Category: News

Christmas may be just around the corner, but if it’s looking like a strain on the budget then we’ve got a range of useful money-saving tips to help you enjoy the Christmas you love, for even less.

1. Plan before you spend

Making a budget will not only help you to limit your spending, but knowing what exactly you need and how much it will cost can help to reduce your financial anxiety. Especially as many things are more expensive than they were this time last year, it’s worth taking this into account when planning your spending. Set aside how much for gifts, food, drink, leisure, and entertainment, as well as the usual monthly household costs.

2. Keep track of your spending

Once you’ve set a budget, keeping track of your spending means you’re less likely to bust the budget. Whether it’s by using a notebook, an app on your phone or an excel spreadsheet on your laptop, choose a system that works for you. If your bank offers you alerts for when your current account dips below a set amount, opt in.

3. Do ‘family gifts’ or a Secret Santa

If you’ve got a lot of people to buy for, such as extended family and friend groups, suggesting a Secret Santa is a great way to keep costs down. Similarly, buying a ‘family gift’, such as a large box of chocs, tin of biscuits or sweets or a board game, can be a great way to gift to a group rather than buying individual presents.

4. Consider buying secondhand

Buying someone a secondhand present used to be a bit of a no-no, but all that’s changed with a renewed focus on protecting the environment and reducing waste. Shopping secondhand is more sustainable and frugal, and you can find some treasures. If you want to shop for secondhand items online, eBay for Charity is partnered with lots of secondhand charity stores, including British Heart Foundation, Cancer Research and Oxfam.

5. Avoid ‘buy now, pay later’

Tempting as these schemes are, try to avoid them unless you have a plan in place for repaying the loan within the interest-free period. Otherwise, after the 0% phase ends, you’ll be charged an aggressive interest rate and that new sofa, outfit or TV could end up costing you far more. It could have a negative impact on your credit score if you default on payments.

6. Be smart about delivery

Paying supermarket delivery fees can really add up. A delivery pass, where you pay an upfront fee for deliveries from your favourite supermarket, may work out cheaper. Depending on your basket size and frequency of shop, they can save you time and money. If you’re buying a lot from Amazon, it’s probably worth signing up for your 30 day trial of Amazon Prime to get free shipping — just remember to cancel before the 30 days are up.

7. Don’t lose your head over sales

Christmas sales and discounts are great, but they are only a bargain if you were going to buy the product anyway! Keep a clear head and try to resist impulse buys to save the most this Christmas – and one tip you can do is check online for websites that track prices of key products throughout the year so you can see if you’re getting a real bargain or not.

8. Find the cheapest way to send a parcel

If you’re posting presents this year, do your research to find the most cost-effective option. For example, sending a parcel via the Royal Mail at a post office may be more expensive than using their online Royal Mail Click & Drop service. Similarly, look at other delivery specialists and see how you can make a range of savings just by using a different service.

9. Travel home for less

Don’t forget to factor in the cost of getting anywhere this Christmas or the New Year, whether you are visiting family, travelling to shop or attend events.

If you’re going by train, get organised and book ahead to try and save money compared to the price of a walk-on fare bought on the day itself. Similarly, look at altering the times of your journey to save money, with off peak tickets generally being far cheaper than those at peak commuting times. Look at the National Rail website www.nationalrail.co.uk to see how much you could save.

If you’re travelling by car – the cost of fuel at motorway service stations is often considerably more than in locations away from the motorway network, so by planning your journey ahead you can often save yourself a good few pounds in the process. The same goes for electric cars – with variable charging rates across the country, time spent doing the homework beforehand can be most valuable.

10. Use cashback sites

With sites such as Quidco or TopCashback, you can earn money as you shop. Once you’ve set up an account, click on the retailer you want to buy from. You’ll be taken to the retailer’s website to shop as usual but your purchase is tracked and you will earn a percentage of it back. The amount of cashback you earn varies per retailer and transaction, but it can soon add up to a sizeable amount.

11. Join the club

Signing up to a retailer’s newsletter can bag you immediate discounts, such as 10% off your next purchase or free shipping offers – it’s always worthwhile seeing what you can get by joining the loyalty programmes. It’ll also mean that you’re first to hear about Christmas discount events and can sometimes access promotional offers before those who aren’t members of the loyalty programme.

12. Deploy trolley tactics

Load up your online trolley but don’t check out immediately. If stores spot items sitting in your basket, they’ll ask if you forgot to check out and may send you a discount code to persuade you to buy the goods. You’ll need to have entered your email address, so that they can get in touch.

2024 is set to be a busy time for many homeowners, with the initial fixed term periods on mortgages expiring for a lot of clients across the market¹, leading to some big decisions being required on remortgaging options.

