Learn more about mortgages

Unlocking the value in your home

Mon, 08 Nov 2021 20:50:09 GMT

Unlocking the value in your home

The number of people using equity release schemes fell last year as older homeowners grew more cautious.

Older homeowners seemed to be more reluctant to release cash from their homes in 2020, according to the Equity Release Council. Data from the trade body shows drawdowns from lifetime mortgages fell by 21% last year and 10% fewer plans were agreed than in 2019.

This drop suggests the coronavirus pandemic affected the equity release market in 2020, with activity slipping to a four-year low between April and June. Yet the end of the year was a different story – a backlog of cases meant it was unusually busy, with 11,566 new equity release plans agreed between October and December.

What is equity release?

Equity release enables homeowners who are aged 55 and over to access some of the money tied up in their homes. You can take the money as a lump sum or in several smaller amounts. Many people choose this option to supplement their retirement income, make home improvements or help children or grandchildren get onto the property ladder.

The most common way to release equity from your home is through a lifetime mortgage, which allows you to take out a loan secured on your property, provided it’s your main residence. You can ring-fence some of the property value as inheritance for your family and you can choose to make repayments or let the interest roll up. The mortgage amount, including any interest, is paid back when you die or move into long-term care.

Alternatively, you can take out a home reversion plan, which enables you to sell all or part of your home for a lump sum or regular payments. You can continue living there rent-free until you die, but you’ll have to pay to maintain and insure it. You can ring-fence some of the property for later use. At the end of the plan, the property is sold, and the proceeds are shared according to the remaining proportions of ownership.

Is equity release falling out of favour?

In 2020, £3.89 billion of equity was released from property, compared with £3.92 billion in 2019 and £3.94 billion in 2018, according to the Equity Release Council. These figures suggest people are biding their time before unlocking wealth from their homes, according to David Burrowes, the trade body’s chairman.

Yet interest rates for lifetime mortgages are now falling, which could encourage people to take the next step. The average equity release interest rate fell to around 4% during the last three months of 2020, with the lowest rates now at around 2.3% This rate is less than many of those available on 10-year fixed-rate mortgages, but higher than a lot of products with shorter fixed periods.

Is equity release right for you?

Deciding to release funds from your home isn’t a decision to take lightly. While equity release means you have money to spend now instead of leaving it tied up in your property, it can be a complicated process. Remember that equity release often doesn’t pay you the full market value for your home and it will also reduce the amount of inheritance your loved ones could receive. It’s important to talk to a financial adviser who can help you decide whether the process is appropriate for you.

A Lifetime mortgage is a loan secured against your home. A Lifetime mortgage may affect your entitlement to state benefits, and it will reduce the value of your estate.

Get the best out of your BTL mortgage

Mon, 08 Nov 2021 20:11:08 GMT

Get the best out of your BTL mortgage

Many fixed mortgage deals will be approaching the end of their term this October, so it’s a good idea to review your buy-to-let mortgage.

With interest rates still at low levels and demand for rental properties increasing around the country, investing in a buy-to-let (BTL) is a popular choice for many.

Buy to let basics

A BTL mortgage is a specific type of product for those who want to buy a property with the intention of renting it. Because of this, there are different terms and rules around a BTL mortgage (compared to a regular mortgage for a property the buyer intends to live in.)

With a BTL mortgage, the anticipated rental income is taken into account when the lender calculates how much you can borrow.
A BTL mortgage could suit investors with enough equity to put down a deposit of at least 20% of the value of the property (but some lenders could require up to 40%.)
Your credit record is closely scrutinised with a BTL mortgage, as with a regular mortgage application.
Interest rates for BTL mortgages are usually higher than a regular mortgage.

Things to remember

If you have a BTL mortgage already and its fixed interest rate term is coming to an end, you may be thinking about switching products or providers to gain a better deal.

Here are some other things to look out for:

Examine all of your options into the type of product to suit your investment going forward. A financial adviser is best placed to help you with this.
Don’t forget to research any fees and charges around changing your product too, as these could be higher than you expect.
When changing products, you may be asked about your property’s rental income history in order to assure any new lenders that you are able to keep up with mortgage payments.
Show that you have sufficient savings to cover any gaps in rental periods when your property could be unoccupied.
For your own peace of mind, having a cushion of savings available to cover any essential repairs is important.

If you are looking to remortgage your BTL property or are thinking about transferring your mortgage to a different provider, our advisers can help you find a product that best suits you.

Some buy to let mortgages are not regulated by the Financial Conduct Authority.

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

Turning ‘generation rent’ into ‘generation buy’

Fri, 28 May 2021 20:20:10 GMT

Turning ‘generation rent’ into ‘generation buy’ - New 95% mortgage scheme to help first-time buyers

Lenders are now offering a government-backed 95% mortgage scheme to help more first-time buyers onto the property ladder.

The government is hoping to turn ‘generation rent’ into ‘generation buy’ with the help of a 5% mortgage deposit scheme launched on 19 April.

Following the outbreak of the coronavirus pandemic, many lenders withdrew low-deposit mortgages. In just under a year, the number of 95% mortgages available to first-time buyers fell from 391 to just three. It’s hoped the scheme will give lenders the confidence to offer low-deposit mortgages again by taking on some of the risks involved.

What is the 5% deposit scheme?

First announced in this year’s Budget, the programme offers first-time buyers or current homeowners the chance to secure a 95% loan-to-value mortgage on homes worth up to £600,000. It’s available on both new-build and existing properties.

The government hopes the scheme will provide an affordable route to home ownership by helping people who may be renting but are unable to save for a deposit.

Buyers will still only be able to borrow in proportion to their income, typically a multiple of 4.5. As a result, the scheme will particularly benefit buyers in lower-value housing markets such as northern England and Scotland.

There are also a number of lenders offering 95% loan to value mortgages without using the government guarantee. With an ever increasing range of options to consider, speak to your financial adviser about the current range of 95% loan to value mortgages.

What’s the catch?

There are a few conditions that you’ll have to meet under the scheme. You’ll need to:

Buy a property to live in – second homes and buy-to-let properties aren’t eligible.
Apply for a repayment (not interest-only) mortgage
Pass standard affordability checks, including a loan-to-income test and credit score assessment.

It’s worth considering the fact that the higher proportion of the property price you borrow, the higher the amount of interest you’ll repay on your mortgage. So it might be good to take a step back and figure out if you can save for a little longer and borrow less.

Speak to your financial adviser about how the 5% mortgage deposit scheme could help you get on the property ladder.

What does loan to value mean?

Loan to value is the percentage of the property value you’re loaned as a mortgage – in other words, the proportion you're borrowing. For example, if you have a 95% mortgage on a house worth £200,000, you would put down £10,01179012242%) of your own money as a deposit and borrow the rest (£190,000).

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

Protect your peace of mind when moving home

Sat, 01 May 2021 13:20:43 GMT

How to protect your family and mortgage to give you peace of mind if the worst was to happen

Moving home can be a hectic and exciting time, but don’t forget about protection – taking out the appropriate policies can save you a lot of stress in the long term.

If you’ve just moved home or are about to, it probably feels like you’ve been caught up in a bit of a whirlwind over the past few months. With searching for a property during a pandemic, making the move before the stamp duty holiday ends and potentially getting caught up in the resulting conveyancing backlog, protection policies are probably not top of your priority list.

Yet it’s important to take the necessary precautions to ensure your new home and possessions are looked after – now more than ever. Here are some of the main types of protection you should be thinking about.

Mortgage protection

If you’re unable to work due to illness or injury or because you’ve lost your job, mortgage payment protection will cover the cost of your mortgage each month. These policies usually last for a year or until you return to work – whichever is soonest.

You can pick how much you want your policy to pay out each month, and this can include a buffer for other expenses, such as bills. It’s important to bear in mind though that providers usually set monthly limits of between £1,500 and £2,000. You won’t always be able to claim straight away, and there’s usually a waiting period of one or two months. The cost of mortgage protection will depend on:

your salary;
the size of your mortgage repayments;
the type of policy you choose; and
how soon you want to be covered.

Income protection

Income protection provides you with a regular income if you are unable to work due to illness or injury. There’s usually a minimum wait of four weeks before you can start receiving payments.

Buildings insurance

If you’ve got a mortgage, you’re likely to have buildings insurance to cover the cost of repairing damage or rebuilding the structure of your home if it’s damaged. But have you looked carefully through the policy and made sure that it definitely covers everything you need it to? Once you’ve moved, you may realise that your new home has a slightly more complex structure than you first realised, and it’s important to make sure your buildings insurance takes this into account. If you’re lucky enough to not have a mortgage, it’s still a sensible idea to invest in this type of insurance for peace of mind.

Contents insurance

If you’ve bought new furniture and gadgets for your home, you might need to review your contents insurance. This type of insurance covers the cost of replacing possessions in your home if they’re stolen, destroyed or damaged. It’s a good idea to double check which of your items are covered so that you’re not caught out if something does go wrong.

