We are starting this month’s newsletter with a Market Watch to see how 2025 is faring so far. Then we’ll explore how to clear a mortgage quicker while boosting your chances – from first-time buyers to those remortgaging.
We also have lots of helpful advice on critical illness cover, your changing insurance needs, and whether you should be looking at downsizing or equity release.
In this month’s newsletter:
2025 Market Watch.
It’s been a busy year in the finance world! Have you been reading along? We’d thought we’d break down a few changes. Here’s an overview of the current trends in mortgages, protection, insurance, and later-life lending so far:
Mortgages
Firstly, we are seeing lots of changes in rates and deals. Mostly thanks to declining fixed rates. Two-year fixed mortgages are now at 5.12%, down from over 5.4% earlier this year. And, despite market hopes, the Bank of England has held the base rate at 4.25%, citing inflation still running 3.4%. However, earlier this month we saw the base rate drop to 4.00%, and as such it is likely we will see some rates come down as a result.
Earlier this year, we saw a rush of buying before the stamp duty changes in the first quarter of the year. There was a sharp rise, with first-time buyer completions increasing by 62%, and movers by 74%, as people rushed to beat the April tax tweaks. We also saw an increase in first-time buyers entering the market. Potentially encouraged by upcoming accountability reforms, including lenders considering rental payment histories in their affordability checks. Did you know about this one?
Finally, in our market outlook, average asking prices dipped 0.3% in June (most significant flat/SW fall), but are still marginally (0.8%) higher than a year ago. Despite economic headwinds, analysts describe the market as stabilising, labelled a “gradual improvement” in affordability.
Protection & General Insurance
There are some interesting things happening with technological innovation in the insurance world – but the need for a trustworthy advisor remains. As mortgage landscapes shift, protection products (like home emergency cover, legal expense add-ons, and more bespoke or digital-first solutions) are adapting.
Later-Life Lending
Again, we are seeing market growth in equity release news. Lending rose to £665 m in the first quarter of 2025 (up from £622 m in the last quarter of 2024). Marking four straight quarters of growth. Rising house prices have made homeowners more inclined to tap equity. The average release rates are now between 5.7–7%. Doubling from 3.7% in 2021.
More and more, the industry calls for emphasis on regulation and transparency for responsible lending. Making sure clients always come first. No-negative-equity guarantees and clearer consumer guidance are top of the list for regulation. Meanwhile, emerging UK home equity line of credit (HELOC)-like products reflect a shift toward more flexible equity-access methods, influenced by US-style. Did you have more questions about this?
To finish up…
Professional advice remains crucial. Especially as we are seeing falling fixed rates, strong lending volumes, and easing affordability amid policy shifts in the mortgage world, plus tech-enhanced quoting, rising complexity in protection and insurance. Equally, the continued market growth, product innovation, and rate rises in equity call for expert help.
Do you need help getting started with any new products this month? Let’s have an honest conversation about you and your needs. We’ll update our file and address any new requirements you may have. Reply to this email or give us a call.
How did critical illness cover support this self-employed single mom.
Let’s dive into the top reasons why “cheaper” doesn’t always mean “better” when it comes to insurance:
1. Lower Premiums Often Mean Lower Cover
Cut-price policies tend to offer minimal cover. That might be fine – until you actually need to make a claim. For example, if you bought a cheap contents insurance policy and unfortunately had a break-in, you might find that only £10,000 of items are covered. Plus, it excludes electronics, jewellery, and bikes. That “bargain” policy won’t come close to replacing what you lost.
2. Exclusions and Small Print Matter
Cheap insurance policies often have more exclusions. Also known as: the things they won’t pay out for. Our top tip? Always read the key facts document and ask an adviser to explain what’s not included.
