New data indicates that first-time buyers (FTBs) are taking out longer mortgages to help them move straight into their ‘forever home’. In August, a third (33.5%) of FTBs bought a semi-detached property, up 1.7% when compared with the same month in 2024. Meanwhile, only 19% purchased a flat, representing a 2.7% annual decline. The most popular property type among new homeowners was three-bedroom properties, which accounted for 46% of all FTB purchases in August. Looking for the long-term Historically, FTBs would enter the market by buying a smaller property, with the intention of moving up the ladder later. However, it seems that this trend is changing. Many new homeowners are aiming to purchase a longer-term home from the outset, rather than upsizing after a few years. Longer mortgages To afford larger homes, FTBs are opting for longer mortgages, with 41.3% taking out a mortgage of at least 30 years in August. In fact, 37% of borrowers said that mortgages spanning 30 to 40 years are more appealing because it meant lower monthly repayments. However, repaying a mortgage over a longer period means paying more interest overall, increasing the total cost of borrowing. Your home may be repossessed if you do not keep up repayments on your mortgage Sources: https://www.thisismoney.co.uk/money/mortgageshome/article-15099631/First-time-buyers-mega-mortgages-buy-forever-home.html https://www.msn.com/en-ie/money/homeandproperty/first-time-buyers-take-out-mega-mortgages-to-buy-a-forever-home/ar-AA1MC7gQ?ocid=finance-verthp-feeds&apiversion=v2&domshim=1&noservercache=1&noservertelemetry=1&batchservertelemetry=1&renderwebcomponents=1&wcseo=1

According to a new study, many UK adults do not feel confident that their family would be financially secure in the event of their death. In the survey, 2,000 consumers were asked about their financial confidence if the worst happened. Only one in five (22%) respondents felt ‘very confident’ that their family would be financially protected if they passed away. Meanwhile, a third thought their loved ones would ‘manage for a while’ and a quarter (23%) were not at all sure if their family would be able to cope financially. The generational difference The report showed that attitudes towards financial security varied depending on age, gender and type of workplace. Interestingly, 45 to 54-year-olds were the least confident, with a third (33%) believing that their loved ones would not be financially secure if they died. Only one in ten of this age group were sure that their family would be in a stable position. On the other hand, 25 to 34-year-olds were the most confident age group, with 75% feeling certain their family would be sufficiently protected. This notable disparity could be because 45 to 54-year-olds typically have more dependents than the younger generation. The gender gap Two-thirds (67%) of men felt confident about their family’s financial position, but only half (49%) of women felt the same. Moreover, women were nearly twice as likely to say that their loved ones would face serious financial challenges if they died (9% of women vs 5% of men). The impact of employment status The size of workplace appeared to have an impact on financial confidence; employees at larger companies (with 250+ staff) felt the most assured about leaving their family in a secure financial position. On the other hand, those working in smaller businesses (fewer than 50 employees) were the least confident, with 46% believing that their family would cope without them. The importance of protection Jack Southcott at The Exeter commented on the findings, “Increasing consumer awareness of the valuable safety net provided by protection insurance products is essential in improving the financial resilience of UK households. Products such as life insurance can provide greater reassurance for individuals and their loved ones if the worst happens. It’s also important that consumers consider speaking to their adviser about putting a policy in trust or nominating beneficiaries to ensure any benefit paid goes to the right people without delay.” Boost your confidence If you’re feeling unsure about how your family would cope in the event of your death, we’re here to help. By implementing protection that works for you, you can have peace of mind that your loved ones will have the support they need at difficult time. As with all insurance policies, conditions and exclusions will apply Sources: https://www.actuarialpost.co.uk/article/only-1-in-5-feel-financially-confident-if-the-worst-happened-25653.htm

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