How does a remortgage work?

How to protect your business

Personal savings allowance
You’re entitled to receive some interest on your savings tax-free every year, depending on your income tax band. For non-taxpayers or basic rate taxpayers you’re allowed up to £1,000 per year; for higher rate taxpayers you get £500. If you have savings with a spouse or partner, you can each use your allowances against your joint savings.

Marriage allowance
If you are married, you might be able to take advantage of the marriage tax allowance. It allows one half of a couple who earns less than the income tax threshold (£12,570) to transfer up to £1,260 to their higher-earning spouse (who must be a basic rate taxpayer).

ISA allowances
An ISA account allows you to save or invest up to £20,000 tax free annually, whether it’s in a cash ISA or stocks and shares ISA – which also comes with the benefit of being exempt from dividend tax and capital gains tax on all growth.

Dividend allowance
You are allowed to receive up to £2,000 a year in dividends, tax-free. This allowance can be particularly useful if you own shares or you’re a company owner or director.

Capital gains allowances
Profits (or ‘gains’) you make on the sale or disposal of an asset (like a property where it’s not the main home, investments and shares not in an ISA or even personal possessions worth more than £6,000 (apart from your car) are exempt from tax up to the annual allowance of £12,300. For married couples or those in civil partnerships who own joint assets, the allowance is doubled – to £24,600.

Pension allowance
Your pension allowance annually is £40,000, although it can be lower for higher earners and where pension savings have been flexibly accessed. Any contributions you (or your employer) make receive tax relief from the government (based on your income tax band) of 20% or more – and the money in your pension pot will grow tax free.

Pension carry forward
If you don’t use up your annual pension allowance, you can ‘carry forward’ the previous three years’ worth of unused allowances providing you are still registered with the pension and have earned in the current tax year the amount you (or your employer) would like to contribute.

Charitable donations
You can donate to charity tax free and claim back the tax on your donation through gift aid. If you are a higher or additional income taxpayer, you can also claim back the difference to the basic rate on your gift aid donations. Just remember to keep hold of all records of your donations to claim tax relief when the time comes to submit your tax return.

Gift giving exemptions
Gifting comes with the benefit of being exempt from inheritance tax, for an annual gift amount of £3,000. Other tax-exempt gifts include money towards a wedding or grandchild’s education. No inheritance tax is due if you live for seven years after making the gift to someone who is not your spouse (for example, gifting your children a property).

Knowing your tax code
This one is important because your tax code tells HMRC how much of your salary they will collect. It’s a good idea to check your tax code each time you change jobs or at the start of the tax year. Being on the wrong code could mean you’ve overpaid tax and are due a refund.

These are just some of the ways you can ensure you’re making the most of your money and not paying more tax than is necessary. Speak to your adviser to learn more about your money, estate, and taxes. Please not that Openwork advisers are not able to provide specific tax advice.

HM Revenue and Customs practice and the law relating to taxation are complex and subject to individual circumstances and changes which cannot be foreseen.

For specific tax advice please speak to an accountant or tax specialist.

What is remortgaging?

Remortgaging involves taking out a new mortgage on a property you’ve already bought. You might do this to replace an existing mortgage deal or to borrow money against your home.

Is remortgaging right for Mike?

After Mike’s last mortgage came to an end, he didn’t look for a new deal so he was switched onto his lender’s standard variable rate (SVR). An SVR is usually much higher than fixed and tracker rates, and it can go up at any time. Research by Habito found 27% of mortgage holders in the UK are currently on their lender’s SVR, and they worked out - on an average mortgage - this translates to an extra £340 a month. This means Mike could almost certainly benefit from remortgaging.

Other reasons to remortgage

Even if you’re not on your lender’s SVR, there are a variety of reasons you might want to remortgage:

• To beat interest rate hikes. As inflation goes up, interest rates are starting to follow suit, so it may make sense to lock into a low rate now.
• You’re coming to the end of a deal. Mortgage advisers generally agree you should start looking for a new deal around three to six months before your current rate ends. However, the research by Habito found 46% of mortgage holders are unaware of this.
• The value of your home has gone up. A significant rise in the value of your home may have moved you into a lower loan-to-value band, meaning remortgaging may give you access to reduced rates.
• You want to borrow against your home. Remortgaging may allow you to raise money cheaply on low rates. Before doing this, it’s worth getting financial advice to make sure this really is the cheapest way for you to borrow.
• You want to overpay, and you can’t on your current deal. If you’ve come into some money recently, remortgaging will allow you to reduce the size of your loan and possibly get a better rate. You’ll need to take into account any exit fees or early repayment charges to weigh up whether remortgaging makes financial sense.

Where to start

It’s not always clear cut whether you’ll benefit from remortgaging. A qualified mortgage adviser will look at your circumstances and find out exactly what you want to achieve by remortgaging. For example, are you simply looking to reduce your monthly payments or do you want a more flexible mortgage that allows payment holidays? The adviser will then set out the best options available. Regular mortgage reviews can help ensure you’re never overpaying unnecessarily.

If you’d like to speak to someone about your mortgage, we’re here to help.

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.

The interest rate on an SVR mortgage is set by the bank or building society and they can put it up at any time. It is usually higher than the rate you’d get with a mortgage deal and can significantly increase your monthly payments.

As the cost-of-living crisis starts to bite, times are tight for Sarah. Her energy bills have skyrocketed. Filling up the car costs a fortune. In fact, she seems to be paying more for everything these days, even her TV subscriptions are getting more expensive. She’s struggling to cover her monthly bills but, with interest rates rising, Sarah’s worried she’s missed the boat when it comes to securing a competitive mortgage deal.

Has Sarah left it too late to switch from her SVR mortgage?

Although the interest rates on both tracker and fixed-rate deals are creeping up, it still makes sense for Sarah to switch away from her SVR mortgage. According to Moneyfacts, in March 2022 the average SVR was 4.61%, while the average rate on a two-year tracker was 2.03% and on a two-year fixed was 2.65%. This means Sarah should be able to make significant savings by switching. And she’s not the only one who could save money. Research by Habito found 27% of mortgage holders in the UK are currently on their lender’s SVR and they worked out, on an average mortgage, this translates to an extra £340 a month.

How can Sarah make sure she secures the best deal possible?

Sarah would almost certainly benefit from speaking to a qualified mortgage adviser. They understand the market and know where to find the best deals. Sarah may have to pay a penalty to switch from her SVR mortgage. Sometimes, you have to spend a year or more on an SVR before switching without a penalty. A professional will be able to advise Sarah whether it makes sense to wait or to pay any penalty and remortgage straight away.

But Sarah is nervous about speaking to an adviser; she finds mortgages confusing.

Mortgages can be complicated but a qualified adviser will be able to explain them simply and answer any questions Sarah has. Mortgage advisers are there to take the effort out of finding the right deal and it’s got to be a lot less stressful than worrying about whether you’re going to be able to pay your bills each month.

If you’re on an SVR mortgage or your current deal is coming to an end and you want to avoid being switched to an SVR mortgage, we’ll be happy to help.

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.

Tina has always managed her day-to-day finances really well, but she never sat down and worked out how much she’d need for a comfortable retirement. A 2021 Which survey found that a retiree in a single-person household spends an average of £19,000 a year and needs £31,000 a year to enjoy luxuries such as long-haul trips and a new car every five years. When you compare this figure with the current maximum state pension of approximately £9,627 a year, it becomes clear relying on that income alone can cause problems.

Why is money going to be so tight for Tina?

There are a number of reasons for this:

Career breaks have affected her state pension entitlement

Tina was a stay-at-home mum throughout most of her 20s and into her mid-30s, when she split up with the father of her children. They were never married so Tina isn’t entitled to any of his pension.

After working full-time for a few years, Tina moved in with another partner and splitting the bills meant she could afford to drop down to part-time hours. She began working full time again when that relationship ended a few years ago and she moved into her own place.

Despite working on and off, Tina hasn’t made anywhere near the 35 years’ worth of National Insurance contributions that guarantee a full state pension. As she’s made more than ten years’ worth of contributions, she’ll get something but nowhere near as much as she expected.

If Tina had checked her state pension forecast regularly, she could have avoided a nasty shock and taken steps to increase her pension pot.

She’s only made minimum contributions to her workplace pensions

Tina’s been enrolled in a couple of workplace pension schemes, but she’s only ever made the minimum contributions required.

There are no fixed rules about how much you should pay into a private pension, but one rule of thumb is to take the age you start saving and divide it by two to give you the percentage of your salary you should put away each year. So, if you start saving at 30, you should pay in 15% of your salary.

It’s worth bearing in mind that the government tops up private pension contributions in the form of tax relief at your highest rate of income tax. Basic rate taxpayers receive tax relief of 20%, while higher rate and additional rate taxpayers can claim back 20% and 25% respectively through their tax returns.

What can you do to boost your pension pot?

There isn’t one simple answer when it comes to saving for your retirement. It’s complicated! So it makes sense to get help from a financial adviser.

If you’d like to make sure you’re doing all the right things to enjoy a comfortable retirement, we’re here to help.

Angela was looking at ways she could reduce her inheritance tax. After spending some time researching, she realised she could make small gifts to as many people as she likes, and these gifts will be exempt from IHT. Wanting to help her grandchildren out, she gifted them £1000 each.

Isabella, Harrison, and Ava were thrilled to receive the generous gift from their grandma and were quick to discuss what they wanted to do with it. After listening to their ambitious ideas, Angela sat the children down and told them that the best thing to do, was to put it into savings and investments to make more out of the money and eventually carry out their future goals.

The surprises of savings accounts
After listening to her grandma, Ava being the youngest of the 3, wasn’t too clued up on savings, so deposited the £1000 into a regular savings account. Regular savings accounts can be great, easy ways to save securely and access money easily, however, they do not make a lot of interest.

With average interest rates for a savings account at 0.06%, Ava looked back into the savings account after a year to discover it had only made £0.60 in interest. The little interest added meant that Ava couldn’t afford the new laptop that she so desperately wanted and had to settle for an older version instead.

Are Cash ISAs still effective?
With the desire to buy a new car, Harrison chose to put his money into a cash ISA after reading about the tax-free, easy to access advantages that they had.

However, Cash ISAs also have a very low interest rate due to the fact they are affected by the rise of the cost of living and high inflation, meaning you make little to no interest on the money that is in there.

The average cash ISA interest rate being 0.63%, Harrison went back to check on his investment after a year and found that it had made £6.32 in interest. Although this interest earned meant that he was unable to put the deposit down for the car he wanted.

Why Stocks & Shares ISAs would’ve been better
Isabella the oldest of the 3 was saving for a deposit on her first home. She found that a stocks and shares ISA was the most appropriate way to invest her money.

Stocks and shares ISAs are a good way to start investing your money as you can invest up to £20,000 a year, any income is protected from tax, and they can offer considerably higher returns over time.

With an average return on stocks and shares ISA being 13.55% if paid yearly, Isabella reviewed her account after a year and was surprised to see that she had made £144.24 of interest on the £1000 she inputted into the ISA. Using this way of investing now means Isabella has the money to be able to pursue her dreams of home ownership.

Let us help
Don’t let what happened to Harrison and Ava, happen to you. Whether you are taking your first steps in investment or a seasoned saver we’re here to guide you through the most suitable ways to invest your money, ensuring your future and you are protected.

The value of your investment and any income from it can fall as well as rise and you may not get back the amount you invested.

Whether you're saving for your future, buying your first home, remortgaging or want to protect your home and income – speaking to an expert can make all the difference.

Saving for your future

Robyn and Tim met in their late 20s and soon got married. They were keen to get on the property ladder so spoke to a financial adviser who helped them form a savings strategy.

They both opened a Lifetime ISA and opted for a Cash ISA (rather than stocks and shares) as they were not willing to risk the value of their savings falling in return for a higher potential gain.

Their adviser also encouraged them to review their pensions. As both of their employers matched anything they paid in, it made sense to maximise their pension contributions – even though retirement felt a long way away.

Buying your first home

They saved the maximum amount of £4,000 a year into their Lifetime ISAs, topped up by the government 25% bonus. In just 3 years they saved the £30K deposit needed to buy a £300K home. But before they could start house hunting, they needed to secure a mortgage.

A good mortgage adviser can scour the market, chase the provider to keep your application on track and guide you through the home buying process – invaluable if you’re a busy professional buying for the first time.

Their adviser helped them understand the different mortgages available and which most suited their needs. As a result, they bought their home knowing they could comfortably afford their monthly repayments.

Remortgaging

Robyn also owned a flat with her Dad that she lived in before she met Tim. She now lets it out but wanted to remortgage and release some funds.

Armed with more knowledge, she initially researched the market herself – but found that most Buy to Let mortgages are only available through brokers.

She found a specialist Buy to Let mortgage adviser who managed to secure her a low fixed rate mortgage which also released £40K of her equity. Her monthly repayments only increased marginally, and she has peace of mind that they won’t rise for the duration of the fixed term.

Understanding your tax position

Although Robyn and Tim didn’t exceed the first-time buyer stamp duty threshold of £300K for their new home, as Robyn already owned a property, they were not considered first time buyers. So they had to pay 3% of the house’s value in stamp duty. Had they got tax advice before getting married, they may have reconsidered their options.

When Robyn remortgaged her flat and replaced her Dad’s name on the deeds with Tim’s (a condition of the new mortgage) her solicitor warned they may be liable for more stamp duty – as she was gaining 50% of the property from her Dad, then Tim was receiving 50% from her.

As this was a complicated situation, Robyn sought specialist tax advice. As a result, they avoided paying a large amount of additional stamp duty.

Protecting your home and income

When you take out a mortgage it’s not just the building and its’ contents that needs to be insured. You should also consider what would happen if you or your partner lose your job, become critically ill or die.

Robyn and Tim spoke to an adviser to discuss protection. As a result, they can both now relax, knowing they will be able to pay off their mortgage and stay in their home, should the worst happen.

If you want to learn more and receive advice tailored to your personal circumstances, please get in touch.

Your home may be repossessed if you do not keep up repayments on your mortgage.

Tax advice is not regulated by the Financial Conduct Authority.

Unfortunately, Matt’s experience isn’t as uncommon as you might think. Home may be where the heart is but it’s also where you’re most likely to have an accident, according to the Royal Society for the Prevention of Accidents (Rospa).

Figures from Rospa show children under the age of five and those over the age of 65 are at the highest risk of having an accident at home, with falls being the most common type of mishap. To give you an idea of the extent of the problem, the annual cost of home accidents in the UK is a staggering £45.63 billion. More mishaps happen in the lounge than any other room and, tragically, there are around 6,000 deaths every year in the UK as a result of accidents at home.

Preventing accidents in the home

Although you can’t remove the risk of accidents in the home altogether, there are some sensible precautions you can take. For example, if you’re trying to reach something high up, don’t use a chair; it’s always better to use a stable step-stool. It’s also worth bearing in mind that a lot of accidents happen when we’re rushing so, no matter how busy you are, try to take your time.

There are also steps you can take to provide a little more financial security if you’re ever unlucky enough to find yourself in Matt’s position.

Accident protection

Accident protection can provide a cash lump sum to help you and/or your family should you have a similar experience to Matt, meaning at least you won’t have to worry about your finances. It can provide cover for:

• Broken bones
• Hospitalisation due to either an accident or sickness
• Permanent injuries
• Permanent disablement
• Death

A professional adviser will be able to help you find the most suitable policy for your needs. If you’d like to talk about accident protection for you and your family, we’ll be happy to help.

As well as moving home three times in the space of a year, Carly and Steve gave up takeaways, holidays and their gym memberships. When they finally had enough money for a deposit, they couldn’t apply for a mortgage fast enough. They were crushed when their application was rejected due to a poor credit score.

A good credit score is vital for homebuyers, as this is how lenders assess how much of a risk you pose. The UK has three main credit referencing agencies – Experian, Equifax and TransUnion. They use your personal banking information to assess how well you manage credit. This is summarised in a credit report and by a single number - your credit score. Lots of things can affect your credit score, including moving house frequently, which is seen as a red flag as it can be a sign you’re struggling to pay your rent. So, as well as avoiding frequent changes of address, what can you do to make sure you don’t end up in Carly and Steve’s position?

Check your credit report for errors

Even small mistakes, such as a mistyped address, can affect your credit score. If anything looks wrong, contact the credit referencing agency to correct it.

Register to vote at your current address

This proves where you live and can add 50 points to your credit score, according to Experian.

Build your credit history

Having little or no borrowing history may result in a lower credit score. You can build your credit history by opening a current account, setting up Direct Debits or getting a credit-builder credit card.

Keep up with your payments

By avoiding late or missed payments on existing credit accounts, you show lenders you’re a reliable borrower.

Limit applications for new credit

When you apply for credit, your credit report is searched. Too many searches in a short space of time can impact your credit score. Try to avoid applying for new credit – such as a mobile phone contract or a credit card - during the six months before a mortgage application.

