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Life is busy and challenging. You can’t control everything, and you certainly don’t know what’s round the corner. The cost-of-living crisis has added a whole new layer of anxiety to everyday life, increasing financial pressure on us all. A Financial Conduct Authority study has highlighted that over half of adults in the UK are more stressed due to rising costs. One way of limiting stress is to take control and plan for the things you can, this includes taking out protection insurance. By being proactive and arranging suitable protection for your specific requirements you can rest assured that should the worse happen you have appropriate cover in place.  Get in touch for advice on any aspect of your protection requirements. As with all insurance policies, conditions and exclusions will apply

Your home is likely to be the most valuable thing you own; without insurance you may struggle to afford repairs if any damage should be incurred. When you take out home insurance, it is with the best intentions and should result in immense peace of mind. However, a recent study 1 has highlighted that 75% of homeowners in the UK have inadvertently invalidated their insurance policy, by potentially making their homes vulnerable. For example, by leaving doors unlocked or windows open (especially during the summer months), homeowners run the risk of having a claim rejected by their insurer. Almost half (48%) of survey respondents have admitted to doing this. So, be careful, don’t run the risk of invalidating your policy. As with all insurance policies, conditions and exclusions will apply 1 Confused.com, 2023

As mortgage rates reach their highest level in 15 years, many homeowners are fearing the worst. But there are indications that things aren’t as dire as they appear. Firstly, very people are actually losing their homes – just 610 were repossessed in Q2 2023 1 . Initiatives like the Mortgage Charter are also encouraging lenders to reach payment agreements with their customers. The UK is also enjoying good job security, in stark contrast to the waves of layoffs seen during previous economic crises, making it less likely that people will lose their jobs. Furthermore, house prices shot up during the pandemic, so many homeowners have more equity in their home. This may help them get better rates when they remortgage. Your home may be repossessed if you do not keep up repayments on your mortgage. 1 UK Finance, 2023

Over a third of tenants (34%) would be immediately unable to pay their rent from their savings if they lost their job, says Shelter 1 . Yet just 11% of renters have insurance to protect them financially if they couldn’t work 2 . Unlike homeowners, who are usually advised on the benefits of protection insurance when taking out a mortgage, renters have less exposure to financial advice. Bridging the gap Having discussions about protection insurance with friends and family who are renting could help to bridge this gap and ensure that more renters understand the benefits.  If you have any friends or family members who rent and are interested in income protection, please don’t hesitate to refer them to us for professional advice. As with all insurance policies, conditions and exclusions will apply. 1 Shelter, 2023 2 LV=, 2022

Research shows that a rising number of people are cancelling their protection insurance policies as the cost-of-living crisis continues to bite. According to research by Consumer Intelligence 1 , 8.2% of people have cancelled or reduced an insurance policy and 6.8% said they would consider cutting back in the future. Not the answer It is understandable that households struggling with basic expenses would look to cut costs wherever possible. However, cutting back on protection insurance could make an already difficult situation much worse. It won’t happen to me… There is a tendency to think that bad things only happen to other people, but the fact is that you never know what is around the corner. Protecting yourself financially is one of the best ways to minimise your vulnerability to financial shocks. Sadly, being too sick to work is not as rare as you might think. According to the Office for National Statistics (ONS) 2 , the number of working-age people who can’t work due to long-term sickness is now 2.5 million. You’re not alone If you’re looking to cut costs and don’t know where to start, we’re here to help by identifying areas where you may be able to economise – without sacrificing your vital protection cover. As with all insurance policies, conditions and exclusions will apply 1 Consumer Intelligence, 2023 2 ONS, 2023

With mortgage rates at their highest since the 2008 financial crisis 1 , those looking to remortgage have more to think about than usual. Many whose deals are coming up for renewal will have agreed their mortgage at a time when Bank Rate was just 0.1%. Now, it stands at 5.25%. If your deal is coming to its end, what do you need to think about before signing on the dotted line? Start early When your current mortgage deal expires, you’ll automatically be moved to your lender’s Standard Variable Rate (SVR) – their rate outside of any mortgage deals. Usually, this rate is higher than other types of mortgages, so you should always look to secure a new deal ahead of your current one expiring. Consider a tracker or variable rate mortgage Whilst fixed-rate deals are a popular choice for mortgage holders, they may not always be the most suitable choice while mortgage rates are high or the economy uncertain. A variable rate or tracker mortgage moves up and down with Bank Rate – so while your payments could go up, they could also come down in the future. Take advice Our experts are here to advise you and help you select the most suitable mortgage product for you, so please talk to us if you have any concerns. Your home may be repossessed if you do not keep up repayments on your mortgage. 1 Money Facts, 2023 Sources: 1 https://moneyfactscompare.co.uk/news/mortgages/average-two-year-fixed-mortgage-surpasses-mini-budget-peak/

Throughout 2023, it’s estimated that 1.8 million fixed-rate mortgage deals will expire 1 . With mortgage rates at their highest in 15 years 2 , many of those who remortgage will see their repayments increase sharply. Understanding your options You could get in touch with your lender, as they may have options available for homeowners who are struggling. For example, you might be able to: Switch to an interest-only mortgage – instead of a repayment mortgage, where you repay the capital plus interest Extend your mortgage term – this will lower your monthly repayments – however, it means you’ll pay more interest overall. You might also be able to take a payment holiday or reduce the amount you are paying for an agreed period. Before making any decisions, it’s a good idea to speak to us first. You could also consider reducing subscriptions to services like Netflix, shopping around for better deals on broadband and insurance, and drawing up a budget to see where else you might be able to cut costs.  Here to help We understand that many homeowners are very worried about rising mortgage rates. We are here to advise you about your options and help you make informed decisions about the future – so please get in touch. Your home may be repossessed if you do not keep up repayments on your mortgage. 1 UK Finance, 2023 2 Money Facts, 2023