What happens when your initial mortgage period expires?

Your initial fixed-term period will often expire after two years or five years, depending upon the specific deal, and after this, you’ll be put onto your mortgage lender’s Standard Variable Rate (SVR)².

As you may be aware, the interest rates on the SVR may be higher than those that you can obtain with a fixed-rate deal², so it’s always worthwhile taking action ahead of your fixed-term period expiring, to ensure that you’re not paying more than you need to, and that you’ve got a mortgage deal that fits your exact circumstances.

With interest rates having risen considerably in recent times, it’s also highly likely that the mortgage deals you will come across may be significantly higher than your existing deal, so there’s a lot at stake to ensure that you’re getting a fair rate when it comes to your renewal.

Remortgage or Product Transfer?

How does it all work? Ahead of your mortgage’s fixed-term period coming to an end, we’ll get in touch with you to discuss the options available to you, but to summarise, there is often a choice between a full remortgage, or a product transfer.

A product transfer is simply switching from one mortgage product to another, at your same lender. This is often a straightforward process and allows you to take advantage of some of the fixed-rate deals available from your existing lender, to prevent you going onto the Standard Variable Rate.

However, in some cases, there may be other deals available from other lenders in the market that are more suited to your current circumstances, and to access these would require a remortgage.

The remortgage process take longer, and is similar to that of when you first applied for a mortgage³. There would be evidence required of your earnings and property valuations undertaken, with more chance of fees payable to lenders, however, some may find that this inconvenience is offset through accessing deals that could possibly save more money and be of greater fit to your ever-changing circumstances.

How to know what’s most appropriate for you

It’s not always easy to know what’s right for you and your circumstances, so that’s where the value of professional mortgage advice comes in. We’re here to listen to your exact situation and to recommend the products that we believe are the most appropriate for you based upon looking at a wide range of lenders and exclusive deals that aren’t available on the high street.

It’s highly likely that your own lender will also reach out to you with offers of product transfers, however we would always recommend that you seek our experienced, professional advice before taking up any offers to ensure that these work in your interest as well as theirs. We’re more than happy to arrange both product transfers and remortgages, but pride ourselves in listening to your exact situation before giving bespoke advice that’s tailored to you.

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

Sources

1. Statista (2023) Fixed rate mortgage loans coming up for renewal in the UK from 1st quarter 2022 to 3rd quarter 2024. Available at:  https://www.statista.com/statistics/1399875/fixed-mortgages-for-renewal-by-interest-rate-uk/ (Accessed 21 November 2023)
2. MoneySuperMarket (2023) What is a Standard Variable Rate mortgage?. Available at: https://www.moneysupermarket.com/mortgages/standard-variable-rate-mortgages/ (Accessed 21 November 2023)
3. Experian (2023) Remortgaging. Available at: https://www.experian.co.uk/consumer/mortgages/types/remortgage.html (Accessed 21 November 2023)

All the information in this article is correct as of the publish date 30^th November 2023. The opinions expressed in this publication are those of the authors. The information provided in this article, including text, graphics and images does not, and is not intended to, substitute advice; instead, all information, content and materials available in this article are for general informational purposes only. Information in this article may not constitute the most up-to-date legal or other information.

As winter approaches, it’s crucial to ensure your home is ready to withstand the colder months. We’ve put together a checklist of key things you can do to help protect your property from winter-related damage, and keep your insurance valid.

1. Garden and Exterior Preparation

• Secure loose garden items and trim trees to prevent damage from storms.
• Inspect roof tiles, fences, outbuildings, bricks, and mortar for potential issues.
• Clean gutters to prevent blockages and water damage.
• Check aerials, satellite dishes, and solar panels for stability.

2. Emergency Readiness

• Assemble an emergency kit containing important documents, a torch, spare batteries, and a first aid kit.
• Regularly check your boiler and consider adding Home Emergency cover to your home insurance for extra protection.

3. Insulation and Heating Efficiency

• Properly insulate your attic, walls, and water tank to save energy and prevent heat loss.
• Use draught excluders for windows and doors and lag your pipes.
• Upgrade to a smart thermostat for more efficient heating.
• Bleed radiators to improve efficiency and avoid frozen pipes.

4. Frozen Pipe Prevention

• Locate and know how to use your stop valve.
• Insulate pipes and fix any drips or leaks to reduce the risk of freezing.
• If you’re going away, drain systems during winter to prevent freezing.
• Insulate water supply pipes, especially in lofts or exterior walls.

5. Dealing with Frozen or Burst Pipes

• If boiler pipes freeze, use a hot water bottle or warm water to defrost the condensate pipe.
• Turn off the water and central heating if pipes burst, and drain the system to prevent further damage.
• Thaw frozen sections gently, and turn off electricity if electrical sockets are affected.