Act now

When you’re caught up in the excitement of moving, thinking about protection might be the last thing on your mind. But remember that your circumstances can change quickly and it’s important to make sure you’re prepared now in case things don’t go to plan in the future. For more information about protection and to talk about whether your current policies are right for your situation, speak to your financial adviser today.

Time is running out to apply for a payment holiday

Tue, 16 Mar 2021 14:29:09 GMT

Can you get a payment holiday for your commitments?

If you’re struggling to pay your bills due to the coronavirus crisis, the deadline to apply for a payment holiday is fast approaching

The coronavirus crisis has fundamentally changed the way we live, with lockdowns shutting down parts of the economy and forcing many businesses to close. Sadly many people have lost their jobs or been put on furlough, leaving them with less money to pay their bills.

If your household income has taken a hit due to the pandemic, it’s important to know you have options. You can still apply for a payment holiday from lenders but you’ll need to hurry – the deadline is Wednesday 31 March 2021 .

Payment holidays are available for up to six months. Generally, providers will offer you a three-month payment freeze to start with, after which you can resume payments or ask to extend until you reach the six-month limit. If you still need help after a six-month payment holiday, your lenders should work with you to offer you additional support.

Payment holidays are available on a number of borrowing options and finance agreements, including:

mortgages
personal loans and credit cards
insurance
car finance

Mortgages

Many people have struggled to meet their mortgage repayments during the pandemic, with 1.8 million payment holidays taken at the height of the first UK lockdown. If you want to apply, remember you’ll still need to pay interest. If you can afford it, take a partial payment holiday so less interest builds up.

If you’ve already taken a six-month payment holiday, your mortgage provider may offer:

another payment deferral
another period of reduced payments
an extension to your mortgage term
a change to your mortgage type

Personal loans and credit cards

During the first lockdown, more than 1.7 million loans, credit cards and store cards were on payment holidays in the UK. While this number has since fallen, many people still need support. If you apply for a payment holiday on your loan or credit card, bear in mind that interest will continue to be charged.

If you find yourself in a similar situation after six months, your lender will need to provide extra support and may offer:

another payment deferral
another period of reduced payments
to waive or reduce interest
to agree a repayment plan
to refinance your credit agreement

Insurance

Before you apply for a payment holiday on your insurance premiums, ask your provider to review your policy and see if there are any other more suitable and affordable options. If you do take a payment holiday and are still facing financial difficulties after six months, your insurer may offer to do the following:

review your policy
another payment referral
another period of reduced payments
waive or reduce interest
agree a repayment plan

Car finance

Are you finding it a challenge to make your car, van or motorbike finance payments during the pandemic? If so, you’ll be able to take a payment holiday, but remember that interest will continue to be charged. Consider taking a partial payment holiday if you can to avoid paying extra interest. If you need more support after six months, your lender may offer to do the following:

another payment deferral
another period of reduced payments
waive or reduce interest
agree a repayment plan
refinance your deal

If you still need support from lenders after six months, bear in mind that this may affect your credit report.

Hopefully the demand for payment holidays should keep falling as vaccines continue to be administered and the world gradually returns to normal, but it’s good to know that help is available now if you need it.

We can help you explore the available options so get in touch.

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

Get yourself mortgage fit for 2021

Mon, 25 Jan 2021 13:45:17 GMT

How much mortgage can you get?

Estimates suggest that well over one million borrowers have lapsed onto their lender’s default standard variable rate (SVR). Has this happened to you? If so, now could be the perfect time to consider a remortgage, to get your finances in good shape for the year ahead

Do you know your mortgage rate?

If your current tracker, fixed rate, or discount mortgage deal has ended, you are likely to be switched onto your lender’s SVR and could be paying way over the odds, perhaps without even realising. It has been found that borrowers on an SVR could save an average of £1,602 a year, that’s over £133 every month!

Sound familiar?

Even with a potentially sizeable saving to be made by remortgaging, it’s surprising how many people just stick with their SVR. Why is that?

“I didn’t realise my mortgage deal had ended ” - your lender should have let you know, but always remember to make a note of the end date of a new mortgage deal so you don’t forget.

“ My lender contacted me, but I didn’t understand ”- mortgage jargon can be confusing, but it pays to check out important mortgage correspondence.

“It’s too much hard work to find a new deal”- it’s true that the mortgage market can be bewildering as there are so many deals to choose from. That’s where we can get involved – to help find you a suitable deal. You can then choose what to do with any savings made!

T ime to remortgage?

It’s important to regularly review your mortgage. Particularly now, when mortgage rates are at record low levels, it makes sense to consider your options to see if you can get a more cost-effective mortgage deal

Are you still covered?

If you’re thinking of changing your mortgage, remember to review your protection policies at the same time - especially if you don’t already have cover in place, or your circumstances have changed since you last reviewed your cover.

To discuss your remortgaging options and to see if you could save money, please get in touch. Rest assured we are here to help if you have any questions about your mortgage or your protection requirements.

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

Which survey should you get for your new home

Fri, 18 Dec 2020 21:59:52 GMT

Do I really need a survey? Well, the short answer is yes.

Contrary to costs such as legal fees, estate agency fees or Stamp Duty, having your new home surveyed isn’t actually compulsory. However, with a property being the most expensive thing most of us will ever buy, the price of not having it checked by a surveyor could be devastating.

If you buy a property for the seller’s asking price and later find it has serious defects, it’s too late to back out of the purchase or renegotiate a price with your seller. You’re also likely to find yourself paying out to rectify the fault – and probably a lot more than you would have paid for a survey in the first place!

A survey to suit your needs

There isn’t just one type of survey available – you can get different ones that range in cost, according to the kind of property you’re buying:

Condition report

What is it: a basic overview of the property that only highlights the most significant defects; it doesn’t go into detail.

Suitable for: those buying a relatively new homes in good condition.

Homebuyer report

What is it: a more comprehensive survey that highlights obvious defects such as damp or subsidence. It will include advice on any necessary repairs or maintenance and may also include a valuation or an estimation of rebuild costs. However, it’s not an intrusive survey, meaning the surveyor will only be picking up on visible issues.

Suitable for: those buying a standard property in a reasonable condition.

Building survey

What is it: the most comprehensive type of survey, which looks at the property’s structure and condition, lists any defects and advises on repair and maintenance work. Unlike a homebuyer report, this is a much more hands-on survey, so the surveyor will do things like going up in the loft or looking under floorboards or behind sofas.

Suitable for: older or listed buildings, or properties that are in poor condition or have an unusual design or structure.

But what if I’m buying a new build?

Even though it’s tempting not to have a new build property surveyed, there can still be issues with new build homes that could be costly to repair. If you’re buying a new build, you’ll need a slightly different survey called a snagging survey. It identifies any defects with new build homes, from cosmetic issues to structural problems, which the developer will then have to fix within the two-year warranty period.

We can help

As a member of Openwork, we can refer you to our specialist Surveying Service, which offers access to a large network of approved surveyors across the UK. For your peace of mind, get in touch.

Surveying is not regulated by the Financial Conduct Authority.

Are you on a standard variable rate, now could be a great time to review this

Sun, 13 Dec 2020 22:08:03 GMT

Get to know your SVR

As a nation, we aren’t great with our financial acronyms and terminology. Life is busy and our heads are often full of important things to get done to make it through the week, without having to worry whether we know our LTV from our ERC!

You’re certainly not alone if you’re feeling financially flustered. Recent research has found that more than a fifth of British adults are confused by everyday financial terms.

Worth taking the time to review your mortgage

When you do find some time to settle down on the sofa with a cuppa or a glass of wine in hand, if you are a mortgage holder, it could be a good time to become familiar with one important acronym worth knowing - SVR or Standard Variable Rate.

You may find that you are automatically switched to an SVR when your existing mortgage deal, whether that be a tracker, fixed rate or discounted mortgage, comes to an end. Unfortunately, this could mean you’re paying over the odds, perhaps without even realising.

SVR rarely offer the most competitive rates and the SVR interest rate is usually linked to a percentage above the bank’s base rate, meaning the rate can rise and fall, which makes you more vulnerable to potential interest rate rises in the future.

Take advantage of record low mortgage rates

After two Bank of England base rate cuts earlier this year, mortgage rates have remained at record low levels, so it makes sense to see if you can save money by switching to a better rate.

Good advice that cuts through the jargon

In a complex environment, getting good, clear advice can really pay – so get in touch and we’ll guide you through the process, without using jargon.

Don’t worry if you’re currently locked into a mortgage deal that has exit charges, you don’t have to wait until it has come to an end as your adviser can help you find a deal three or six months before your lock-in period finishes.

In case you were wondering....

LTV - Loan-to-value

ERC - Early repayment charge

SVR - Standard variable rate

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

How do I prove my income for a mortgage?

Sun, 13 Dec 2020 17:47:10 GMT

What documents do I need to prove my income for a mortgage?

With Covid-19 rules changing almost daily, extensions to furloughs and local and national lockdowns many are facing money worries this winter. If you’re trying to get a mortgage and want to push your property transaction through before the Stamp Duty holiday ends, how do you prove your income – especially if it has temporarily been reduced due to furlough or short-time work?