A lot has been going on in the property market of late. Mortgage rates are rising, house prices are falling, and many homeowners are feeling uncertain about the future. There are some sparks of good news to be seen amidst the doom and gloom, however. Inflation is finally falling – down from 6.8% in the year to July compared with June’s figure of 7.9% 1 - while Bank Rate is also thought to be nearing its peak. Bank Rate hits 5.25% The latest meeting of its Monetary Policy Committee on 3 August 2023 saw the Bank of England (BoE) increase Bank Rate for the 14 th consecutive time to 5.25% 2 . Higher interest rates make it more expensive to borrow and spend, thus reducing demand and slowing price growth. Positively, however, there now appears to be consensus amongst economists and financial experts that Bank Rate is finally approaching its peak. House prices fall As they are led by Bank Rate, mortgage rates have also been rapidly increasing. The average rate for a two-year fixed mortgage at time of writing stands at 6.73%, according to MoneyFacts 3 – up from 2.34% in December 2021 4 . According to the latest UK Residential Survey from the Royal Institute of Chartered Surveyors (RICS), higher mortgage rates have led to a sharp downturn in demand from prospective homebuyers. Nationally, a net balance of -45% respondents noted a decline in new buyer enquiries, whilst -44% reported a decline in sales agreed 5 . Nationwide’s House Price Index 6 found that house prices fell by 0.2% month-on-month and 3.8% year-on-year in July, while Savills expects a continued downward trajectory as high mortgage rates continue to suppress the market. What does the future hold? In the short term, homeowners and prospective buyers can expect more of the same; high interest rates – and therefore mortgage rates – are expected to persist until at least 2025 to ensure that inflation falls back to the BoE’s 2% target. Looking further ahead, things look brighter. Although Savills predicts that house prices will fall by 10% this year, it forecasts a return to marginal growth in 2024 (1%) and 2025 (3.5%), and then much stronger growth in 2026 (7%) and 2027 (5.5%) 7 . Advice continues to be vital In difficult economic times, professional advice continues to be vital to ensure that you are making informed decisions about the most suitable products and solutions for your circumstances. Although the future currently seems uncertain, we’re here to advise and guide you on your mortgage options – whether you’re a first-time buyer, coming to the end of your mortgage deal, or looking to move. If you are feeling concerned or unsure about your mortgage, please don’t hesitate to get in touch. Your home may be repossessed if you do not keep up repayments on your mortgage. 1 ONS, 2023 2 Bank of England, 2023 3 Moneyfacts, 2023 4 Moneyfacts, 2022 5 RICS, 2023 6 Nationwide, 2023 7 Savills, 2023

Rising rates again dominated the mortgage market in August, while enduring cost-of-living pressures helped propel longer-term fixes back into the limelight. Bank rise More than two million mortgage holders on variable or tracker mortgages are already facing higher repayments after the Bank of England’s Monetary Policy Committee voted to raise its main interest rate by 0.5% at the start of August. Industry experts now estimate that around 40% of mortgages will go up over the next year, which will force millions into higher monthly payments. Even those currently shielded by a fixed-rate contract aren’t immune; most will end up paying more once their current deal ends. Indeed, as H2 2021 data show, although 74% of existing mortgage holders are on fixed-rate contracts, half of these will expire in the next 24 months 1 . Forward planning to find a good deal will become increasingly important if rates keep rising. Challenges for FTBs (First Time Buyers) New first-time buyers (FTB) are especially vulnerable, as research revealed they are now spending an average of 40% of their gross salary on mortgage repayments, a level not seen since 2012. The average monthly cost is currently £1,030 2 , up from £976 before the latest Bank Rate hike. Despite the negativity surrounding rates, however, the Bank of England does not fear a squeeze on households to such an extent as seen during the financial crisis of 2008. Longer terms Elsewhere in the market, the average length of a mortgage loan taken out by FTBs hit 30 years in June 3 , a record high and nearly five years longer than two decades previously. More than one in three FTBs opted for a mortgage between 30 and 35 years. This average term could climb yet higher since the government is pondering ultra-long mortgage deals as a possible way to boost homeownership. Long terms help more people achieve their property goals because a longer mortgage period allows larger sums to be borrowed. Yet calculations 4 have shown the staggering sums these mortgages could end up costing. For example, with a 75% loan-to-value mortgage, an average house price and an average long-term fixed rate of 6.19%, monthly repayments would stand at £1,140 – which would mean £472,984 paid in interest alone over a 50-year term! Back to basics With cost-of-living pressures at the front of people’s minds, it can be hard to keep a level head when making big financial decisions. Regardless of short-term volatilities, however, the basics of homeownership remain the same. Getting the right advice is more important than ever – and we’re always here to help. Wherever your property goals take you, we can support you every step of the way. As a mortgage is secured against your home or property, it could be repossessed if you do not keep up mortgage repayments. 1 Financial Conduct Authority 2 Rightmove 3 UK Finance 4 Barrows and Forrester