6. Insurance Considerations

• Check if your buildings insurance includes trace and access cover for locating and repairing leaks.
• Review your home insurance documents to understand coverage and policy excess.
• Report any incidents promptly and provide all necessary details during the claim process.

7. Additional Home Maintenance Tips

• Inspect your roof for loose or damaged tiles, especially after summer.
• Clear gutters and downpipes regularly to avoid water ingress.
• Address trip hazards in outdoor areas like driveways and garden paths.
• Secure garden furniture and trim tree branches prone to storm damage.
• Ensure your central heating system is serviced annually, preferably before winter.

Conclusion

Taking these steps can significantly reduce the risk of winter-related damage to your home, ensuring a safer and more comfortable season. Additionally, maintaining your property can help keep your home insurance valid and avoid unexpected costs. Remember, prevention is key, and a little preparation goes a long way in safeguarding your home against the challenges of winter weather.

Launched back in 2013, the Government’s ‘Help-to-Buy’ scheme was designed to help first time buyers get onto the property ladder, through offering an equity loan for up to 20% of a property’s value, interest-free for the first five years¹.

But a decade on, what happens if you are looking to sell a home and have a Help-to-Buy equity loan outstanding?

This format of Help-to-Buy (HTB) scheme has now ended but offered buyers in the UK to purchase a property with a deposit of as little as 5%, and a mortgage for the remaining 75%, topped up by the Government’s 20% equity loan (or 40% in London)¹.

The only catch is that the interest-free period stopped after five years, and with the main condition that when the homeowner comes to sell, 20% of the property’s value today, must be repaid to the owners of the HTB scheme, the Homes & Communities Agency (HCA). With property prices varying, the final amount you pay back will vary too².

When do you have to pay back a HTB loan?

Homeowners have up to 25 years to pay back the HTB loans, this can either be undertaken either in blocks (sometimes known as ‘Staircasing’²) or in full when the property is sold. However, when selling a property with a HTB loan, there are a few extra hoops to jump through.

How do you calculate what you owe?

A common misconception on HTB loans is that the amount loaned to the homeowner would stay the same, whereas it will fluctuate over time, and is linked to the value of the property at the time it is paid off.

If you are paying off a HTB loan at the time that the house is being sold, the property valuation will be used to calculate the final amount owed, or a valuation will need to be undertaken if the loan is being paid off without moving from the property. In each case, the valuation must be carried out by a chartered surveyor from the Royal Institute of Chartered Surveyors (RICS) in order to be approved by the HCA³.

We’ve put together a practical example to show how this could work in practice:

• Original Purchase Price of House – £200,000
• 5% Deposit put down by buyer – £10,000
• 75% Mortgage Loan from Lender – £150,000
• 20% Help-to-Buy Loan from HCA – £40,000

In this example, the homeowner was loaned £40,000 as part of the Help-to-Buy scheme, based upon buying a £200,000 property.

When it comes to selling the property, if this has gone up in value by 10% and is now valued at £220,000, then the value of the money owed to the HCA for Help to Buy has also increased by 10%. Therefore the £40,000 amount owed has increased to £44,000.

Selling your Home

When it comes to selling a home with the Help-to-Buy equity loan outstanding, the HCA become involved in the selling process. You’d need to notify the HCA through their administration agents, Lenvi (formerly managed by Target) prior to proceeding with a sale.

Your property will need to be valued by a RICS chartered surveyor, otherwise there is a risk that the valuation can be rejected by the HCA and another survey will be required, at your own cost³.

You can sell your property before the initial five-year interest-free period is up, and repay the equity loan when you sell.

Many useful guides can be found online relating to the finer details to be considered when selling a home with an HTB equity loan outstanding, including these guides from Zoopla and the Home Owners Alliance.

Staying in your home and paying off the HTB equity loan

Alternatively, some may wish to pay off the HTB equity loan without moving home. After the five-year interest-free period expires, then interest will be due each month, so it is recommended to make arrangements to pay off the equity loan as soon as you can to avoid incurring additional payments each month.

Homeowners who have a 20% Help-to-Buy loan only have the option of part-paying off either half the loan or the full amount in one go, there are no smaller payment increments available. This may represent a considerable sum of money, so one option could be to remortgage your property and pay off the HTB loan using a larger mortgage, should your financial circumstances allow. However, this may not be suitable for everyone, and it is important to consider your monthly income and outgoings before making any decisions along these lines.

More guidance on ways to pay off a HTB equity loan can be found at the Government’s website – https://www.gov.uk/guidance/how-to-repay-your-equity-loan-when-you-remortgage .