For those who remain on furlough or have otherwise seen their income temporarily reduce, providing proof of income to mortgage lenders now presents a serious challenge. Many mortgage providers have tightened their lending criteria, especially for furloughed workers, amid concerns of future job losses.

CASE STUDIES

An employed restaurant manager

Sally works as a restaurant manager and is looking to buy a house with her partner, Nathan. Since July, Sally’s employer has brought her back to work on part-time hours and furloughed her for the remainder. Nathan is employed at a marketing agency and is working remotely on full pay. As a result, their prospective lender has asked for the following as proof of income:

— Three months’ payslips and two years’ P60s (these are standard requirements, although some lenders may accept less)

— Three months’ bank account statements

— For Sally, the lender has also asked for a reference from her employer to confirm the date she will be returning to full-time work.

Sally does have three months’ worth of payslips to give to her lender, although these show her reduced furloughed salary, rather than her full salary. As a result, it is likely the lender will use this figure to calculate affordability for her.

A self-employed graphic designer

Dan works for himself as a graphic designer. He has seen his income dip significantly since the onset of the pandemic, with clients delaying or cancelling many projects. After confirming to HMRC that his business had been adversely affected by the crisis, he applied for and received a grant under the Self-Employed Income Support Scheme (SEISS).

Just before the pandemic began, Dan had been looking to buy a flat, but getting a mortgage has since become a lot more difficult. His prospective lender is now asking for:

— Three years’ full business accounts, signed off by a Chartered accountant

— Three years’ SA302 year-end tax calculations and corresponding tax year overview from HMRC

— Most recent three months’ bank statements.

In order to make it more likely that his mortgage application will be accepted, Dan is also hoping to approach some of his clients to ask them for references, stating the work they are likely to have for him over the next 12 months.

Assessing your options

Without a doubt, it is more challenging for some people to get a mortgage at present, given the increasingly stringent affordability requirements that many lenders are introducing – so it’s likely you’ll be wanting a little extra help! Whether you are buying your first home, taking a step up the property ladder or looking to downsize, don’t worry, we’re here for you.

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

Preparing emotionally for retirement

Sun, 13 Dec 2020 14:59:57 GMT

What will you do in retirement?

You’ve retired from work, you’ve waved a cheerful goodbye to your colleagues and you’re ready for the rest and relaxation you so rightly deserve. It’s exciting! For a couple of weeks. Then the doubt sets in.

What will you do with your life, you might find yourself asking? How will you fill the long daytime hours? How will you manage without the comfort of your routine? Where will you find your purpose, if not from work?

Planning – it’s not just financial

Whenever we talk about retirement, it’s all about the pension. If you have enough in your pension pot when you retire, you’re all set, right?

Many retirees simply aren’t prepared for how significantly their life will change, and many, while not missing work per se, will certainly miss the sense of purpose it offered. And, with life expectancy on the rise, it’s daunting to contemplate the next 20 to 30 years without any of the structure around which you’re used to organising your life.

‘Reinvent’ yourself

A European study funded by the Erasmus program argues that we should start preparing for retirement as early as 50. Suddenly stopping work after spending a lifetime focused on your career, it argues, can be the catalyst for depression and other mental health issues. That’s why we need to ‘reinvent’ ourselves in our 50s by discovering new passions and interests, improving our mental and physical health, and generally forging a life for ourselves outside of work in the run-up to retirement.

So, what steps can you take to prepare for a happy retirement?

Happy, healthy, whole

Retired or not, you’ll still want and need similar things in life: a sense of purpose, social interaction and activities that interest and stimulate you. With this in mind, here are our tips for preparing for a fulfilling retirement:

Wind down in stages – rather than going from full-time to retired overnight, why not try reducing your hours first, giving you the fulfilment of work combined with the free time to pursue other interests?

Exercise your body – and your mind – experts have long extolled the virtues of exercise for our physical and mental health. Getting into the habit now could really help your emotional state when you retire.

Be a social butterfly – in addition to solitary hobbies and interests, joining groups and clubs can help you develop social networks outside of the workplace.

Get a furry friend – as well as keeping you company indoors, a pet (such as a dog) will give you an incentive to get outside in the fresh air.

Don’t neglect your pension – while preparing emotionally is a big part of retirement, the money still has to be there to allow you to live life to the fullest.

Would equity release be right for you? A way of supplementing your retirement income using the value tied up in your home, although not right for everyone, we can help you explore your options.

We do the finances, you do the rest

That’s why we’re here! We can help you sort out the financial stuff to provide you with the resources to spend your retirement free from money worries, so you can concentrate on enjoying your later years. Why not give us a call?

You will need to take legal advice before releasing equity from your home as Lifetime Mortgages and Home Reversion plans are not right for everyone. This is a referral service.

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

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

Cohabiting couples should make a Will

Sun, 13 Dec 2020 14:05:04 GMT

Should I get a Will?

When Tom and Pete bought their first property together, things couldn’t have been going better. They both had good jobs, were pulling in decent salaries and were excited about spending the rest of their lives together.

They chatted about making a Will a few times, but somehow life always got in the way. Until one day, 10 years later, Pete got a call that would change his life forever. Knocked down by a car while crossing the road, Tom had tragically passed away.

The intestacy trap

Grieving for the loss of his partner, Pete then found out that, due to the UK’s intestacy laws, he wasn’t entitled to inherit any of Tom’s property, financial assets or belongings, unless they were jointly owned. Despite Pete knowing that Tom had loved him and would want him to inherit, the absence of a Will meant that none of that mattered.

Thankfully, Pete and Tom had owned their property as joint tenants, meaning Tom’s share automatically passed to Pete according to the rights of survivorship. However, without children or any surviving parents or siblings, the remainder of Tom’s assets ended up being passed on to a distant uncle with whom Tom didn’t have any contact.

Now, Pete faces a battle to pay his bills and mortgages without Tom’s savings and investments, life insurance policy and even the car that Tom owned but they both used.

How a Will could have helped

Had Tom got around to writing a Will, he would have been able to specify exactly who would receive what from his estate, including his savings, investments, car and other belongings. In addition to writing a Will, Tom could have made his wishes known, by nominating beneficiaries to his pension and writing life policies under trust. By taking these steps, Pete would have been given the extra financial support he now so desperately needs.

As it stands, Pete still has the legal right to claim against Tom’s estate as they had been cohabiting for more than two years - but this will be a costly and time-consuming process and a positive outcome isn’t guaranteed. If Tom had a Will, this added stress could have been avoided.

Don't put it off

With cohabiting couple families growing faster than married couple and lone parent families, it’s clear that more people are choosing not to get married, just like Tom and Pete. However, there’s a catch. Cohabiting couples have none of the legal protections afforded by marriage, meaning that a Will is one way to ensure your partner inherits according to your wishes. Despite this, research shows three in five UK adults do not have one.

Let us help

Don’t let what happened to Pete, happen to you. Speak to a solicitor or Will writing expert to make sure your loved ones are protected.

The Will writing service promoted here 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 is not regulated by the Financial Conduct Authority

Is your deposit enough to buy a new home?

Sun, 13 Dec 2020 12:24:50 GMT

How much can you borrow?

When James and Allison first started renting together, they were determined it would be a temporary move.

Fresh out of university, they turned their attention immediately to homeownership, putting away as much of their money as their rent and living costs would allow.

Allison had always been careful with my money and imagined with both of them saving they would be able to get a foot on the property ladder sooner rather than later.

Along came COVID

Fast forward six years with a budget of £250,000 and a carefully scrimped and saved £25,000 deposit and the couple finally started house hunting.

Then along came 2020. A global pandemic, the closure of the property market, a failing economy and widespread job losses. James, a hotel manager, was placed on furlough. Allison was fortunately able to work from home. With government support and the hope that the situation would be temporary, the couple remained optimistic.

Mortgage lenders took a more cautious approach, however. In the months that followed, news that lenders were pulling hundreds of mortgage products for buyers with 5% and 10% deposits was widely reported in the media.

T he struggle to find a mortgage

Just before lockdown hit, James and Allison had managed to secure a mortgage in principle with a 10% deposit. Now, like many others, they faced being denied a mortgage despite having an agreement in principle. Through no fault of their own, they found themselves thousands short on their deposit

Difficult, but not impossible

Reporting shows first-time buyers are set to lose their ‘share-of-sales stronghold’ by the end of the year, James and Allison are far from alone in their experiences. And, while 56% of first-time buyers under the age of 35 have received financial assistance from the Bank of Mum and Dad, not everyone is in the same position.

Getting a mortgage may still be possible for the many despite the difficulties in the market. That’s where we come in. We can help people like James and Allison to get a grip on their finances and find a mortgage that suits their circumstances. We’re here to consider all the options available to you.

Latest news

Boris Johnson recently announced his intention to develop plans to allow more low deposit mortgages to be made available. Ministers are scoping plans to allow more mortgages to be offered with a 5% deposit. We will keep you up to date with developments.

