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/

Over 760,000 borrowers will be considering their mortgage options as their fixed-rate deals come to an end this year. Those with five-year deals about to expire may be anticipating sharp rises in their monthly bills; they will have fixed their mortgage in 2020, when interest rates were as low as 1.4%. Since then, rates have soared, meaning payments could increase by up to £300 a month. Although rates are a lot higher than they were five years ago, this summer did see some lenders cutting their rates as they competed for remortgage deals amid slow buying activity. In July, there were 41,800 remortgage approvals, the highest since October 2022 after Liz Truss’ mini budget. Seek advice in times of change In uncertain economic times, it can be difficult to know what to do if your mortgage deal is coming to an end. Fixed deals are not your only option; there are tracker mortgages, standard variable rates and others which may be suited to your specific circumstances. A professional adviser can talk you through your options so you can make an informed decision. 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.thetimes.com/business-money/money/article/mortgage-prices-borrowers-rates-x90qwxn9k

HMRC has warned buyers to be cautious of tax agents making false claims about Stamp Duty Land Tax (SDLT). Some homeowners have been wrongly advised that properties in need of repair are uninhabitable, so are eligible for non-residential rates of SDLT. Rogue agents are suggesting that, for a fee, they can secure a tax refund on behalf of the buyer. However, a Court of Appeal decision has confirmed that properties needing repair are still residential and repayment claims based solely on a property’s condition are not valid. Anthony Burke at HMRC has warned, “Homebuyers should be cautious of allowing someone to make a Stamp Duty Land Tax repayment claim on their behalf. If the claim is inaccurate, you could end up paying more than the amount you were trying to recover.” Sources: https://www.jkt.co.uk/news/business-news/archive/article/2025/August/homebuyers-warned-as-hmrc-clamps-down-on-stamp-duty-claims https://www.gov.uk/government/news/homebuyers-warning-as-hmrc-gets-tough-on-bogus-stamp-duty-claims

Life cover is designed to provide loved ones with essential financial protection when it is needed most. But it’s not just a one-off decision - it’s important to review and update your policy regularly, especially after experiencing any key life events that may change your circumstances. Buying a home In a recent survey, 21% of UK life insurance policyholders said that they were prompted to get cover because it was a requirement for their mortgage. Whether or not it’s stipulated by your lender, it’s essential to get protection if you’re a homeowner, as life insurance could help your family to keep up with monthly repayments in the event of your death. Getting married If you’ve started sharing finances with a partner, it’s important to make sure you’re both insured if the worst happened. A joint policy covers two people – it’s often cheaper but usually only pays out once, so a surviving partner would need to take out a new policy. Also, it can be difficult to separate the policy if the relationship breaks down. If a couple takes out separate single life insurance policies, the surviving spouse will still be covered if their partner dies. The birth of a child In the survey, 30% of respondents said they got life insurance because they had become a parent. As well as bringing a lot of joy, having children brings great financial responsibility, so it’s important to make sure your policy reflects that. This does not just apply to your first child; it’s equally important to review your level of cover as your family grows. Planning for the future It’s not just major life milestones that might prompt you to review your insurance. If you’re thinking about estate and tax planning, you might also review your protection plans. For example, if you’re over 50, you might be thinking about who will pay for your funeral, as this can be a big expense for surviving family members. Over 50s life insurance can help with this – while it is not designed to cover all the costs of a funeral, it can pay out a small, guaranteed lump sum to your loved ones. Also, writing your life insurance policy in trust ensures that a payout is not considered part of your estate and therefore not subject to Inheritance Tax. Plus, claims can be paid before probate is granted, so your beneficiaries can receive the money swiftly. These documents are legally binding so it’s important to seek advice about this. Here to help We can help you review your existing policy or explore new options tailored to your needs and budget. Don’t wait for life to change before you act; take the opportunity to review your cover today. Your home may be repossessed if you do not keep up repayments on your mortgage. As with all insurance policies, conditions and exclusions will apply. Sources: https://www.forbes.com/uk/advisor/life-insurance/life-insurance-statistics/ https://www.postoffice.co.uk/life-cover/guides/six-reasons-you-need-cover

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