September 2022

Storms, frozen pipes and turning our radiators back on for the colder months can all cause expensive damage if they’re not prepared in anticipation for the winter.

Prepping your home for winter
The Met Office provides a Cold Weather Alert Service every year, between November 1st to March 31st. This warns you of predicted adverse weather conditions in the coming days and weeks.

There are actions you can take in advance to guard against them. Our checklist covers simple tasks you can do inside and outside to help when you’re getting ready for winter.

• Outside
  • • In your garden, driveway and around your home’s exterior, there are a few actions you can take to prevent snow, ice and rain damage:
  • • Cut down overgrown branches: Dead branches and foliage from hedges can fall into and clog gutters. Snow can also build up on them, causing branches to snap, fall and damage anything below. Trim them back to help avoid this.
  • • Clear gutters and drains: Blockages in gutters and drains can lead to water backing up. It can start to run down the walls of your house and leak through the roof. If it freezes, the added weight can put a strain on plastic guttering and drainpipes, causing them to break. Clear them regularly during winter.
  • • Check and fix the roof: Make sure any aerials and satellites are secured, especially when strong winds are forecast. Assess and replace cracked or missing roof tiles. Again, water can leak through and freeze in cracks, possibly causing more damage.
• Inside
  • • When you’ve ticked everything off the winter home maintenance checklist outside, there are a few key areas to focus on inside:
  • • Weatherproof against any draughts: Check for any gaps around windows and doors that are letting in air and causing draughts. Seal them up with weather-stripping or caulk. Consider double-glazing if it’s not already in place, or replacing an old door with a new one, depending on how bad the problem is.
  • • Insulate your walls and loft: Cavity wall insulation can keep your home warmer and cheaper to heat in winter. Around one third of all heat escapes through walls , so check if your home’s walls are insulated. You’ll need the help of a professional, but for loft insulation you can easily install this yourself.
  • • Check the fireplace: If you have a working fireplace, arrange an inspection to make sure it’s not blocked and is fully functioning. Otherwise, this can cause draughts, while debris can create a fire hazard.
• Frozen pipe prevention

During winter, the pipes in your home may be at risk of freezing and bursting. This can cause costly damage to repair and lead to a cold house. One of the most important home maintenance tips for winter is to protect against this – mainly through good home insulation, warm air circulation and maintaining a low heat setting.

• To prevent frozen pipes:
  • • Insulate your loft: Use good quality lagging, especially around your pipes and water tanks so they don’t freeze.
  • • Open the loft hatch occasionally: This will allow warm air to circulate around pipes in the loft.
  • • Fit new washers to dripping taps: Stop the chance of water freezing and blocking the pipe.
  • • Maintain a low temperature: Use frost protection thermostats on heaters where possible.
  • • If a pipe has frozen, but not burst, avoid damage by:
  • • Removing carpet, furniture and electricals near the frozen pipe, to minimise damage costs if it does burst.
  • • Opening the tap nearest to the part of the pipe that’s frozen. This allows water to flow easier once it has melted.
  • • Thawing the ice in the frozen pipe with a water bottle, hot cloth or hairdryer – it’s important to keep this safely away from any water. Start at the end closest to the tap.
  • • If something does go wrong, it’s worth checking if you have home emergency cover included in your home insurance policy to help sort things out.

Get in touch today to speak to us about ensuring your current policy covers your home for the winter ahead- just in case.

Whether you are looking to remortgage as your deal comes to an end, or perhaps you (or someone you know) are looking at your first mortgage, it’s important that you have appeal for the lender who houses the deal you’re after.
We’ve assembled a few top tips to help give you real curb appeal when it comes to presenting your application to the lender.

Tip 1: Do not expect every lender to want you and your app!
Every lender has its own method to decide whether it wants to lend to you. If you fit a lender's criteria, you might be accepted quickly. If you're far from ideal, your chances of rejection will increase.
But for people in the middle, it's more of a grey area and the lender's scorecard will be based on several factors, such as:
The size of the loan you want to take out. Are you looking to borrow £150,000, £200,000, £250,000, etc?

• How much you've saved as a deposit. The bigger your deposit, the less of a risk you'll likely be seen as.
• Your employment status and income. Are you a permanent or temporary member of staff, a freelancer, self-employed?
• Your credit rating and history. More on this below in point two.
• Your outgoings. This is how you spend your money.
• Your existing debt. This could include credit card debt, student loan, etc.

If you pass, it means it's more likely to lend to you but nothing is guaranteed.

Tip 2: Get familiar with your credit score
Before you’re even at the application stage for your mortgage, ensure you’re confident your credit file is working for you. Look at the three credit agencies in the UK: Experian, Equifax and TransUnion to ascertain your credit score and how well you measure up when it comes to responsibly managing repayments.
Credit scores look at your spending (and repayments) across:

•     Credit cards
•     Loans
•     Overdrafts
•     Mortgages
•     Some utilities

Having a poor credit history might not automatically rule out your chances of getting a mortgage, but it certainly runs the risk of scuppering them. To give yourself the best chance possible of acceptance, take the time before you apply for a mortgage to get your credit report into good shape.