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

How much stamp duty do you need to pay for your new home

Mon, 07 Dec 2020 22:10:24 GMT

Stamp Duty holiday has positive impact

The COVID-19 pandemic has had a significant impact on the property market, but latest figures indicate there are positive signs of growth following the introduction of the Stamp Duty holiday.

Property searches rise

Coinciding with the Stamp Duty cut July was the busiest month so far this year for mortgage searches. The largest rise occurred in the £500,000 - £1m region, with Stamp Duty savings making these properties more accessible. Remortgage levels have remained consistent with pre-lockdown levels and purchase levels have quadrupled. Searches from first-time buyers are also up.

House prices jump

On another positive note, house prices rose by 7.5% year-on-year in October bringing the average price to £250,457, according to data from Halifax.

Pent-up demand and a low supply of available homes, plus support from the Stamp Duty holiday, has helped to exert upwards pressure on house prices. This, along with a significant jump in mortgage approvals and signs that confidence is growing, suggests the immediate future for the housing market is looking brighter. However, Halifax also warned that looking further ahead, there is still much uncertainty around the lasting impact of the pandemic, particularly as government support measures come to an end.

Increasing interest from overseas

The Stamp Duty cut has also led to a surge in interest in the UK property market from overseas. In addition, many overseas buyers are looking to purchase property before the introduction of an extra 2% Stamp Duty surcharge for non-UK buyers in April 2021.

Throughout July, highly searched terms by mortgage advisers included ‘visas’, ‘expats not in the UK’ and ‘foreign income’. One in 22 residential searches related to a query for an applicant currently on a visa or an expat not based in the UK.

How the Stamp Duty holiday works

On 8 July, the threshold at which Stamp Duty became payable on properties was increased from £125,000 to £500,000. This means almost nine in 10 buyers will pay no Stamp Duty before the holiday ends on 31 March 2021.

For those purchasing properties the rates are as follows:

0% - £0 to £500,000

5% - The part from £500,001 to £925,000

10% - The part from £925,001 to £1.5m

12% - Anything above £1.5m

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

How much Business Protection should you get

Mon, 07 Dec 2020 21:56:45 GMT

Business Protection. You need it more than ever

Prior to lockdown, over half (51%) of businesses had some form of debt, owing an average of £176,000 each – and yet just 20% used an insurance policy as security.

To add to this already significant issue, bank lending to struggling businesses via government-backed COVID-19 loan schemes reached nearly £52bn as of mid-August – meaning that UK businesses are more heavily indebted than ever.

Business loan protection

Business loan protection provides funds to repay a business loan, commercial mortgage, or a director’s loan if one of the company’s owners were to die or be diagnosed with a serious or terminal illness. Essentially, this type of insurance comprises a life cover or critical illness policy taken out on the life of the business owner or key person, with the payout ensuring the business can pay its debts should the worst happen.

Most lenders require some form of security when lending to businesses; often, business owners will use their own personal wealth (e.g. their property) as security. So, in addition to their business suffering if they were to unexpectedly die or become seriously ill, their family could face serious financial hardship or even lose their home.

Director’s loans

It is common for businesses to have a director’s loan account, through which the director can:

— Lend money to the business to fund initial start-up costs or see it through cash flow pinch

— Borrow money from the company that is not classed as salary, dividends or expense repayments.

According to research from Legal & General, the average director’s loan totals £169,000 – and yet well over a quarter (28%) of businesses are unaware that director’s loans must be repaid upon death. This means the business could collapse if there is no insurance policy in place as

Loss of a key person

A staggering 52% of businesses say they would cease trading within a year if they lost a key person. Losing a key member of staff can have a huge impact on the business in terms of lost profits, poor cashflow and, potentially, a change in its creditors’ attitudes to outstanding debts. That’s where business loan protection comes in – it can help alleviate financial pressure by paying off the company’s debts and enabling the business to get back on track.

As with all insurance policies, conditions and exclusions will apply

Home insurance - Buildings vs. contents cover

Mon, 07 Dec 2020 14:18:23 GMT

Do I need Buildings insurance?

Your home is likely to be the most expensive purchase you’ll ever make so it’s important to insure it properly. Having the right type of cover in place means your property will be protected for a range of incidents, from burglary to a burst pipe.

Buildings insurance explained

Buildings insurance covers the permanent fixtures and fittings of a property, such as baths and toilets, fitted kitchens, and even decorations such as wallpaper. It may also provide cover for your garage, greenhouse or garden shed, but policies vary so it’s important to check the small print to be sure.

Although buildings insurance is not a legal requirement, if you own your home, most mortgage lenders will insist you have cover in place, so it should be considered essential.

Contents insurance explained

Contents insurance is designed to protect your belongings against loss or damage. As a general rule, it will cover anything that can be taken with you if you move home, such as kitchen appliances, bedding, furniture and valuables.

It can be difficult to assess exactly how much contents insurance you need, but a simple way to do so is to go through each room and add up everything you would need to replace in the event of a claim.

There is no legal requirement to have contents insurance but is certainly worth buying to ensure you are not left out of pocket if you lose or damage any of your personal possessions. It can often be combined with buildings insurance.

Cover for renters

If you rent your home, it will be your landlord’s responsibility to arrange buildings insurance for the property, so you will not need to take out your own policy. However, if you want to ensure your belongings are protected, contents insurance can be a sensible purchase.

Check for exclusions

As with any insurance policy, it is important to check for any exclusions that may apply. These will vary depending on the insurer but can include general wear and tear or damage that happens gradually over time, such as damp or rot.

Contents insurance will usually have a single item limit which means any belongings worth more than this, such as musical instruments or jewellery, may need to be named separately on the policy. You may also have to pay extra to add personal possessions cover to your policy to ensure your belongings are protected when they are taken outside the home.

Mortgage Payment Update November 2020

Wed, 18 Nov 2020 20:09:00 GMT

Can you take a payment holiday on your mortgage?

On 17 November the FCA confirmed guidance for homeowners struggling financially due to coronavirus. The mortgage payment holidays scheme, first announced in March and then extended in May, has been further extended until 31 March 2021.

How does it work?

Those who have not yet had a payment holiday will be eligible for payment holidays of 6 months in total.

Those who currently have a payment holiday will be eligible to top up to 6 months in total.

Those who have previously had payment deferrals of less than 6 months will be able to top up, as long as total deferrals don’t exceed 6 months. This includes those receiving tailored support and those who are behind on payments.

Borrowers who have already had 6 months of payment holiday will not be eligible for a further payment holiday. Firms will provide tailored support appropriate to their circumstances. This may include the option to defer further payments.

The FCA has also confirmed that no one should have their home repossessed without their agreement until after 31 January 2021.

Interest only

Borrowers with an interest-only (or part-and-part mortgages) that matures between 20 March 2020 and 31 October 2021 can delay the repayment of capital until 31 October 2021, providing they continue to make interest payments.

Tailored Support

Some lenders have offered tailored support to borrowers. Lenders will discuss your individual circumstances to support to customers in a way that reflects the uncertainties and challenges many customers will be experiencing due to coronavirus.

Who to talk to

You should try to maintain your mortgage payments if you can afford to do so. If you want to apply for or extend an existing payment holiday, it is crucial that you speak to your lender. You must not stop making mortgage payments without speaking to your lender first as this could adversely affect your credit.

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

How to get yourself mortgage ready to own your new home

Tue, 27 Oct 2020 20:08:59 GMT

How easy is it to get a mortgage?

Buying a home takes careful preparation and planning. As well as finding a property you like, you need to get your finances in good order before lenders review them and assess your ability to make repayments on your loan.

Save up

During the recent lockdown, many lenders pulled their ‘high loan-to-value (LTV)’ products which typically only require a deposit of 5% or 10% (often first-time buyers) to take out a mortgage. The good news is that lenders are returning to the high LTV market, but you may need to act quickly to secure the deals. This is where we can help as we have our finger on the pulse.

Save as much as you can towards a deposit. Open a dedicated savings or investment account and make sure it’s paying a competitive interest rate.

Check your credit score

Even if you’re remortgaging or moving up the housing ladder your credit history will be important. A good credit rating can help you secure a better mortgage deal, with a lower interest rate.

The general rule is the higher the score the better, and the more likely you’ll be accepted for a mortgage or other credit. If you’re looking to take out a mortgage or remortgage, check your credit score regularly. You can usually get a simple overview for free and it pays to check with several different sources. Credit Karma, Equifax, clear Score and Experian all offer a service to help you understand your rating.

If you find it is lower than expected there are ways to improve it:

Pay more than your minimum payments on credit cards
Bring your overdraft down
Close unused credit accounts
Register for the electoral roll

Budgeting

It’s important to review your income and outgoings. If you have accounts, memberships or subscriptions that you no longer use, it makes sense to close them down.

Prospective lenders will also look at the debt you currently have, including whether your current account is in credit. If you have any savings, it makes sense to pay off loans and credit cards but be sure to leave yourself enough saved to cover emergencies.