Limit how much credit you use

If you have a limit of £1,000 - on a credit card for example - and you’re using £500, that’s 50% of the available credit. If possible, you should try to make sure you’re using less than 30% of all the credit available to you.

Keep old accounts open

It’s good to be able to demonstrate a long credit history and show you’ve successfully managed a number of different credit accounts. Having unused credit on old accounts also helps limit the proportion of available credit you’re using.

Check your financial links to other people

If you opened a joint account with an ex-partner or previous housemates, their poor money management could impact your credit score. Check you aren’t linked to anyone who may have a negative effect on your score and ask for outdated links to be removed.

Whether you’re a first-time buyer or a homeowner looking to move, we can help find the best mortgage for you.

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.

Of course, saving for a pension when you’re self-employed is not as straightforward as it is for an employed person, who might automatically benefit from a workplace scheme and employer contributions. We’ve outlined some key points below for you to consider:

Don’t rely on the State Pension

Whether you’re employed or self-employed you’re entitled to the full basic State Pension (currently £129.20 a week) if you’ve paid in 30 years of National Insurance Contributions.

If you’re self-employed you can only claim the additional State Pension if you’ve had periods of employment.

On its own then, State support is unlikely to enable you to continue your current standard of living into retirement. That’s why it’s imperative for the self-employed to find other ways to provide the additional income needed in retirement.

Start saving early

It’s stating the obvious, but the sooner you start saving into a pension the bigger your potential retirement fund. You’ll also have more time to benefit from the tax relief that’s available.

To highlight the importance of saving early, a 25-year-old male looking to retire at 68 would need to contribute £236.25 per month in order to achieve a retirement income of £17,500 a year. If the same man had waited until he was 45 before he started saving, he would need to contribute £495.83 to achieve the same level of income, an additional £259.58 per month.

Minimise the amount of tax you pay

One of the main benefits of paying into a pension is the tax relief the savings attract. For example, if you’re a basic rate taxpayer paying £100 into your pension each month, HMRC will effectively add an extra £20 in tax relief.

The maximum amount you can save each year that attracts tax relief (otherwise known as the annual allowance) is £40,000.

Importantly, if your income is low and you’re not able to save the full £40,000 in one tax year, you can carry forward any unused allowance, and use it against earnings in the next tax year. Please note:

• You must have been a member of a registered pension scheme during the years you want to carry forward
• Your tax relief is limited by your annual earnings in the year you want to carry forward
• You can only carry forward unused allowance from the three previous tax years

What type of pension is right?

The self-employed can choose from a range of different pension products, including stakeholder pensions, personal pensions and Self Invested Personal Pensions (SIPPs). Each has its advantages and disadvantages – we can advise on which is best for you.

Perhaps the most flexible pensions are stakeholder schemes. They allow you to save as little as £20 per month and the charges are relatively low, which is helpful if you have irregular income levels.

HM Revenue and Customs practice and the law relating to taxation are complex and subject to individual circumstances and changes, which cannot be foreseen.

The value of investments and any income from them can fall as well as rise and you may not get back the original amount invested.

Why is budgeting so important?

You might think that it’s not worth to spend that much time with counting all your income and expenses. But if you use apps or spreadsheets to make it visible how much you earn and spend on average every month, it will pay off.

In case of the unexpected or just having a big expense, it’s important to have some savings not to become indebted.

How to start budgeting?

First you will need to count how much money you bring home on average. Don’t forget to take your benefits into consideration as well so that you can put down the precise number.

After you became aware of how much you earn every month, it’s necessary to count your monthly average expenditure too. Don’t forget to look at at least three months of your expenses to be able to see some trends.

If you know your income and your expenses, you can compare them in order to see whether you spend more than you earn or not. If there is some money which remains every month then it’s easier for you to make a savings account. If you earn less than you spend, try to cut back on your expenses not to get into a debt spiral (spending and borrowing in turn).

In case of having debts and savings at the same time it may be a good idea to pay off the one with the other, because for loans the interest rates are higher so you earn less with the saving’s interests than you have to pay for the loan’s interests.

What kind of costs do you have to count with?

If you know how much money you spend every month, you can set up categories to see the amount of your needs and wants. First count the essential spending, for example the rent, utility bills and mortgage. These are your needs which you can’t leave out of your expenses. Although there are some tips to cut back on utility bills what you can also include in your budgeting.

In order to set budgeting goals you also need to know how much you spend on nice-to-have items like meals or holiday. You can save more if you tackle the biggest costs, for example eat outs. From a financial aspect it’s better to cook for yourself and your family than having meal in a restaurant. When cutting back on costs don’t forget to remain the things in your budget you really love within your means. It’s also important that you don’t concentrate on a typical month to work out the amount of your disposable income and set your financial goal according to this.

After you have set your financial goals, you can concentrate on the third main category of where your income gets into. It’s necessary to build some emergency savings in case of the unexpected. Experts recommend to have at least 3 to 6 months living expenses as a backup, but to have £1000 is already a good start.

How to set your budgeting goals?

When you set your budgeting goals it’s good to use the 50/30/20 rule where the biggest category is the essentials, the next one is the fun stuffs and the last one is the savings. So try to split your income according to the percentages each category gets.

Try to set realistic financial goals, so don’t forget to build in a buffer to be able to adapt to the rising prices as well. Make the plan together with your family so that it will be easier to stick to the plan. Don’t forget to review your budget from time to time. With this checking you’ll see whether you need to change your goals and where you could still cut back on your expenses.

You can also use piggybanking to automate spending. You can set spending categories, create a jar/piggy bank/account for each one and don’t exceed the amount of money you have there while paying for items within these categories.

If you’d like to discuss your budgeting goals, we’ll be happy to help.

• Not already in a pension
• Between the ages of 22 and the state pension age
• Earning more than £10,000 a year
• Working in the UK

Rachel was happy to be enrolled into her workplace pension when she joined the charity but, now the cost of living crisis is starting to bite, she’s considering opting out in order to maximise her take-home pay. So, would this be a wise move or a false economy?

What will Rachel get out of her workplace pension?

In 2019, the government increased the minimum contribution to workplace pensions to 8% - at least 3% from employers with employees making up the balance. It’s important for Rachel to remember that her contribution comes from her pre-tax earnings, so opting out of her workplace pension may not boost her take-home pay as much as she expects.

The government is also contributing to Rachel’s workplace pension in the form of tax relief. As a basic-rate taxpayer, Rachel only needs to pay in £80 to increase her pension savings to £100 because the taxman contributes £20.

So effectively, Rachel is contributing 4% of her qualifying earnings (any pre-tax employment income between £6,396 and £50,270) to her workplace pension. The government then adds 1% tax relief and the charity tops this up with a 3% contribution. This means, in effect, Rachel’s net contribution is being doubled. In other words, for every £100 Rachel contributes, £200 is landing in her pension pot.

But does Rachel really need another pension on top of her state pension?

The short answer to this is yes! Many people overestimate how much they’ll get from their state pension. Currently, a full state pension provides an annual income of just over £9,600. Rachel will definitely get a proportion of this, as she’s already made ten years’ worth of National Insurance contributions. However, to get the full amount, she’ll need to make 35 years’ worth of contributions. Even if she manages this, according to Which, a single person needs £19,000 a year to enjoy a comfortable retirement and closer to £31,000 a year to be able to afford luxuries like exotic holidays and a new car every five years.

Why should Rachel get advice?

With costs rising left, right and centre, it’s understandable that Rachel wants to make savings wherever she can. However, by opting out of her workplace pension, she would essentially be throwing away free money from her employer and the Government. If possible, it would make sense for her to continue paying into her workplace pension while looking to make savings elsewhere.

Probably the best thing Rachel can do is seek advice from a professional. They’ll be able to explore options that allow her to enjoy the best possible standard of living both now and in the future.

If you’d like to discuss pension planning or any aspect of your finances, we’re here to help.

The value of investments and any income from them can fall as well as rise and you may not get back the original amount invested.

HM Revenue and Customs practice and the law relating to taxation are complex and subject to individual circumstances and changes which cannot be foreseen.

However, on his way home from work on Christmas Eve, Jim was involved in a car accident and suffered life-changing injuries. The future suddenly looked very different. Jim was unable to work following the accident and Sylvia left her job to become his full-time carer. They could no longer afford to pay the mortgage and lost the house.

Hopefully, you’ll never find yourself in a situation similar to Sylvia and Jim. However, when you take out a mortgage - as well as insuring the building and contents - it may be worth thinking about getting protection insurance to provide financial security should you or your partner become critically ill or die.

What is protection insurance?

There are three main types of protection insurance:

Income protection insurance

This provides a regular income if you’re unable to work due to an injury or illness. You can get policies that replace a percentage (usually up to 70%) of your lost income until you return to work, reach retirement or die. Or, you can opt for a cheaper policy covering you for a limited period of time. Sylvia and Jim are not unusual in the fact they didn’t have income protection insurance. Research by the insurer Drewberry revealed 17.2% of people have never even heard of income protection insurance.

Life insurance

This provides either a single lump sum or a regular income to your loved ones when you die. This money can be used to pay off your mortgage or provide an income to cover ongoing household expenses.

Serious and critical illness insurance

This provides a single lump sum on the diagnosis of a range of serious, non-fatal conditions, including heart attack, stroke and cancer. It often comes as an optional extra to life insurance but can be bought separately.

So, do you really need protection insurance?

Figures from Aviva suggest that a lot of people do. In 2018, they paid out a total of £957m to over 26,000 customers in the UK. And that’s just one insurer.

But do these policies pay out when you need them?

In 2018, Aviva paid out on 98.9% of life insurance claims, 92.6% of critical illness claims and 87.3% of income protection claims. Meanwhile, figures from the Association of British Insurers and Group Risk Development show that, in 2017, the insurance industry paid out a record £5bn in protection claims. These figures suggest insurance companies do generally pay out.

There are also simple steps you can take to reduce the chances of a denied claim. According to Aviva, the most common reasons for refusing to pay out are:

• incorrectly completed forms
• failure to disclose all the facts up-front
• not meeting the policy criteria for a pay-out

Getting help from a professional will help ensure you find the most appropriate cover for your circumstances and avoid doing anything that might jeopardise a potential claim.

If you would like to find out more about the income protection, critical illness or life insurance cover, we’ll be happy to help.

Soon afterwards, their eldest grandchild passed his driving test. They decided they’d like to buy him a car, so they made a withdrawal. Being able to do this so easily cemented their trust in the investment company. Over the next year, they made several more deposits.

Paul and Mary then agreed they’d like to help one of their children with a deposit for a house. However, when they tried to withdraw the majority of their original investment, they couldn’t access their money or get through to the company by phone, email or any other means. It was at this point, they realised they’d been scammed.

On top of wiping out most of their life savings, the scam took a toll on the couple’s mental health. They both suffer from feelings of embarrassment and guilt, and Paul has developed severe depression.

Anyone can fall victim to a financial scam

Although Paul and Mary feel foolish, financial scams can be extremely sophisticated and trick the savviest of us. We’re used to hearing stories about elderly and vulnerable people being conned but recent research by Lloyds Bank found 18 to 24 years olds are most likely to fall victim to investment scams, making up approximately 25% of all cases. And, in fact, victims aged under 45 account for 70% of all reported investment scams.

Types of financial scam
Financial scams take many forms including high-return investment opportunities, like the one Paul and Mary fell for, pensions transfers and health insurance supplements. Criminals use phishing (emails) or smishing (texts) to impersonate trusted organisations and trick people into giving away their personal information or money.

Top tips to avoid being scammed

1) Follow the advice of UK Finance’s Take Five to Stop Fraud campaign:

• Stop: Take time to stop and think before parting with money or personal information

• Challenge: It’s ok to refuse or ignore requests that make you feel uncomfortable. Only criminals will try to rush or panic you

• Protect: Tell your bank immediately if you think you’ve fallen for a scam and report it to Action Fraud

2) Great deals don’t come looking for you. Scammers often advertise on social media and the internet. They may also send ‘deals’ by email, phone or direct message.

3) Make sure it’s genuine. As in Paul and Mary’s case, scammers can easily set up fake companies, profiles and websites. Don’t underestimate the lengths a fraudster will go to in order to convince you they’re genuine. Before parting with any money, it’s a good idea to seek professional advice. You can also use the FCA website to check the details of financial services companies.

4) Protect your payments. Consider your payment method. It’s very hard to get money back if you pay by bank transfer. Paying by card offers the greatest protection.

If you’d like help with any aspect of your finances, we’re here to help.

Why is budgeting so important?

You might think that it’s not worth to spend that much time with counting all your income and expenses. But if you use apps or spreadsheets to make it visible how much you earn and spend on average every month, it will pay off.

In case of the unexpected or just having a big expense, it’s important to have some savings not to become indebted.

How to start budgeting?

First you will need to count how much money you bring home on average. Don’t forget to take your benefits into consideration as well so that you can put down the precise number.

After you became aware of how much you earn every month, it’s necessary to count your monthly average expenditure too. Don’t forget to look at at least three months of your expenses to be able to see some trends.

If you know your income and your expenses, you can compare them in order to see whether you spend more than you earn or not. If there is some money which remains every month then it’s easier for you to make a savings account. If you earn less than you spend, try to cut back on your expenses not to get into a debt spiral (spending and borrowing in turn).

In case of having debts and savings at the same time it may be a good idea to pay off the one with the other, because for loans the interest rates are higher so you earn less with the saving’s interests than you have to pay for the loan’s interests.

What kind of costs do you have to count with?

If you know how much money you spend every month, you can set up categories to see the amount of your needs and wants. First count the essential spending, for example the rent, utility bills and mortgage. These are your needs which you can’t leave out of your expenses. Although there are some tips to cut back on utility bills what you can also include in your budgeting.

In order to set budgeting goals you also need to know how much you spend on nice-to-have items like meals or holiday. You can save more if you tackle the biggest costs, for example eat outs. From a financial aspect it’s better to cook for yourself and your family than having meal in a restaurant. When cutting back on costs don’t forget to remain the things in your budget you really love within your means. It’s also important that you don’t concentrate on a typical month to work out the amount of your disposable income and set your financial goal according to this.

After you have set your financial goals, you can concentrate on the third main category of where your income gets into. It’s necessary to build some emergency savings in case of the unexpected. Experts recommend to have at least 3 to 6 months living expenses as a backup, but to have £1000 is already a good start.

How to set your budgeting goals?

When you set your budgeting goals it’s good to use the 50/30/20 rule where the biggest category is the essentials, the next one is the fun stuffs and the last one is the savings. So try to split your income according to the percentages each category gets.

Try to set realistic financial goals, so don’t forget to build in a buffer to be able to adapt to the rising prices as well. Make the plan together with your family so that it will be easier to stick to the plan. Don’t forget to review your budget from time to time. With this checking you’ll see whether you need to change your goals and where you could still cut back on your expenses.

You can also use piggybanking to automate spending. You can set spending categories, create a jar/piggy bank/account for each one and don’t exceed the amount of money you have there while paying for items within these categories.

If you’d like to discuss your budgeting goals, we’ll be happy to help.

Is the buy-to-let market a good investment?

Some of Pete’s friends have warned him that the buy-to-let market is still reeling from the effects of the covid pandemic. They claim, with more people working from home, there has been a population shift away from major towns and cities - reducing the demand for rental properties.

However, figures from Zoopla suggest that the buy-to-let market is enjoying something of a resurgence since covid restrictions eased. Demand for rental properties was reportedly up 76% in January 2022 compared to the same month in the previous four years. In addition to this, the stock of rental properties was down 39% on the five-year average, with rents rising sharply. All of this suggests that a buy-to-let property may well be a wise investment for Pete.

Is Pete likely to be accepted for a buy-to-let mortgage?

To be accepted for a buy-to-let mortgage, Pete needs to:

• Own his own home (outright or with a mortgage)
• Have a good credit report
• Earn over £25,000 a year
• Be young enough to pay off the buy-to-let mortgage before he reaches the lender’s upper age limit (generally between 70 and 75 years old)

Pete meets all of these requirements so, in theory, there’s nothing stopping him getting a buy-to-let mortgage.

So what else does Pete need to know about buy-to-let mortgages?

Buy-to-let mortgages are very similar to standard mortgages but there are some key differences Pete needs to be aware of:

• The minimum deposit is typically 25% of the property’s value
• Fees and interest rates on a buy-to-let mortgage tend to be higher
• Most buy-to-let mortgages are interest only, although there are repayment ones available. With an interest-only mortgage, you don’t repay the capital until the end of the mortgage term.

How much will Pete be able to borrow?

The amount Pete will be able to borrow is linked to the rental income he expects to achieve. Lenders usually ask that the rent you receive each month is 25-30% higher than your mortgage payment.