Tip 3: Delink from any ex-partners or flatmates to stop their credit score damaging your chances
If you're financially linked to someone else (which only happens when you apply for joint credit, such as a bank account, mortgage or loan) but you're now separated or have nothing to do with them, then de-link yourself.
If not, any late payments or misdemeanour they've committed will reflect badly on you. Write to the credit agencies and ask for a notice of 'disassociation'.
You could still be linked to old flatmates if you had a joint bank account for bills, so it's worth checking that their credit history isn't affecting yours. If it is, de-link yourself quickly.
Even if the person you're linked to has a good history now, you still risk problems in future if they miss payments.

Tip 4: Always pay all of your bills on time
It's obvious – so do it.
All missed payments count against you on your credit file, so it's vital to keep up all repayments on ALL your outgoings.
A missed-payment default count against you for at least a year, and they'll stay on your file for the next six years. Miss just one mobile phone payment and it could be the difference between getting a mortgage and not.
Where possible, set up a direct debit to make sure payments are made on time.

Tip 5: Don't apply for other credit shortly before a mortgage
Try to avoid applying for credit in the three months before getting a mortgage – it could hinder your score and lead to rejection. Some recommend at least a six-month gap, to be absolutely safe.
 
This is because lenders will search your credit file every time you apply for a loan, credit card, overdraft, and increasingly mobile phone or utility contracts too. This search, known as a 'hard' credit check', is registered on your file even if you don't take out the contract.
The more searches you have in a short time, the less likely you are to be granted credit, as you could be viewed as desperately seeking borrowing.
If you NEED to apply for credit, it's unlikely that one application will hurt all that much, provided it's affordable. BUT – if it's a payday loan, some lenders will decline you for a mortgage if you've had one in the past year.
To underscore the point, recent research has found that a fifth of want-to-be first-time buyers who've had a mortgage application rejected were declined because of a payday loan.
 
This is just a few ways you can start ensuring your application to a lender is looking as attractive as possible, but in general you should practice responsible financial behaviours, such as cutting back on luxuries and not adding to your financial strain in the period leading up to an application.
If you’re ready to look at your mortgage options, get in touch today.

Despite Liz Truss’s recent announcement that energy bills will be capped at £2,500 annually this is almost double last year’s £1,277** average. Many of us could still be struggling with that upsurge in costs so what can you do if they’re just unmanageable? Check out our top ten tips on what to do if you’re struggling to afford your energy bills.

1. Speak to your supplier, they have to help

If you're falling behind with your energy bills, and finding yourself struggling to pay, the best thing to do is contact your supplier as soon as possible. Under rules from regulator Ofgem, your supplier has to help you – usually by negotiating a payment plan that you can afford.
There are a range of options suppliers could offer if you're struggling, including:

• A full payment plan review
• Affordable debt repayment plans
• Payment breaks (though this won't be right for everyone)
• Payment reductions
• More time to pay
• Access to hardship funds

What help you can get is decided on a case-by-case basis, but importantly, repayment must be based on your ability to pay. So, get in touch with your supplier as soon as possible.

 2. Hardship funds

Big energy firms have charitable trusts and funds that can help if you're in debt and struggling to repay.
With these providers you'll usually need to be a customer of the firm to apply, but British Gas offers help to non-customers as well. The application process for this help is fairly rigorous. You usually need to have spoken to a debt adviser before applying, complete a full income and expenditure budget sheet, provide proof of your income, give details on how your arrears have built up, and say how the grant will help you.
Exact eligibility requirements vary – some say you need to be in receipt of certain benefits for example – but those with the greatest need are prioritised on a case-by-case basis. It can take several weeks to process your claim and funds are limited, so act now.

3. £400 towards energy bills this winter

One of the measures announced back in May as part of the Government's 'cost of living support' package, and further supported by new PM Liz Truss, was that all households in England, Scotland and Wales will get a £400 energy grant. All households with a domestic electricity meter will get it.
For most, the grant will be automatic, paid by your supplier between October 2022 and March 2023. However, those on non-smart prepayment meters will have to take action to get the money. It'll come as six separate payments – £66 in October and November, then £67 for the remaining four months. How it's paid depends on how you pay for your energy:

• Monthly direct debit customers. You'll get the grant automatically, as a deduction on your monthly payment, or as a refund into your bank account shortly after your direct debit payment is taken each month. British Gas, EDF and Ovo/SSE have all confirmed they'll issue refunds as opposed to reducing your monthly payment, while Bulb and Shell Energy say they will reduce monthly payments.
• Standard credit customers. This includes those who pay by cash, card or cheque after receiving a monthly or quarterly bill. You'll get the payment automatically – in the first week of each month between October 2022 and March 2023. It'll be added as credit to your account, so you should see this added to your bills over this period.
• Smart prepayment customers. You'll get the grant automatically as credit applied directly to your meter in the first week of each month.
• Traditional prepayment customers. For these customers, the grant ISN'T automatic – you have to redeem it to get it. You'll need to ensure your supplier has up-to-date contact details for you as your money will be sent as six separate vouchers via text, email or post – which you'll need to redeem by topping up your electricity meter as normal in a shop or post office.