Support from families

Research carried out suggests the bank of Mum and Dad or even the bank of Gran and Grandad will help to buy 175,000 homes during 2020 by lending or giving you cash to help with a deposit or acting as a guarantor.

Get some good advice

As qualified and professional mortgage advisers we know what a good deal looks like, we know the market and we’ll do the hard work for you

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

The Bank of...Granny and Grandad?

Wed, 21 Oct 2020 19:08:59 GMT

Can you use gifted money to help buy a property?

For many younger people struggling to get a foot on the property ladder, the Bank of Mum and Dad is the only option. With rent taking a huge chunk out of their income and the requirement for increasingly onerous deposits, two in five renters do not believe they will ever be in a position to buy a property, despite a desire to own a place of their own. That’s where Bank of Mum and Dad come in, as well as ever more frequently, the Bank of Granny and Grandad.

Among the UK’s largest lenders

If the Bank of Mum and Dad was a high street lender, it would have been the UK’s 10th largest in 2019. Collectively, parents paid out £6.3bn to give their children the final push towards homeownership. What’s more, the average amount lent per transaction shot up by £6,000 to hit a generous £24,1002.

Knock-on effect on retirement prospects

The Bank of Mum and Dad phenomenon is not without its consequences however. With prospective retirees facing spiralling living costs and potential care fees, their generosity is directly impacting their future. According to a report from Legal & General, 15% of over-55s are accepting a lower standard of living after funding their child’s property purchase. While many are hitting their pensions savings to scrape the cash together.

Granny and Grandad lend a hand

In 2019, nearly a third of 18 to 34-year-olds received financial help from their grandparents to get a foot on the ladder. Coming as they do from a generation where homeownership was much easier to achieve and pensions easier to save for, they are more likely to have spare money available than their own children, who are already feeling the strain of saving enough to fund their later life. On average, grandparents lend £7,400 to their grandchildren (roughly a third of the average 10% deposit). And 23% of lucky homeowners on the receiving end of this assistance don’t ever expect to repay it!

Don’t compromise your future

We all want the best for our children, but there are ways of helping them out that don’t involve putting your financial security at risk. While the Bank of Granny and Grandad is certainly alleviating the pressure on parents, it’s not wise to rely solely on their support.

There are a range of government schemes available to prospective homebuyers which can help them buy a property without a significant cash boost from family members. The Help to Buy: Equity Loan, the Help to Buy: Shared Ownership scheme and the Lifetime ISA (LISA) can all help boost your child’s ability to buy their first home.

Other investment options

There are more ways to assist your children financially than just helping them buy a property – especially if you get started early. There are a wide variety of savings and investment options that allow you to start providing for your child’s future at an early age, putting them in a better financial situation in adulthood.

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

It's time to think about life insurance

Wed, 21 Oct 2020 14:56:05 GMT

Why do you need life insurance?

If you have dependents – people who rely on you financially – then you should have life insurance. In fact, if you have dependents and don’t have life insurance, you are exposing them to grave financial risk. And who would want to do that?

Life insurance tends not to feature on ‘to do’ lists because it makes us confront uncomfortable questions, such as what would happen to our loved ones if we were to die unexpectedly in the next few years.

However, we all carry a deep responsibility to ensure those we leave behind at least have sufficient funds to carry on with life if we’re no longer around. That means putting plans in place to address unpleasant possibilities.

Types of life insurance

There are two main types of life insurance. The one most people need is ‘term’ insurance. This pays out if the policyholder dies within a stated period – the ‘term’.

The other type – ‘whole of life’ insurance – pays out on your death, whenever that occurs. This is more of an investment vehicle than a financial protection plan and is typically used for estate planning.

Dealing with debt

Term insurance pays out money that can be used to clear debts such as a mortgage, lifting a huge financial burden and enabling your loved ones to stay in the family home.

It can also provide for day-to-day living expenses – everything from groceries to utility bills, and from school and university fees to family holidays.

Key points

GET ENOUGH COVER

Buy sufficient insurance to take care of your family until the youngest is financially self-sufficient.

YOU BOTH NEED IT

If you’re in a couple, you both need cover, even if one of you stays at home. The proceeds can pay for services such as childcare and keeping up the house.

BUY SEPARATE POLICIES

Joint life insurance covers you both under one policy, but separate policies are more flexible and provide greater protection, although they cost a bit more.

WORK COVER ISN’T ENOUGH

Many firms offer ‘death in service’ life insurance. However, once you’ve worked out how much cover you need, you’ll probably realise this isn’t enough and you’ll need a policy of your own.

THE SOONER THE BETTER

The older you are, the more expensive life insurance is, so bite the bullet and buy young.

PUT YOUR POLICY ‘IN TRUST’

Doing so places the proceeds outside your estate so it can be paid to your beneficiaries without any delay associated with probate. It also keeps the money from the clutches of the tax man.

REVIEW REGULARLY

Monitor your life insurance coverage to make sure it keeps pace with your circumstances. Events such as marriage, the birth of children and moving home might prompt you to increase the amount of insurance you have.

It is important to take professional advice before making any decision relating to your personal finances.

What you need to know about self-build mortgages

Wed, 21 Oct 2020 14:41:10 GMT

How do self build mortgages work

What you need to know about self-build mortgages

If you’re thinking of building your own home, financing the project may be high on your list of priorities.

Self-build mortgages are different from normal mortgages. They release funds at stages during the building work, rather than in one lump sum when you complete a property purchase. Some lenders also extend a loan to help you buy your plot.

Types of self-build mortgages

There are two main types of self-build mortgage. With an arrears plan, the funds are released as the various stages of the build are completed. With an advance plan, the funds are released at the start of each stage. The lender will specify what the relevant ‘stages’ in the build are.

Arrears plans are the more widely available of the two. They require you to provide the initial working capital for each part of the project from your own resources, which might be savings or a short-term bridging loan. You are then effectively reimbursed each time by a mortgage advance, although you will, of course, be charged interest on this amount.

With an advance plan, the mortgage can pay for materials and labour in advance. Self-build mortgages only ever cover a percentage of the value of the land or property – around the 75% to 80% mark. So, even if you have an advance plan, you will need fund part of the project yourself.

Home insurance add-ons explained

Thu, 15 Oct 2020 15:40:03 GMT

Why getting the correct house insurance is so important.

The cover provided by a home insurance policy can vary depending on the insurer. You can usually ‘add-on’ extra cover for an additional cost. These optional extras allow you to tailor your policy to your own individual circumstances, so you only pay for the cover you need.

Personal possessions used away from the home

Many people mistakenly assume home insurance will cover their belongings both in and outside the home. You will usually need to add personal possessions cover (sometimes known as an all-risks extension) to your policy to ensure portable items, such as mobile phones, musical instruments and laptops, are protected away from the home. Items may also be covered when abroad with this add on – usually for up to 60 days a year.

Accidental damage

Accidental damage provides cover for accidents around the home. Adding this cover to your contents insurance will protect you for life’s little mishaps like spilling red wine on your cream carpet, or a toddler wreaking havoc with a paintbrush.

If you add accidental damage cover to buildings insurance, you will be covered for accidents such as drilling through a water pipe or cracking a bathroom washbasin. Note that general wear and tear isn’t usually included.

Legal expenses

Another optional extra for the majority of home insurance policies is legal expenses cover. This pays for the cost of legal proceedings should you need to go to court if a claim is disputed by any of the parties involved.

Home emergency cover

This add-on will pay for emergency callouts and repairs if, for example, your boiler breaks down or a pipe bursts. Cover can vary between insurers, so you should check carefully, but it will often cover boilers and central heating, drains, plumbing, electrical faults, replacement locks and pest infestations.

The amount you can claim for boiler repairs may be lower than with standalone boiler cover.

What to consider

Before adding any of these extras to your policy, check the small print carefully to see whether you’re happy with any exclusions or cover limits. In some cases, you may prefer to buy a standalone policy that offers more comprehensive cover.

If you’re unsure which add-ons are right for you, get in touch and we can help you find the right policy

Flexible insurance for when you need it

183:819666080 (Martin Strong) — Wed, 09 Sep 2020 13:46:54 GMT

Insurance for anyone

It's all too easy for us to put our head in the sand when it comes to thinking about our protection requirements. People tend to find it challenging to engage with the topic as it involves thinking of negative potential scenarios. In reality, this is the reason to put it to the top of your ‘to-do list’. Life is hopefully rosy but being prepared for any eventuality is truly priceless.

One important type of protection worth serious consideration is accident and injury cover. Life’s an adventure, we don’t always know what’s waiting for us around the corner and if the unexpected happens, you deserve the peace of mind that you’ve got things covered financially.

You can take out cover from the age of 18 to 60, without any health questions.

The cost of your policy will remain the same, even if you make a claim or as you get older.

Policies pay a fixed amount of money for specific injuries, depending on the level of cover.

Flexible cover, tailored to your needs

We can advise you accident and injury cover for your circumstances that provides financial support covering a range of accidental injuries, from a broken bone, to one that could seriously impact your life.

