Essentially Mortgages – Quarter Four 2020

Overview

YOUR MORTGAGE MATTERS – DON’T PUT YOUR HEAD IN THE SAND

Recent estimates suggest that as many as one million borrowers have lapsed or will lapse onto their lender’s expensive default mortgage rate this year. It makes sound financial sense to make sure you are on the most competitive deal for your circumstances.

BANK OF MUM AND DAD NOW JOINED BY THE BANK OF SON AND DAUGHTER

It’s been a tough year for many sectors of the economy. For the housing market (and its participants) there is no exception. Many aspiring buyers are borrowing from parents to achieve their dreams of homeownership. Although not a new trend, it is a growing one.

HELP TO BUY SCHEME EXTENDED

Building delays caused by the pandemic were threatening to affect the plans of thousands of fi rst-time buyers and home movers in England before the government announced an extension to the Help to Buy equity loan scheme.

BORROWED MORE IN LOCKDOWN? PROTECT YOUR BUSINESS

Even before millions of businesses took a financial hit due to coronavirus, over half of UK companies had some form of debt, owing an average of £176,000 each. Despite this, just 20% had an insurance policy in place to protect them if they were unable to pay their debts.

AUTUMN BUDGET ON THE BACK BURNER

Chancellor Rishi Sunak has set out a series of measures aimed at halting job losses and stemming business failures as part of his Winter Economy Plan.

GETTING FINANCIALLY FIT FOR THE NEW NORM

Research in 2019 found that 22% of UK workers said they would be unable to survive financially for more than a month if their income stopped9. Unfortunately, for many in 2020, this scenario will have become a reality.

RISE IN PROTECTION COLD CALLS – BEWARE

There have been reports of a rise in cold calls offering alternative protection policies, with telesales companies appearing to take advantage of an increased awareness of the importance of life and health protection due to the pandemic.