This month, we are looking at more ways to save you money. But it’s always worth weighing up your options to see if saving money now will cost you down the end of the line. That’s why we recommend getting an advisor you can trust. We will find not only the best deal right now, but one you will always appreciate.
From renter’s reforms to renter’s insurance. Finding cheap deals for your health and medical insurance. We explore whether you can use equity release to pay off your mortgage. Is a buy-to-let mortgage right for you? And should you and your partner get a joint or single life insurance policy?
Finally, some bonus tips to get you on the property ladder! And a downable budget planner… keep reading to find out more!
Are you looking for some extra support with your health? There are options to help you save money with private medical insurance. Or even individual healthcare plans just for dental, physio, or optical. We go into some of your options. Give us a call today for a personalised approach and take the hassle out of searching.
Private Medical Insurance (PMI) allows you to bypass the NHS. Covering private consultations, treatments and operations, and hospital accommodation. Think of PMI costs as prepaying for care. For example, the younger you are the less potential you need care. But as you get older, you may need more appointments.
Things to think about when working out the costs:
- Which hospitals can you use? More options will drive up the price. But you may be able to save money here if it’s not an issue.
- What treatments do you want to cover? Extra options (and cost) include cancer and mental health. What would you feel ok using the NHS for? And what treatments would you prefer to go private? (hint – look at waiting times online)
- 'Full medical underwriting' (FMU) vs 'moratorium'. With FMU, you disclose your medical history at sign-up (possibly via a check-up). Moratorium will automatically exclude pre-existing medical conditions.
If you already have PMI, you may get a cheaper deal by shopping around. (Unless you have a pre-existing condition). Often, premiums go up each year. But you could always ask your provider for a cheaper deal!
Another factor is looking at your excess. If you want a 'cover everything' policy. Or only a 'cover big things' policy. Go high excess if you want 'emergency only' cover. You could always put aside money to save for bigger expenses, but be covered for emergencies to save costs.
Confused or can't find what you want? Use a broker.
If you're confused or have conditions that make things difficult. Brokers can answer questions about cover, particular insurers' records, rules, and more. Most are free to use.
Extra ways to save money with healthcare cash plans!
Healthcare cash plans can help cover the costs associated with contacts/glasses and dental check-ups. Other bonuses include:
- Therapies (physio, chiropody, osteopathy, acupuncture)
- Consultants & tests (physician/surgeon & PET, CT or MRI scans)
- A payment each day you're in hospital (even if you don't pay anything)
- A payment for maternity or paternity
- Some providers cover a portion of prescription charges
- Health screening
- Personal accident
And finally… Are you overpaying your prescriptions and medications?
Many people pay for prescriptions in England when they shouldn’t. You might be able to get them for free. Or they're cheaper over the counter. If you get a lot of prescriptions, you may find prepay prescription certificates can slash the cost. Plus, buying over the counter might be cheaper than using your prescription. Find out more here: https://www.nhsbsa.nhs.uk/help-nhs-prescription-costs
Have you ever wondered whether you and your partner should be on one single life insurance policy? Or should you each have your own? In this article, we go into joint life insurance options. But like most things insurance-wise, we are here to demystify the process. Here is a quick outline to get you thinking about the options. But just hit ‘reply’ for an instant chat about your life cover.
So, do we need a joint life cover policy? Or one each?
The other person's policy is affected in the event of claiming on one person. Think, if a claim arises on a joint life plan. The surviving life would lose their cover. Unless the insurer offers a life or critical illness buyback option.
More cover for a fraction of the cost
If something happens to you and your partner. Your loved ones would receive double the payout. Each half has their own policy to provide financial support. . Should the worst happen.
The case for joint cover
There are scenarios where joint cover is the most appropriate option. The most obvious is where the sole purpose of coverage to repay a debt. Such as a mortgage.
What about dual cover?
Dual life cover is a fairly recent innovation. Where a couple is covered under their own separate personal policies. Packaged together like a menu plan. The advantages of dual cover are effectively those highlighted above. With the added benefit of everything being packaged together and discounted multi-policy rates.
What must you consider?
Two single life plans provide more coverage and more flexibility. It is, however, more expensive. The options need to be explained clearly to understand the cover options. Make sure you speak to us today to hear all the options.
The government recently published the Renters Rights Bill to Parliament. Here are some of the proposed new rules
- ban the practice of evicting tenants in England without a reason
- give tenants the right to request a pet (within reason)
- a ban on rental bidding wars
- legally publishing an asking rent for their property (and sticking to it)
- forcing landlords to fix issues like damp and mould
- ending blanket bans on tenants with children or those on benefits.
With this in mind, the Renter’s Reform will likely impact landlords. It’s worth asking if your investment will still serve you. We go into a few factors around a buy-to-let mortgage.
What is different about a buy-to-let mortgage?
If you plan to rent your home, you need a buy-to-let mortgage. A residential mortgage is if you are going to live in the property.
Mortgage providers see buy-to-let mortgages as higher risk. This is because landlords often face problems with rent collection. Consider this. How likely is your property to be constantly occupied?