The flexibility of cover available is one of the major benefits, in addition to the ability to choose the level of cover that is tailored to your individual requirements and lifestyle; and suits your budget.

Core cover includes broken bones, accidental death and permanent injury, permanent disability, funeral benefits and UK hospital stays.

Some policies give you optional cover add-ons like protecting your children, active lifestyle cover and healthcare cover, for those who may be at particular risk of contracting certain illnesses, such as those who work in the healthcare sector.

With accident cover you can make multiple injury claims and your policy will continue to protect you in the future.

The last few months have provided the perfect opportunity to take stock of your finances and protection cover; you may be thinking about reducing your outgoings, but protection policies can provide a lifeline when you need it most.

For a cost-effective way to look after yourself and your loved ones, so you’re ready for the unexpected, we can help ensure all of your protection needs are covered. Then you can enjoy life, unclouded by concerns of what might happen if you’re ill, injured or need to spend time in hospital.

As with all insurance policies, conditions and exclusions will apply

Both the funeral and accidental death benefit once paid out, will end the plan.

Age restrictions apply on child cover

Exchanging contracts? Get insured first

183:819666080 (Martin Strong) — Wed, 09 Sep 2020 13:38:51 GMT

When should buildings insurance start for my new home?

Purchasing a property can be a busy, stressful time and it can seem like there are a million things to remember. Some things however, are more important to remember than others – for example, getting the right insurance in place at the right time.

Many people believe that they only need to take out buildings insurance once they move into their new home. However, this is not the case. It can come as a surprise to find out that, in most cases, the responsibility for insuring the property becomes the buyer’s as soon as contracts are exchanged.

Avoid stress, get prepared

Exchange - Once contracts have been exchanged, you’re committed to the purchase and can't back out without forfeiting your deposit.

Insure - If the property is damaged or destroyed between exchange and completion, you’re still contractually bound to complete the purchase and will immediately face hefty costs to repair your brand-new home.

Relax - To avoid stress and guarantee peace of mind, researching your options in advance and taking out insurance on the day contracts are exchanged is very important.

Getting the right policy

Buildings insurance covers the cost of repairing or rebuilding your property in the event of damage. It covers the structure of the property, as well as outbuildings such as garages and sheds and fences, and external items such as pipes, cables and drains. It doesn’t cover possessions and furniture inside your home – you will need a separate contents insurance policy for this.

How much you pay for buildings insurance will depend on the rebuild value of your new home. This should not be confused with the property’s current asking price. It is how much it would cost to completely rebuild your home from scratch. There are tools available to help you calculate the rebuild value of your home, including a special calculator on the Association of British Insurers’ website.

Here to help

We can help you find he most suitable buildings insurance policy for your circumstances, giving you one less thing to worry about. We can also advise on any additional cover you may need and get everything in place by the time you exchange.

As with all insurance policies, conditions and exclusions will apply

The world is changing – so should your insurance

Wed, 09 Sep 2020 13:29:45 GMT

Should I keep my life insurance or update it?

The world is changing rapidly in a way that nobody could ever have expected, meaning your personal and financial circumstances are likely to have changed. It is important to regularly review all aspects of your finances and that includes reviewing your protection insurance, to make sure your policy provides adequate cover for your changing needs.

Underinsured

If you don’t regularly review and update your policy, any pay-out you do receive from your claim may not be enough to cover you and your family’s needs if you were to die or if you are unable to work due to illness.

Say you took out a life insurance policy covering you for a certain amount. After several years, you may have children, resulting in a move to a larger house. If you take a larger mortgage; your monthly outgoings would increase, and you would have bigger bills to pay. Therefore, the lump sum paid out to your family upon your death would no longer be sufficient to sustain their lifestyle and might leave them facing financial hardship.

New policies offer better protection

Like any industry, the insurance industry has evolved over time. Modern policies can offer you better protection and more extensive cover.

When comparing a critical illness policy sold in 2007 with one sold in 2017, the more modern policy may have better claims wording, provision for part-payment and other advantages.

If you have simply been paying your premiums on the same policy for years, it is likely that, as well as facing the risk of being underinsured, you also won’t be benefiting from the kind of comprehensive cover offered by today’s policies.

Let us protect you

With so many different types of protection insurance on the market, it’s not surprising that many people just stick with the cover they have.

It may not be the best cover for them. We can assist you in finding the very best policies for your circumstances, so you have the peace of mind that you, and your family, will be protected should the worst happen.

Please note: Older policies may cover illnesses which modern policies do not. Premiums may be cheaper due to the age of the policy. Certain cover may be excluded on a new policy due to pre-existing conditions.

Always get professional advice when reviewing your insurance policies.

As with all insurance policies, conditions and exclusions will apply

Get the right life insurance for you and your family

183:819666080 (Martin Strong) — Wed, 05 Aug 2020 14:13:59 GMT

Get the right life cover for your needs.

With policies like home insurance or car insurance, we’re all in the habit of reviewing our cover annually. With a life insurance policy potentially lasting for 20 or 30 years, it goes without saying that over that time, your lifestyle and therefore your cover requirements can change, sometimes substantially. Whenever you mark life’s important milestones, it makes good financial sense to reassess your protection needs.

Overlooking the need to revisit your protection policies over time could mean that your family wouldn’t have enough money to pay the mortgage or meet household bills if you were to die. A review is an opportunity, not only to assess your current cover needs, but also to consider newer plans that might be more appropriate to your circumstances and potentially more cost-effective.

Updating your cover as your life changes

Major life events can signal that your cover might need updating. If you’ve moved to a new house and taken on a bigger mortgage, you will need to review the sum assured (cover provided by the policy) to ensure that there won’t be a shortfall in the event of a claim.

Starting a family can be an overwhelming experience and it’s understandable that parents don’t automatically think about their life insurance needs at this exciting time. However, at this stage family expenditure is likely to increase and it’s often the time when parents should think about additional types of insurance cover.

Protection policies can provide not only a lump sum on death or the diagnosis of a critical illness, but also an income for families impacted by an accident, sickness and unemployment. They can also help parents pass their wealth on to future generations and play a major role in Inheritance Tax planning too.

Keeping your needs covered

Insurance is one of the most important financial products anyone can take out and one of the best ways of ensuring your family is provided for financially, if one of life’s unexpected and unwelcome events should happen.

As with all insurance policies, conditions and exclusions will apply

Protecting you and your family

Wed, 05 Aug 2020 14:03:19 GMT

Do you need life insurance for your family?

Losing your partner at any stage in life can be devastating, but it may be particularly devastating when children are involved because of the financial pressures of raising a family. Ensuring your children and other dependants are provided for in case you die should be a top priority but less than a third of people in the UK have life insurance.

Keep it simple

Many products are available but a simple level-term policy, where a pre-decided lump sum is paid out should you die within a stated period, is among the simplest to arrange and is typically not very expensive. As a rule of thumb, life cover should provide ten times the main breadwinner’s income. The amount should cover any outstanding debts, including mortgage, regular outgoings, potential university fees and so on. The term should reflect the needs of your dependants; Children will probably need support until they leave education and a partner may need it until pensionable age.

Joint or single cover

A joint policy will cover you and your partner, paying out on the first death within the term. Alternatively, you can have separate single-life policies; a little more expensive but potentially two payments. A young, fit individual should find life cover affordable. Be open about your lifestyle, especially if you have existing medical issues. Premiums rise with age, lifestyle factors, such as smoking and other factors that affect your life expectancy.

Keep under regular review

Reviewing your protection needs helps make sure you have the right cover in place for your financial circumstances, giving you the peace of mind that you’ve got things covered.

As with all insurance policies, conditions and exclusions will apply.

Home improvements to add value to your home

Thu, 30 Jul 2020 14:47:00 GMT

Looking to get some home improvements?

Evidence suggests that many more of us are putting down roots and choosing to stay in our current homes for longer. The average time a homeowner in the UK stays in their property is 21 years.

This contrasts with the 1980’s, when a fast-rising property market encouraged a move every eight years on average.

However, high prices in some regions, Stamp Duty and the other costs of moving, are now encouraging us to stay put and spend money improving our properties.

With so many more people staying put and embarking on some home improvements, it’s a good idea to select improvements and renovations that will add value to your property in case you do decide to move on one day.

Some of the best improvements to add value to your property include (plus potential value added):

Converting your cellar — 30%

Converting your garage to living space — 15%

Extending the kitchen — 15%

Loft conversion to add a bedroom — 15%

Increase living space with a conservatory or similar — 10%

Kerb and garden appeal — up to 10%

Fitting a new bathroom — 5%

Making the living area open plan — 3-5%

Here are some useful tips to bear in mind before embarking on your chosen project:

Check your deeds

There could be restrictions on what you can do, you may require planning permission, especially if it affects a boundary or external modifications are involved.

Check your policy

If you’re going to make any major changes to your home, you should contact your buildings and contents insurance provider first to avoid unintentionally invalidating your policy and check your policy covers you for accidental damage.

Get your paperwork in order

If you are looking at a large undertaking such as converting your loft, ensure you have the correct paperwork and certification, otherwise the money you spend may not be realised in the sale price.