Crucially, the Government has said you'll have three months to redeem each voucher – and if you lose them or they expire, they can only be reissued up until 31 March 2023. So, you could miss out if you don't act to redeem all of them in time.
You won't get this if you're in Northern Ireland, but the Government has said it will deliver equivalent support.

4. Over 66? You’ll get up to £600 to help with energy bills this Winter

Every UK household with someone over state pension age (aged 66 or above) between 19 and 25 September 2022 is entitled to help towards their energy costs under the Government's Winter Fuel Payment scheme, which is usually between £100 and £300.
But this year, the cost-of-living support package includes a one-off £300 top-up to the winter fuel payment, so you could get up to £600. It'll be paid automatically in November or December.

5. Certain disability benefits mean you could be eligible for further support

About six million people across the UK on certain disability benefits will receive a one-off payment of £150 in September. This will be paid straight into the account you currently receive your benefits into and is designed to help towards the cost of specialist equipment and food, and increased transport costs.
To qualify, you must be receiving, or have begun an eventually successful claim as of 25 May 2022 for, one of the following benefits:

•     Armed forces independence payment
•     Attendance allowance
•     Constant attendance allowance
•     Disability living allowance
•     Personal independence payment
•     Scottish disability benefits
•     War pensioners' mobility supplement

The Government says these payments will not count towards the benefit cap, and will not have any impact on existing benefits. You can also still qualify for the £150 payment if you've swapped disability benefits for mobility aids under the Motability Scheme – though details on how this will work in practice have yet to be confirmed.

6. Up to 60 days respite from debts with the ‘breathing space’ scheme

The breathing space scheme, officially known as the Debt Respite Scheme, is a Government scheme that can relieve some of the pressures and stress of being in debt.
If you pass eligibility, your creditors are informed and must stop collection or enforcement activity, and won't be able to add interest or fees to your debt for up to 60 days.
 
Debt charity StepChange has full info on eligibility, and can take you through the application process.

7. Insulation and boiler grants could help too

Energy efficiency can seriously cut bills, and there are wads of freebies on offer from energy providers from firms under the Energy Company Obligation scheme. It's all part of their efficiency obligations to people in certain groups.
If you're on certain benefits, you could get free insulation or a grant to replace an old boiler. Here are some possible savings illustrations:

•     Boiler replacement or repair. Heating accounts for about 55% of what you spend in a year on energy bills. Depending on your boiler's age, a shiny new efficient one could save you up to £315/year.
•     Cavity wall insulation. Most homes built since 1920 have a gap between internal and external walls. Filling the cavity with insulating mineral wool and foam means cold airs kept out, and warm air stays in, which can save an average three-bedroom home up to £305/year.
•     Loft insulation. Up to a quarter of your home's heat escapes via the roof, but you can solve this by laying mineral wool under the rafters, saving up to £250/year.

8. Only pay for what you use!

Don't rely on your energy provider's estimate, as these are often way out. If they're underbilling, you'll have a big whack to pay when your supplier receives your actual meter reading. If they're overbilling, then they've unfairly got your cash.
If your direct debit is way off kilter, call up and ask for it to be changed. You have a range of rights to ensure its correct.
Smart meters can help stop this as they send meter readings automatically to your supplier, so you only pay for what you use.

9. Use less. Simple, but effective. Cut down use where you can.

Most can't save any other way, so using less can really pay off and is simple to do. The new government cap will be a cap on standing charges and unit rates, so use less you pay less, use more you pay more. There is not a total cap on what you pay, the typical rate is just a figure for illustration.
So, turn down the thermostat and wear jumpers, turn lights off when you leave a room, take shorter showers, use energy saving light bulbs and don't leave electrical goods on standby.

10. While you can be disconnected, it's very rare and there are strict rules for suppliers

There are very strict rules for disconnection and suppliers very rarely disconnect people due to debt.
Firms must take all reasonable steps to avoid disconnecting an energy supply for debt, and it should always be a last resort. Suppliers cannot disconnect you if you:

•     Owe a debt to a previous supplier
•     Are bankrupt and the energy debt is for before you were bankrupt
•     Owe a debt for a service or appliance from a supplier, and not for your gas or electricity usage.
•     What's more, if it's during winter (between October and March), you can't be disconnected if you have reached state pension age and live on your own, or live with children under the age of 18.
•     Most suppliers have also voluntarily agreed to never disconnect you at any time of year if you have children under the age of six, are disabled, have long-term health problems or have severe financial problems. They also won't disconnect you during winter if you have children under the age of 16.

Also, it’s important to note that suppliers have an obligation to help, if they aren’t doing all they can to help you, make an official complaint to the regulator. Remember to try calling your provider to sort the issue first, but if not then you can use free complaints tool Resolver. The tool helps you manage your complaint, and if the company doesn't play ball, it also helps you escalate your complaint to the free Energy Ombudsman.

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