We previously mentioned earlier in the year, there are a lot of covid-era fixed rate mortgages coming to an end in 2025. How is your mortgage looking? With this remortgaging opportunity, we’ve put together an article discussing the differences between fixed and variable rate mortgages. Don’t forget, if you are going from a much lower rate to the current ones set today, we are here to help.
In May, the Bank of England announced another base rate cut. With it now sitting at 4.25%, its the lowest it’s been since mid-2023. With hints it’s to drop again, chat with us to get a full picture of your finances.
We’ve also been asking our clients what they’d like to hear about, so we are taking the chance this month to cover some topics. For example, do you know you might need different insurance depending on the age of your home? Plus, we are looking at some of the reasons you may want to use equity release for home improvements or aged care. Do you have any topics you’d like to understand more about? Get in touch and we’ll aim to answer them!
Finally, we’ve heard some shocking statistics coming out of the NHS. Let us get your private health insurance and critical illness cover sorted so you aren’t waiting long for the care you need.
In this month’s newsletter:
- Are you looking to remortgage this year? Let’s look at fixed and variable rate mortgages.
- Insuring a heritage or listed building? What unique risks should you consider?
- How to use equity release as you get older
- Avoid NHS waiting times with private medical insurance
- How can a critical illness insurance policy help with NHS waitlists?
Are you looking for a remortgage this year?
What happens when your fixed rate mortgage expires?
Your home loan will typically revert to your lender’s standard variable rate. This may sound like the easiest option to take, especially if your situation has changed. But these rates can often be higher than other deals on the market. So instead of taking a back seat, let us review your options and start preparing.
First, create a buffer
Before your fixed rate expires, let’s work out what your repayments would look like when you roll off the fixed rate. How does this fit into your current budget? You might need to review non-essential costs.
Let’s look at the differences between a fixed rate or variable rate mortgages:
Fixed Rate Mortgages
- With a fixed rate, your monthly repayments will stay the same throughout the fixed term.
- You’re shielded from potential increases in interest rates during the fixed term but also won’t benefit if they drop.
- Fixed rates may be higher than introductory variable rates, but they offer the stability of predictable repayments.
- Fixed rate mortgages often don’t come with features like redraw facilities or the ability to make extra payments without penalty.
- Breaking a fixed rate mortgage before the end of the term can incur significant fees.
Variable Rate Mortgages
- Variable rates can start at lower interest rates than fixed rates, potentially leading to lower monthly repayments.
- Your interest rate and monthly repayments can change if the market changes, or your lender’s rates change.
- Variable rate loans may offer features like redraw facilities, allowing you to access funds without penalties.
- You can benefit from any future interest rate cuts.
- The unpredictable nature of variable rates can make it harder to budget accurately.
Consult with a Mortgage Broker
We can help you compare different loan options and choose the one that best suits your needs. We have access to products not seen on ‘compare the market’ websites. We can secure unique rates based on your individual needs. Chat with us today to see what’s possible for you.
Insuring a heritage or listed building?
There is a lot of love for those beautiful older houses, from the Tudor era to the popular Edwardian terraces. But it’s important to remember, insuring older or historic homes (especially listed buildings) requires special policies. Materials are often costly to maintain historical standards. If your house is heritage, you are obliged to repair it in the same style and approach.
When comparing new build vs. historic (or older) homes for home insurance in the UK, you need to weigh up the costs and factors. Insurers assess risk based on the age, construction materials, and condition of a property. Directly impacting your premiums, coverage limits, and eligibility.
We’ve answered some commonly asked questions. But get in touch if you need detailed advice. We’ll be able to line up the best policy to suit your home. You don’t want to get caught out!
Will structural risks and materials come into consideration?
New Homes: These are built to modern standards (e.g., NHBC warranty) and use fire-resistant and energy-efficient materials. Because of this, there is a lower risk of plumbing/electrical faults. This will generally mean they are cheaper to insure.
Historic Homes (typically 50+ years old): All the charm we love about old homes means they may include non-standard construction such as thatch, timber, cob, and stone. Because of this, there is a higher risk of structural or maintenance issues. This means they will be more expensive and complex to repair or restore. Raising insurance premiums.
How will the repair and rebuild costs play out?
New Homes: Costs will be predictable, and many materials are readily available. Because of this, an off-the-shelf policy is typically based on standard rebuild values.
Historic Homes: Likely, your home will need specialist craftsmanship, and these rebuild costs are often higher than the market value. You may be required to find specialist insurers with policies tailored to heritage buildings (like Grade I or II listed).
What policy extras should I consider?
Keep in mind if your historic house needs repairs, you may need to leave your home. You might want to look at alternative accommodation cover. Historic homes can become uninhabitable, with repairs taking longer. Also, consider taking out home emergency cover, as older homes are prone to unexpected faults. They tend to have older plumbing systems — finding the source of leaks can be tricky. Same for electrical systems.
What about ‘listed buildings’?
If your historic home is Grade I or II listed, you’ll likely need specialist insurance. It should cover listed building consent repairs and include heritage-appropriate materials. Plus, offering legal and planning support is a huge help!