Other considerations for buy-to-let landlords

Pete shouldn’t assume that he’ll always have tenants. It’s important that he’s able to make his mortgage payments during periods the property is unoccupied or rent goes unpaid. He will also need savings for unexpected repair bills such as a broken boiler.

As well as these considerations, Pete needs to make sure he’s thought about how he’ll repay the mortgage. He shouldn’t assume he’ll be able to do this in full by simply selling the property. If house prices go down, there may be a shortfall for him to make up.

Buy-to-let and tax

Pete also needs to consider the tax he’ll have to pay as a buy-to-let landlord. As well as income tax on rent, Pete will be looking at paying capital gains tax on the sale of the property. It’s important that he factors this into his calculations when deciding if a buy-to-let investment is right for him.

The importance of professional advice

If Pete’s still keen to go ahead with a buy-to-let investment, the wisest thing he can do is speak to a professional mortgage adviser. They’ll be able to assess his particular circumstances and explain the options that are open to him.

If you’d like advice on buy-to-let mortgages, we’re here to help.

YOUR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.

Some Buy-to-Let Mortgages are not regulated by the Financial Conduct Authority.

Everything was going great until, after a busy night shift, Megan came home and decided to run a bath. While the tub was filling up, she went downstairs to wait on the sofa where she promptly fell asleep. Megan was woken to the sound of water bringing down part of the living room ceiling. When Sue rang her home insurance provider to make a claim, she was informed they weren’t covered as they didn’t have landlord insurance.

What is landlord insurance?

Landlord insurance is designed to protect you, your property and your tenant(s). Basically, it covers all the same things as standard home insurance, plus various tenant-related issues.

Landlord insurance usually provides as standard:

• Buildings insurance
• Contents insurance - your belongings not those of the tenant(s)
• Property owner’s liability cover – this covers any damage, injury or illness caused by the property that you may be deemed liable for e.g. a tenant tripping down a poorly maintained set of stairs and hurting themselves
• Loss of rent cover – this protects you in the event that your tenants don’t pay their rent or they have to move out after an insured event such as a fire or flood

Optional extras may include:

• Accidental damage cover – this covers accidental damage to the building and its fixtures and fittings e.g. if a tenant accidentally smashes a window
• Emergency assistance cover – this provides help for your tenant(s) in the event of an emergency e.g. if there’s a burst pipe
• Legal cover – this covers your legal expenses e.g. if there’s a contract dispute

Who needs landlord insurance?

You’re not breaking the law if you don’t take out landlord insurance but, if you’re renting your property and something goes wrong, you’re unlikely to be covered by standard home insurance. Also, if you have a mortgage, you’ll probably find your lender will insist on you having landlord insurance before you take on any tenants.

Even if you’re renting to family members, as Sue and Jim discovered to their cost, standard home insurance may not be adequate. The same applies if you’re renting out part of your property, even if you’re still living there too.

What your insurer will want to know

You’ll be asked what kind of tenant(s) you have. Your answer to this question will impact how much you pay for your insurance. You tend to pay more if you rent to students or those receiving housing benefit. Not every insurer will cover every type of tenant. If you fail to disclose who you’re renting to, you may invalidate your policy.

You’ll also need to confirm that the property is safe. This will mean fitting smoke and carbon monoxide alarms and making sure all gas and electrical equipment meets safety standards. Failing to do this may invalidate your policy. Your tenants could then take you to court and you wouldn’t be able to use the legal cover from your landlord insurance to pay your costs.

Ask an expert

If you’re a new or prospective landlord and you’d like advice on insurance, or any aspect of managing your finances, we’d be delighted to help.

What is the lifetime pension allowance?
The lifetime pension allowance sets a limit on how much you can save in your pension before you start paying tax on anything over the limit. For a few years before the 2021 announcement, the limit had been tied to inflation, meaning that it rose in line with the cost of living.

With the global pandemic and surge in inflation over the past couple of years, the decision was made to freeze the limit – at £1.073 million – until 2026. It’s hoped that the freeze will generate additional revenue as savers slow down or stop contributing to their pensions and don’t claim tax relief from the government.

How are my pensions affected by the lifetime allowance?
The lifetime allowance applies to all types of non-state pensions in your name – so that includes any defined benefit (final salary or career average) schemes you have along with any defined contribution pensions.

The limit of £1.073 million might seem like a huge amount. But if you’re a medium-to-high earner, have saved into pensions from an early age and are approaching retirement, you could one of the millions who are affected (and caught unawares) by reaching the threshold.

As pensions are so complicated, seeking advice is important and we can help clarify the status of your pensions, discuss your retirement plans and how to proceed.

What happens if you exceed the lifetime allowance?
Many of us have more than one pension, usually accumulated through different jobs over the years. Keeping track of them and how much they contain can be tricky and time consuming, as you’ll need to look at their expected value when the time comes. Your adviser is best placed to gather this information and help with your next steps.

If your total exceeds the lifetime allowance, the excess amount will be taxed as follows:

• 55% if you receive the amount as a lump sum from your provider
• 25% if your payments are gradual or are cash withdrawals

These are large penalties on your savings, so it’s worth acting now to find a way to protect your hard-earned pension.

Seek help to protect your pension
Protecting your pension and making sure you’re able to live comfortably in retirement and keep up with the cost of living is something we can help with. So, if it looks like your pensions could be affected by reaching and exceeding the lifetime allowance, there are some options you can discuss with your financial adviser:

Divert savings into an ISA You can earn tax-free and make withdrawals in most cases. Our advisers can help you calculate how much you will need to live comfortably in retirement and help plan your investment strategy to achieve that goal.

Combine pensions with your spouse Consolidating your pensions can be an effective way to grow your retirement savings in one place. It can also save time on the administration involved, cut down on fees and create a more streamlined investment strategy.

Claim pension credit Many pensioners are eligible for pension credit but fail to make a claim. It’s available if you are over the state pension age and on a low income, are a carer, severely disabled or responsible for a child. It could boost your retirement income up to £182.60 a week if you’re single, or £278.70 for couples. It’s separate to the state pension, and we can help calculate whether you and your partner are eligible.

Pension allowance protection
Your adviser will be able to assess whether your pension could benefit from protections that help avoid the tax charge by offering a higher lifetime allowance. But there are several conditions and criteria you’ll need to meet. Our experts can advise whether it would be applicable to your situation.

Your adviser is ready to help you navigate the complex area of pension and ensure you move forward in the strongest position for you and your loved ones.

HM Revenue and Customs practice and the law relating to taxation are complex and subject to individual circumstances and changes which cannot be foreseen.

The value of investments and any income from them can fall as well as rise and you may not get back the original amount invested.

On 22 September 2022, the Bank of England raised interest rates from 1.75% to 2.25% - the seventh hike since December 2021 - in a bid to combat soaring inflation. And, the Bank’s Governor, Andrew Bailey, has warned people to expect further rises in the coming months.

It is now widely anticipated that rates will rise to over 5% by Spring next year. This has had a huge impact on the mortgage market – with some lenders pulling deals altogether and others replacing their offerings with more expensive alternatives.

What does a rise in interest rates mean for your mortgage?
If you don't have a fixed-rate mortgage, you're likely to see your borrowing costs rise, although how they are affected will depend on the type of product you have. Your adviser can help you assess your mortgage deal and figure out ways to make savings.

• Only borrowers with a mortgage that moves up or down with the base rate will be immediately affected by the interest rate change.
• This includes tracker mortgages and standard variable rate mortgages (which you revert to when a mortgage deal ends).

Fixed-rate mortgages
If you're on a fixed-rate mortgage deal, you won't see any change in your monthly payments. This is because the interest rate you pay stays the same for the length of your mortgage deal.

But with further interest rate rises expected, if you're close to the end of your current term, it may make sense to look for a new deal sooner rather than later. You can generally lock in a new mortgage deal three to six months before an existing deal comes to an end.

If you've got more than six months to the end of your current deal, you'll either need to wait for a while or pay the early exit fee (A fee you may have to pay your current lender if you end your mortgage deal prior to the ‘official end date’) We can advise you on the best way forward.

Standard variable rate mortgages
You end up on a standard variable rate (SVR) when a tracker or fixed-rate mortgage deal ends, and you don’t remortgage.

If you’re currently on your lender’s SVR, you may well see your monthly payments increase following the rise in the base rate. You may not be hit with the full increase though, as these rates go up at a lender’s discretion.

Tracker mortgages
Tracker mortgages follow the Bank of England’s interest rate. So, payments on your tracker mortgage will rise as a direct result of any increase in the base rate. Exactly when this happens will depend on your lender.

As a rule, tracker mortgages do not exactly match the base rate but are set at a level just above it. For example, if your lender’s rate is the base rate +1%, the interest you’ll pay in total on your loan will be 3.25% (based on the base rate of 2.25% - 5 October 2022).

Whatever type of mortgage you have, we can advise you about how the interest rate rise might affect you and address any questions or concerns you have.

How to save on your mortgage costs
The best thing you can do is to speak to your financial adviser. If you’re on a tracker mortgage, they'll be able to advise whether changing to a fixed-rate deal to protect yourself from any further rises is a good idea. They'll also let you know about the fees involved when making changes to your mortgage. If you're on an SVR, the interest rate you will switch to when your initial mortgage deal ends, you can switch to a new mortgage deal at any time. With interest rates rising, your adviser can help you look at available fixed-rate deals.

If you're already on a fixed-rate deal, your mortgage payments won’t increase until your current term ends. With many lenders letting you lock into a new deal six months before your existing one finishes, it’s a good idea to plan ahead.

Whether you’re looking to remortgage or you're a first-time buyer, we can help you find the right deal for your circumstances.

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT

Actively talking about money can be positive for both you and your loved ones, and research suggests it’s something younger generations are more likely to do. According to Royal London, 76% of 18 to 24-year-olds spoke to their parents about money matters when they were growing up. In contrast, this falls to 43% for those over 65.

If money wasn’t openly discussed during your childhood, it can be hard to change your mindset around the topic. Yet, when you’re planning a future with your partner, your finances will play a critical role. So, if you currently keep your financial planning separate, working together could be useful.

That doesn’t mean you have to share everything or combine finances completely if it’s not right for you. Instead, you could set out how you want to work together with a financial planner.

Bearing all this in mind, here are five reasons you should create a financial plan with your partner.

Understand what you both want to achieve
While you may have talked about your goals in your relationship, setting out a financial plan provides a good opportunity to talk about your priorities and understand if you’re on the same page as your partner. This may include when you’d like to retire, and what your lifestyle will look like when you give up work. Or it could be how you’ll support your wider family or bucket list destinations you want to visit.

Making these goals a clear part of your financial plan means you’re far more likely to achieve them. Without a plan, it can be all too easy for aspirations to fall to the wayside.

Discuss your attitudes to financial decisions
When dealing with finances, it’s important that you’re comfortable with the decisions you make. This applies to both you and your partner if you’re working towards shared goals.

For example, how does your partner feel about taking investment risk? Or what is their attitude to using credit? Talking about these issues can help you create a financial plan that you’re both comfortable with.

It could improve your wellbeing
Money is often linked to stress, and it can affect your overall wellbeing too. Research shows that financial stress can increase later in life. This is understandable as, on top of considering things like mortgage repayments and day-to-day costs, you may also be thinking about retirement or supporting other family members. According to Aviva research, more than 40% of 55 to 64-year-olds say they are “struggling financially”.

A long-term financial plan that incorporates you and your partner’s circumstances and goals can deliver peace of mind.

Have confidence in the future
One of the reasons that the topic of money can be stressful is that you may have questions about the future or wonder what will happen in some circumstances. For example, you might be concerned about the consequences of you or your partner losing your income, or how one of you would cope financially if the other passed away.

Financial planning helps you set out a blueprint, but it also considers how you’d cope if the unexpected happens. By doing this, you can take steps to provide security in these circumstances. By planning together, you can have confidence in both your and your partner’s long-term financial security.

It could help make your money go further
Planning as a couple can make financial sense. Working together could mean you’re able to make the most of tax breaks or allowances.

Which ones are right for you will depend on your circumstances and goals but may include using the Marriage Allowance to reduce Income Tax liability, making use of both of your annual ISA allowances, or contributing to your partner’s pension.

Contact us to create a financial plan for you and your partner
We are here to help you navigate the challenges of creating a tax efficient financial plan and understanding your goals. If you’d like to arrange a meeting with us, please get in touch.

If you have any questions about tax efficient financial planning, please contact us.

The value of your investment can go down as well as up and you may not get back the full amount you invested.

HM Revenue and Customs practice and the law relating to taxation are complex and subject to individual circumstances and changes which cannot be foreseen

Are you making the most of your ISAs?

January

• 31st – Self-Assessment Tax Deadline – You need to pay and submit your self-assessment tax return for the tax year ending 5th April 2022.

March

• 15th - Spring Budget - An update on the overall health of the economy and progress made since the Autumn Budget.
• 31st – End of the Help to Buy Scheme – Buyers who applied for the loan have until this date to complete the purchase of the property.

April

• 1st – Energy Price Guarantee increases – The guarantee will rise meaning a typical household will pay around £3,000 for their annual energy bill, until the April 2024.
• 5th - End of the 2022/23 tax year – Ensure you have used all your allowances.
• 6th - Start of the 2023/24 tax year
• 6th - New tax changes - The top 45% tax rate will now apply to anyone earning over £125,000 instead of £150,000 (excluding Scotland). Tax-free allowance for dividend income is reduced to £1,000.

July

• 31st - Deadline for second payment on account for 2022/23 for those that pay self-assessed income tax.

October

• 5th – Deadline to register for self-assessment – If you’re new to self-assessment this is the deadline to register with HMRC.
• 31st – Paper income self-assessment deadline – Your 2022/2023 returns to be with HMRC.

November

• Potential Autumn Budget

Your financial plan could be impacted by these key dates. Talk to us for advice on unused allowances, additional rate tax and dividends.

HM Revenue and Customs practice and the law relating to taxation are complex and subject to individual circumstances and changes which cannot be foreseen.

For specialist tax advice, please refer to an accountant or tax specialist.

As we say goodbye to 2022 and welcome 2023, now’s the perfect time to make sure you’re fully prepared for the financial year ahead. To make it easy, we’ve summarised the key financial dates to put in your diaries:

January

• 31st – Self-Assessment Tax Deadline – You need to pay and submit your self-assessment tax return for the tax year ending 5th April 2022.

March

• 15th - Spring Budget - An update on the overall health of the economy and progress made since the Autumn Budget.
• 31st – End of the Help to Buy Scheme – Buyers who applied for the loan have until this date to complete the purchase of the property.

April

• 1st – Energy Price Guarantee increases – The guarantee will rise meaning a typical household will pay around £3,000 for their annual energy bill, until the April 2024.
• 5th - End of the 2022/23 tax year – Ensure you have used all your allowances.
• 6th - Start of the 2023/24 tax year
• 6th - New tax changes - The top 45% tax rate will now apply to anyone earning over £125,000 instead of £150,000 (excluding Scotland). Tax-free allowance for dividend income is reduced to £1,000.

July

• 31st - Deadline for second payment on account for 2022/23 for those that pay self-assessed income tax.

October

• 5th – Deadline to register for self-assessment – If you’re new to self-assessment this is the deadline to register with HMRC.
• 31st – Paper income self-assessment deadline – Your 2022/2023 returns to be with HMRC.

November

• Potential Autumn Budget

Your financial plan could be impacted by these key dates. Talk to us for advice on unused allowances, additional rate tax and dividends.

HM Revenue and Customs practice and the law relating to taxation are complex and subject to individual circumstances and changes which cannot be foreseen.

For specialist tax advice, please refer to an accountant or tax specialist.

Overpaying on your mortgage now could save you more on interest down the line and help reduce your mortgage payments. It could also make sense to overpay on your mortgage rather than keep your money in a savings account, because you’ll earn more in interest savings on your mortgage than you could earn in a typical savings account.

An overpayment is any additional payment you make over your usual monthly mortgage payment. Overpayments can either be a one-off lump sum or a regular overpayment made throughout the year. Overpaying on your mortgage means you can potentially clear your mortgage balance quicker.

Lenders will offer you better rates if you have a lower loan to value. The more you can pay to reduce your mortgage, the potentially lower interest rates you’ll have when you come to remortgage to a new deal.

Overpaying on your mortgage might not be right for everyone. Using savings to overpay on your mortgage could leave you with less cash to fall back on in an emergency.

Not all lenders have the same rules for overpaying and there may be a penalty fee called an Early Repayment Charge if you overpay too much.

You should only make overpayments if you’re sure you can afford them. It’s a good idea to make overpayments if you already have an emergency fund, and you don’t have any other, more pressing debts that need to be repaid.

We can help guide you through all your mortgage options including advice on making overpayments.