Preserve bedroom space

Try not to reduce your bedroom count, you may want to convert a third bedroom into an en suite, but by losing a bedroom you will reduce the value of your property.

Be commercially-minded

Consider the neighbourhood you live in and the types of buyers likely to want to live there, for example spending money landscaping your garden may not appeal to a younger professional couple who want low-maintenance outside space.

Avoid personalisation

Unless you are prepared to redecorate when you come to sell, use a neutral colour scheme, introduce colours in soft furnishings and accessorises and personalisation with pictures or photos.

Hire a professional

Avoid a DIY disaster by only taking on projects you are confident you can complete.

We can help

Please get in touch if you are looking to fund your home renovations with a remortgage or second charge loan.

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

Stay protected, by getting the correct life and sickness insurance for your needs

Wed, 29 Jul 2020 14:56:15 GMT

Get the correct life cover for your needs

The coronavirus outbreak has impacted everyone across the globe, leaving many individuals and families in a precarious financial position. The crisis has shown that financial hardship can strike when we least expect it, demonstrating the importance of protection cover.

As people’s anxiety about their financial future intensifies, it’s likely that many people will be considering how they can reduce their outgoings. Income protection or critical insurance may be top of the list to cancel if they can be perceived to be unnecessary expenses.

In reality, critical illness and income protection policies can protect your income or support your family, if you lose your jobs or become ill for an extended period of time, so should certainly not be on the list of expenditure to cut.

A financial lifeline

Never have we been so starkly reminded of the need for the safety net of protection cover. A recent YouGov survey about the pandemic revealed that nearly a third (32%) of Brits currently fear for their future. Cover such as life insurance, critical illness cover and income protection can help lessen the blow of unexpected events.

Don't act in haste

Covid-19 is resulting in financial difficulty for many and may lead to people to consider cancelling their protection insurance direct debits. Please don’t act in haste, talk to us, we can offer support and guidance if for any reason, you are, or you think you will be, in financial difficulty.

It's good to talk it through

Rest assured, what is certain is that we are here to help. If you have any questions about your protection policies or requirements, whether this be existing policies, or you are considering new ones – please get in touch, we have our finger on the pulse in this fast-changing environment and can assist you to navigate the challenges ahead.

As with all insurance policies, conditions and exclusions will apply

Have you got your life insurance set up in trust

Mon, 27 Jul 2020 15:03:43 GMT

Should I put my life insurance in to trust?

A life insurance policy in trust is a legal arrangement that keeps a life insurance pay out separate from the valuation of your estate (property, money and possessions) after you die. Here we take a look at some main points to consider when deciding whether to write your life insurance in trust.

The logistics

A trust is a legal entity that allows you to put aside assets for your chosen beneficiary or beneficiaries. A solicitor or insurance provider can arrange to place your policy in trust. You can nominate one or more trustees to manage the trust until the beneficiary is ready to inherit. The trustee(s), ideally a solicitor or close friend, is responsible for ensuring the money set aside goes to the correct people after you have passed away. Trust deeds are agreed and signed by all parties, setting out the terms of the trust.

Trust can be inflexible

You can set up either an absolute or a discretionary trust, the main difference being flexibility. With an absolute trust, they are fixed, so making any changes is not permitted. With a discretionary arrangement you don’t need to specify: beneficiaries at the outset, how much will be received and when it will be received. You can also add other trustees to discretionary trust once it’s set up.

It can be risky to amend a trust - there have been instances when people have invalidated their life insurance, after making changes to the policy in trust.

Minimising Inheritance Tax (IHT)

One of the prime motivators to people putting life insurance in trust is to mitigate IHT. Normally, a life insurance pay-out is considered as part of your estate, which will be liable to IHT on anything exceeding the £325,000 threshold (taxed at 40%). When you write your life insurance in trust, you are in effect, ring-fencing the pay out, so it won’t be included in the value of your estate, therefore protecting it from IHT and leaving more for your loved ones.

Greater control, expedience and options

Writing your life insurance policy in trust gives you more control over the pay-out. This is very important if you aren’t married or in a civil partnership; otherwise, your intended recipient may miss out. Pay outs from a trust can be paid quickly because there is no need to wait for probate to come through. If you have existing life insurance policies, you can transfer these into trust, but you would need to take advice on this first.

Seek advice

There could be tax implications if you move a life insurance policy into trust, for example IHT may be charged if, within 7 years prior to dying, a policyholder changes the person who’s named as a beneficiary on a life policy held in trust. If you are unsure whether to write your life insurance in trust, talk to us. We can guide you through the pros and cons considering your circumstances.

As with all insurance policies, conditions and exclusions will apply.

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

Check your existing income protection policy

183:819666080 (Martin Strong) — Thu, 16 Jul 2020 15:31:20 GMT

Do I need sick cover?

Insurance brokers have reported an increase in enquiries about income protection cover since the pandemic outbreak, with people concerned about becoming ill and being unable to continue working, or worried about losing their jobs.

Income protection explained

Income protection policies provide a monthly payment (payable after a waiting period) to help replace your income if you are unable to work because of an accident, illness or involuntary redundancy. Short-term income protection policies will pay out for a fixed amount of time (typically six months or a year), whereas long-term income protection policies are designed to replace your income (up to a maximum of around 60% before tax) until retirement age, death or for a specified period of time.

Am I covered for COVID-19 under my existing policy?

Policyholders who took their policies out before the outbreak should be covered under the existing terms and conditions, for both short-term and long-term income protection.

Fortunately, most people who get the virus have mild symptoms or recover quickly, usually within a few weeks. Because most income protection policies have a waiting period before money is paid out and also a minimum claim period of 30 days, you are unlikely to be able to claim under the sickness element of your policy.

However, if you are an existing policyholder who had unemployment cover included in the policy and you are made redundant, you should be able to make a claim for enforced redundancy.

Can I take out a new income protection policy now?

It is still possible for new customers to purchase accident and sickness cover, although you should be aware that pre-existing medical conditions will be excluded and insurers may have changed their terms for new customers.

However, the situation is not the same for unemployment cover, with brokers reporting that cover is unavailable for new customers, both as a standalone policy and under ASU (Accident Sickness and Unemployment) policies.

Managing existing policies

The good news is that you can renew your short-term and long-term income protection policies, although the terms may change at renewal.

Furthermore, some insurers are offering three-month payment breaks for those who are unable to pay their premiums at the moment.

Here to help

It’s important to remember that all protection cover should be bought for the short, medium and long term and should be tailor made to suit your own circumstances, rather than just opting for the cheapest premium.

As with all insurance policies, conditions and exclusions will apply.

Embarking on a DIY project? Check your home insurance

Mon, 13 Jul 2020 15:40:09 GMT

Have you got the correct buildings insurance?

The weather is improving, you may have some extra time on your hands and judging by the queues outside hardware stores, people are seizing the opportunity to get some home improvement jobs underway, particularly with more Britons than ever working from home. Between February and March 2020, Google searches for ‘DIY’ increased by 9% year-on-year, with searches for ‘home improvement’ also growing by 12%.

Not to dampen your DIY gusto, but before you embark on a new project at home, remember to check your insurance cover just in case your efforts don’t quite go to plan.

Be realistic about your capabilities

The resources available to the novice DIYer are plentiful, with a supply of hints, tips and video guides available online, you might be feeling confident about tackling a job yourself and saving a bit of money, rather than leaving it to an expert. It is important to be realistic about your capabilities; DIY can often cause more work when jobs go wrong, with the average self-made DIY complication costing an additional £217 on top of the original amount spent to do the job. On a national scale that’s equivalent to £1.1 billion spent on DIY repairs every year.

Some of the most common DIY disasters are paint spillages, damaged walls, burst pipes damaged electrics, flooding when mending pipes, broken windows and damaged/broken fences.

Are you covered for accidental damage?

Despite your best intentions, accidents do happen. Having the correct home insurance in place before you begin a DIY project will ensure adequate cover, if required.

Don’t assume that a home insurance policy will cover your DIY disasters, because accidental damage cover usually comes as an optional extra with most policies. Standard home insurance may provide only very limited cover for accidental damage.

In 2017 one insurer reported 42% of home insurance claims were for accidental damage. Full accidental damage insurance would cover you for things like repairing a burst pipe caused by drilling, putting your electrics back in working order after a botched rewiring job, repairing your ceiling after a foot has gone through the loft floor and replacing your carpet after a paint spillage.

As with every type of insurance cover, there are exclusions and excesses that apply, so it is important that you check your cover meets your needs and expectations.

Leave it to the experts

If in doubt, leave it to the experts. Some jobs, such as electrical work, plumbing, structural renovation and roof repair, are best left to the professionals and have a higher risk of going wrong, along with more costly consequences.

If you are embarking on a project, remember to take care, make sure you have the tools and knowledge for the job you’re undertaking, and check your insurance cover before you begin. It’s important to make sure your home and contents insurance meets your needs.

