6d5945ab

Not having life insurance comes at a cost

Wed, 21 Feb 2024 11:06:29 GMT

Death rates are still higher than pre-pandemic¹ levels, yet 48% of adults aged 18-40 do not have life insurance. This puts many in a precarious position, as the unfortunate reality is that the cost of dying is high .

Research has found that, in Great Britain, a premature death can cost surviving family members an average of £195,475 over the course of ten years ² . These estimates are based on the hypothetical basis that someone leaves behind a partner and two children. The figure fluctuates depending on the location – London is the most expensive area (£261,754), while North East England is the cheapest (£130,160).

Higher funeral costs

Of the adults under 40 who do have life insurance, 27% said they took it out to pay for a funeral. This is an important cost to consider, as a recent report has found that funeral expenses are higher than ever (£9,658) ³.

Mitigate the pressure on loved ones

Whatever your age, it is advisable to seriously consider taking out life insurance if you have dependents. Planning now could significantly alleviate the stress on your loved ones, should anything happen.

We can find the appropriate level of cover based on your specific circumstances – get in touch.

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

¹ ONS

² Beagle Street

³ SunLife

When will the Bank Rate go down in 2024?

Wed, 21 Feb 2024 11:01:07 GMT

Some leading experts have suggested that the Bank of England (BoE) could be forced to bring forward its first planned interest rate cut sooner rather than later in 2024 if inflation drops to 2% by April.

Chief economist at Oxford Economics, Andrew Goodwin has expectations that the Consumer Price Index (CPI) will average 2.1% in 2024 – much lower than the November forecast of 3.1%, adding “Inflation is on track to return to the 2% target in April”, which is 18 months earlier than the Bank of England current forecast.

Good news for mortgages

In early January, Andrew Bailey, BoE Governor said this could be good news for mortgages, “Obviously we have had a big change in market interest rates in the last few months, and so the cost of mortgages is coming down… that is feeding through into mortgage costs, and I hope that is something that continues”.

A word of caution

However, it’s worth noting that the Monetary Policy Committee (MPC) voted by six votes to three to at its last meeting in December to maintain Bank Rate at 5.25%. The remaining three votes were in favour of raising Bank Rate to 5.5%. This is the second time in a row for such a split vote – and indicates rates may not start to fall soon.

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

Renting? Don't forget income protection

Thu, 09 Feb 2023 15:18:07 GMT

Renting? Don't forget income protection

There is a natural connection between protection and homeowners, but new research suggests that renters could in fact gain more from the benefits of cover.

Rent rise

The number of households renting privately in the UK rose by 63% in the decade to 2017 ¹ , reaching an estimated 4.5 million. As the rising cost of living continues to cause difficulties for many, the importance of income protection for renters becomes increasingly apparent.

That’s because tenants in the private rental sector usually have lower financial resilience than homeowners. Recent research ² revealed that 14% of private renters have no savings at all, compared with 8% of mortgage holders. Despite this, almost three quarters of renters don’t hold any protection products ³ .

Safety net

Income protection is a financial safety net that provides a tax-free income if you are unable to work. At the end of your chosen deferred period, the cover steps in to make sure you and your loved ones don’t suffer undue financial hardship.

Get in touch

As rising prices diminish savings pots, private renters become more vulnerable to financial shocks and missing rent payments. Having the right protection in place for your unique needs can help provide valuable peace of mind.

As with all insurance policies, conditions and exclusions will apply

¹ Office for National Statistics, 2022

² FT Adviser, 2022

³ Financial Conduct Authority, 2022

First time buyer tips to boost your credit score

Fri, 23 Dec 2022 14:33:57 GMT

First Time Buyer Tips To Boost Your Credit Score

First Time Buyers (FTBs) face many external challenges when trying to get on the housing ladder. House prices, mortgage rates and property availability are not within most FTBs’ control. Yet something you can have an impact on is your credit score.

Give your score a boost

If you are a prospective buyer, there are several ways you can build up your credit history and improve your rating:

1. Have a history! It might sound obvious but little or no credit history can make it difficult for companies to assess you, a common problem for young people.

2. Register on the electoral roll at your current address, even if you live in shared accommodation or at home with your parents.

3. Pay your accounts on time and in full each month; this is a good way to show lenders you’re a reliable borrower.

4. Manage multiple credit accounts successfully, especially over a long period of time; most credit scoring models tend to reward you for having long-standing, mature credit accounts.

5. Keep your credit utilisation low. For example, if you have a limit of £1,000 and you use £500 of that, your credit utilisation is 50%. It is often recommended to keep your credit utilisation below 30%.

As a mortgage is secured against your home or property, it could be repossessed if you do not keep up mortgage repayments.

Mortgage blues? What to do

Wed, 30 Nov 2022 14:33:03 GMT

Mortgages became headline news in October – and not a headline many people wanted to read. Despite the doom and gloom of the current mortgage market, it is still possible to make a positive decision.

Rates rise

The political turmoil recently initially sent interest rates soaring and left millions of mortgage holders with hundreds of pounds more to pay each month. Liz Truss’ brief stint as Prime Minister has resulted in a bleaker picture for those looking to take out a mortgage or find a new deal.

High tide

After then-Chancellor Kwasi Kwarteng’s ‘mini-budget’ spooked markets on 23 ^rd September, causing interest rate expectations to soar, lenders rapidly started withdrawing products. A third of the mortgage market disappeared overnight on 27 ^th September; within a fortnight, 43% fewer products were available ¹ .

Mortgage deals that were still available were going up in price. Indeed, rates rose to their highest point since the 2008 financial crisis ² in mid-October, with the average rate for a two-year fixed rate loan reaching 6.53%.

So, what can I do?

First and foremost, don’t panic! Interest rates have been at historic lows in the past decade but, prior to that, these sorts of levels are not at all unprecedented.

Of course, the first thing you need to know is exactly what deal you are on and when it expires.

Times a-changing

If you are on a tracker mortgage, your rate will already have increased directly in relation to the Bank of England’s Bank Rate. Standard variable rates (SVR) also rise or fall according to this rate.

With more interest rate rises expected in the year ahead, it might be worth locking into a fixed deal – even though these have risen significantly in the past few months.

Fixed – for how long?

If you are currently on a fixed rate deal, the most important thing is to check your expiry date. It’s important to plan ahead to get the best possible deal.

For example, some lenders let you sign up for a deal six months in advance, which means that you should be able to lock into a rate half a year before your current deal ends. Even if you think your fixed rate deal has several years left to run, it’s worth checking the paperwork so you are ready when the time comes.

Don’t suffer in silence

If you are struggling to keep up with repayments, you should contact your lender as soon as possible. Often, lenders can offer support and discuss what options are available to you.

Keep calm and seek advice

In a fast-changing market, it’s more important than ever to have an expert on your side. Get in touch today for specialist advice tailored to your unique circumstances!

As a mortgage is secured against your home or property, it could be repossessed if you do not keep up mortgage repayments.

^1,2 MoneyFacts