There is a higher risk involved. So, you’ll need to pay a larger deposit for a buy-to-let mortgage. Usually, a minimum of 25% of the total value. However, some require a deposit as high as 40%. Other fees may be higher too.
Are repayments the same?
Here is a bonus. Many buy-to-let mortgages are interest-only. This means you’d only pay monthly interest payments. Rather than repayments on the loan itself. This results in lower monthly payments for buy-to-let mortgages.
However, the mortgage must be repaid in full at the end of the term. Many will pay for this by selling the property. But if house prices have fallen since the time you bought the property. You may struggle to repay the mortgage.
Who can get a buy-to-let mortgage?
Applying for a buy-to-let mortgage is not as easy. Generally, you must own a home yourself. Either outright or with an existing mortgage. Many lenders expect landlords to be earning at least £25,000 a year.
And most lenders set upper age limits. Usually at 70 or 75 years old. Mortgages tend to last for 25 years. So, you would normally need to be 45 years old or younger to secure a loan. But check with us, as this isn’t always the case.
Contact us today about securing a buy-to-let mortgage. Or if you are renting and want to buy your first property. We are here to help!
If you are asking yourself if you need insurance while renting. The answer is yes! Think about everything you own. All the bills you have to pay. Would you be covered to replace everything and your income if you couldn’t work? Here is where insurance helps!
There are different types of insurance. From income protection. To content insurance. (Think of your furniture, electronics, jewellery, clothes, and more!). And of course. Car insurance. The definition of insurance is to reduce risk.
Research shows that over half of private renters in the UK have no form of financial protection in place. Despite one-third needing to take extended time off work. You have to ask. Could you last one month and still support your family? What about if you couldn’t work for an extended period?
There are approximately 15.8 million people privately renting in the UK. According to the FCA. Some common reasons why people don’t have insurance include the following:
- Not even thinking about it
- Not feeling they have a reason to take out protection
- Cost
We are here to help with all these factors. And we’ve started on the first point! We’ve explained why you do for the second point. And finally, contact us today to find a price that will suit your budget.
If you’ve seen a loved one need insurance. Or maybe you have children now and have more to think about. We can help you with policies that protect you. Reduce risk. And ensure you aren’t financially vulnerable.
Do you have family you think could use this advice? Feel free to forward them this email and our contact details.
Buying an insurance policy against serious illness or loss of income is for everyone. Guarantee financial security, meet outgoings, and keep a roof over your head at any stage of life.
Should you use equity release to pay off your mortgage? Are your repayments stopping you from saving more for retirement?
Using the equity in the property can secure a comfortable retirement. You are essentially taking value from your house to pay off the mortgage. And if you plan on staying in the house for a while longer. Or house prices have gone up a lot since you brought. The house sale will cover the equity loan only after you pass away or move into care.
Imagine the possibility of retiring early or working fewer hours. All while keeping your beloved home. Equity release could make this dream a reality.
Your mortgage must be repaid in full as part of the process. But once this is completed. You may be able to release more to ensure you get the most out of your retirement.
Rest assured, we're here to guide you. We'll walk you through all the advantages and potential drawbacks of equity release. Ensuring you make an informed decision.
Some elements to consider. Generally, you must be over 55 years old to secure equity release. Taking out equity is a loan against your home’s value. Because of this it may affect your inheritance. It’s important to weigh all the options and chat with your family.
You can only receive equity release through a provider. We are obligated to give advice you can trust. We look across the whole market to find the perfect product for you. Contact us today for more information.
We can help you get on the property ladder. Feel free to call us today to see what we can do for you. Here are some handy tips to keep in mind!
- Assessing your financial readiness for homeownership
An overview to evaluate your savings and credit score. Plus, create a monthly budget to determine if you are ready to buy.
- Saving for a deposit: strategies and options
Tips on how to save for a deposit. Including government schemes like the Lifetime ISA. And setting realistic savings goals.
- Understanding the different types of mortgages
An explanation of fixed-rate, variable-rate, and other mortgage types. With advice on choosing the right one for your circumstances.
- Government schemes to help first-time buyers
Information on initiatives like Help to Buy, Shared Ownership, and First Homes scheme. They could make the buying process more affordable.
- Improving your credit score to secure a better mortgage
Steps to improve credit and pay down debts. We'll ensure a strong credit history to increase mortgage approval chances.
- Additional costs to consider when buying a home
A breakdown of the hidden costs. Think stamp duty, solicitors’ fees, surveys, and moving expenses.
- Getting pre-approval for a mortgage: why it matters
The importance of mortgage pre-approval. How it can help when making an offer on a property.
- Navigating the property search: what to look for in your first home
Practical tips on what to prioritise when searching for a home. From location to future growth potential.
- The role of a mortgage broker in securing the best deal
A mortgage broker can find tailored mortgage deals. Simplify the home-buying process.
Plus a bonus! Here is a free budget planner to keep track of your spending. Making saving easier for your big purchase