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

We’re here to help

If you’re a homeowner with a Help-to-Buy loan, the last thing you want is for it to feel like a weight around the neck, so that’s why we are here to give you the advice you need to make the decisions that are most appropriate for you and your circumstances, just book an appointment and speak to us to see how we can assist.

Sources

1. Gov.uk (2023) Help to Buy: Equity Loan. Available at: https://www.gov.uk/help-to-buy-equity-loan (Accessed 22 November 2023)
2. Home Owners Alliance (2023) Selling a house with a Help to Buy Equity Loan. Available at: https://hoa.org.uk/advice/guides-for-homeowners/i-am-selling/selling-a-home-with-a-help-to-buy-equity-loan/ (Accessed 21 November 2023)
3. Zoopla (2023) How to sell a Help to Buy property. Available at: https://www.zoopla.co.uk/discover/selling/how-to-sell-a-help-to-buy-property/ (Accessed 22 November 2023)

All the information in this article is correct as of the publish date 26^th October 2023. The opinions expressed in this publication are those of the authors. The information provided in this article, including text, graphics and images does not, and is not intended to, substitute advice; instead, all information, content and materials available in this article are for general informational purposes only. Information in this article may not constitute the most up-to-date legal or other information.

New HMRC rules on Income Tax are due to take effect on 1^st January 2024, targeting those actively making significant money from side hustles – whether it’s profiting from selling crafts & hobby items online or renting out a place on Airbnb, for example, you could be caught out unless your tax affairs are in order¹.

In the aftermath of the Covid pandemic and as the Cost-of-Living crisis squeezed disposable incomes further, it’s no doubting that many have sought to make an additional income on top of their day jobs, so these changes by the HMRC are a response to the growing volume of people making money but not declaring it via the traditional manner¹.

The HMRC have recently invested over £36m in establishing a dedicated team to monitor online sales, and big firms such as eBay, Uber and Airbnb are now being required to report seller’s income to HMRC¹. This means that big sellers online or those making a few pounds on the side as a delivery driver or casually renting out your home via an online platform could land you in hot water if you don’t declare your income fully.

Who does it affect?

Many of us may be familiar with using buying & selling platforms such as eBay to sell secondhand goods or clothing, and according to tax experts, provided you are not considered a ‘trader’ by the HMRC, then you will be fine to continue as you are – but if your purpose is to buy-to-sell, or make considerable volumes of craft items that are purposely to be sold at profit, then you could be affected by the changes¹.

Anyone who earns less than £1,000 a year in side-gigs does not have to pay tax or declare income, thanks to the Trading Allowance currently in place². However, earnings above this amount do need to be declared and would be subject to income tax and national insurance, under the new HMRC regulations.

Recent years have seen a huge rise in popularity of room-rental opportunities, with online platforms such as Airbnb making it easy to make substantial second incomes from short term rental bookings. Under the Government’s ‘Rent a Room Scheme’, you are permitted to earn up to £7,500 a year tax-free from letting out furnished accommodation³, however, if you go above this amount then you must contact HMRC and request that your tax code is changed, or complete one of their self-assessment tax returns.

How to know if you are eligible

Whether you’re eligible to pay tax on online sales depends on whether you are classed as a ‘trader’ by the HMRC. The HMRC may decide this if you buy and sell online regularly with the aim of making a profit⁴. You can check how HMRC views your circumstances at www.gov.uk/check-additional-income-tax.

It’s important to clarify that these new rules are not aimed at the average person clearing out their attic and selling unwanted items online without intending to make a profit, and this is unlikely to be classified as trading, even if you exceed your £1,000 allowance¹.

Similarly, if you occasionally make cakes for friends and family and they pay you small sums to say thank you, then you may not have to pay tax on it. The intention behind the HMRC income tax changes are to ensure fair payment of income tax from prolific online sellers running a commercial enterprise, or making large volumes of income from services that would previously go unrecorded on self-assessment tax forms¹. However, there are doubtless grey areas as to exactly what is defined within the new regulations, so if you are in any doubt, it’s advisable to speak to the HMRC or to seek independent financial advice from a trained professional.

If you are concerned regarding an historical income, it is also worthwhile contacting the HMRC, it pays to be proactive and disclose any dealings upfront, then it may result in receiving a less-harsh penalty than you might otherwise receive¹.

When are the deadlines?

Any income for the tax year ending on April 5, 2023 need to be reported to HMRC by January 31 next year¹.

As always, it’s worth seeking independent financial advice if you have any queries regarding your position.

