Data has found that most consumers prefer to seek professional advice before purchasing an insurance product. Nearly two-thirds (64%) of respondents said they would feel most comfortable taking out protection after consulting an adviser. When researching products, most people (59%) would use comparison sites, while 45% would visit the individual sites of insurance companies. The younger generations Interestingly, 25 to 34-year-olds were most likely to seek advice from an adviser, with 54% saying they would do this when exploring their options. However, 14% of this age group would also consider the opinions of influencers, reflecting the increasing trend of turning to social media platforms for financial advice. This is not advisable as many financial influencers (known as ‘finfluencers’) are unregulated and unreliable. Boost your confidence, seek advice Overall, the survey found that 74% of consumers feel confident about their understanding of insurance products and how to purchase them. Jamie Page at The Exeter commented on the data, “While online resources or AI-powered tools can help people get started, these findings highlight the important role that advisers play throughout the purchase journey.” As with all insurance policies, conditions and exclusions will apply. Sources: https://www.ftadviser.com/exeter-friendly-society-ltd-/2025/8/22/nearly-70-prefer-seeking-advice-when-buying-insurance/

Bank Rate may be at its lowest level since March 2023, but mortgage rates seem to be on the rise again. In August, inflation was at 3.8% for the second month in a row, nearly double the Bank of England’s target of 2%. The Monetary Policy Committee therefore voted to keep Bank Rate at 4% in September, and many experts are uncertain if another cut is likely in 2025. In response to this uncertainty, many lenders have increased their mortgage rates; the average two-year and five-year fixed mortgages are now at 4.97% and 5.02% respectively. While this is lower than the peaks of 6.86% and 6.35% in the summer of 2023, it’s still high in comparison to October 2021, when some of the lowest rates were below 1%. Your home may be repossessed if you do not keep up repayments on your mortgage. Sources: https://www.thisismoney.co.uk/money/mortgageshome/article-1687576/mortgage-rates.html

If you find it difficult to understand leasehold and freehold, you’re not alone. Research has found that leasehold is the UK’s most confusing property term, with the term generating over 160,000 Google searches in the last year. Freehold was second on the list, accounting for 114,000 searches. Most flats are sold as a leasehold, meaning that you own the property for a fixed period, but not the land it sits on. The lease will have a fixed term, usually between 90 and 999 years. With freehold property, you own the building and the land. Most houses are freehold, although there are some that are leasehold, often through Shared Ownership schemes. Most people generally prefer freehold, but it means that you are responsible for maintaining all aspects of the land and property. Sources: https://www.propertyreporter.co.uk/leasehold-tops-the-list-of-most-confusing-property-terms.html

Over the last year, house prices have increased 5.3 times faster than the rate of earnings. The average house price has increased by £10,087 to £271,403. However, the typical annual salary has only gone up by £1,921 to £40,334. The East of England and the East Midlands have experienced the most significant disparity, with house prices outstripping earnings by 6.7 times. Scotland (6.4 times), Wales (6.3 times) and Yorkshire and the Humber were also significantly affected (5.8 times). Despite London experiencing slower house price growth and higher salary levels, prices have still increased 4.7 times faster than average earnings. The gap was relatively smaller in the North West (3.8 times), South East (3.7 times) and South West (3.3 times), although there is still a noticeable difference. Sources: https://todaysconveyancer.co.uk/average-house-price-increased-5-3-times-salaries-year/

Recent data has highlighted the importance of protection insurance as it continues to support people in times of need. In 2024, protection insurers paid out a record £8bn in combined group and individual claims. This means that £21.9m was paid out every day to policyholders suffering from illness, injury or bereavement. Average payout increasing Last year, £5.32bn in protection claims was paid out across individual life insurance, income protection and critical illness policies. This is 10% higher than the total value of claims paid in 2023, even though the number of individual claims was broadly the same at 275,000. The average payout increased by 10% to £18,700, up from £17,100 the previous year. The importance of critical illness cover Critical illness cover serves as vital protection for those with a serious illness such as cancer, a heart attack or stroke. In 2024, the total value of critical illness claims increased by 5% to £1.3bn. The average claim paid was £67,600 – this is a significant lump sum which helps alleviate the financial burden on policyholders, allowing them to focus on recovery without worrying about money. Cancer remains the leading cause for a critical illness payout, accounting for 62% of all claims. Total payouts for the condition went up by 4% to £812m. Income protection provided essential support Income protection makes regular monthly payments if you’re unable to work due to illness or injury. It is designed to replace some of your income, helping you to cover regular expenses such as your mortgage, bills and other living costs. Figures show that this form of protection continues to support policyholders across the UK until they return to work, retire or reach the end of their policy term. The value of income protection claims has increased by 16% year-on-year to £204m. The typical payout rose to £10,000, up 6% on the previous year. Musculoskeletal issues such as neck and back pain were the most common reason for an individual income protection claim, representing a third (34%) of claims paid. High proportion of claims result in payout Over the last decade, the proportion of new individual claims paid has stayed at 97.9% or above. The main reasons for declined claims were non-disclosure of pre-existing medical conditions at the time of taking out the policy and claims not meeting the policy definitions. It’s therefore essential to be transparent with your insurer about your health and make sure you understand when you will be covered. Here to help We can help you choose a policy that is tailored to your needs and meets your budget. 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.abi.org.uk/news/news-articles/2025/7/record-8bn-paid-out-in-vital-protection-claims-during-2024/