In today's uncertain economic climate, financial resilience is more crucial than ever. In a recent report*, an impressive 69% of UK workers said they feel very financially resilient – up 4% since last year. Despite this, only 52% hold a protection policy, which leaves a significant portion of the workforce inadequately covered. Many workers unprotected The average household debt is £20,640 (excluding mortgages) and this rises to £28,908 for the self-employed population. The average worker has three people who are dependent on their income, yet only 7% have a protection policy in place that they pay for themselves. Also, 42% of UK households would only be able to survive for up to three months if they did not have an income. So, a concerning number of people could potentially find themselves in a vulnerable financial position if they are unable to work. What’s your plan B? Workers were asked how they would cope if they could not work for two months or more and 47% said they would fall back on their savings. Meanwhile, 32% would use sick pay from their employer, and 19% planned to rely on their partner. But, with the right income protection insurance in place, there is no need to exhaust your savings pot or put your partner under unnecessary financial strain. Instead, your insurer will pay out a monthly amount until the term ends or you return to work. Don’t rely on sick pay One in five employed workers did not know what their sick pay arrangements were. Meanwhile, just over half of those who thought they were entitled to sick pay realised they were actually only entitled to support for 12 weeks or less. Even though sick pay is a valuable safety net, it’s not likely to be enough to help you pay your bills in the long run; for the tax year ending 5 April 2025, the weekly rate for Statutory Sick Pay is £116.75. Self-employed population It is perhaps unsurprising that self-employed people seem to be more financially vulnerable, with 19% saying they would have to continue working if they’re ill or injured, compared to 12% of those who are employed. One in four self-employed people have savings of less than £1,000, while 29% could manage for less than a month if they were unable to work. As a result, 17% would have to rely on their parents for financial support. Get informed, get covered It seems that, while financial confidence among UK workers is on the rise, this does not necessarily mean that the UK population is adequately protected. Mike Farrell, Protection Sales and Marketing Director at LV, commented, “While it’s encouraging to see financial confidence on the rise, our findings show that the right protection could further strengthen this sense of security.” As with all insurance policies, conditions and exclusions will apply * LV, 2025

Homeowners in the UK may have noticed that their home insurance premiums have significantly increased. In Q3 2024, the average buildings and contents insurance policy cost £407*– up 16% on the previous year. Regional differences Some regions have been harder hit than others, with Londoners experiencing the biggest hike in their home insurance premiums**. For homeowners in the capital, the average home insurance increased in price by about 46 percentage points between Q1 2023 and Q1 2024. Meanwhile, the north west saw the smallest increase (nearly 38 percentage points). Why the increase? The rise in home insurance premiums is partly due to inflation, and rising labour and material costs. However, it is also in response to an increased number of claims. Between January - September 2024, insurers paid out a total of £4.1bn in claims* – the highest amount to ever be paid out in the first nine months of a year. This is due to adverse weather conditions caused by climate change. In Q3 2024, damage to homes from storms, heavy rain and frozen pipes cost £136m in claims – 6% higher than the same period in 2023. Looking for comprehensive home insurance that doesn’t break the bank? We’re here to help. As with all insurance policies, conditions and exclusions will apply * ABI, 2024 ** Quotezone, 2024