Sources

1. This is Money (2023) Is the taxman coming for YOUR side hustle? Airbnb, Ebay and Uber to hand over income data directly to HMRC. Available at: https://www.thisismoney.co.uk/money/bills/article-12640869/Is-taxman-coming-hustle-Airbnb-Ebay-Uber-hand-income-data-directly-HMRC.html (Accessed 18 Oct 2023)
2. The Times Money Mentor (2023) Side hustles: the crucial £1,000 tax rule. Available at: https://www.thetimes.co.uk/money-mentor/article/side-hustle-tax-uk-need-to-pay-hmrc/ (Accessed 18 Oct 2023)
3. Gov.UK (2023) Guidance: HS223 Rent a Room Scheme (2023). Available at: https://www.gov.uk/government/publications/rent-a-room-for-traders-hs223-self-assessment-helpsheet/hs223-rent-a-room-scheme-2023 (Accessed 18 Oct 2023)
4. Gov.UK (2023) HMRC Business Income Manual. Available at: https://www.gov.uk/hmrc-internal-manuals/business-income-manual/bim20060 (Accessed 18 Oct 2023)

All the information in this article is correct as of the publish date 26^th October 2023. The opinions expressed in this publication are those of the authors. The information provided in this article, including text, graphics and images does not, and is not intended to, substitute advice; instead, all information, content and materials available in this article are for general informational purposes only. Information in this article may not constitute the most up-to-date legal or other information.

Times are hard right now, and if you’re struggling to balance your income against the outgoings, then one action that you can see if you can save money by checking to see if you’re paying too much for utilities each month.

Council Tax – You might be able to get money off your council tax – either Council Tax Reduction or a discount. If you’re on a low income or claim benefits, you might be able to get Council Tax Reduction. Each local council runs its own scheme, so what you can get depends on where you live.¹

You might be able to get a council tax discount for your property – for example, if:

• no one lives there
• you live alone
• you live alone apart from a live-in care worker
• people you live with are full-time students or apprentices
• someone you live with has a severe mental disability
• you need a bigger property because someone has a disability

You can find out about getting a council tax discount on GOV.UK.

Gas & Electricity – The energy market has had a turbulent time over the last two years, however recently the wholesale cost of energy has fallen², and there may be opportunities to either find a cheaper tariff from your existing supplier, or look around for more attractive deals from competitors. It’s worth doing the homework and shopping around just to see if you could be on a different plan that better fits your energy usage needs.

If you are finding it difficult to pay your energy bills, be sure to mention this to your supplier and they may be able to assist you with a manageable payment plan – it’s important not to keep the head below the sand here and be upfront with your supplier if you foresee any financial issues on the horizon.

You can also get extra help from your gas and electricity supplier by signing up to the Priority Services Register³. You can sign up if you’re either:

• of State Pension age
• disabled or have a long-term health condition
• considered ‘vulnerable’ by your energy network

You can check who your electricity network operator is on the Power Cut 105 website.

Water Bills – Use the Consumer Council for Water calculator to check if having a water meter installed could save you money. If you’re on a low income you might be able to get a cheaper rate from your water company. This is called a social tariff. Find out more about social tariffs on the Consumer Council for Water website.

Sources

1. Gov.UK (2023) How Council Tax works. Available at: https://www.gov.uk/council-tax/who-has-to-pay (Accessed 18 Oct 2023)
2. Ofgem (2023) Switch supplier or energy tariff. Available at: https://www.ofgem.gov.uk/information-consumers/energy-advice-households/switching-energy-tariff-or-supplier (Accessed 18 Oct 2023)
3. Ofgem (2023) Get help from your supplier – Priority Services Register. Available at: https://www.ofgem.gov.uk/information-consumers/energy-advice-households/getting-extra-help-priority-services-register (Accessed 18 Oct 2023)

All the information in this article is correct as of the publish date 26^th October 2023. The opinions expressed in this publication are those of the authors. The information provided in this article, including text, graphics and images does not, and is not intended to, substitute advice; instead, all information, content and materials available in this article are for general informational purposes only. Information in this article may not constitute the most up-to-date legal or other information

As the nights draw in, the thoughts soon head towards the inevitable question – ‘when to switch the heating on?’ With rocketing energy prices over the last couple of years, that suddenly becomes a more expensive question to answer, so we’ve highlighted a few areas where choice investment in your home may help you save money in the long run, and could even make it more attractive to buyers when you come to sell it on.

Insulation

Poor insulation leads to 45 per cent of heat loss¹. Cavity wall insulation stores heat within inner walls, while loft insulation sits between the joists in the roof space. It’s also with considering floor insulation too.

The costs of insulating a home can vary widely dependant upon the size of the property and other elements such as how it has been built all affecting the final costs. The Energy Savings Trust estimate a cost of between £8,500-£12,000 to fully insulate the average three-bedroom semi-detached house² – so it’s not a cheap undertaking by any stretch of the imagination, however according to their findings, the resultant savings in energy bills can soon help to mitigate this expense within just a few years².