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE

Because of the way many lenders decide what rates to offer, we’re currently seeing tracker products priced a lot more competitively than fixed rate products.

Unlike a fixed rate, the monthly payment of a tracker mortgage fluctuates and the rate charged on the mortgage ‘tracks’ the Bank Rate usually for a set period. Whilst you may have to pay a penalty to leave your lender, especially during the tracker period, there are tracker products that have no early repayment charge, so you are free to leave without penalty.

If you’re coming up to the end of your fixed-rate and you’re faced with a higher interest rate than you were expecting, switching to a tracker at a lower rate may be tempting. Although you may find there are cheaper tracker products on offer than current fixed rates, you must be confident that you’ll be able to afford your repayments if the rate goes up.

We can help guide you through all your mortgage options including advice on whether a fixed rate or tracker product is more suitable.

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE

Many lenders allow us to secure a new fixed rate for you months in advance of your current rate ending. It’s important to start early and we can help you navigate everything you need to, to ensure your needs are met.

We can help guide you through all your mortgage options so please get in touch soon.

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE

Taking out an offset mortgage enables you to use your savings to reduce your mortgage balance and the interest you pay on it.

Offset mortgages can help you save money over the course of your deal as there’s less interest to pay over the longer term. Interest rates on offset products can be higher than on an equivalent standard repayment deal, but thanks to the savings placed aside, these are charged on a smaller loan amount. This means you will pay less mortgage interest while the savings are offset.

An offset mortgage can help to lower your monthly repayments or lead to earlier repayment of your balance. There is also no tax to pay on the benefit received from an offset mortgage.

We can help guide you through all your mortgage options including whether an offset mortgage is right for you.

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE

JISA and CTFs both benefit

JISAs replaced Child Trust Funds (CTF) in 2011, but those who still hold CTF will continue to benefit from the increased allowance. Both JISA and CTF are a tax efficient way to build up savings for a child. It is not possible to have both a JISA and a CTF.

Savings for children

A junior ISA can be opened for any child under 18 living in the UK and the money can be held in cash and/or invested in stocks and shares. Once the person who has parental responsibility for a child has opened the account, anyone can contribute to it. The child can manage the account from age 16 and at age 18 they can withdraw the money if they want, when the account otherwise becomes a normal cash or stocks and shares Individual Savings Account (ISA). Alternatively, they can keep saving into it as a standard ISA.

The tax benefits for JISAs and CTFs are the same as for an adult ISA. So, there is no Capital Gains Tax and no tax on income.

Investing for their future

Following the Budget, it was reported: ‘By saving towards their future, families can give children a significant financial asset when they reach adulthood – helping them into further education, training, or work.

Junior ISAs and Child Trust Funds are tax-advantaged accounts for children, designed to encourage a long-term savings habit.’

Two principles which apply to many aspects of financial planning are particularly relevant when planning for your child’s financial future:

• The longer the timescale, the more scope there is for your investments to grow
• Taking expert advice can help you avoid potential pitfalls

The potential of a JISA

It is estimated that if £9,000 was invested every year from birth and assuming a net 2% return, which is obviously by no means guaranteed, the JISA would be worth around £194,000 at age 18. Saving such a large amount is obviously out of the question for most people, but whatever amount you can afford to save for your child’s future, a JISA can be a great choice.

HM Revenue and Customs practice and the law relating to taxation are complex and subject to individual circumstances and changes which cannot be foreseen.

An ISA is a medium to long term investment, which aims to increase the value of the money you invest for growth or income or both. The value of your investments and any income from them can fall as well as rise. You may not get back the amount you invested.

Tax concessions are not guaranteed and may change in the future. Tax free means the investor pays no tax.

Approved by The Openwork Partnership on 25/01/2023

Aware the incident could have been much worse, the couple were still left with an enormous mess to sort out. High winds had caused the inside of the chimney to collapse. However, Alex and Megan’s home insurance provider refused to pay for the structural damage because, according to their terms and conditions, the wind hadn’t been strong enough to constitute a storm. They also refused to replace the living room carpet because the couple’s contents insurance didn’t include accidental damage cover.

So, what can you do to make sure your home insurance provides you with the protection you’d expect when the unexpected happens?

Let’s start at the beginning - what exactly is home insurance?

Home insurance financially protects your home against damage or theft but is typically split into two parts – buildings and contents.

Buildings insurance – this covers the building itself, including walls, floors, doors, windows and the roof. It also covers permanent fixtures such as baths, toilets, fitted kitchens and even wallpaper.

Contents insurance – This typically covers anything that can be taken with you if you move e.g. kitchen appliances, furniture and valuables.

Not all home insurance is equal

As Alex and Megan discovered to their cost, not all home insurance is equal. Although tempting to simply go with the cheapest option, it’s always best to check the details of any policy you’re considering seeing exactly what’s included. For example, some buildings insurance covers garages, greenhouses and garden sheds but some policies don’t.

It's also a good idea to check for exclusions. You may find some insurers won’t pay out for anything considered to be the result of general wear and tear or damage that happens over time, such as damp or rot.

Meanwhile, contents insurance generally has a single-item limit, meaning high-value possessions may need to be named separately. You may also have to pay extra to cover belongings when they are taken outside your home.

Add Ons

There are also certain add ons that are worth thinking about to provide a way to get cover without paying for a more expensive policy with features you may not need. These include:

• Accidental damage cover – This provides cover for accidents that occur around your home.
• Home emergency cover – This protects your home against emergency call outs or repairs like a burst water pipe.
• Personal possessions – This covers items that are used away from home such as handbags and mobile phones.
• Legal expenses – This covers the cost of legal proceedings if you need to take action or defend a claim.

Do you really need home insurance?

Homeowners – although buildings insurance isn’t a legal requirement, most mortgage lenders insist on it. No one is going to force you to buy contents insurance but it can provide valuable peace of mind and combining it with your buildings insurance may save you money.

Renters – you don’t need to worry about buildings insurance – this is your landlord’s responsibility. However, contents insurance may be a sensible idea.

Approved by The Openwork Partnership on 25/01/2023.

While the Covid pandemic began the inflationary increase, this was further exacerbated by the war in Ukraine pushing up energy and food prices even further.

Following such an extended period of price rises, you may be concerned about your household finances and long-term plans.

Rising inflation affects everybody differently depending on their circumstances. If you are approaching retirement, or have already retired, here are a few points to help you understand what the cost of living crisis means for you and some practical tips to help weather the storm.

What’s happening to interest rates and how might your pension be affected?
The Bank of England (BoE) is tasked with keeping inflation at the government-set target of 2%. Whenever it falls more than one percentage point above or below that target, the BoE must explain how they will address the difference.

In December 2022, they increased the base rate to 3.5%, which, in turn, will push up interest rates on the high street.

Higher interest rates will affect your pension differently depending on how it is invested:

• If your pension is invested in the stock market, its value could drop since the stock market tends to go down when interest rates rise
• If your pension, or some of it, is invested in bonds, its value could go up, since bonds can increase in value when interest rates rise
• If you hold savings in cash, you are likely to get increased returns as high street banks pass on some of the increases in interest rates.

While current headlines are worrying, it’s best to tune out the noise and focus on your personal circumstances.

What is your personal inflation rate?
The UK inflation rate is measured by the Office for National Statistics (ONS), who monitor the fluctuating price of goods in an average shopping basket.

So, how you experience inflation depends on what you spend your money on.

For example, the ONS assumes that an average household allocates 9.8% of their monthly budget on a car or other vehicle. If you don’t own a vehicle, your personal inflation rate might be lower than average.

Understanding your personal inflation rate, by using an online calculator, allows you to make informed choices about how you allocate your monthly income and to locate possible savings.

In spite of inflation, here are three ways you can make your retirement income more sustainable.

Annuity rates have risen recently
If you’ve saved into a defined contribution (DC) pension scheme, you have a few different options for drawing an income. One is to buy an annuity that will guarantee you a certain level of income, usually for the rest of your life.

With yields on government bonds increasing, annuity rates have risen through 2022 and are currently enjoying a 14-year high. This means you can get a much higher income for the same level of initial investment than you might have before this year.

If you are approaching retirement or already in retirement and looking for ways to generate an income from your accumulated savings, annuities could be worth considering.

Maximising other savings accounts
If you’re about to retire, consider whether you have other savings that could provide an income before you start drawing from your pension. This would allow your pension to remain invested for longer, potentially generating bigger returns that, in turn, could provide a better income in the later years of retirement.

This could also help to reduce the Inheritance Tax bill after you die, since pensions usually fall outside of your estate.

Using cashflow modelling for greater understanding
We can help you forecast what your savings will look like throughout your retirement using cashflow modelling. When you know whether you’re likely to encounter a shortfall, you can create a strategy that will help protect you.

Ensure you also consult us on how best to invest your pension savings. Some pension providers automatically reduce the risk profile on your investments as you approach retirement. This is called “lifestyling” and isn’t suitable for everybody as it could harm your pension performance.

Get In Touch
If you’re worried about the rising cost of living and would like to discuss ways to protect your finances from the effects of inflation, we’re here to help. Please get in touch to arrange a time to chat.

A pension is a long-term investment. The fund value may fluctuate and can go down, which would have an impact on the level of pension benefits available. Your pension income could also be affected by the interest rates at the time you take your benefits.
The value of investments and any income from them can fall as well as rise and you may not get back the original amount invested.
Past performance is not a guide to future performance and should not be relied upon.
HM Revenue and Customs practice and the law relating to taxation are complex and subject to individual circumstances and changes which cannot be foreseen.

This is especially true when it comes to ensuring your personal finances are protected from the rainiest of days. However, with the rising cost of living likely putting pressure on your spending, you may be considering cancelling your cover, even when this could leave you more vulnerable than before. Read on to discover some of the reasons you should consider prioritising your financial protection over other cost of living worries.

Rising costs should highlight the necessity of financial protection
A recent survey by Which? has revealed that 65% of households have resorted to cutting back on essentials, selling items, or dipping into savings to pay their rapidly rising bills.

Financial protection products such as life insurance, income protection, and critical illness cover are sometimes the first things that people decide to cancel when things are tight.

However, without financial protection, one unexpected event or serious illness could plunge you into having to deal with a crisis with no financial support in place.

Life insurance means your family will not face financial hardship
Keeping your life insurance policy can ensure your family benefit from financial support if the worst happens.

Without protection in place, your family could perhaps no longer afford their regular outgoings, leaving them in a difficult financial position at what will already be a stressful time.

Cancelling your policy could jeopardise the financial security of your loved ones.

If you’re the main breadwinner, without your contribution to the household, your family may struggle to meet their regular financial commitments.

Income protection could support you while you’re unable to work
Injury, illness, or an accident could prevent you from working and earning your living at any time, making it hard to meet everyday expenses.

Even if you receive Statutory Sick Pay (SSP), paid at £99.35 a week in 2022/23, it may not be enough to cover your usual expenses and could force you (and your family) to adapt your lifestyle while you recover. Moreover, if you’re self-employed, you aren’t eligible for SSP.

Income protection could save you from such stress. If illness or injury prevent you from working, you can expect to receive up to around 60% of your wages.

Just as important as a payout, an income protection plan could give you access to rehabilitation services that grant you the ability to work again. As an example, 78% of Aviva customers who had rehabilitation support returned to work.

You could receive cover during a critical illness
If you cancel your critical illness cover to save money, you could find yourself out of pocket if you’re diagnosed with a serious condition. You may have to take an extended period off work on a significantly reduced income.

Critical illness provides a lump sum if you are diagnosed with a specified illness such as the following: Heart attack / Stroke / Cancer / Multiple sclerosis
Conditions may vary between providers.

While it’s unpleasant to think about, you should consider your own circumstances and whether you might be vulnerable if you cancel.

Having protection to offset unexpected healthcare expenses could be essential to preserving your financial wellbeing.

You may not feel you need insurance in all the areas discussed here. For example, some employee benefit packages include life insurance, so it’s worth checking to see if this is something you already have through your work.

The type and level of protection that is most suited to you will depend on your circumstances. We can help you decide what would provide you and your family with the most benefit and help you understand which policy is right for you, too.

Potential consequences
If you cancel your protection now with the intention of taking out cover again when your finances permit, you may find the premiums are significantly higher – especially if your health has deteriorated since you took out your original protection. You may also find there are exclusions based on pre-existing conditions.

The short-term savings often may not be worth the potential long-term vulnerability you cause yourself.

Your pension could be your “secret weapon” of protection
According to Pensions Age, 86% of savers are not on track to achieve their retirement expectations.

This serves as a caution that foregoing pension contributions could leave you short when it comes to your retirement funds.

So, pausing or cancelling your contributions now could have a negative effect on the size of your pension pot when you come to retire. This may leave you having to compromise on your later-life plans.

Discussing your pension with us could help to prevent overspending or under budgeting that may affect the funds you’d like use for your retirement.

Get In Touch
We can help to assess your financial wellbeing and assist in finding the right protection for you. This can help to safeguard your finances when confronted with unexpected circumstances. Please get in touch to discuss your needs.

Life insurance plans typically have no cash in value at any time and cover will cease at the end of the term.
If premiums stop, then cover will lapse.
A pension is a long-term investment not normally accessible until 55 (57 from April 2028).
The tax implications of pension withdrawals will be based on your individual circumstances.
HM Revenue and Customs practice and the law relating to taxation are complex and subject to individual circumstances and changes which cannot be foreseen.
Tax concessions are not guaranteed and may change in the future.
Tax free means the investor pays no tax.

Personal allowance

The standard personal allowance is £12,570 – the amount of income you can earn without having to pay tax on it.

Marriage allowance

If you’re married, you might be able to take advantage of the marriage tax allowance. It allows one half of a couple who earns less than the income tax threshold to transfer up to £1,260 to their higher-earning spouse – who must be a basic rate taxpayer.

Pensions

Your annual pension allowance is £40,000, although it can be lower for higher earners and where pension savings have been flexibly accessed. Any contributions you (or your employer) make receive tax relief (based on your income tax band) of 20% or more – and the money in your pension pot will grow tax free. Setting up a junior pension for your children or grandchildren could also be a tax efficient option. The fund will transfer to them when they turn 18 but they won’t be able to access the money until they’re much older. The allowance for a junior pension is £3,600 for the current tax year.

Personal savings

You’re entitled to receive some interest on your savings tax-free every year, depending on your income tax band. For non tax-payers or basic rate taxpayers, you’re allowed up to £1,000 each year; for higher rate taxpayers you get £500. If you have savings with a spouse or partner, you can each use your allowances against your joint savings.

ISAs

An ISA allows you to save or invest up to £20,000 tax free annually, whether it’s in a cash ISA or stocks and shares ISA – and also comes with the benefit of being exempt from dividend tax and capital gains tax on all growth. The lifetime ISA (LISA) can be used by first time buyers to fund a deposit for a property or taken tax-free at the age of 60. As well as paying interest, LISAs benefit from a 25% bonus from the government. The maximum you can put in each year is £4,000, which comes out of your £20,000 ISA allowance. The LISA can be opened by anyone aged 18–39, but you can keep saving into it until you are 50. You can also invest up to £9,000 in a Junior ISA (JISA) and save for your child either in a cash JISA, a stocks and shares JISA or a combination of the two.

Dividends

You are allowed to receive up to £2,000 a year in dividends, tax-free. This allowance can be particularly useful if you own shares or you’re a company owner or director.

Capital gains

Profits or gains you make on the sale of an asset – like a property where it’s not your main home and investments that are not in an ISA – are exempt from tax up to the annual allowance of £12,300. For married couples or those in civil partnerships who own joint assets, the allowance is doubled to £24,600.

Charitable donations

You can donate to charity tax-free and claim back the tax on your donation through gift aid. If you are a higher or additional income taxpayer, you can also claim back the difference to the basic rate on your gift aid donations. Just remember to keep hold of all records of your donations in order to claim tax relief when the time comes to submit your tax return.

Gifts

Gifting comes with the benefit of being exempt from inheritance tax up to an annual gift limit of £3,000 for each person you give to. Other tax-exempt gifts include money towards a wedding or a grandchild’s education. You can give a tax free gift of up to £5,000 to a child, £2,500 to a grandchild or great-grandchild or £1,000 to any other person. No inheritance tax is due if you live for seven years after making the gift to someone who is not your spouse (for example, gifting your children a property).

The start of a new year is a great time to review your finances – whether it’s your savings and investments, mortgages or insurance policies.

It’s a good idea to know how your investments are taxed when selling them. Here are some of the ways you can organise your assets to make them tax efficient.

How do lenders decide whether to offer you a mortgage?

If you’re applying for a new mortgage, remortgaging or increasing your current mortgage, lenders are required to carry out an affordability assessment. This involves a variety of checks designed to make sure you can afford to repay what you borrow. According to the Independent, some two thirds of first-time buyers are rejected for a mortgage at their initial attempt. So, what can you do to boost your chances of passing an affordability assessment?