Recent reductions to Bank Rate may have prompted some cautious optimism among consumers, a report* suggests. In December 2024, rent and mortgage spending increased annually by 1.8% – a significant improvement on the previous month, when spending grew by 8.2% annually. Despite this slowdown, only 52% of consumers were confident in their ability to afford mortgage and rental payments in December – the lowest level recorded in 2024. Concerns about rising interest rates persist, with 62% expressing apprehension in December, slightly below the peak of 63% in June 2024. Will market activity pick up? There is some indication that activity will pick up in 2025 and beyond. Head of Mortgages and Savings at Barclays, Mark Arnold commented that “cautious optimism is emerging”, partly due to “the recent softening of house prices and imminent Stamp Duty changes, which have motivated both potential buyers and sellers to act swiftly”. Promisingly, one in six homeowners are planning to move this year. Also, 22% of renters believe that they could own a home within the next five years. Prospective buyers are prioritising garages or driveways (40%), gardens (39%) and functional spaces such as pantries or utility rooms (32%) in their house hunt. Obstacles faced by FTBs When asked to identify the main obstacles to homeownership, 40% of renters cited property prices while 37% said affording a deposit. Nearly six in 10 renters (57%) believe that it is not possible to own a home without receiving an inheritance or access to the Bank of Mum and Dad. However, only 18% of recent first-time buyers said they received financial support from a family member. Overcoming affordability challenges Many renters are proactively saving for home purchases without external support, with 35% building their deposit themselves. Some have opted to share the cost, as 17% are saving up to buy with a partner or friend. To maximise their savings, 41% are trying to reduce their monthly bills, which aligns with a 6.7% drop in utilities spending in December, despite rising energy costs. Also, 29% of new homeowners have made use of first-time buyer schemes to help them get on the property ladder. A quarter opted for longer mortgage terms to reduce monthly mortgage repayments. Motivations for moving Over the past three years, 30% of Brits, encompassing both renters and homeowners, have moved residences. The primary motivations include lifestyle enhancements (17%), proximity to family and friends (17%), and the need for larger living spaces (15%). Talk to us We’re here to help make your property dreams come true, whether you’re a first-time buyer, or looking to move up or down the property. Contact us for professional advice. Your home may be repossessed if you do not keep up repayments on your mortgage *Barclays, 2025

The UK economy may be slowly recovering but many Brits are still feeling the financial pressure, with one in 10 homeowners struggling to meet their monthly mortgage repayments*. So, what should you do if you find yourself in this difficult situation? Speak to your lender Don’t bury your head in the sand. Contact your lender as soon as you can, as they will usually contact you within 15 days of a missed payment anyway. Don’t be afraid of what they will say – in this situation, mortgage lenders must follow certain rules to ensure that you are treated fairly. Understand your budget It’s important to sit down and ascertain what you can afford to pay each month, so you can show your lender that you have carefully considered your options. Decide what’s best for you You should then write to your lender with your proposed solution. Your options may include: - Paying off your mortgage over a longer period - Switching to interest-only payments - Taking a repayment holiday. Seek advice If you’re struggling to repay your mortgage, it’s essential to seek professional advice. We will clearly explain your options, so you can make an informed decision about your next steps. Your home may be repossessed if you do not keep up repayments on your mortgage * YouGov, 2025

Are you considering making mortgage overpayments? Here’s what to consider. If you can afford it, there are many advantages to overpaying your mortgage, such as: - Becoming a step closer to being mortgage-free - Reducing the amount of interest you owe - Lowering your loan-to-value ratio (LTV). However, before you make overpayments it’s vital to check the following: - Is there an early repayment charge (ERC)? Many lenders allow borrowers to pay off 10% of the mortgage balance each year without a fee, but you must double check the terms of your deal. - Do you have other debts that you should settle first? - Would it be more beneficial to place your extra cash elsewhere, such as a savings or pension pot? Your home may be repossessed if you do not keep up repayments on your mortgage

House prices returned to growth in 2024, as half of the UK’s housing stock increased in value by an average of £7,600*. Last year, 15 million homes in the UK rose in price by at least 1%, with 6.9 million increasing by £10,000 or more. Nearly six million homes stayed at broadly the same price, with a minimal change of +/- 1%. Meanwhile, a third of homes (9.2 million) decreased in value by 1% or more – an improvement on 12.8 million in the previous year. Housing affordability continued to vary regionally, as 63% of homes in Scotland and the north of England registered value gains in 2024. However, only 36% of homes saw the same rise in southern England. Hoping to move in 2024? Get in touch for mortgage advice. Your home may be repossessed if you do not keep up repayments on your mortgage *Zoopla, 2025