Solar Power

Solar panels convert sunlight into electricity and can be a way of reducing your electricity bills by selling electricity generated by your panels to the National Grid under the Smart Export Guarantee tariffs scheme³. 

Depending on the size of your roof and the number of panels you have, prices can start from £5,000 for a three-bedroom house, according to the Federation of Master Builders. However, effective capture of solar energy depends on the weather and the siting of the panels, with the optimum placing being on a south-facing roof. It can take some time for the investment in solar panels to re-coup itself, however with energy bills presently being at a high level, the current rate is approximately between 7-9 years⁴.

Heat pumps

New gas boilers are due to be illegal by 2035, and the Government are instead offering a £7,500 subsidy for those choosing to fit heat pumps to properties⁵.

However, the downside is that the high average cost of installing a heat pump can be off-putting – with latest data suggesting that it can cost between £7k-£15k to fit an air source heat pump, and between £17k-£35k to fit a ground source heat pump to the average home⁶.

Double Glazing

Double or triple glazing will help cut energy bills but, without blinds and particularly if the windows are south facing, double glazing can magnify the effect of sunshine and cause overheating. 

Double glazing a typical three-bedroom home today is likely to cost around £11,050 on average, according to research by The Eco Experts, however it’s also estimated to save around £195 a year on heating bills, as well as added benefits from an increased security and reduced noise perspective too⁷.

Low energy lighting

According to research from the Energy Saving Trust, if all 28 million homes in Britain switched to 100% LED bulbs, we could save 1.7 million tonnes of CO2 emissions annually. Replacing every bulb in a typical house with LED lights could cut carbon dioxide emissions by 75 per cent⁸.

A traditional halogen bulb lasts around two years or 2000 hours, based on three hours’ daily use. An LED under similar conditions lasts 10,000 hours upwards, for 10 years or longer. You can save £2 to £3 per year for every traditional halogen bulb you switch to a similarly bright LED bulb⁸.

Upgrading a boiler

Modern gas boilers can save you money, particularly if you have an older model, as well as reduce the amount of CO2 emitted. Upgrading to a new modern combi boiler is likely to save you between 20-35% on your gas bills. The older the boiler, the less efficient it will be, so a new one can start to instantly repay your costs by reducing heating costs immediately. ‘A’ rated boilers, including installation, can start from £1,000-£2,000.⁹

Sources

1. Energy Savings Trust (2023) Solid Wall Insulation. Available at: https://energysavingtrust.org.uk/advice/solid-wall-insulation/ (Accessed 19 Oct 2023)

• This is Money (2023) What you need to know about professional home insulation. Available at: https://www.thisismoney.co.uk/money/bills/article-11658317/How-does-wall-loft-insulation-cost-guide-making-house-warmer-cutting-bills.html (Accessed 19 Oct 2023)

• Ofgem (2023) Smart Export Guarantee. Available at: https://www.ofgem.gov.uk/environmental-and-social-schemes/smart-export-guarantee-seg (Accessed 19 Oct 2023)

• Federation of Master Builders (2023) Cost of solar panels in the UK. Available at: https://www.fmb.org.uk/homepicks/solar-panels/cost-of-solar-panels/ (Accessed 19 Oct 2023)

• Gov.UK (2023) Apply for the Boiler Upgrade Scheme. Available at: https://www.gov.uk/apply-boiler-upgrade-scheme/what-you-can-get (Accessed 19 Oct 2023)

• The Eco Experts (2023) Heat Pump Costs UK 2023. Available at: https://www.theecoexperts.co.uk/heat-pumps/cost-guide (Accessed 19 Oct 2023)

• The Eco Experts (2023) Double Glazed Window Costs 2023. Available at: https://www.theecoexperts.co.uk/windows/double-glazing-costs (Accessed 19 Oct 2023)

• Energy Saving Trust (2023) Getting the best out of your LED lighting. Available at: https://energysavingtrust.org.uk/getting-best-out-your-led-lighting/ (Accessed 19 Oct 2023)

• Heatable (2023) How to reduce your gas bill. Available at: https://heatable.co.uk/boiler-advice/how-to-reduce-your-gas-bill-tricks-to-save-as-much-as-350-a-year (Accessed 19 Oct 2023)

All the information in this article is correct as of the publish date 26^th October 2023. The opinions expressed in this publication are those of the authors. The information provided in this article, including text, graphics and images does not, and is not intended to, substitute advice; instead, all information, content and materials available in this article are for general informational purposes only. Information in this article may not constitute the most up-to-date legal or other information.

We have all become accustomed to paying the ticket price on items purchased in a shop and not daring to ask for a lower price. Obviously, there would be chaos in supermarkets up and down the land, if we all tried to ask for lower prices at the till, but the art of negotiating for the goods and services we purchase has almost died out.