3. Delays, Excesses, and Claim Limits
Cost-saving features reduce the price but can also reduce the value of the policy when you need it most. Such as:
- Higher excesses (the amount you must pay before the insurer contributes)
- Lower payout caps (especially on home, travel, or gadget insurance)
- Longer waiting periods (common with income protection or private medical insurance)
4. Poor Service at the Worst Time
Customer service can suffer with ultra-budget insurers. Long call waits, confusing processes, and slow claims payments may be more common with cheaper providers. When you’re already dealing with theft, or an accident, poor service adds stress you don’t need.
Check with an advisor before choosing on price alone.
Some budget insurers might not offer legal and financial coverage. Or aspects like counselling services and family support. In contrast, more comprehensive (and slightly more expensive) policies often include these extras that can make a big difference in a crisis.
The most important question isn’t “What’s the cheapest insurance?” but “What’s the right insurance for me?”
It’s not about buying the most expensive insurance – it’s about buying the most suitable one. Sometimes that may cost a little more, but in exchange, you’ll get peace of mind, real support when you need it, and a policy that actually works for your situation.
Chat with us today to ensure you are insured where you need it.
Boost your chances for a mortgage.
Are you looking for a new mortgage? How organised are you? Let’s go through some of the key criteria and get your chances looking nice and healthy! From first-time buyers to those remortgaging, and everything in between.
Every lender has its own method to decide whether it wants to lend to you. If you fit a lender’s criteria, you might be accepted quickly. The lender’s decision comes down to a couple of factors, such as:
- The size of the loan you want to take out. How much can you afford?
- Your deposit savings: the bigger your deposit, the less of a risk you’ll likely be seen as.
- How does your income and spending look? Lenders will look closely at this.
- Your employment status. Permanent employees may find it easier to obtain a mortgage than the self-employed, freelancers, and contractors. (But that’s not a problem for us! We can source out specialist lenders just for you.)
- Your credit rating and history.
- Your existing debt. From credit card debt, loans, overdraft, buy now, pay later balances etc, but student loans can look a little different.
Okay, first things first, check your credit report before the mortgage lender does. You are convincing mortgage lenders that you have the financial discipline required to repay your mortgage. One way they investigate this is by searching your credit report(s) to find out if you’ve a good repayment history.
It will include:
- Credit cards
- Loans
- Overdrafts
- Mortgages
- Some utilities
- Buy now, pay later payments
It’s free for you to check your reports with companies such as Experian, Equifax and TransUnion.
Now, are you wondering if you can get a mortgage with a poor credit report? It doesn’t automatically rule you out, but it comes with risks. So if you can, get your credit report looking as good as possible.
Also, did you know that you may need to be registered to vote to qualify for a mortgage? Lenders use electoral roll data in identity checks (to ensure you are who you say you are, and live where you say you live). If you’re not on it, you can register on the electoral roll for free.
Not a UK, Irish or EU national (or a Commonwealth citizen with permission to stay in the UK)? Ask us how you can get around this requirement.
This one might seem obvious, but always pay your bills on time and try to avoid your overdrafts. All missed payments are recorded on your credit file and will stay on file for six years. Consider setting up a direct debit to make sure all payments are made on time.
Mortgage lenders review everything, so organise your paperwork to speed up the process. We can go through all of this in detail with you, but here is a rough list of things to get in order:
- Your last three months’ bank statements
- Your last three months’ payslips
- Proof of bonuses/commission
- Your latest P60 tax form (showing income and tax paid from each tax year)
- Your last three years’ accounts or tax returns
- Proof of deposits (savings account statements)
- ID documents (usually a passport)
- Proof of address (utility bills or credit card bills, for example)
- A gift letter. If you’re getting deposit help, the lender needs to know it is a gift (not a loan), and that the giver won’t part own the home.
Hopefully all of this information has helped you feel organised and in control. Remember, we are here to help with years of experience – we’ve seen it all! Get in touch today to secure your mortgage.
Your home or property may be repossessed if you do not keep up repayments on your mortgage or any other debts secured on it.
From renting to retirement, how do your insurance needs change through life.
Here’s how your insurance needs typically shift – from your renting days to your retirement dreams.