Managing mortgage stress – we’re here for you

Wed, 08 Jul 2020 15:50:38 GMT

Getting a new mortgage

Whether you’re a first-time buyer, a second- stepper or further up the housing ladder, buying a home is always a big move and can feel a bit like a roller coaster ride at the best of times. Now there is the added complications and worries that the COVID-19 pandemic may have caused for people’s lives, finances and general wellbeing.

Here are some tips that can help you navigate the home moving process as smoothly as possible.

Smooth sailing

Taking advice will save you time, money and stress. We are on your side, we know the industry and the most appropriate lenders, to be able to recommend the most suitable mortgage for you and we can offer useful advice on all aspects of the house buying process. More now than ever, the value of professional advice is immeasurable. As the mortgage market changes, it’s our job to keep our finger on the pulse. We’ll be able to help you get a decision in principle from a lender, which will give a seller the confidence that you are a serious purchaser.

Expert navigation

We can help you familiarise yourself with all the stages involved in getting a mortgage. We’ll explain important things like how affordability checks work, what paperwork you’ll need to provide to a lender in support of your application, and what costs and fees you should budget for. You will need to have saved a deposit - in most cases the bigger the deposit you can put down, the lower your interest rate is likely to be.

Check out your finances in advance

Start by taking a look at your income and outgoings; any lender considering your mortgage application will expect you to be on top of all your bills and be comfortably able to afford your monthly mortgage payments. It makes sense to cut back on things like unused subscriptions and watch how much you spend on things like eating out. Lenders will want to see a healthy credit score - a higher score usually means you are a lower risk; the more points you score the better the chances that you’ll be offered better interest rates. Being under time pressure can increase your stress levels, so it pays to have your finances in order before you start looking for a property and a mortgage.

Work with a good estate agent

It’s worth taking the time to get to know a reputable estate agent. Explain your circumstances to them so that they can pass on relevant information to sellers. First-time buyers with a mortgage offer in place are in a strong position as they can proceed more quickly than another buyer who has yet to sell their property.

Don't forget to get a survey done

Having a survey carried out on a property before you commit to buying it makes good sense. It can save you thousands of pounds in repair bills and a lot of stress in the future. There are various options available, and we will be able to offer help and advice on choosing the type that meets your needs.

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

How does the mortgage market work?

Mon, 06 Jul 2020 16:03:58 GMT

Can I get a mortgage?

There are times in our lives when we can all use some help and guidance. Buying a home is one of those major steps that is much easier to take if you are well- informed and get some good advice.

Whether you are a first-time buyer or someone who has moved before, things change, so it’s useful to understand the mortgage market.

Each year, thousands of consumers finance the purchase of their homes with a mortgage or re-finance existing mortgages. With mortgage debt accounting for over 80% of total UK household liabilities, finding a suitable mortgage is an important financial decision. Most mortgages in the UK are provided by building societies, banks and specialised mortgage corporations. There are currently around 200 different financial institutions offering mortgages in Britain. The mortgage market is very competitive, with a wide range of products and rates available, making it challenging to understand what is on offer.

Changes in the market

The mortgage market is continually evolving to meet the needs of a changing customer base, with new developments in intergenerational lending, lending into and in retirement, buy-to-let mortgages and support for first-time buyers. Over the last 15 years the UK mortgage market has journeyed through some key changes and seen many new regulatory requirements, as a result of the Mortgage Market Review and the implementation of the Mortgage Credit Directive.

Who does what?

The professional conduct of mortgage providers is regulated by the Financial Conduct Authority (FCA). There are strict rules and guidelines, to protect the consumer. Regulations set out in the FCA Mortgage Market Review 01179012242 aim to crack down on poor lending services by building societies and banks, with requirements outlined for stricter affordability checks, amongst other revisions.

The Bank of England sets the interest rate, which impacts mortgage repayments and it is also responsible for ensuring banks are able to meet potential losses on their mortgage lending, meaning you can save and borrow money safely. The Prudential Regulation Authority determines the amount of money that lenders need to hold and that they have sufficient risk controls.

New challenges

In light of the COVID-19 pandemic, in March the FCA published ‘Mortgages and coronavirus: our guidance for firms’. Advisers are working hard to stay informed about what is available from the government, so they can provide this guidance to their clients. In such a fast-changing environment, many lenders have responded by withdrawing deals from the market, mostly those in the higher loan-to-value range.

Now could be a good time to remortgage

Thu, 02 Jul 2020 16:11:30 GMT

Can I remortgage to a new deal?

Mortgage rates are now at record low levels, following two Bank of England rate cuts in March to bring the base rate down to 0.1%.

Borrowers on a tracker, discounted or variable rate mortgage may have already benefited from this rate drop, but those borrowers whose mortgage deal is nearing its end, or those currently on an uncompetitive standard variable rate (SVR), should review their situation as there are some very competitive products on the market, with potential savings to be had.

Remortgaging explained

A remortgage is where you take out a new mortgage on a property you already own - either to replace your existing mortgage, or to borrow more money against your property. You should consider remortgaging if:

Your current deal is about to end

You are looking for a better rate

You want to overpay, but can’t do this on your current mortgage

You want to borrow more

Your home has increased in value and your loan-to-value ratio means you can get a better deal.

Lenders have adapted

Due to uncertainty, many lenders initially reacted to the coronavirus crisis by restricting the products available, (particularly to those borrowers with a high loan-to value ratio) and remortgage applications faced operational constraints such as an inability to do physical valuations. However, optimism has started to return, with lenders reintroducing a wider range of products and adjusting their processes to overcome problems, for example by using automated ‘drive-by’ valuations.

Don't delay

In such a fast-changing environment, those who are considering remortgaging over the next few months would be well advised to assess their options now. Remortgaging can take around eight weeks, so it’s best to contact set the wheels in motion sooner rather than later.

Advice is essential

There are pros and cons to remortgaging and it won’t be right for everyone. The market is more complex right now and getting good advice is vital. We have expert insight and knowledge of the market. As well giving you advice on whether a remortgage is suitable, we will explain the costs, outline potential implications and guide you through the mechanics of remortgaging.

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

‘Mortgage prisoners’ may be able to remortgage

Thu, 30 Jan 2020 17:23:19 GMT

I am a mortgage prisoner, can I remortgage?

You may have heard the term ‘mortgage prisoners’ but not know exactly what it is. Mortgage prisoners are those who are trapped in their current mortgage deal and are unable to remortgage or move.

The Financial Conduct Authority (FCA) has estimated around 150,000 borrowers are stuck as ‘mortgage prisoners’.

Some of the main reasons are

—A change in circumstances, such as credit issues or a lower income since they bought their home.

—Not meeting the affordability rules which changed in the 2014 Mortgage Market Review

—Negative equity – which could be due to the 01179012242 financial crisis

Being stuck on your current mortgage deal can be a costly frustration. Those that come to the end of their existing deal may be moved onto a lender’s Standard Variable Rate which can be expensive, with average rates higher than many available deals. In some cases, this could be more than double the rate of interest.

There may be hope on the horison

After a campaign by a group of ‘mortgage prisoners’, who originally mobilised via social media, the FCA has proposed plans to help people move to a cheaper deal.

Customers who are both up-to-date with payments and looking to remortgage without additional borrowing will be given a more appropriate affordability assessment to assert whether they can afford the new loan. This will make it easier to find the right mortgage for their needs. The FCA is also asking lenders to work with more innovative tools to help customers better identify what mortgages they may qualify for.

How did Karen and Richard become mortgage prisoners?

"Unfortunately, my work circumstances changed last year, meaning Karen and I can't pass the affordability check. If we were able to switch we could save a lot of money by having a lower interest rate."

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

Learn more about mortgages

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Unlocking the value in your home

What is equity release?

Is equity release falling out of favour?

Is equity release right for you?

Get the best out of your BTL mortgage

Get the best out of your BTL mortgage

Buy to let basics

Things to remember

Turning ‘generation rent’ into ‘generation buy’

Turning ‘generation rent’ into ‘generation buy’ - New 95% mortgage scheme to help first-time buyers

What is the 5% deposit scheme?

What’s the catch?

What does loan to value mean?

Protect your peace of mind when moving home

How to protect your family and mortgage to give you peace of mind if the worst was to happen

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Income protection

Buildings insurance

Contents insurance

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Can you get a payment holiday for your commitments?

Mortgages

Personal loans and credit cards

Insurance

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Get yourself mortgage fit for 2021

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Do you know your mortgage rate?

Sound familiar?

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Do I really need a survey? Well, the short answer is yes.

Are you on a standard variable rate, now could be a great time to review this

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Worth taking the time to review your mortgage

Take advantage of record low mortgage rates

Good advice that cuts through the jargon

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What documents do I need to prove my income for a mortgage?

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Planning – it’s not just financial

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Should I get a Will?

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Along came COVID

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Do I need Buildings insurance?

Buildings insurance explained

Contents insurance explained

Cover for renters

Check for exclusions

Mortgage Payment Update November 2020

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How to get yourself mortgage ready to own your new home

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Save up

Check your credit score

T ime to remortgage?

T he struggle to find a mortgage