Some of us don’t have the time to argue and many of us may be too embarrassed or just fear having our offer rejected, and there’s certainly little chance to ask for a discount at an online retailer. Yet, while there is plenty of encouragement to find the cheapest deals, the prices are set by the sellers. How much of a better deal could you get if you just asked for a lower price?

This is particularly pertinent to the charging for car breakdown cover. Providers rely on customer inertia NOT to take action when the renewal notice drops on the mat, even if the premium is significantly greater than the previous year.

Research suggests that as many as 78% of UK car owners have some form of breakdown cover¹, but with the current squeeze on household incomes, it may seem an attractive idea to cut out peripheral costs such as breakdown cover and ‘go it alone’ out on the roads.

However, it can cost as much as £150-£300 to recover a broken-down car from a motorway or A-road², and paired with the additional peace of mind brought about by having breakdown cover, you may wish to explore how you can continue to enjoy the benefits, but at a reduced price.

Time for a little negotiation

It pays to do your homework, when it comes to renewal time. When you receive your quote through, take a quick look online to see the costs of similar cover with rival firms, and then simply give your existing breakdown cover supplier a call, and ask them to justify the price, explaining that you have seen similar cover for less online – can they price-match or beat the quotes from competitors?

Chances are, you could be surprised at the results, as the breakdown cover supplier seeks to do what they can to retain you as a customer rather than to let you go to a competing firm. With household budgets under pressure from all angles, it makes sense to do just a few minutes legwork to see what you could save – to not only enjoy the continued peace of mind from having breakdown cover, but peace of mind that you’ve got it for a great price too.

Sources

1. RAC (2019) ​British drivers unprepared for winter weather breakdowns. Available at: https://tinyurl.com/mrxfahpj (Accessed 19 Oct 2023)

• AutoExpress (2020) Drivers pay £25m for recovery on motorways and A-roads. Available at: https://www.autoexpress.co.uk/news/353342/drivers-pay-ps25m-recovery-motorways-and-roads#:~:text=Drivers%20of%20these%20pay%20%C2%A3,on%20or%20off%20the%20road (Accessed 19 Oct 2023)

All the information in this article is correct as of the publish date 26^th October 2023. The opinions expressed in this publication are those of the authors. The information provided in this article, including text, graphics and images does not, and is not intended to, substitute advice; instead, all information, content and materials available in this article are for general informational purposes only. Information in this article may not constitute the most up-to-date legal or other information.

As you know, recent times have been filled with headlines about rising mortgage rates, making it challenging for many to balance their monthly mortgage repayments against the rising cost of living or moving home to fit their current life circumstances, for example.

However, there are further glimpses of positive news as in recent weeks, a number of major UK lenders have started to reduce their rates, representing a refreshing change to the gloomier news seen earlier this year.¹

Alongside this, Halifax have stated that on average, UK housing is more affordable now than 12 months ago. According to their data, the typical home in the UK currently costs 6.7 times the average earnings of a full-time worker, which is down from 7.3 times, a year ago.²

Some of the key rate changes at a glance

• Nationwide and TSB have reduced rates by up to 0.4% on selected mortgage products.³
• Santander and HSBC have reduced selected rates by 0.20%.⁴
• Skipton Building Society have reduced their 100% loan-to-value mortgage to 6.29%, along with rate cuts to other mortgage products.⁵
• Halifax, part of Lloyds Banking Group, have also stated that a range of price cuts are taking place on their products, including selected five-year rates.⁶

These reductions will bolster hopes that we have seen the peak of mortgage rates, even though borrowers still face near-record costs¹, with the average cost of a two-year fixed mortgage still at 6.76%, compared to the low rate of 2.34% witnessed back in December 2021⁷  for example.

Why are these mortgage rates being reduced?

Recent data showed that UK inflation fell to a 15-month low in June, reversing a sharp increase earlier in the year.¹ Furthermore, the need for lenders to compete in a challenging economic environment has also contributed to the rate cuts.

Looking ahead

Despite these promising signs, major reductions in mortgage costs are unlikely in the short term, with inflation still high and the Bank of England expecting rates to remain higher for longer.¹ However, this recent positive development should not be overlooked, as it provides a glimmer of hope for those either looking to remortgage in the coming months, buy a first home or upsize on their existing property.

What this means for you

These lower rates could open more opportunities to find a mortgage that fits your current needs, whether it’s to help you secure a remortgage, find that dream new property, or help someone in your family to get onto the property ladder for the first time – please do get in touch with us to see how we can possibly help.

We’ll be able to navigate the complex world of mortgages and listen to your exact situation before searching across a wide range of products and strive to help you find one that matches your circumstances, lifestyle and financial goals.

