Whole of Market Mortgage Advice

In today's uncertain economic climate, financial resilience is more crucial than ever. In a recent report*, an impressive 69% of UK workers said they feel very financially resilient – up 4% since last year. Despite this, only 52% hold a protection policy, which leaves a significant portion of the workforce inadequately covered. Many workers unprotected The average household debt is £20,640 (excluding mortgages) and this rises to £28,908 for the self-employed population. The average worker has three people who are dependent on their income, yet only 7% have a protection policy in place that they pay for themselves. Also, 42% of UK households would only be able to survive for up to three months if they did not have an income. So, a concerning number of people could potentially find themselves in a vulnerable financial position if they are unable to work. What’s your plan B? Workers were asked how they would cope if they could not work for two months or more and 47% said they would fall back on their savings. Meanwhile, 32% would use sick pay from their employer, and 19% planned to rely on their partner. But, with the right income protection insurance in place, there is no need to exhaust your savings pot or put your partner under unnecessary financial strain. Instead, your insurer will pay out a monthly amount until the term ends or you return to work. Don’t rely on sick pay One in five employed workers did not know what their sick pay arrangements were. Meanwhile, just over half of those who thought they were entitled to sick pay realised they were actually only entitled to support for 12 weeks or less. Even though sick pay is a valuable safety net, it’s not likely to be enough to help you pay your bills in the long run; for the tax year ending 5 April 2025, the weekly rate for Statutory Sick Pay is £116.75. Self-employed population It is perhaps unsurprising that self-employed people seem to be more financially vulnerable, with 19% saying they would have to continue working if they’re ill or injured, compared to 12% of those who are employed. One in four self-employed people have savings of less than £1,000, while 29% could manage for less than a month if they were unable to work. As a result, 17% would have to rely on their parents for financial support. Get informed, get covered It seems that, while financial confidence among UK workers is on the rise, this does not necessarily mean that the UK population is adequately protected. Mike Farrell, Protection Sales and Marketing Director at LV, commented, “While it’s encouraging to see financial confidence on the rise, our findings show that the right protection could further strengthen this sense of security.” As with all insurance policies, conditions and exclusions will apply * LV, 2025

Homeowners in the UK may have noticed that their home insurance premiums have significantly increased. In Q3 2024, the average buildings and contents insurance policy cost £407*– up 16% on the previous year. Regional differences Some regions have been harder hit than others, with Londoners experiencing the biggest hike in their home insurance premiums**. For homeowners in the capital, the average home insurance increased in price by about 46 percentage points between Q1 2023 and Q1 2024. Meanwhile, the north west saw the smallest increase (nearly 38 percentage points). Why the increase? The rise in home insurance premiums is partly due to inflation, and rising labour and material costs. However, it is also in response to an increased number of claims. Between January - September 2024, insurers paid out a total of £4.1bn in claims* – the highest amount to ever be paid out in the first nine months of a year. This is due to adverse weather conditions caused by climate change. In Q3 2024, damage to homes from storms, heavy rain and frozen pipes cost £136m in claims – 6% higher than the same period in 2023. Looking for comprehensive home insurance that doesn’t break the bank? We’re here to help. As with all insurance policies, conditions and exclusions will apply * ABI, 2024 ** Quotezone, 2024

Recent reductions to Bank Rate may have prompted some cautious optimism among consumers, a report* suggests. In December 2024, rent and mortgage spending increased annually by 1.8% – a significant improvement on the previous month, when spending grew by 8.2% annually. Despite this slowdown, only 52% of consumers were confident in their ability to afford mortgage and rental payments in December – the lowest level recorded in 2024. Concerns about rising interest rates persist, with 62% expressing apprehension in December, slightly below the peak of 63% in June 2024. Will market activity pick up? There is some indication that activity will pick up in 2025 and beyond. Head of Mortgages and Savings at Barclays, Mark Arnold commented that “cautious optimism is emerging”, partly due to “the recent softening of house prices and imminent Stamp Duty changes, which have motivated both potential buyers and sellers to act swiftly”. Promisingly, one in six homeowners are planning to move this year. Also, 22% of renters believe that they could own a home within the next five years. Prospective buyers are prioritising garages or driveways (40%), gardens (39%) and functional spaces such as pantries or utility rooms (32%) in their house hunt. Obstacles faced by FTBs When asked to identify the main obstacles to homeownership, 40% of renters cited property prices while 37% said affording a deposit. Nearly six in 10 renters (57%) believe that it is not possible to own a home without receiving an inheritance or access to the Bank of Mum and Dad. However, only 18% of recent first-time buyers said they received financial support from a family member. Overcoming affordability challenges Many renters are proactively saving for home purchases without external support, with 35% building their deposit themselves. Some have opted to share the cost, as 17% are saving up to buy with a partner or friend. To maximise their savings, 41% are trying to reduce their monthly bills, which aligns with a 6.7% drop in utilities spending in December, despite rising energy costs. Also, 29% of new homeowners have made use of first-time buyer schemes to help them get on the property ladder. A quarter opted for longer mortgage terms to reduce monthly mortgage repayments. Motivations for moving Over the past three years, 30% of Brits, encompassing both renters and homeowners, have moved residences. The primary motivations include lifestyle enhancements (17%), proximity to family and friends (17%), and the need for larger living spaces (15%). Talk to us We’re here to help make your property dreams come true, whether you’re a first-time buyer, or looking to move up or down the property. Contact us for professional advice. Your home may be repossessed if you do not keep up repayments on your mortgage *Barclays, 2025

The UK economy may be slowly recovering but many Brits are still feeling the financial pressure, with one in 10 homeowners struggling to meet their monthly mortgage repayments*. So, what should you do if you find yourself in this difficult situation? Speak to your lender Don’t bury your head in the sand. Contact your lender as soon as you can, as they will usually contact you within 15 days of a missed payment anyway. Don’t be afraid of what they will say – in this situation, mortgage lenders must follow certain rules to ensure that you are treated fairly. Understand your budget It’s important to sit down and ascertain what you can afford to pay each month, so you can show your lender that you have carefully considered your options. Decide what’s best for you You should then write to your lender with your proposed solution. Your options may include: - Paying off your mortgage over a longer period - Switching to interest-only payments - Taking a repayment holiday. Seek advice If you’re struggling to repay your mortgage, it’s essential to seek professional advice. We will clearly explain your options, so you can make an informed decision about your next steps. Your home may be repossessed if you do not keep up repayments on your mortgage * YouGov, 2025

Are you considering making mortgage overpayments? Here’s what to consider. If you can afford it, there are many advantages to overpaying your mortgage, such as: - Becoming a step closer to being mortgage-free - Reducing the amount of interest you owe - Lowering your loan-to-value ratio (LTV). However, before you make overpayments it’s vital to check the following: - Is there an early repayment charge (ERC)? Many lenders allow borrowers to pay off 10% of the mortgage balance each year without a fee, but you must double check the terms of your deal. - Do you have other debts that you should settle first? - Would it be more beneficial to place your extra cash elsewhere, such as a savings or pension pot? Your home may be repossessed if you do not keep up repayments on your mortgage