Evidence stable employment

Many lenders ask for three years’ proof on income, although some will accept less. Even simply switching from one employed position to another can affect your chances of success. Some lenders like to see that you’ve been with an employer for at least three to six months before they’ll consider you.

Reduce your debts

Lenders will look at your total income and then work out how much you need to maintain a basic standard of living. This will give them an idea of how much you can afford to spend on a mortgage. Reducing the amount you owe on things like credit cards and loans will increase the amount you have available and boost your chances of passing an affordability assessment.

Check your credit report

Before offering you a mortgage, lenders check your credit report. A poor credit history could affect the amount they’re prepared to offer or cause them to turn you away altogether. However, there are simple ways to improve your credit rating. Before applying for a mortgage, check your credit report for errors, , avoid applying for new credit in the six months leading up to the application and make sure you’re well within any existing credit limits.

Get professional advice

Finding the right mortgage is important so we can assess your circumstances and get the right deal for you. We can save you the headaches and ensure you’re less likely to be turned down for a mortgage.

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.

Approved by The Openwork Partnership on 16/03/2023.

When using key takeaways and social media text posts on their own, you need to ensure you include the mortgage warning, otherwise your post will not be compliant.

Despite having saved up a good deposit, friends have warned the couple they would have no chance of getting a mortgage due to their working situation. Sam is a self-employed, successful roofer, but has only been working for himself for two years. His friends have told him, he’ll need at least three years of accounts before a lender will go anywhere near him. They say any mortgage the couple can get will be based on Harry’s income alone. Harry works as a hairdresser and his salary is nowhere near enough to secure the kind of mortgage they’re hoping for.

The value of mortgage advice

Harry and Sam should resign from listening to their friends as when making such an important financial commitment like this, the only guidance they need is from a qualified mortgage adviser. Here are five ways they can make a difference to a mortgage search:

They know the market

If, like Harry and Sam, your needs or circumstances are ‘out of the ordinary’, your options may indeed be more limited than those of other buyers. However, this doesn’t mean you don’t have options. They know the lenders who are willing to consider buyers in your situation and will check you’re likely to meet their specific lending criteria before submitting a formal application. This will save you time and avoid unnecessary searches on your credit file.

They know what a good deal looks like

An attractive rate may seem like your best bet when choosing a mortgage but you also need to factor in things like fees, loan conditions and the mortgage term. They look beyond the headline rate and can help you understand how the length and type of loan will affect how much you pay in the long term. They’ll also highlight any additional expenses like administration and booking fees, and valuation costs.

They do the hard work for you

As well as helping you select the right mortgage, they’ll work with you to complete all of the necessary application forms and liaise on your behalf with solicitors, valuers and surveyors. They can also recommend products that provide financial protection should the unexpected happen.

They’re professionally qualified

They’re fully qualified to advise you on a wide range of lenders and products unlike high street banks and lenders. This way you’ll gain from genuine choice coupled with quality advice.

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.

Approved by The Openwork Partnership on 17/03/2023.

How much do I need to save?

A 5% deposit of the property value is the minimum amount you are able put down, however your options may be limited. The larger deposit you can provide, the less risk you will be considered to lenders and better rates will be available to you.

Where do I start?

Set a savings goal, which you can break down into easier amounts and a time frame to achieve it. Regular saving is most effective and it’s important to be realistic about how much you can save monthly so that it’s more attainable and doesn’t feel like such a chore or impact your life severely. Researching house prices in the area you would like to buy your property and using mortgage borrowing calculators online can help you work out how much you may need to save.

Savings accounts options

There are many ways of saving for your deposit. Look around and think about what you want to achieve and how quickly. With a Lifetime ISA (LISA), if you’re a first-time buyer under 40, you get a 25% bonus on your savings. For example, you can deposit up to £4,000 each tax year and receive a government bonus of £1,000 on top, meaning you would have £5,000 at the end of the tax year. It could help you reach your deposit goal quicker.

Top tips on how to build your savings:

• Set up a savings account – Look into a suitable ISA and consider a Lifetime ISA.
• Look at your current spending habits –See where you can possibly reduce your monthly bills and expenditure (e.g. minimise unused subscriptions/gym membership, change energy or network providers, eating out, daily coffees etc.) to save money.
• Create a budget and stick to it – Make the budget realistic so it’s easier to stick to and when you struggle, remember the goal in mind. Set up standing orders so the money is automatically allocated to savings before you have chance to spend it.
• Reduce your rent/living costs – If possible, consider moving in with family, friends or find cheaper/shared accommodation which can allow you to save money quicker.
• Make extra money – Sell clothes or items online that you don’t need, or if you have a skill/talent/craft that you can turn into a business, this can help you earn extra cash.
• Make use of discounts, vouchers and online deals – Every little saving helps.
• Try “no spend” months or weekends” – Only pay your bills, regular outgoings and necessities and move the money you save to your savings. Consider alternative free activities.
• Set limits – If it helps, take out a certain amount of money in cash for the week or month and leave your cards at home.
• Consider investing options – Including saving accounts with higher interest rates such as stocks and shares ISAs.
• Ask for help and advice – From friends and family for support and we’re here for any financial advice you may need.

We’re here to help you save or invest your money to build your deposit. We will make sure your savings and investments are working for you and advise you on how much you can borrow for a mortgage. We’ll also be here to help find the right mortgage deal when you are ready to buy your first home!

If you would like to find out more, please get in touch with us.

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.

A stocks and shares Lifetime ISA is a medium to long term investment, which aims to increase the value of the money you invest for growth or income or both. The value of your investments and any income from them can fall as well as rise. You may not get back the amount you invested.

Approved by The Openwork Partnership on 17/03/2023.

Whether you’re a first-time buyer, downsizing or moving to your dream family home, it’s an exciting – and busy – time. It also comes with costs that could take you by surprise, so here’s a look at the ones you’re likely to come across and how we can help you through the journey.

Advice fee

We can help when you’re applying for your mortgage in principle, putting you in a strong position once an offer is accepted. The benefit of using a broker is that they have the expertise to ensure you’ve covered the required checks and paperwork related to buying your home and getting a mortgage.

We will let you know at the start of the process about our fees.

Booking and arrangement fees

These fees go to your mortgage lender. The booking/application fee is usually £100 to £300, but the arrangement fee can be much higher, anything from £0 to over £2,000 or a percentage of the loan. We can help you decide whether it’s better in the long term to opt for a mortgage with a slightly higher interest rate and lower arrangement fee, rather than a high arrangement fee and lower interest rate.

Valuation fee

Your mortgage lender will need to value the property themselves to make sure it’s not over- or under-priced. The valuation will also confirm the amount they’re willing to lend to you. Some lenders don’t charge a valuation fee, but if they do, it can cost upwards of £250 – depending on the size of the property and its value.

Surveyor’s fees

It’s important to know that the valuation fee doesn’t look at the structure of your new home, or any issues to do with maintenance and repair. We will be able to arrange an expert to conduct a thorough structural survey of the property. This will help you decide whether to negotiate the terms of the sale with the seller and their agent – before you exchange contracts. Survey fees can range from around £300 to over £1,500 - all depending on the level of service required and the size of the property.

Conveyancing costs

Buying a property involves lots of paperwork, and the legal side of things (known as conveyancing) covers the fees to solicitors or licensed conveyancers to carry out the work (‘disbursements’) as well as their own specific fees. Conveyancing can cost from £850 to £2,000, and disbursements, for example local authority searches which can cost around £250 to £450.

Electronic transfer fees

On the day you complete the sale and exchange contracts, a fee of around £50 will be added to your costs to cover the transfer of funds from your lender to the solicitor.

Insurance

Your lender will need to see that your new home is insured with buildings insurance. In 2022, the average cost of buildings and contents insurance was between £146 and £152 a year. We will help you find the best insurance plan to cover your new home and calculate how much contents coverage you will need as part of your insurance. At the same time we can review your personal coverage to check that you have enough life insurance to cover the mortgage should anything happen.

Removals

Once you’ve got the keys to your new home, it’s time to move in! Removal firms can charge anything upwards of £300, depending on how much you’re moving and how far it’s going.

We will help take the stress out of home buying and can find you the competitive deals and savings available.

Don’t forget the stamp duty

As a buyer you will have to pay a stamp duty land tax, this depends on whether you’re a first-time buyer, where you live, and where the property is located within the UK. First-time buyers will pay no stamp duty land tax on properties up to £425,000.

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.

Approved by The Openwork Partnership on 17/03/2023.

Start with an open mind

There is the danger of becoming too fixated on certain locations or certain properties. It’s important to be open when searching for your first home, ensuring that you’re considering all locations and types of houses. Often buyers become stressed because they have narrowed their search down too far too early.

Talk to your local estate agent

It’s worth booking in a conversation with your local estate agents as after all, they are the experts. They will be able to give you an idea of properties available in the area, upcoming areas to search in and whether your budget is realistic to where and what you’re looking for.

Check out the location before putting an offer in

You don’t want to commit to a house before even knowing what the location or neighbourhood is like. If you fail to do this, you could be stuck…for a long time! It’s a good idea to identify three to four neighbourhoods you’d like to live in based on commute time, schools, recreation, crime, and price.

Use property finding websites

With the world evolving, property search websites have become the most popular way in finding properties for sale and to rent. They are easy to use, open all hours, provide you accurate results and you don’t even have to move from the sofa! Some of the many include Rightmove, Zoopla and OnTheMarket.

Speak to a mortgage adviser

We can give you an idea of how much you will be paying monthly, taking various fees and rates into account. We will also be able to tell you whether your budget is enough to get you the property you want and what deal we believe is right in light of your needs.

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.

Approved by The Openwork Partnership on 17/03/2023.

Making your retirement savings last a lifetime

It’s been a difficult year for investors so far. Inflation and political uncertainty have led to market volatility.

The new tax year means annual allowances are reset and ready to be reused – to help you make the most of your money. This year more than ever, with interest rates and inflation on the rise, it’s a great time to review your pensions and investments.

Note: The following figures apply to the 2023/2024 tax year, which starts on 6 April 2023 and ends on 5 April 2024.

ISAs
The maximum you can invest across your ISAs is £20,000 (if it’s a cash ISA, stocks and shares ISA or innovative finance ISA). For a lifetime ISA, the annual allowance is £4,000.

Junior ISAs
If you’re looking to put some cash aside for your children, Junior ISAs (JISAs) are a great option and often come with higher interest rates when compared to high street savings accounts. In the new tax year, you can save or invest up to £9,000 in a cash JISA, a stocks and shares JISA, or a combination of the two.

Pension allowance
Your personal pension contribution allowance is £60,000, although it can be lower for higher earners and where pension savings have been flexibly accessed already. Any contributions you (or your employer) make receive tax relief from the government (based on your income tax band) of 20% or more – and the money in your pension pot will grow tax free.

Child’s pension
A child’s pension can be set up by a parent or guardian, but anyone can contribute. You can pay up to £2,880 in the new tax year into a pension on behalf of a child and the government automatically tops this up with 20% tax relief on the total amount contributed, taking the figure up to £3,600.

Gift allowances
A financial gift is a great way of using tax-free allowances.

Making a cash gift can help a loved one (and help with your estate planning). Everyone has an annual gifting limit of £3,000 that is exempt from inheritance tax (IHT). This is known as your annual exemption. If you fail to use it one year, you can carry it over to the next tax year.

It’s worth remembering that any gift you give, even to family members, could be subject to capital gains tax (CGT). CGT is the tax you pay on any profit or gain you make when you dispose of an asset, such as a second home or shares. If you gift an asset and it has risen in value compared to what you have paid for it, you could be liable to CGT. The CGT allowance for the new tax year is £6,000. This is the amount of profit you can make before CGT is applied.

Marriage allowance
Married couples or those in civil partnerships may be able to share their personal tax allowances. To be eligible, one partner must earn less than the Personal Allowance threshold of £12,570, and the other must be a basic rate taxpayer. The lower earner can transfer £1,260 of their tax-free allowance to their partner, reducing the tax paid by up to £252 a year.

HM Revenue and Customs practice and the law relating to taxation are complex and subject to individual circumstances and changes which cannot be foreseen.

The value of investments and any income from them can fall as well as rise and you may not get back the original amount invested.

In recent years, there has been growing concern about the pension deficit faced by women. Despite progress in gender equality, women are still facing significant challenges when it comes to retirement savings and are more likely to retire with less money than men. This can have a major impact on their quality of life in retirement.

There are several reasons why women face a pension deficit:

• The gender pay gap, which has been shown to have a significant impact on women's pension savings.
• Women often earn less than men, which means that they are more likely to have lower pension contributions and fewer opportunities for workplace pension schemes.
• Women are more likely to work part-time or take career breaks to care for children which can also have a negative impact on their pension savings.
• women are more likely to live longer than men, so they need to draw on their pension savings for a longer period.

Another factor contributing to the pension deficit is the gender investment gap. Women tend to be more risk-averse when it comes to investing, which can lead to lower returns on their investments. This can mean that their pension pots grow more slowly than those of men, even if they are contributing the same amount.

There are also systemic issues that contribute to the pension deficit. For example, the state pension age for women has been increasing, which means that women are having to work longer before they can claim their state pension. This can be particularly challenging for women who are caring for relatives or who have health issues that make it difficult to continue working.

Addressing the deficit
The gender pension gap is a complex problem, and there is no single solution and government measures may be needed.

One key solution is to address the gender pay gap. This could involve introducing measures to ensure that women are paid fairly for their work, as well as providing more support for women who take career breaks to care for children or relatives.

Another solution is to provide more support for women when it comes to investing. This could involve providing education and training on investment strategies and encouraging more women to take on leadership roles in the financial sector.

Finally, there is a need for systemic change to ensure that the pension system is fair and equitable for all. This could involve introducing measures to ensure that women have access to workplace pension schemes, as well as providing more support for women who are caring for elderly relatives or who have health issues that make it difficult to continue working.

What can women do?
There are a number of things that you can do to help close the gender pension gap. Here are a few tips:

• Start saving early. The earlier you start saving for your pension, the more time your money has to grow.
• Make sure you are contributing enough to your workplace pension. Most employers offer a workplace pension scheme, and your employer may also contribute to your pension.
• Consider taking out a private pension. If you are not saving enough in your workplace pension, you may want to consider taking out a private pension.
• Make sure you are claiming all of the benefits you are entitled to. There are several benefits available to women, such as the state pension and the state pension credit.
• Get advice from a financial adviser. A financial adviser can help you to make sure that you are on track for a financially secure retirement.

By taking these steps, you can help to close the gender pension gap and ensure that you have a comfortable retirement.

The value of investments and any income from them can fall as well as rise and you may not get back the original amount invested.

HM Revenue and Customs practice and the law relating to taxation are complex and subject to individual circumstances and changes which cannot be foreseen.

Approved by The Openwork Partnership on 26/04/2023

Why single parents need to be more financially savvy than ever

The earlier you start investing, the better. Time is a powerful tool when it comes to investing, and the longer you have, the more time your money has to grow. Even if you can only contribute a small amount each month, starting early can make a big difference in the long run.

What investing opportunities are available?

In the UK, there are numerous different ways to invest in a child’s future. The main ones are:

• Junior ISA – Junior Individual Savings Accounts (JISAs) are a tax-efficient way to invest for your child's future. Junior ISAs have a tax-free allowance of £9,000 per tax year, which can be invested in cash, stocks and shares, or a combination of both. The funds in a Junior ISA are locked in until the child reaches the age of 18, at which point the account will convert to a standard adult ISA.
• Savings accounts – Many banks and building societies offer savings accounts for you to set up on a child’s behalf. You can start an account with as little as £1 for any child aged up to 18. There are two types of savings accounts: regular and instant access. Regular savings accounts are designed to encourage children to save an amount every month, and often run for a set amount of time whereas instant access allows you or your child to withdraw or deposit money at any time.
• National Savings and Investment (NS&I) Premium Bonds – NS&I Premium bonds are investments placed in a savings account that allows penalty-free withdrawals. There is no interest earned, instead the interest rate funds are placed in a monthly draw and any prize won is tax-free.
• Self-Invested Personal Pensions (SIPP) – Your child’s retirement may seem a world away, but you could consider opening a SIPP to invest for their future. Parents can benefit from the tax relief associated with SIPP as they can invest up to £2,880 each tax year with a 20% government top up. This amounts to the £3,600 annual contribution limit.
• Child Trust Funds (CTFs) – Even though Child Trusts Funds (CFTs) are no longer available, you can still contribute up to £9,000 a year into an existing CTF account. If a child was born between 2002 and 2011, they might have a Child Trust Fund. These can be transferred into a Junior ISA.