In Your 20s–30s: Renting, Studying, and Starting Out
- Contents insurance
- Car insurance
- Private health (if NHS waiting times are a concern)
In Your 30s–40s: Buying a Home, Having Kids, Getting Established
- Buildings & contents insurance
- Health insurance (especially with a young family)
- Pet insurance
- Gadget cover
If you’ve added a furry family member, pet insurance is a smart move – vet bills can be steep, and even routine treatments add up. And as gadgets multiply, especially in households with children, gadget insurance can save you hundreds on lost or broken devices.
Don’t forget to reassess your policy limits as your belongings grow in value.
In Your 50s–60s: Upsizing, Downsizing, and Health Focus
- Comprehensive home cover
- Travel insurance with medical cover
- Private medical insurance
- Specialist car cover (e.g. for classic cars or lower mileage)
Tip: If you’re downsizing or moving to a different area, don’t forget to update your home policy – premiums and risks vary by postcode.
In Retirement: Lifestyle-Based Cover
- Home & contents
- Health & dental insurance
- Travel cover with cruise or extended trip options
- Legal expenses or home emergency cover
For ongoing health concerns, private health insurance with outpatient care and dental add-ons can make life more comfortable and reduce waiting times.
Some insurers offer over-60s discounts or loyalty perks, and is worth reviewing every few years.
One Size Doesn’t Fit All
Even if your policies are set to auto-renew, they may no longer suit your lifestyle or reflect current costs and values. Regularly reviewing your cover ensures you’re not overpaying, or under-protected.
Whether you’re renting your first flat or planning for retirement adventures, make insurance work for where you are now, not where you were five years ago. Let’s get you updated for the future! Get in touch today for advice just for you.
Making the most of home in retirement with the right advice.
There are big decisions to consider; it’s vital to understand the implications. That’s why speaking with a qualified financial adviser can make all the difference.
Downsizing is often seen as the most straightforward option. Selling your current property and moving to a smaller or more affordable home can free up significant funds and reduce household expenses. It may also bring the benefit of easier maintenance or a more suitable location for your needs.
However, moving can be emotionally and physically demanding, especially if you’ve lived in your home for decades. It’s essential to consider not only the financial outcomes but also the emotional impact. An adviser can help you explore whether the move is worth it, or if other financial options might allow you to stay where you are.
Another popular option is equity release, usually through a lifetime mortgage. It allows you to borrow money against the value of your home while continuing to live in it. The money is tax-free and can be taken as a lump sum or in smaller amounts over time. You typically don’t make monthly repayments, and the loan is repaid when you pass away or move into long-term care.
While this offers flexibility and helps you remain in your home, the interest compounds over time and can significantly reduce the value of your estate. It can also affect eligibility for certain state benefits. That’s why professional advice is crucial – to understand the true cost over time and ensure equity release is right for your circumstances.
Retirement Interest-Only mortgages (RIOs) are another route. These are designed specifically for older borrowers who have reliable retirement income and want to access money from their home while only paying the interest each month. The loan is repaid when the property is sold, typically after death or moving into care.
This option avoids the compounding interest of equity release but does require you to meet affordability checks and make regular payments. We can help assess whether you qualify and whether your income is stable enough to support this kind of arrangement in the long term.
Key Questions to Ask Yourself:
Do I want to stay in my home long-term?
Can I afford ongoing monthly repayments?
Do I want to leave an inheritance?
Am I comfortable borrowing against my home taking on debt in later life?
These are deeply personal decisions, and while it’s tempting to focus on the financial numbers, the emotional and lifestyle impacts are just as important. That’s where expert guidance really matters.
With so many choices, and with the rules and products constantly evolving, speaking with a professional adviser helps ensure you don’t overlook risks or miss out on opportunities that could better suit your needs. We’ll run the numbers, understand the long-term implications, and make a decision that supports both your lifestyle and peace of mind.
Need help deciding which option is right for you? Contact us today for tailored, expert advice. Our qualified advisers are here to walk you through the options and help you make confident, informed decisions about your future.