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

Sources

1. The Guardian (2023) NatWest and Virgin Money cut rates as mortgage ‘price war’ spreads. Available at https://www.theguardian.com/money/2023/aug/10/natwest-and-virgin-money-cut-rates-as-mortgage-price-war-spreads (Accessed 21st August 2023)

• BBC News (2023) Housing more affordable than a year ago, the Halifax says. Available at: https://www.bbc.co.uk/news/business-66585755 (Accessed 23rd August 2023)
• Financial Reporter (2023) Nationwide cuts mortgage rates by up to 0.40%. Available at: https://www.financialreporter.co.uk/nationwide-cuts-mortgage-rates-by-up-to-040.html (Accessed 23rd August 2023)
• Financial Reporter (2023) Santander announces further mortgage rate reductions. Available at: https://www.financialreporter.co.uk/santander-announces-further-mortgage-rate-reductions.html (Accessed 23^rd August 2023)
• Financial Reporter (2023) Skipton cuts 100% LTV mortgage rate in wave of reductions. Available at: https://www.financialreporter.co.uk/skipton-cuts-100-ltv-mortgage-rate-in-wave-of-reductions.html (Accessed 21st August 2023)
• Financial Reporter (2023) Halifax announces further cuts to fixed rate mortgages. Available at: https://www.financialreporter.co.uk/halifax-announces-further-cuts-to-fixed-rate-mortgages.html (Accessed 21st August 2023)
• The Times Money Mentor (2023) Will UK mortgage rates continue to go down in 2023?. Available at: https://www.thetimes.co.uk/money-mentor/article/mortgage-rates-uk-news-will-they-go-down/ (Accessed 21^st August 2023)

All the information in this article is correct as of the publish date 31^st August 2023. The opinions expressed in this publication are those of the authors. The information provided in this article, including text, graphics and images does not, and is not intended to, substitute advice; instead, all information, content and materials available in this article are for general informational purposes only. Information in this article may not constitute the most up-to-date legal or other information.

If your house is in the countryside you could see your heating bills increase by more than two thirds if you decide to install a heat pump, according to figures from industry trade body Energy and Utilities Alliance (EUA).¹

They calculated that the cost of running a heat pump for rural homes is more than 70 per cent higher per year than a conventional oil boiler. The Government wants to install 600,000 heat pumps a year by 2028 and ban all new oil boilers by 2026, as well as put eight million electric vehicles (EVs) on UK roads by 2030 as part of the push to meet ‘net zero’ targets.² 

The proposals have prompted fears in rural communities, where millions of people are not connected to the gas grid and so rely on oil heating, that antiquated local infrastructure will not be able to cope with the sudden demand on electricity. ^[1][2] 

The costs associated with upgrading are also significantly higher than staying with conventional boilers. While a replacement oil boiler typically costs £2,500, heat pumps retail in the region of £13,000, according to the EUA.¹ 

In an attempt to soften the blow of switching to alternative heating, the Government offers grants of between £5,000 and £6,000 for households to purchase and install a heat pump and advocates argue that this price will reduce as the industry grows.

However, fewer than 10,000 heat pumps were installed during the first year of the roll-out programme, falling far short of the target of 30,000. Some £90 million of unspent subsidies are set to be handed back to the Treasury due to the lacklustre uptake.¹

Mike Foster, chief executive of the EUA, said: “The government has promised that from 2026 people living in homes off the gas grid – that is typically in rural areas of Britain – would not be able to replace a broken boiler with a new one. By law they would be forced to have a heat pump.”

“That is not something that most rational people would do as a choice, and if they are forced to do it then the political backlash would be immense.”

If you live in a rural home, or are considering purchasing a property in a rural area then this will become a key topic to bear in mind in the coming years regarding the plans around the use of heat pumps.

Sources

1. Sharetalk (2023) Industry group indicates a 70% increase in bills for rural households transitioning to heat pumps. Available at: https://www.share-talk.com/industry-group-indicates-a-70-increase-in-bills-for-rural-households-transitioning-to-heat-pumps/ (Accessed 23^rd August 2023)

• This is Money (2023) Government has no plans to delay proposals to replace gas boilers with heat pumps. Available at: https://www.thisismoney.co.uk/money/bills/article-12340243/Government-NO-plans-delay-proposals-replace-gas-boilers-heat-pumps-despite-Michael-Gove-hints.html (Accessed 23rd August 2023)

All the information in this article is correct as of the publish date 31^st August 2023. The opinions expressed in this publication are those of the authors. The information provided in this article, including text, graphics and images does not, and is not intended to, substitute advice; instead, all information, content and materials available in this article are for general informational purposes only. Information in this article may not constitute the most up-to-date legal or other information.