It’s important to remember that investing is a long-term game, and that staying consistent with your contributions will pay off in the long run. Even if you can only contribute a small amount each month, it's better than nothing. Consistency is key when it comes to building wealth over time.

The value of investments and any income from them can fall as well as rise and you may not get back the original amount invested.

HM Revenue and Customs practice and the law relating to taxation are complex and subject to individual circumstances and changes which cannot be foreseen.

While it may seem like an added expense, the cost of financial security is a small price to pay for the security it provides. Most of us don’t think twice when it comes to protecting our vehicles or mobiles phones and pets, so why not do the same when it comes to your source of income. Here are some ways you can protect yourself if you’re self-employed:

Income Protection

Being self-employed means your income y is directly tied with your ability to work. This means if you’re unable to work due to illness or injury you could suffer significant loss of pay. Income protection pays out a regular tax-free income, on a short or long-term basis, to cover expenses such as your rent or mortgage, bills and other living costs if you are unable to work.

This valuable insurance could help reduce stress, prevent your family suffering financial hardship, and give you the breathing space to help you get back on your feet when you most need it.

Critical Illness Cover

If you were to be diagnosed with a serious illness such as heart disease, it would have a significant impact on your ability to work. Critical illness cover usually pays out a tax-free lump sum if you’re diagnosed with a serious illness covered by your policy. These usually include, cancers, heart attacks and strokes.

Life Insurance

If you were to pass away unexpectedly, your family could be left in a difficult financial situation. Life insurance pays out either a lump sum or regular payments on your death, giving your dependants financial support after you’re gone. This can help them to cover expenses such as funeral costs, mortgages, bills and provide them with financial security during a difficult time.

If you’d like advice on how to protect your finances, or you’d like to review your protection needs, please get in touch.

Approved by The Openwork Partnership on 18/05/2023.

If you do not review your protection cover on a regular basis, you could end up paying too much for a policy that no longer suits your needs or not having the cover you need for your circumstances.

It’s important to review your protection regularly to ensure that you have the coverage you need to protect yourself and your family at the most affordable rates.

There are many reasons as to why you might need to review your protection. Here are some of the main ones:

Your needs have changed
Life is constantly changing and evolving which can directly affect your protection needs. Whether you’re moving into your first home, starting a family, or changing jobs, these changes can affect the type of cover you need and what you can afford. For example, if you've recently had a child, you may need to increase your life insurance coverage to provide for any future needs.

Your financial situation has changed
Your financial circumstances may have changed since you took out a protection policy. You could be earning more or living with a partner for example. Which means you might be paying for protection that perhaps doesn’t match your needs, or your lifestyle. It’s important to ensure the protection you pay for is what you need

Speak to a financial adviser
By not reviewing your protection regularly, you run the risk of either being over insured or underinsured.

• Being over insured means you could be paying too much.
• Being underinsured puts you at risk of not having the cover you need when the unexpected happens.

It's important to speak to your financial adviser about what protection may be available to you, whether your cover is still appropriate for your needs and give you peace of mind, that you and your family are protected.

Approved by The Openwork Partnership on 18/05/2023.

There are the everyday costs, whether it is the cost of disposable nappies or the cost of running the washing machine for reusable nappies. Then there are the big-ticket items like prams, cots, and car seats.

With all the excitement of a new baby reviewing your contents insurance is probably the furthest thing from your mind. But all the new furniture, electrical equipment, toys, and clothes can add up. Costs can vary depending on whether you are having your first, second or even third child, but on average families spend around £6,000 in the first year.

When to review your contents insurance

You should also review your contents insurance if you have any major life changes for example:

1. If you move to a new home, you should review your contents insurance policy to make sure it still meets your needs. The value of your personal belongings may have changed, and you may need to adjust your coverage accordingly.

2. If you purchase expensive items, such as a new piece of jewellery or a high-end appliance, you should review your contents insurance policy to make sure these items are covered. Some policies have limits on the amount of coverage for certain types of items, so you may need to purchase additional coverage.

3. If you renovate your home, you may need to review your contents insurance policy to ensure that it covers any improvements or additions you have made. You may also need to increase your coverage to account for the increased value of your personal belongings.

4. If your circumstances change, such as getting married, having a child, or starting a home-based business, you should review your contents insurance policy to ensure that it still provides adequate coverage for your personal belongings.

Tips for reviewing your contents insurance:

• Make a list of all your belongings and their value. This will help you to determine how much cover you need.
• Check your policy documents to make sure that you understand any exclusions or limitations.
• Speak to your financial adviser about any gaps in your cover.

Get Advice
It is important to review your contents insurance regularly to make sure that it still meets your needs. By doing so, you can be sure that you are properly protected in the event of a claim.

Approved by The Openwork Partnership on 18/05/2023.

5 ways saving little and often could help you grow your wealth

Lifetime mortgages are more popular than ever, but is one right for you?

We know the little things in life can be life-changing. It could be a phone call from the doctor with serious news about your health, or a stepladder that wobbled once too often when you were standing on it – serious illness and injury can happen when we’re least expecting it.

In fact, each year, one million workers find themselves unable to work due to serious illness or injury. And while many people would say they would rely on their savings to get by, on average UK households would only be able to survive on their savings for 19 days.

Have you ever thought how you would pay your mortgage if you became ill or injured and unable to work?

Buying a home is likely to be your biggest investment, so there is a need to safeguard it against loss of income because if you can’t work and pay your mortgage it could mean losing your family home.

There are several different types of insurance available which can provide financial protection. These include income protection which provides a monthly income if you’re too ill to work and critical illness which pays out a tax-free lump sum if you’re diagnosed with a specific serious illness or injury.

Protecting yourself with either income protection or critical illness insurance provides you with a crucial safety net to fall back on if you are unable to work because of illness or injury.

It will be a huge relief to you and your loved-ones to know that you will still be able to pay your mortgage and other essential bills if you are too ill to work, leaving you to focus on what’s important – getting better.

Here’s one little thing you can do to protect your financial future, so get in touch with an adviser today

Your different options can be discussed with your adviser – so you can make sure you have the right protection in place for you and your family.

Call Inspire Financial North East on 0191 5166 326 or drop them an email on joe.bonallie@ifne.co.uk

Approved by The Openwork Partnership on 04/07/2023.

You’ve made sure that your loved-ones will have financial protection to cover the mortgage you leave behind if you were to die with life insurance but what about if you became seriously ill or injured, and unable to work? Would you be able to keep up your mortgage repayments?

Statistically, you’re much more likely to be diagnosed with a critical illness than die during your working life. For example, a man aged 40 is 4.1 times more likely to be diagnosed with a critical illness than die before retiring at 65 years old.

As buying a home is likely to be your biggest investment, it pays to protect yourself, so you’re covered should you die as well as if you become too ill to work.

We know the little things in life can be life-changing. It could be a phone call from the doctor with serious news about your health, or a stepladder that wobbled once too often when you were standing on it – serious illness and injury can happen when we’re least expecting it.

How would you pay your mortgage if you were too ill to work?

There are different types of insurance available which can provide financial protection. These include income protection which provides a monthly income if you’re too ill to work and critical illness which pays out a tax-free lump sum if you’re diagnosed with a specific serious illness or injury.

It will be a huge relief to you and your loved-ones to know that you will still be able to pay your mortgage and other essential bills if you are too ill to work, leaving you to focus on what’s important – getting better.

Here’s one little thing you can do to protect your financial future, so get in touch with an adviser today

Your different options can be discussed with your adviser – so you can make sure you have the right protection in place for you and your family.

Call Inspire Financial North East on 0191 5166 326 or drop them an email on joe.bonallie@ifne.co.uk

Approved by The Openwork Partnership on 11/07/2023.

Protection policies aren’t just there for when things go wrong. Many protection insurers include access to a range of health and wellbeing support services – and you don’t need to claim to be able to use them.

These services can make everyday life that little bit easier. From knowing you can have immediate professional support if your child falls ill, to having the tools to keep tabs on your health, these services provide advice, assistance and information to keep you and your family healthy.

Many customers have seen the benefits, for example, one of our insurers reported that in 2022, 99% of GP appointments were offered within 2 hours of a customer contacting them. They also saw the demand for these appointments increase by 126% from the previous year showing that wider emotional, health and family support services can really make a difference in people's lives.

With the NHS feeling pressure like never before, knowing your family’s health is covered can give you extra peace of mind.

Here’s one little thing you can do today, talk to an adviser from Inspire Financial North East to discuss the healthy extras available for you and your family

Health and wellbeing services can be discussed with your adviser when you’re considering a protection policy. By looking at the needs of you and your family, we can help you get the right protection in place.

Ready to get started?

Call Inspire Financial North East on 0191 5166 326 or drop them an email on joe.bonallie@ifne.co.uk

Approved by The Openwork Partnership on 27/06/2023.

An emergency fund is important but extra cash reserves can also play an integral role in a diversified portfolio. So, here are a few options with pros and cons

Different types of assets don’t always behave the same way or move in the same direction, but diversification can help you to reduce risk and maintain positive returns

5 ways saving little and often could help you grow your wealth

2 important questions to consider

“A small level of inflation each year is good for the economy.”

What is inflation?

Inflation measures how the average price of goods and services changes annually, and is the main driver of the cost of living crisis.

Each month, the Office for National Statistics (ONS) monitors the price of 700 goods and services to determine how much an average household’s shopping basket changed in the preceding 12 months. This provides the Consumer Prices Index (CPI), which is one of the key ways we measure inflation.

The Bank of England (BoE) is tasked by the government to keep inflation to 2%. A small level of inflation each year is good for the economy. However, when inflation rises above the 2% target, it can put more pressure on consumer finances and lead to problems in the economy.

A combination of world events raised inflation

Several events in recent years have led to the sharp rise in inflation.

The Covid pandemic:
During Covid lockdowns many workplaces closed, so normal manufacturing stopped temporarily. This led to a shortage of products. So, when the lockdowns ended, and we resumed our day-to-day lives, demand outstripped supply and prices rose.

The war in Ukraine:
Food prices – specifically animal feed, fertiliser and vegetable oil – have risen directly because of the war, which had a knock-on effect on the price of everyday products such as sugar. Energy prices have also soared to the highest level in 10 years as many European countries rely on Russia for imported natural gas.

The weakened pound reduces buying power
The value of the pound against the dollar has slowly dropped throughout 2023 from $1.209 on 1 January to $1.258 on 1 September.

Inflation could soon start to fall

In response to rising inflation, the BoE has raised the base interest rate several times throughout 2023 and currently sits at 5.25%. This is expected to encourage more people to save, reducing demand for goods and services, so slowing the pace of price increases.

However, experts predict that inflation will remain high for some time, not returning to the 2% target until late 2024. Therefore interest rates are expected to continue to rise through 2023, which could lead to higher mortgage rates and monthly repayments for borrowers.

Your experience of inflation may be different

The ONS makes certain assumptions when calculating UK inflation, such as that the average household allocates 9.8% of their monthly budget to personal travel costs like owning a car. If you do not own a car, your personal inflation rate might be lower than average.

Using an online calculator to understand your personal inflation rate will make it easier to focus on the facts that affect you rather than headlines.

Get in touch

If you’re worried about the rising cost of living and would like to discuss ways to protect your finances from the effects of inflation, we’re here to help. Please get in touch to arrange a time to chat.

Approved by The Openwork Partnership on 04.10.2023

The cost of living crisis is causing many to re-evaluate the benefits of financial advice.

01 Review your budget and personal inflation rate

Reviewing your spending will clarify where your money is going and highlight potential areas to cut costs and make savings. Despite a lot of noise about inflation and its impact on UK households, the good news is that your personal rate of inflation depends on how you spend your money. It won’t necessarily match the official inflation rate and so changing your spending habits can help bring it down. For example, since much of the rise in prices has been caused by soaring fuel prices, your personal inflation rate may be lower than the average if you don’t drive or own a car. Recently, energy prices have also risen significantly. However, if your home is especially energy-efficient, you may use less energy than an average household.

This could bring your personal inflation rate below the average. You can use an online calculator – such as this one from the ONS website – to help you work out your personal inflation rate online.

02 Manage debt

Higher interest rates mean increased borrowing costs. So, check the rates and see if you can reduce the interest you’re paying. Focus on repaying credit card debt first. Credit cards typically charge high levels of interest and the negative compounding effects can be difficult to escape.

If you have high credit card debt, transferring to a limited-period nil-interest rate account could help you repay the debt sooner.

03 Ensure your savings are working hard for you

Around £160 billion in savings accounts pay less than 0.5% interest, so it’s worth shopping around for higher interest rates on your savings. Alternatively, the Insignis cash management solution can help you secure some of the best cash savings rates. As interest rates change, our cash management solution moves your money to secure optimal rates. The one-time sign-up is quick and easy to set up, plus you’ll never need to open or close another account again.

04 Resist the temptation to dip into your investments or stop saving for your future

You may be tempted to dip into your pension or investments to tide you over but consider the long-term effect on your retirement plans. Selling investments or drawing from your pension could leave you worse off in the long run, so assess every option before you act. It’s important to continue to pay your future self first, too; be sure to maintain regular, tax-efficient contributions to your pension and ISAs.

05 Remember your long-term financial plan

Making rash financial decisions during the current crisis could jeopardise your long-term financial security. If you’re worried about the rising costs of living and what you can do to protect your short and long-term financial plans, we can help.

An ISA is a medium to long term investment, which aims to increase the value of the money you invest for growth or income or both.

The value of your investments and any income from them can fall as well as rise. You may not get back the amount you invested.

HM Revenue and Customs practice and the law relating to taxation are complex and subject to individual circumstances and changes which cannot be foreseen.

Figures quoted correct as of 02.10.2023

Get in touch

If you’re worried about the rising cost of living and would like to discuss ways to protect your finances from the effects of inflation, we’re here to help. Please get in touch to arrange a time to chat.

Approved by The Openwork Partnership on 04.04.2023

Five options that could help you make your pension stretch further.

01 Keep calm and carry on protecting yourself

It can be easier said than done, but even when your bills are rising and things are looking a bit worrying, staying calm and thinking objectively about your finances really is the best way to approach the challenge.

You might be tempted to start cutting down on your expenses, but one thing it’s really important not to cut is your financial protection. Research has revealed that 1 in 7 people in the UK are considering cancelling their life insurance policies to save money during the cost of living crisis.

Removing a monthly expense such as a life insurance or income protection premium might feel like a smart move in the short term.

But things could become even more challenging if you were to fall ill and not be able to work for a few months or longer. If this were to happen when you’d cancelled your cover, you might struggle even more without the potential pay out from your policy.

If you are struggling to pay your monthly expenses, it’s important to reach out and talk to an expert. We can help you to see your finances more clearly and to create a plan of action that takes you from worrying about money to feeling in control.

02 Reducing debt might be the best place to start

If you want to boost your financial wellbeing, it might be best to begin by reducing your debts to lenders. If you have high levels of debt, your monthly payments could be one of your most costly expenses. If you have some savings, reducing or eliminating the amount you owe could help free up money to be deployed more usefully elsewhere. High-interest debt is often tied to credit card debt. If you’re carrying a long-standing balance from month to month it could be costing you dearly every month.

To illustrate the potentially damaging effects of interest on debt, if you have £1,000 sitting in a savings account earning 1% interest, you’re only making £10 a year. If you have £1,000 on a credit card at 18% interest, you’ll be paying £180 a year. Using your savings to pay off the debt will mean you are £170 a year better off. In short, the sooner you can cancel out debt the better. If you have debt in multiple places, you might want to consider consolidating them. There are various options for consolidating debt, but the right solution will depend on your individual circumstances. We can help you understand which course of action might be most suitable for you.

03 There might be some easy cost savings that will reduce your monthly bills

Once these bigger things are taken care of, you can look for some smaller actions you could take to reduce your monthly expenses.

Review your bank statement to identify anything that you no longer need.

Things to look out for include:

• Streaming services that you rarely or never use
• Subscriptions that you don’t get value from
• Gym memberships that you don’t use
• Delivery fees for online shopping

Given the sharp rise in energy costs, it may also be helpful to consider how you could use energy more efficiently in your home to save costs. The Energy Saving Trust reports that the average UK household spends £65 a year powering appliances on standby mode. So, remaining vigilant about turning off appliances like TVs or games consoles when you aren’t using them could help to save money across the year.

Additional savings could be made by installing and fully utilising the features of a smart thermostat; the average instalment cost is £225. The Energy Saving Trust estimates that a typical household could save £180 a year by using a smart thermostat so that your heating only comes on when you need it. By identifying and plugging these ‘money leaks’, you may be able to reduce your monthly expenses without having to slash spending on the things you enjoy

Get in touch

If you’re worried about the rising cost of living and would like to discuss ways to protect your finances from the effects of inflation and rising energy prices, we’re here to help. Please get in touch to arrange a time to chat.

Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on your mortgage.

Approved by The Openwork Partnership on 04.10.2023

We can’t predict what the future will hold for the health of our families, but we can take proactive steps to prepare for the risk that we or our children might become critically unwell.

Appropriate financial protection can be a vital safety net for parents, providing essential cover for children and easing the pressure of caring for them.

Critical illness payouts can help you care for your child

No parent wants to consider the possibility of their child becoming seriously ill, but planning for the worst can offer the greatest peace of mind. Robust and appropriate financial protection can help shore up your finances and allow you to focus on caring for your child.

Critical illness cover pays out a lump sum if you are diagnosed with an illness covered by the policy. Many of these policies include cover for a child of the policyholder, paying out a proportion of the full amount if they become seriously ill. This payout provides a financial safety net, covering your expenses and allowing you to take time away from work to care for your child.

Critical illness cover may also come with other benefits that can offer further support for your family, such as:

• A payout if your child is hospitalised because of an accident.

• Cover for the cost of accommodation so that you can be close to your child if they’re in hospital.

• Childcare costs if you’re diagnosed with a serious illness that’s covered by your policy.

The cost of critical illness cover varies depending on how large you want a potential payout to be, as well as other factors like your age and general health. It’s important to note that you’ll only be covered as long as you keep paying your premiums.

Children are often automatically included in critical illness cover but this isn’t guaranteed. Contact your provider for clarification and be aware that your premiums could rise if you add a child to a policy that doesn’t already cover them.

Cover for a child typically starts from the first few weeks after birth and lasts until they’re 18, or 21 if they’re in full-time education, but this can vary between providers. There may be other restrictions to critical illness cover that you should be aware of – some policies will only allow one claim per child whilst others might exclude certain conditions that are present from birth.

It’s important to check the details of critical illness cover thoroughly when comparing your option to make sure that you’re buying the right cover for your circumstances.

Private medical insurance could help provide better care for your family

You may want to consider taking out private medical insurance to complement the security that financial protection could offer you. The Guardian reports that the private health insurance market has grown by £385 million in the last year. At the same time, rising wait times and staff shortages are causing public satisfaction with the NHS to slump according to the long-running British Social Attitudes survey.

Private medical insurance can help to put your mind at ease by reducing waiting times for a range of services (like tests and consultations) whilst giving you a wider choice of treatment providers. It could also help to cover the cost of a private room, giving you and your family greater privacy if you need to stay in hospital overnight.

Private health insurance can cover much more than just physical illness. Some providers offer access to counselling and mental health services which are becoming increasingly important for the wellbeing of younger generations – the number of children and young people seeking support for their mental health increased by 25% from 2022 to 2023 according to data from Aviva.

The cost of private health insurance and the level of cover you’ll receive are influenced by a range of factors, including who you want the policy to cover, your lifestyle, and family medical history. It’s important to take the time to understand how comprehensive your options are and any exclusions that might affect your family.

Talk to us to see how we can help protect your family

Financial protection is just one way that you can prepare for the unexpected. Get in touch if you’d like to know more about financial protection for your family against serious illness.

Please note: Financial protection plans typically have no cash in value at any time and cover will cease at the end of the term. Cover will lapse if premiums are unpaid. Cover is subject to terms and conditions and may have exclusions. Definition of illnesses vary between providers and will be explained in policy documentation.

OW5421
Expires - 16 Jun 2025
Approved by The Openwork Partnership on 17/06/2024.

After having it explained to them, however, four in five of those surveyed said they would consider purchasing it. Critical illness cover pays out if you are diagnosed with a specified serious illness or health condition. The money can be used to pay off large financial commitments (like a mortgage), maintain your lifestyle, or provide for dependents.

It’s important to understand how critical illness cover works, so here are the five essential things you need to know before you take out a policy.

1. Critical illness cover pays out a lump sum

Critically illness cover provides a single payment when you become seriously ill. You decide how much you want your cover to pay out and can use the money however you like, but it’s worth taking the time to understand your finances to determine what level of cover is right for you.

You might want to consider regular outgoings, any other assets or financial protection you have, and any costs associated with becoming seriously ill. Because critical illness covers pays out one large sum, you might also want to think about what your priorities might be and the best way to use the money to create long-term financial security.

2. Not all illnesses are covered

Half of those with critical illness cover are unaware of the conditions covered by their policy, according to a report from FT Adviser. The lump sum is typically paid when you’re diagnosed with certain specified illnesses or conditions which vary between providers. A payout might also depend on the severity of your illness, so it’s important to understand how comprehensive your cover is.

There are other options beyond critical illness cover. Income protection, for example, could pay a regular income if you’re unable to work because of an accident and may cover more conditions than critical illness covers.

3. There may be additional exclusions based on your health

Your general and family health at the time you take out critical illness cover can affect the level of protection you receive. For example, pre-existing medical conditions or illnesses that your close family members have been diagnosed with will probably be excluded.

4. The cost of critical illness cover varies

Your age, family medical history, and your lifestyle are just a few factors that can influence the cost of critical illness cover. Prices also vary between providers so shopping around and comparing your options is the best way to secure the right cover at the right price. Make sure you’re comparing like-for-like though – a cheaper policy may not cover everything you want it to.

5. Most critical illness claims are successful

91% of critical illness claims were paid in 2022 according to data from the Association of British Insurers. It can be tempting to forego critical illness cover on the basis that serious illnesses are comparatively rare, but the evidence shows that its likely to pay out when people need it the most.

Let’s chat about critical illness cover and financial resilience

Critical illness cover is one of many products that can help create a safety net for your family and your finances if you become seriously ill, and there could be other ways of increasing your financial resilience too. We’re here to talk through your options and help you increase financial security for you and your family.

Please note: Financial protection plans typically have no cash in value at any time and cover will cease at the end of the term. Cover will lapse if premiums are unpaid. Cover is subject to terms and conditions and may have exclusions. The definition of illnesses vary between providers and will be explained in policy documentation.

Approved by The Openwork Partnership on 10/07/2024

Expiry 10/07/2025

OW5447

Up to 10,000 people in England and Wales dispute wills every year according to a report by The Guardian, and a growing proportion of these are being taken to court – 195 in 2022 compared to 145 in 2017. Thousands of families have been embroiled in challenges to wills that are often “ruinously expensive”, time-consuming, and emotionally draining.

Disputes can be taxing for our loved ones, but they can also affect how our estates are handled. Your assets might not be passed on in the way you intended, and people you wanted to benefit from your estate might be overlooked. Fortunately, there are some steps you can take to help minimise disputes over your will.

1. Speak to your loved ones about your wishes

It’s not any easy conversation to have, but discussing how you want to pass on your estate with your family can help to avoid disputes. It gives you the chance to explain your decisions and ensure that there are no surprises for the inheritors when your will is read.

2. Write a letter of your wishes

You can also write a letter which outlines your wishes to be read alongside your will. This gives you another opportunity to explain your estate planning decisions which could be helpful for beneficiaries and the executor of your estate. This letter can also act as further reinforcement of your wishes if a dispute does arise.

It’s important, therefore, to make sure that your letter of wishes doesn’t go against what’s written in your will. You may want to ask a solicitor to review it to remove any errors or contradictions.

3. Include a no-contest clause in your will

Adding a no-contest clause doesn’t prevent someone from raising a dispute, but it can be an effective deterrent. This clause generally states that a beneficiary forfeits any inheritance they may have been entitled to if they challenge your will and lose their dispute. It’s another tool you can use to help ensure that your assets are passed on in the way you want.

4. Hire a solicitor to write your will

You can write your will without professional legal support, but engaging a solicitor to write it for you can help you to express your wishes as clearly as possible. They’ll use language that minimises contradictions and clearly sets out the way you want your assets to be passed on.

That can be especially vital if your estate planning is complicated, for example if you own assets in other countries or if you have investments. The support of a solicitor can increase your confidence that your complex estate will be passed on smoothly.

5. Ask a medical professional to witness your will

Your will must be made or acknowledged in the presence of two witnesses for it to be valid. These people must be:
• Aged 18 or over (16 or over in Scotland).
• Have the mental capacity to understand what they are signing.
• Not be related to the person making the will or have a personal interest in the will.
You can ask a medical professional, such as your GP, to witness your will and confirm that you were of sound mind when you wrote or amended it if you’re worried that it might be contested on medical grounds.

6. Review your will regularly

A common cause of will disputes is a beneficiary claiming that it doesn’t reflect your circumstances at the time of your passing. A regular review of your will helps to ensure that it’s always up to date and minimise the risk of this kind of challenge.

Reassessing every five years will help keep the terms of your will current. You may also want to review it after major life events, for example if you welcome a new grandchild into your family, remarry, or if your wealth changes significantly.

7. Store your will securely

Make sure that you keep your will in a safe place and your executor knows where it is. Destroy previous versions of your will when you update it to avoid potential confusion.

You can keep your will yourself, leave it with your solicitor, or lodge it with the Probate Service if you live in England or Wales – each method has its pros and cons, and we’re happy to explain these so that you can choose the right one for you.

Understanding your estate can help you make decisions about your will

These seven actions can help to reduce will disputes, but having a full understanding of
your estate can give you the greatest peace of mind. We’re here to talk if you want to talk about your will or your estate planning to help you decide how you want your assets to be passed on.

Please note: The Financial Conduct Authority does not regulate estate planning. Will writing is not part of the Openwork offering and is offered in our own right. Openwork Limited accept no responsibility for this aspect of our business. Will writing and estate planning are not regulated by the Financial Conduct Authority.

Approved by The Openwork Partnership on 10/07/2024

Expiry 10/07/2025

OW5446

9 in 10 homes sold for more than their purchase price

Concerns that the Bank of England’s decision to increase its base interest rate might cause property prices to stagnate or fall appear to be unfounded as homeowners continue to benefit from long-term growth.

The average seller in 2023 had lived in their home for nine years and most made a profit. London homeowners saw the biggest gains of £137,000 on the average sale, whilst those selling a bungalow or detached home made an average profit of more than £100,000. Just 10% of property sales were sold for less than their purchase price, with the average loss weighing in at around £17,000.

You may discover that your budget is larger than expected if you’re searching for a new home this year. An accurate and timely valuation of your property is key to calculating your mortgage needs and setting the budget for your next move.

Rising property prices could cut your outgoings when you remortgage

You don’t have to wait until you sell your home to benefit from rising property prices – if the value of your home has increased it could help you secure a more competitive interest rate on your mortgage. Lenders compare the value of your home to your mortgage when reviewing your application to remortgage – this is known as your “loan-to-value” (LTV) ratio.

For example, if you purchase a property for £200,000 with a 10% deposit, your LTV ratio is 90%. If the value of your property rises to £220,000, your LTV ratio falls to around 82% because the size of your mortgage relative to the value of your property has now decreased. If you’ve selected a repayment mortgage, then your repayments will also lower your LTV as the amount you owe falls.

A lower LTV ratio usually results in a more competitive interest rate because you pose less of a risk to the lender. The combination of regular repayments and rising property prices could therefore lead to lower repayments in the future.

Lower interest rates could save you thousands over your mortgage term

The Bank of England has gradually increased its base rate over the last few years to help tackle inflation – it’s currently 5.25% compared to historic lows of 0.1% for much of 2020 and 2021. Many homeowners are dealing with sharp increases in their mortgage repayments as a result.

Securing a more competitive interest rate now could help to offset the previous increases you may have experienced. Even a small reduction could have substantial impacts over the full term of your mortgage.

Let’s say you borrowed £150,000 through a repayment mortgage with a 15-year term, if the interest rate is:
• 5.5% your monthly repayment is £1,126.
• 4% your monthly repayment is £1,109.
You would save £20,000 with a 4% interest rate over the full 15-year term of the mortgage compared to repayments at 5.5% interest over the same period.

Revaluing your home could therefore be a crucial money-saving strategy if your mortgage deal has expired or is due to do so soon. You can usually lock in a new mortgage deal up to 6 months before your current deal expires.

Being proactive and finding a new mortgage before your existing one ends could also mean you avoid paying your lender’s standard variable rate (SVR), which isn’t typically a competitive rate.

We can help you reassess your mortgage needs

Whether you’re moving home or looking to secure a better interest rate on your mortgage, we’d love to help you make the most of rising property prices. We’ll help you assess the mortgage market and match you up with the right deal for your circumstances.

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT.

Approved by The Openwork Partnership on 10/07/2024

Expiry 31/12/2024

OW5445

Investing can be a daunting task, especially if you're not sure where to start, that’s where advice can be handy. A financial adviser can help you understand your financial situation, develop an investment plan, and choose the right investments for your needs to meet your goals.

Value of investment advice

Assess where to invest – Getting advice from a financial adviser can expose you to a wider range of choices when it comes to deciding where to invest. They have the knowledge and expertise on how products work in different markets and can identify any possible downsides as well as potential benefits.

Asset allocation – It’s important to invest in a mix of investments to reduce risk. A financial adviser can help determine your objectives for the investment as well as your attitude to risk before making any recommendations. This is to ensure you are taking the right level of risk and are in a good position to achieve the returns you want.

Portfolio rebalancing – To maintain a healthy mix of investments, you need to rebalance your portfolio. Essentially this is adjusting the weightings of different asset classes in an investment portfolio. A financial adviser will review the portfolio and rebalance where needed to ensure that you don’t take too much risk.

Help achieve your goals – Even a seemingly straightforward financial goal can involve numerous decisions and a range of different products and providers. A financial adviser can help assess what is realistically possible and create a tailored financial plan to ensure you achieve your investment goals.

The key benefits of investing

It's important to think carefully about putting some of your income aside for the future. For example, you may have more money to invest once your children have moved out, or your mortgage repayments may have reduced. So, what are the benefits to investing?

• Long-term returns

Investing offers the potential opportunity for long-term returns. The money you invest has the potential to grow significantly over time.

• Building wealth

Investing money in a variety of assets can be a great way to potentially build your wealth. The earlier you start and the more you’re able to save, the better shape your financial assets are likely to be in when you need to draw on them.

• Planning for retirement

No matter your age, it’s important to start saving for retirement as early as possible. Investing can help to grow your savings to ensure you have the money to get through your retirement years comfortably.

• Meeting financial goals

Another benefit to investing is the ability to achieve your personal and financial goals. Whether it’s saving for university, buying your dream home or simply building savings for the future, investing can grow your money giving you financial freedom to achieve your goals.

We’re here to help

We can go through the options available to you and discuss the various factors that could affect your investment and provide a personalised, tailored investment plan with the right products for you. Get in touch today.

The value of investments and any income from them can fall as well as rise and you may not get back the original amount invested.

Key Takeaways:

• With financial uncertainty nowadays, advisers can help you create a plan to profit in the good times and weather the storm against any possible downturns.
• Financial advisers can help you choose the right investments to suit your needs.
• Set clear investment goals and monitor progress when saving for the future.
• The earlier you start saving, the better shape your financial assets are likely to be in when you need them.
• The value of investments and any income from them can fall as well as rise and you may not get back the original amount invested.

Approved by The Openwork Partnership on 23/07/2024.

1. Impersonation fraud

Scammers often pretend to be a familiar organisation like your bank, a utility provider or HMRC. They might inform you of a (fake) threat to your account and offer to help move your money to a more secure location, or they might claim that you’ve failed to make a payment and encourage you to settle it immediately.

Fraudsters may also pretend to be an individual you trust, such as a family member in urgent need of money or your financial adviser asking for a downpayment to secure an investment. They’ll try to play on your emotions and get you to act without thinking.

If you’re unsure of a person’s identity, if the contact is unexpected or they’re trying to get you to act quickly, terminate the interaction and contact the genuine person or organisation to check if the situation is real.

2. Social media fraud

Cybercriminals increasingly use social media and other digital platforms to defraud their victims. They can set up convincing social media profiles, apps, websites and marketing materials that make them seem like genuine experts or organisations.

Be wary of anyone who messages you unexpectedly on social media with offers that seem too good to be true, avoid downloading any apps from unofficial platforms, and don’t click on any suspicious links.

3. Romance fraud

Romance scammers target people by feigning romantic interest to gain their trust. These scams almost always start online with fraudsters spending weeks, months or even years pretending to form an attachment to their victim. They use emotive language to flatter or encourage you into transferring money to them, after which they promptly disappear.

Be aware of how much personal information you put online. Your age, relationship status and the photos you post can all indicate to a scammer that you might be vulnerable to romance fraud.

4. Investment scams

Fraudsters may contact you out of the blue with a fake investment opportunity. They might claim to be a genuine financial organisation or expert with seemingly credible marketing materials, or they might impersonate someone you trust like your financial adviser.

Investment scammers may try to distract or confuse you with headline figures or lots of jargon but fail to describe the opportunity in significant detail. Be wary of vague investment offers, especially ones that are time-sensitive or seemingly exclusive.