In February, the Monetary Policy Committee (MPC) voted to reduce the Bank Rate to 4.5%. Despite this being the third reduction since August 2024, the MPC has still been cautiously restrictive to sustainably return inflation to its 2% target. In Q4 2024, inflation was 2.5% but is expected to rise to 3.7% by Q3 2025 due to rising energy costs. However, the MPC anticipates that, after this, inflation will return to the target of 2%. GDP growth has not been as strong as the MPC predicted, with indicators of business and consumer confidence declining. Productivity growth has also been subdued. However, despite some slowdown in growth, the MPC judged that there has been sufficient progress on disinflation in domestic prices and wages, so reduced Bank Rates by 0.25 percentage points.

Getting life insurance is a way to prepare for the worst and to protect what matters most to you. Workers in the UK are facing a ‘life insurance equality gap’, according to research*. The life insurer’s survey reveals just 50% of salaried workers have taken out life insurance, while just 33% of non-salaried workers, including self-employed, freelancers and workers on zero-hour contracts, have life cover in place. Why is life insurance important? Life insurance can help your family feel financially secure when they need it most. The payout can cover essential costs, such as a mortgage, rent, household bills, or education. It also helps settle outstanding debts, so loved ones aren’t left overwhelmed with demands for money. And for those with larger estates, it can also be a valuable estate planning tool, as life insurance payouts are typically Inheritance Tax-free, ensuring your beneficiaries receive the full benefit without deductions. Is life insurance too expensive? Despite its importance, many people delay purchasing life insurance, often assuming it’s too expensive. The survey found 25% of non-salaried workers and 19% of salaried workers cited high costs for not having life cover. However, this misconception needs to be challenged, as in most cases, policies start from just a few pounds a month, offering substantial protection at a relatively low cost. Peace of mind included Beyond its practical benefits, life insurance provides peace of mind, ensuring families will be supported through difficult times. According to the survey, nearly two-thirds (64%) of self-employed workers without life insurance were worried about lacking life insurance. Among these, 16% are worried their loved ones might struggle to cover funeral expenses. Additionally, 14% fear their family could be burdened with debts like loans or mortgages, while another 14% are concerned that their family’s quality of life would decline if they were to pass away. Ryan Griffin, Beagle Street’s Director of Protection, said, “It’s vital that everyone who could benefit from having life insurance, can access it. Not only this, but there must be affordable and accessible options that work for people and their families. Advisers play a key role in helping people find the protection that suits their needs and we value the support they give to those looking for cover that is right for them.” Planning for the worst is never easy, but it’s necessary to secure your family’s financial future. Life insurance provides a simple and effective way to make lasting plans that ensure your loved ones get the financial support they deserve. As with all insurance policies, conditions and exclusions will apply *Beagle Street

UK mortgage rates in the spotlight as economic factors suggest rates could rise again. Hopes that the Bank of England would significantly lower interest rates in 2025, leading to cheaper mortgages, now seem less likely, thanks to global bond market sell-offs and Labour’s Budget leading to a surge in borrowing costs. These factors have unsettled debt markets and contributed to higher interest rate expectations. As a result, borrowers face a more uncertain outlook. As a reminder, the Bank of England opted to hold Bank Rate at 4.75% in December. However, since then, a sharp increase in UK government bond (gilt) yields has pressured rates. Market predictions suggest Bank Rate could fall to 4% by the end of 2025, with some analysts anticipating cuts to as low as 2.75%. However, the volatility in the bond market makes those predictions look optimistic. What can borrowers do? With bond market volatility set to continue, borrowers should seek professional financial advice before making any decisions. A financial adviser can help navigate the complexities of rate changes and determine whether to fix a mortgage deal or wait for lower rates in future. Your home may be repossessed if you do not keep up repayments on your mortgage