Data from the Office of National Statistics shows that the average monthly mortgage repayment has surpassed £1,000 for the first time on record. In August, the typical monthly payment reached £1,002.27, indicating that, despite some cuts to Bank Rate over the last year, homeowners are still facing affordability challenges due to higher inflation. Less than a year ago, average repayments were below £950 and, in 2020, homeowners were paying an average of £680 per month. This sharp increase shows how much borrowing costs have risen in the last five years. Many fixed rate deals that were secured during the pandemic are coming to an end in 2025. As these mortgages expire, some borrowers can expect to see their monthly repayments more than double. In mid-August, the average five-year fixed mortgage rate eased below 5% for the first time since May 2023. However, major lenders have started increasing their rates again, largely due to the rising yield on government bonds, known as gilts. If you’re dealing with higher mortgage costs, you don’t have to manage alone. Our advisers can help you understand what the changes mean for you and explore the best options for you and your circumstances. Your home may be repossessed if you do not keep up repayments on your mortgage Sources: https://www.thisismoney.co.uk/money/mortgageshome/article-15092291/Monthly-mortgage-repayments-hit-record-1-000-time-lenders-rates.html https://www.msn.com/en-ca/money/finance-real-estate/monthly-mortgage-repayments-hit-a-record-1-000-for-the-first-time-as-lenders-put-up-interest-rates/ar-AA1MqLMJ?ocid=finance-verthp-feeds

Research has found that many Brits would need to sell their family home if their spouse died. The findings showed that one in three (30%) UK adults would not be able to afford to stay living in their home if their partner died unexpectedly. Meanwhile, 35% would need to tap into their savings to make ends meet, and 18% would have to take on extra work. The importance of protecting your mortgage The survey found that keeping up with mortgage repayments was the biggest financial worry if a partner were to pass away unexpectedly. Respondents said they would be forced to turn to their family or friends (11%) for financial support, while others said they would have to take out a loan (10%) or take in a lodger (8%). Despite these worries, 60% of respondents do not have a life insurance policy that includes mortgage protection. Concerningly, 80% said they do not have savings to fall back on in times of financial hardship. Start the conversation It can be difficult to think about what would happen if you or your partner died. But taking practical steps now to protect your home and family can give you valuable peace of mind. As with all insurance policies, conditions and exclusions will apply Your home may be repossessed if you do not keep up repayments on your mortgage Sources: https://www.thisismoney.co.uk/money/mortgageshome/article-15121547/One-three-Britons-forced-sell-family-home-partner-died-unexpectedly.html https://www.actuarialpost.co.uk/article/1-in-3-could-lose-the-family-home-after-a-partners-death-25661.htm

Recent analysis has found that many home insurance policies don’t include accidental damage cover as standard. There were 78 home insurance policies analysed from 35 providers; cover for accidental damage was only included in 28% of buildings insurance policies and 27% of content policies. However, according to research, 31% of people with insurance thought they would be covered for anything that was not their fault. But in most cases, they would need to purchase accidental damage as an add-on. This could be a beneficial decision, as accidental damage accounted for 19% of claims made in the last two years. This data highlights the importance of checking the terms of your policy, so you don’t get caught out. As with all insurance policies, conditions and exclusions will apply Sources: https://www.msn.com/en-gb/money/other/most-home-insurance-policies-don-t-cover-one-thing-you-think-they-would/ar-AA1NuNod

A recent survey has found that a concerning number of protection policyholders are moving home without reviewing their cover. According to the research, one in four respondents have moved since they took out their protection cover, but 32% have not reviewed their policy. Moreover, 63% have looked at their cover but did not make any changes. This could be risky as major life events such as moving home usually require a revision to your current insurance, as you will likely need a different level of cover. For example, your mortgage will probably have changed, so you need to make sure that you and your family could still meet your repayments if you pass away or lose your income due to illness or injury. The survey found that most UK adults were prompted to take out protection after buying their first home. Interestingly, most people (26%) in this situation opted to take out critical illness cover, while 23% purchased income protection and 21% bought life insurance. We know that moving home can be stressful, but It’s important to take the time to check that your existing insurance policies still meet your needs. We’re here to help. As with all insurance policies, conditions and exclusions will apply. Your home may be repossessed if you do not keep up repayments on your mortgage. Sources: https://www.covermagazine.co.uk/news/4518274/policyholders-house-reviewing-protection-vitality

In July, the Labour government’s permanent Mortgage Guarantee Scheme became available, after the previous iteration supported over 56,000 mortgage completions. The old scheme, which ran from April 2021 to March 2025, was launched by Boris Johnson’s Conservative government. It helped 56,389 people to access mortgages with smaller deposits, with 3,180 completions in Q1 of this year. The scheme was open to first-time buyers (FTBs), movers and remortgagers, but the vast majority (86%) of purchases from FTBs. Overall, £11.5bn worth of loans was supported by the scheme, with the average property purchased for £215,467. Your home may be repossessed if you do not keep up repayments on your mortgage. You may have to pay and early repayment charge to your existing lender if you remortgage. Sources: https://www.mortgagestrategy.co.uk/news/mortgage-guarantee-scheme-backs-11-5bn-of-loans/