5. Payment diversion

Scammers may pose as a person or business you’ve been dealing with to request a payment or inform you of a change of bank details. They may create convincing fake email addresses, invoices or web payment platforms and encourage you to transfer money quickly to avoid a penalty.

It’s important to verify that you know who you’re talking to. Stop the interaction and contact the genuine person or organisation to confirm if the situation is true.

6. Courier scams

This occurs when cybercriminals contact you pretending to be a police officer or bank official. They’ll claim to be investigating fraudulent activity at your bank branch or a business like a jeweller, electronics retailer or currency exchange.

They’ll ask you to cooperate by purchasing a high-value item, withdrawing money from your account or foreign currency from an exchange. They’ll then ask you to hand it over to a courier (who’s also a fraudster) for further investigation and promise to return the money or item once they’re finished.

The police or your bank will never ask to verify personal or financial details over the phone. If you’re calling your bank to verify the situation, use the phone number on their website.

7. QR code phishing

This scam, also known as ‘quishing’, involves the use of QR codes to redirect victims to a fraudulent website that downloads malware or asks for sensitive information. Quishing encourages you to use your mobile phone to complete an action because they tend to have weaker anti-phishing measures compared to laptops or desktops.

Never scan a QR code from an unfamiliar source and always review the preview of the QR code’s URL before opening it. Inspect physical QR codes on menus or billboards to see if a genuine one has been covered by a bogus code.

8. Repeat scamming

If you’ve been a victim of fraud there's a greater chance that cybercriminals may try to scam you again. All these scams may be repeated either by the same people who defrauded you the first time or other criminals who have acquired your leaked data.

Victims of investment scams are particularly vulnerable to repeat scamming. Fraudsters may dupe you with an investment scam before returning disguised as an organisation offering to recover your lost funds for a one-time fee.

Contact the police if you think you’ve been the victim of a financial scam. You can also forward suspicious emails to report@phishing.gov.uk and forward suspicious text messages to 7726 for free.

For more information about financial scams visit www.actionfraud.police.uk. If you’re in England or Wales, you can also report fraud or cybercrime to Action Fraud on their website or by calling 0300 123 2040.

That’s where financial advisers come in. It’s their job to break down complex changes and explain how they affect your specific circumstances. They can help you avoid pitfalls and optimise your financial plan to achieve the outcomes you want.

Day-to-day financial advice for everyone

Most people think about getting advice when they have a specific goal or a big financial decision to make, like deciding what to do with a large lump sum. Financial advisers can certainly help with these major events, but they can also give advice on most other aspects of your financial life. That might include:

• Effectively managing your monthly expenses.

• Finding tax-efficient ways to use your money.

• Identifying financial products (like insurance policies) that suit your needs.

• Help you set goals for your financial future.

• Increasing your financial resilience.

• Keeping your assets safe for future generations.

When times get tough, this day-to-day advice can help ensure your long-term goals don’t get overshadowed by short-term pressures.

The value of a tailored approach

No two people are the same, and neither are their financial needs. What works for one person may not be suitable for another, especially in uncertain times, so the tailored approach offered by a financial adviser can be crucial for weathering major changes. They get to know your circumstances and goals, adjusting their advice based on both the market and your specific needs.

It can be especially scary if big changes are looming and you don’t know how they might affect you or your family. A financial adviser can explain the potential impacts of changes in the market or your circumstances, reassure you if you’re worried, and support you in conversations about money with your loved ones. Ultimately, they can use their knowledge of the market and financial products to help you make the right decisions for your money.

Most importantly, a financial adviser can be a trusted confidante. They’re experts in their field who can help you make the most of your finances, but they’re also dedicated to giving you peace of mind. It’s easy to get bogged down in the facts and figures, but financial advice isn’t just about numbers; it’s about giving you security and confidence.

Let's face the future together

Every day we help thousands of people create a secure financial future. Our advisers can help you understand your finances and navigate any uncertainties. Because for us, financial advice isn’t just about creating great outcomes. It’s about helping you face the future with confidence.

The value of investments and any income from them can fall as well as rise and you may not get back the original amount invested.

Approved by The Openwork Partnership on 16/10/2024.

Stamp Duty relief not extended for buyers – what you need to know before rules change

In Labour’s first Budget since taking office, the Chancellor announced her plans to fix the so-called ‘black hole’ in the UK’s public finances and increase investment in public services, setting out £40 billion worth of tax rises.

While changes to stamp duty did form part of her plans, an extension or permanent change to stamp duty relief for movers and first-time buyers was sadly not included. So, what does this mean for those looking to move or buy?

What is stamp duty?

Stamp Duty Land Tax (SDLT) is the tax you pay when you buy a property or piece of land. How much you pay depends on the value of the property, whether it is your first home or if you own any other property. It is also a devolved tax, meaning costs and bandings are slightly different in Scotland and Wales as they are able to set their own rules.

How much is stamp duty now?

Currently, if you buy a property worth less than £250,000, you do not have to pay stamp duty. This was doubled from £125,000 by Liz Truss in the mini-budget. At the same time, the threshold was also raised for first-time buyers, meaning they do not pay stamp duty on purchases of up to £425,000.

This discount is due to end on the 31st March 2025, with many hoping the Chancellor would make this permanent in the Budget, or at the very least extend the relief. This sadly was not the case and the thresholds will now revert back.

What is changing?

With the thresholds returning to £125,000 and to £300,000 for first-time buyers, stamp duty will be charged at 5% on any amount above this. If you buy a house for £250,000 for example in April 2025, you will pay stamp duty on the additional £125,000. For first-timers, it is on the amount above the £300,000 threshold.

According to research by Leeds Building Society, the move will mean that stamp duty will be paid on 93% of properties for sale in England, and will cost house buyers up to £2,500 - according to The Times.

What does this mean for buyers?

For those looking to avoid paying this extra tax, purchases need to be completed before the end of March 2025. While this date may seem far away now, it’s important to remember that transactions can take from 6 weeks to 6 months to complete.

As we have seen previously with other stamp duty deadlines, the rush of buyers all looking to complete can gum up the house buying process and place additional pressures on the wider chain and key government departments, such as HM Land Registry. For those intending to buy, the advice would be to bring forward your moving plans to avoid any delay or disappointment.

For those looking to move or buy, staying on top of changes to the likes of stamp duty is really important, especially as it could help bring down the cost of your overall move. No matter your situation, mortgage and protection advisers are best placed to help you explore the options available and answer any questions you may have about stamp duty.

To book your appointment with a mortgage adviser, please call us on 0191 5166 326.

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.

Approved by The Openwork Partnership on 31/10/24.

We work hard to build a comfortable life for ourselves and our loved ones, but what happens if the unexpected happens and we become too ill to work. How can we ensure that our security today and our financial legacy remains intact for the next generation?

One of the most effective ways to protect our wealth is by incorporating income protection and critical illness cover into our financial planning. These two insurance options provide a safety net during challenging times, offering financial support when we need it most.

Together, these two types of insurance complement each other to offer comprehensive financial protection:

• Income protection provides a proportion of your income, approximately 60-70%, in case of illness or injury, ensuring you have a reliable source of income to sustain your lifestyle and your financial plans.

• Critical illness cover offers a tax-free lump sum payment upon diagnosis of a specified serious illness, providing a financial cushion to take a huge weight off your mind at a difficult time.

By combining income protection and critical illness cover, you can protect your wealth, protect your lifestyle and protect your financial legacy in the face of unexpected health challenges.

• Maintaining your lifestyle
  Both income protection and critical illness cover can help you continue your lifestyle by providing financial support. Whether it's paying the mortgage, paying bills, continuing your pension and investment contributions, these insurance options offer flexibility, security and peace of mind.

• Preserving your savings and investments
  You won't need to dip into your savings, sell investments or reduce your pension contributions to maintain the lifestyle you're accustomed to and are planning for. With income protection in place, you'll have a reliable source of income to cover your expenses during times of illness or injury. This means you can preserve your savings for future goals and emergencies, without the worry of depleting them.

• Protecting your legacy
  By protecting your financial stability, income protection and critical illness cover can ensure that your wealth remains intact for future generations. You can pass on your assets and provide for your loved ones without worrying about unforeseen financial setbacks.

Incorporating income protection and critical illness cover into your financial planning strategy is a proactive step towards protecting your financial legacy for the future. Speak to us to secure your financial well-being for now and for generations to come.

Call Inspire Financial North East on 0191 5166326 or drop them an email on joe.bonallie@ifne.co.uk

Inspire Financial North East is an appointed representative of the Openwork Partnership, a trading style of Openwork Limited, which is authorized and regulated by the Financial Conduct Authority.

If you wish to view the Openwork disclaimer, please click here

Approved by The Openwork Partnership on 02/10/24.

When it comes to planning for retirement, making sure your pension contributions are on-track is important. But life can throw curveballs like illness or injury which could make it tough to keep up with contributions.

Why Income Protection matters
Income protection insurance is designed to pay a proportion of your income, approximately 60-70%, if you are unable to work due to illness or injury. This financial safety net ensures that you can continue to meet your financial obligations, including pension contributions, even if you're unable to earn an income.

Protecting Your Pension Contributions
Here's why income protection is crucial for safeguarding your pension contributions:

• Continuity of Contributions
  If you're unable to work due to illness or injury, income protection ensures that you can continue making contributions to your pension fund. This helps you stay on track to achieve your retirement goals.

• Financial Stability
  Income protection provides you with a steady stream of income if you are too ill to work, ensuring that you can cover your living expenses, including pension contributions. This stability allows you to focus on your recovery without worrying about financial pressures.

• Long-Term Security
  By protecting your ability to contribute to your pension fund, income protection safeguards your long-term financial security. It ensures that you have sufficient funds to support yourself in retirement and enjoy the lifestyle you planned for.

• Peace of Mind
  Knowing that your pension contributions are protected by income protection provides peace of mind, both for you and your loved ones. You can rest assured that your retirement savings are secure, regardless of any unexpected health challenges that may arise.

Talk to us to explore your income protection options and we can tailor a plan that meets your specific needs and circumstances. With income protection in place, you can enjoy peace of mind knowing that your retirement fund is protected against life's uncertainties.

Call Inspire Financial North East on 0191 5166326 or drop them an email on joe.bonallie@ifne.co.uk

Inspire Financial North East is an appointed representative of the Openwork Partnership, a trading style of Openwork Limited, which is authorized and regulated by the Financial Conduct Authority. 

If you wish to view the Openwork disclaimer, please click here

Approved by The Openwork Partnership on 02/10/2024.

Planning for the future involves more than setting money aside with financial investments and savings; it requires consistency and commitment. Yet, life's unexpected events, like illness or injury, can disrupt your investment journey. These curveballs might make it challenging to maintain your planned investment contributions.

That's why it's essential to consider how you can protect your investment contributions, ensuring they remain steady and uninterrupted if the unexpected were to happen.

Income protection is essential for your investments

Income protection insurance can provide a vital safety net. It pays a proportion of your income, approximately 60-70%, in case of illness or injury and can help you uphold your financial commitments, including contributions to your investment portfolio, if you're unable to work.

Here's why income protection is important for protecting your investment contributions:

• Continuous investment growth: Life can throw curveballs and unexpected events like illness or injury can disrupt your ability to earn an income, but your investments don't have to suffer. With income protection, you can keep contributing, maintaining the momentum towards your financial goals.

• Stay financially stable: If you're unable to work due to health issues, income protection kicks in to provide a steady income. This means you can pay your bills and keep investing, even if you're not bringing in your usual income. It keeps your financial boat steady when the waters get choppy.

• Protect your long-term wealth: By making sure you can keep investing; income protection protects your financial future. It means you can keep growing your investments over time, no matter what health challenges come your way. So, you can still aim for that dream retirement, even if life takes a detour, ensuring you can reap the rewards and enjoy financial security in the years to come.

• Peace of mind: Knowing your investments are backed-up by income protection can bring peace of mind. You can focus on growing your money without worrying about what might happen if you can't work for a while. It's like having a safety net for your financial goals.

Talk to us to explore your income protection options and we can tailor a plan that meets your specific needs and circumstances. With income protection in place, you can enjoy peace of mind knowing that your investment options are protected against life's uncertainties.

Call Inspire Financial North East on 0191 5166326 or drop them an email on joe.bonallie@ifne.co.uk

Inspire Financial North East is an appointed representative of the Openwork Partnership, a trading style of Openwork Limited, which is authorized and regulated by the Financial Conduct Authority.

If you wish to view the Openwork disclaimer, please click here

Approved by The Openwork Partnership on 26/07/2024.

“Insure” your child's education with financial protection

Investing in your child's education is a top priority for many parents, but life's unpredictability such as unexpected illness or injury could make it challenging to keep up with financial commitments such as school fees. That's where financial protection such as income protection and critical illness come in - offering a safety net to keep your child's education on track, even if you become too ill to earn an income.

Why financial protection matters

• Financial security amidst uncertainty
  
  Life can be unpredictable, and unexpected events like illness or injury can disrupt your ability to work. Income protection and critical illness can provide peace of mind by ensuring that even if you're unable to work due to health issues, you can still cover your child's school fees. That means one less thing to worry about during tough times.

• Peace of mind for parents
  
  As a parent, ensuring your child's education costs are taken care of can bring immense peace of mind. Income protection and critical illness can offer assurance by guaranteeing that your child's educational needs will be met, even if your income takes a hit due to illness or injury.

• Protect Your Child's Dreams
  
  Every parent wants the best for their child, and that may include giving them access to quality education. Income protection and critical illness can ensure that you and your child's dreams are protected, even if you become too ill to work. With income protection and critical illness, you can rest easy knowing that their educational future is secured.

How to Get Started

Getting started with income protection and critical illness is easier than you might think. Together, we can start by exploring your options and finding a solution that fits your family's needs and budget. With the right plans in place, you can “insure” that your child's education remains top of the class, no matter what life throws your way.

Call Inspire Financial North East on 0191 5166326 or drop them an email on joe.bonallie@ifne.co.uk

Inspire Financial North East is an appointed representative of the Openwork Partnership, a trading style of Openwork Limited, which is authorized and regulated by the Financial Conduct Authority.

If you wish to view the Openwork disclaimer, please click here

Approved by The Openwork Partnership on 02/10/2024.

What is the average cost of university?

The annual cost of an undergraduate degree is £9,250 for most students in the UK. However, in England this figure is due to increase to £9,535 as of September 2025.

As well as a tuition fee loan, students can get a maintenance loan to help cover living costs like accommodation, travel, food, and books. The maximum maintenance loan is approximately £10,227 a year. Although, this will be increasing to £10,544 in September 2025. This will more than likely be a significant shortfall that parents will need to cover. However, the exact cost of university can vary depending on where your child studies and the course they choose.

It’s important to consider the following when saving for your child’s university education.

Start early

How you save for your child’s university costs will depend on how long you’ve got before the money will be needed. For example, if your child is due to start university in the next few years, sticking with cash savings is likely to be your best option so the money is readily available and there’s no investment risk.

Consider Investing

Investing some of your savings can help you achieve higher returns, but it also comes with higher risks. It's important to understand what investment options you have before making any decisions. These options include:

• Stocks and Shares ISA – A tax-efficient investment account that can help make your money work harder. Unlike a cash ISA, a stocks and shares ISA gives your money more potential to grow by investing it in a range of places like shares, funds, investment trusts and bonds, instead of keeping it in cash.
• Junior ISA – Junior ISAs have a tax-free allowance of £9,000 per tax year, which can be invested in cash, stocks and shares, or a combination of both. The funds in a Junior ISA are locked in until the child reaches the age of 18, at which point the account will convert to a standard adult ISA.

Encourage your child to save

Teaching your child about the importance of saving and encouraging them to save for their own education can help reduce the financial burden on you. Encourage them to take on part-time work and save some of their earnings towards their university education. They can use the following to help them save:

• Regular Savings Accounts - Many banks and building societies offer savings accounts for you to set up on a child’s behalf. Regular savings accounts are designed to encourage children to save an amount every month, and often run for a set amount of time.
• Instant Access Savings Account – Instant access savings accounts allows you or your child to withdraw or deposit money at any time.

Scholarships, Grants and Bursaries

Each university offers their own scholarship, grant and bursary programmes to help students pay for their education. Different universities offer different financial aids, so it is worth doing your research beforehand. Your child may be eligible for financial support based on academic or sporting achievements.

Plan Ahead

Creating a financial plan and setting goals can help you stay on track and make saving for your child's university education more achievable. Work out how much you need to save, how much you can realistically contribute each month, and how long it will take to reach your goal.

The value of investments and any income from them can fall as well as rise and you may not get back the original amount invested.

HM Revenue and Customs practice and the law relating to taxation are complex and subject to individual circumstances and changes which cannot be foreseen.

Approved by The Openwork Partnership on 22/11/2024