New homes generally benefit from lower premiums and standard coverage. While historic homes often need custom insurance and face higher premiums due to increased risk and repair complexity. But don’t let this get in the way of your dream home purchase. Chat with us today to protect your biggest asset — no matter the age!
How to use equity release as you get older.
For those over 55, equity release (or a lifetime mortgage) allows you to release equity from your home without monthly repayments. The debt, and its roll-up interest accrued, is paid with the sale of the house. With this in mind, it can affect the inheritance you leave. So, as you get ready for your older years, it’s important to weigh up the options if aged care or “ageing in place” is better for you.
As it’s a unique situation for each person, you’ll need a financial adviser to help. Are you looking for equity release? Let’s book you in for a call, and we can discuss all the finer details.
How can equity release help update your home?
Many older adults want to “age in place” by making their home more suitable for long-term living. For many, you’ll be able to fund renovations or adaptations to allow you to stay at home for as long as possible.
What common home improvements can be funded through equity release?
- Installing walk-in showers, stairlifts, ramps, or other modifications that make it easier to move around.
- More accessible and user-friendly spaces in your kitchens or bathrooms.
- Extending your home to make space for a live-in carer.
- Adding insulation, upgrading boilers, or installing solar panels can make the home more energy-efficient and reduce utility bills.
As we age, we may need extra help with daily activities. This could involve home care or residential care. However, going private can be expensive. Equity release allows you to access the money tied up in your property to fund aged care. This will ensure you can get the help you need without the need to sell your home.
What other ways does equity release help as you get older?
Equity release can also be used for non-NHS treatments that may not be covered by the public system. Like dental procedures, hearing aids, or private physiotherapy.
Always consult with a qualified equity release adviser who can provide independent, regulated advice about your options. Equally, make sure you explore alternatives like downsizing, applying for local government assistance for care, or tapping into other retirement savings to ensure you’re making the right financial decision.
Equity release can be a useful tool to help fund home adaptations or aged care, but like any financial decision, it requires careful consideration. If you’d like more detailed information or want help, feel free to ask! We are here to help you enjoy the golden years as best as possible!
This is a lifetime mortgage. To understand the features and risks, please ask for a personalised illustration. Check that this mortgage will meet your needs if you want to move or sell your home or you want your family to inherit it. If you are in any doubt, seek independent advice.
Avoid NHS waiting times with private medical insurance.
You’ll be able to access treatment faster, bypassing waiting lists. One monthly fee or an annual payment will reduce financial stress by covering the high costs of surgery, diagnostics, and hospital care. And you’ll have the choice of specialists and hospitals to suit your needs. Plus, comprehensive support for high-value claims, such as cancer treatment.
We’ve looked at the recent statistics putting pressure on NHS services:
- 7.6 million people are currently on hospital waiting lists in England.
- One in nine people are on a waiting list for hospital treatment.
- One in eight patients wait over a year for hip or knee surgery.
- One in twenty patients have been waiting more than a year for treatment.
- 90% of gynaecological departments face staffing gaps.
Did you know if you paid out of pocket for surgeries without PMI, these are the general fees?
- Primary total hip replacement: £13,150
- Primary posterior spinal fusion surgery: £13,425
- Cardiac ablation: £10,103
- Laparoscopic hemicolectomy: £11,546
- CT/MRI-guided biopsy: £2,120
- Tonsillectomy: £2,113
- MRI scan (1 area): £538
But remember — don’t wait until you need help. There is often a waiting “cooling off” period before you can access private medical care. If you have a pre-existing illness, this can also affect the policy. But contact us today, and we’ll use our expert knowledge and connections with insurance companies to find a PMI perfect for you.
Take control of your healthcare. Contact us today to explore your options and find a policy tailored to your health and budget. Don’t let waiting lists or rising costs stand in the way of your health.
How can a critical illness insurance policy help with NHS waiting lists?
Following on from our last article, did you know that critical illness insurance can provide an extra security net?
As we previously mentioned, waiting times for elective surgery within the NHS have significantly worsened in recent years. COVID-19 had a deep and lasting impact on access to care. NHS England alone recorded over 7.5 million people on waiting lists as of late 2024.
Traditionally, critical illness policies in the UK are paid out once a covered surgery or diagnosis has been completed. We are seeing insurers adapting their products to provide support earlier in the process as the NHS backlog grows. Policies now include waiting list clauses. This will trigger a payout as soon as the insured is placed on an NHS waiting list for a surgical procedure.
This change reflects the clinical reality. Once a condition is severe enough to warrant major surgery, the patient’s health, livelihood or quality of life is at risk. A waiting list payout can allow you to fund private treatment if desired. Or provide financial stability while waiting for care.
Additionally, there is a genuine risk that a policy may lapse before surgery takes place. Particularly given the current prolonged delays. Early payouts have become especially valuable. These clauses are linked to high-severity surgical interventions, particularly those involving the heart, brain, or major organs.
For patients living with serious, surgery-dependent conditions, waiting list-based policy clauses now provide a valuable financial lifeline.
Things to reflect on:
- Which providers offer good coverage for those on an NHS waiting list or with PMI?
- What are the current wait times for surgery in your area?