. According to Cancer Research UK, breast cancer is the most common cancer in the UK, with 56,000 new cases diagnosed on average per year between 2016-2018. While the NHS provides excellent care, Private Medical Insurance can offer additional benefits that can make a significant difference in the treatment and recovery process.
Julia's Private Medical Insurance allowed her to access prompt and convenient medical care. She was able to see a specialist within days of being diagnosed and was quickly scheduled for surgery. This speed of access to treatment can be particularly important in cases like breast cancer, where early detection and treatment can significantly improve the chances of a full recovery.
Julia's insurance also gave her access to cutting-edge treatments and drugs that may not have been available on the NHS. This allowed her to have a more tailored and comprehensive treatment plan, which ultimately led to a successful recovery.
Additionally, Private Medical Insurance gave Julia peace of mind during a difficult time. She didn't have to worry about the financial burden of seeking private medical treatment without the insurance, or stress over long waiting lists. She was able to focus on her treatment and recovery, knowing that her insurance was taking care of the rest.
Julia's story is a testament to the importance of Private Medical Insurance. While the NHS provides excellent care, Private Medical Insurance can offer additional benefits that can make a significant difference in the treatment and recovery process. If you're considering Private Medical Insurance, Julia recommends doing your research and finding a plan that suits your needs and budget, or alternatively speaking to us so we can take out the leg work and conduct your research for you.
Identity theft is a type of crime where someone's personal and financial data is obtained and used without their permission. To limit your exposure and protect yourself from identity theft, it's important to learn how it occurs and to recognize the warning signs that signal fraud is developing. Here are some tips on how to protect yourself from identity theft:
- Look out for signs of identity theft, such as missing bills, being turned down for loans, being billed for items you didn't purchase, and unauthorized transactions on your financial accounts.
- Password-protect your devices and use a password manager to mix up your passwords and make them unique for every account.
- Watch out for phishing attempts, which involve identity thieves using emails and websites to trick you into entering your account information or other private data.
- Never give out personal information over the phone, and ask for the caller's credentials if you suspect a call is potentially legitimate.
- Use two-factor authentication to add an extra layer of security to your accounts.
- Monitor your credit reports and financial accounts regularly to detect any unauthorized activity early on.
- Shred documents containing sensitive information before throwing them away.
Remember, there's no way to prevent identity theft entirely, but you can make it harder for criminals to gain access to your information and accounts. Speak to us if you feel you need more support when it comes to staying safe with your finances.
The importance of reducing greenhouse gas emissions and tackling climate change has led to a wave of regulations and policies aimed at improving energy efficiency in buildings. One of the key measures is the Minimum Energy Efficiency Standards (MEES) regulations, which have been in force since 2018 and require properties to meet a minimum Energy Performance Certificate (EPC) rating to be rented out. As part of the UK government's commitment to achieve net-zero emissions by 2050, there are upcoming changes to MEES and EPC requirements for both commercial and residential properties.
These changes could affect landlords who own properties that are not yet compliant, and it is important for them to be aware of the new rules to avoid penalties and ensure their properties are available for renting.
Landlords must be aware of the changes to Minimum Energy Efficiency Standards (MEES) and Energy Performance Certificate (EPC) requirements to comply with the new laws and avoid severe penalties. It is essential to note that commercial properties cannot be leased to new or existing tenants if their EPC rating is F or G. From April 1, 2023, renting out a commercial property that does not have a rating of at least E will be an offense, and the penalty may range from £10,000 to £150,000 per breach based on the property's rateable value.
It is expected that the requirements will become more stringent, with a proposal for a rating of C or higher for commercial properties by April 1, 2027, and B or better by 2030. Similarly, the requirement for residential properties' EPC rating to be E or higher has already been in place since April 1, 2020. This requirement will increase to C or higher for any new tenancies in 2025 and all continuing tenancies in 2028.
It is the landlord's responsibility to comply with the legislation, and the costs may not be delegated to the tenant, although in some cases, they may be recoverable from the service charge. To avoid severe penalties, investors, developers, and landlords should review their portfolios and obtain EPCs where they are not already in place. They should consider the costs of upgrading works, the potential loss of income if the property cannot be rented, and the level of fine for non-compliance.
Applications for third-party consents or exemptions should be made if required. However, landlords should note that experts and contractors may be busy with the approaching deadline. Therefore, they should act sooner rather than later. It is important to mention that landlords who do not carry out sufficient works to improve their property's EPC rating to A-E or register for a valid exemption by April 1, 2023, will face penalties.
Property owners must demonstrate that there is an appropriate EPC rating in place, that all relevant energy efficiency improvements have been made, or that there is a valid exemption. Several exemptions are available, including consent, devaluation, and short-term letting exceptions.
It is crucial for landlords to take the necessary steps to comply with the new Minimum Energy Efficiency Standards (MEES) and Energy Performance Certificate (EPC) requirements. Failure to do so could result in severe penalties and a loss of rental income. Therefore, landlords should review their portfolios, obtain EPCs where necessary, and consider the costs of upgrading their properties. Seeking expert advice and acting promptly can help landlords avoid non-compliance and ensure their properties are available for renting. Don't wait until it's too late, take action now to ensure compliance and protect your investments.
Teaching children about money is an essential life skill that will serve them well as they grow older. It is never too early to start teaching children about money and financial responsibility. In fact, studies have shown that children who are taught about money at an early age are more likely to be financially responsible adults. The key is to teach children about money in a way that is age-appropriate and engaging.
Teaching young children about money
For very young children, start by introducing them to the concept of money. Show them coins and bills and explain their value. You can use play money to help them understand how money is used to buy things. As they get a bit older, you can start teaching them about saving and spending. Help them set up a piggy bank and encourage them to save a portion of their allowance or any money they receive as gifts.
Teaching preteens about money
As children get older, they will have a better understanding of the value of money. This is a good time to start teaching them about budgeting. Give them a set amount of money each month and help them make a budget. This will teach them about the importance of managing their money wisely.
Teaching teenagers about money
Teenagers are old enough to start learning about more complex financial topics such as investing, credit, and debt. Teach them about the basics of investing and encourage them to start saving for their future. Teach them about credit and the importance of establishing good credit. And, teach them about debt and how to avoid falling into debt traps.
Why it's important to teach children about money
Teaching children about money is important for many reasons. First, it will help them develop good financial habits that will serve them well throughout their lives. Second, it will help them understand the value of money and how to make smart financial decisions. Third, it will help them avoid financial mistakes that can have long-lasting consequences.
6 fun ways to teach children about money
- Play games - There are many board games and card games that teach children about money and financial responsibility. Games like Monopoly, Life, and Payday are all great options.
- Use a pretend shop - Set up a pretend shop in your home and let your children "shop" for items using play money. This will help them learn about the value of money and how to make smart buying decisions.
- Give them a budget - Give your children a set amount of money each month and help them make a budget. This will teach them about the importance of managing their money wisely.
- Let them help with grocery shopping - Take your children grocery shopping with you and let them help you compare prices and find deals. This will teach them about the value of money and how to make smart buying decisions.
- Teach them about saving - Encourage your children to save a portion of their allowance or any money they receive as gifts. Set up a savings account for them and teach them about the benefits of saving.
- Lead by example - Children learn by example, so make sure you are setting a good example when it comes to financial responsibility. Show your children how to make smart financial decisions and how to manage money wisely.
*https://www.ukfinance.org.uk/data-and-research/data/interest-only-mortgages
