lime

How to Get Mortgage Ready

Sun, 24 Mar 2024 14:42:06 GMT

UK First Time Buyers - How To Get Mortgage Ready

UK first-time buyers: how to get yourself mortgage ready

High property prices and rising interest rates and living costs are hindering would-be homeowners, but there are options

The weather is warming up, and so too is the property market, according to some reports – which may not be music to the ears of would-be first-time buyers.

The average asking price of a home in the UK has jumped by more than £5,000 (or 1.5%) in a month , according to the latest data from the property website Rightmove.

This month, TSB said the average age of a first-time buyer had come down slightly, from 32 to 31. However, high property prices and rising interest rates and living costs have forced some to lower their sights and look for a smaller property than they would ideally like.

“It has never been more difficult for aspirational homeowners to get on to the property ladder,” says Matt Bartle, the director of products at Leeds building society. But he adds: “There are options out there for those looking to buy their first home.”

The average asking price of a UK property has jumped by more than £5,000 in a month, says Rightmove. Photograph: Ian Nolan/Getty/Image Source

How much you can borrow will depend on three main things: your income, your outgoings and the size of the deposit you plan to put down.

There are lots of mortgage affordability calculators online that will give you an idea of the size of loan you may be able to get. The government-backed MoneyHelper website has one , as do many banks, mortgage brokers and comparison websites.

When you come to apply, the lender will carry out a detailed affordability assessment to work out what you can afford to repay based on your income and spending commitments.

Getting a decent deposit together

This is one of the biggest challenges facing would-be homeowners.

In January the Halifax said the average UK first-time buyer deposit in 2023 was £53,414 – representing about 19% of the typical purchase price.

According to the financial data provider Moneyfacts , at the start of this month there were 318 deals (fixed and variable) that let people borrow 95% of a property’s value.

If you want to find out a bit more then do get in contact with one of our advisers

Terminal Illness Cover Vs Critical Illness

Sun, 11 Feb 2024 14:26:40 GMT

For those of you who have looked in to Critical Illness and Life Insurance you may be familiar with these two terms. We often get asked the question what is the difference.

The terms 'critical illness’ and ‘terminal illness’ sound alike and both refer to serious medical conditions, but there are key differences between the two when talking about life insurance. Here we run through those differences to give you a clearer idea of what the two terms mean and how cover works for each.

What's the difference between critical illness and terminal illness?

If you were diagnosed with a specific illness or significant injury that you’re likely to be living with, then this would be deemed a critical illness.

A terminal illness would be where you were given a terminal diagnosis and there is no known cure, or your condition's reached a point where it can no longer be cured, and your medical team expects it to result in death within 12 months.

Can I get critical illness insurance?

In simple terms it’s an insurance policy, paid for monthly, and can be bought on its own or alongside a life insurance policy. A life insurance policy pays out if you die during the term, whereas a critical illness policy pays you a lump sum while you’re alive if you become seriously ill or injured.

What you’re covered for can vary, but the conditions will be named so you’ll know what’s covered and what isn’t during the term of the policy.

Ours pays out if you’re diagnosed with various conditions. Some polices, ours included, also cover your children on the same policy for no extra cost.

Here are some of the most common conditions typically covered in a critical illness policy:

Cancer
Multiple sclerosis
Stroke
Heart attack
Brain tumour
Blindness
Paralysis

While the most common cancers are covered, not all are and so it’s important to double check with your insurer if you’re unsure. You’re likely to find as well that you’ll need permanent symptoms to be able to claim for some conditions.

Do I need critical illness insurance?

It’s a great question and the answer depends on your financial circumstances. No one plans to be diagnosed with a serious illness or injury, it’s often out of the blue and hugely disruptive to normal life. Unfortunately your living costs and bills won’t stop so, if you’re unable to work, a lump sum payout can really ease the financial pressure during a challenging time in your life.

You can use the money for anything, here are some of the things you could use it towards:

Mortgage or rent payments
Paying off loans or debts
Bills and living costs
Adapting your home for living with your condition
Paying for carers
Paying for medical treatment

Can I get terminal illness cover?

Terminal illness benefit differs from critical illness cover because it’s not generally bought on its own and is usually included with a life insurance policy. But, like critical illness insurance, it pays out while you’re alive if you’re diagnosed with a terminal illness, have exhausted all treatment options, and have less than 12 months left to live.

Think of it as being allowed to make an early claim on your life insurance policy.

Just like critical illness insurance, you can spend your pay out on whatever you like but people tend to think about the future and supporting loved ones when they’re gone.

Are critical illness and terminal illness insurance the same thing?

No, they’re not the same. While the illnesses and injuries they cover are often very similar, critical illness insurance provides a pay out for certain serious conditions that you will be living with, whereas terminal illness cover is included with life insurance and pays out if your condition can’t be treated and is likely to lead to death within 12 months.

Here are some comparisons between critical illness insurance and terminal illness cover:

Critical Illness Insurance

Can be bought as a stand alone policy independent of life insurance
Will be an extra cost alongside a life insurance policy
Pays out on diagnosis of a serious condition or injury – covered under the policy T&Cs

Terminal Illness Cover

Included with most life insurance policies for no extra cost
Pays out on diagnosis of a terminal illness that meets the policy definition
The policy stops once the claim has been paid

If you want to discuss your insurance options in more detail please don't hesitate in contacting us.

House Price Predictions in 2024

Sun, 11 Feb 2024 14:10:00 GMT

With Interest rates jumping last year what does 2024 have in stock.

With the average price of a home in Great Britain now over £355,000 the housing market is continuing to return to more normal levels of activity following the frenetic post-pandemic period. 2024 its predicted that average new seller asking prices will be 1% lower nationally by the end of 2024, as competition increases among sellers to find a buyer.

One property expert Tim Bannister says: “It’s likely to be another muted year for the market, however the better than anticipated activity this year has shown that many buyers are still getting on with satisfying their housing needs. We predict a modest average 1% fall in new seller asking prices in 2024. The underlying level of good demand at the right price makes it unlikely that we will see a more significant drop in prices next year.”

Our forecast is based on its whole of market data and house price predictive model using millions of supply, demand and pricing data, along with insights from estate agents and a panel of Rightmove experts.

The housing market is made up of thousands of local markets, each with their own unique dynamic of supply and demand. The predicted fall in new seller asking prices will be felt more keenly in some areas of Great Britain than others. In areas with fewer homes for sale, we may see new seller asking prices remain flat, or even very slightly increase compared to this year.

“In areas where sellers are struggling to attract affordability-stretched buyers, or needing to sell quickly due to a change of circumstance, new job opportunity, or strong desire for a lifestyle change, we are likely to see even more competitive pricing,” says Tim.

For those looking to sell this year, the price is absolutely key

The average time for a seller to find a buyer has jumped from 45 days this time last year, to 66 days now. Home-sellers who have been competitive on price have been able to find a buyer more quickly.

What’s happening with mortgage rates?

Average mortgage rates have now fallen steadily since July, providing home-movers with much more stability and certainty over the type and cost of mortgage offer they are likely to receive, compared with the more volatile mortgage market of this time a year ago.

Though mortgage rates are still high compared to recent historically low levels, the mortgage market is much calmer. Those buyers who had to pause their home-moving plans during the last year may decide the start of this year is the right time to return, now that they can better plan for what they can afford.

However, while the outlook for mortgage rates has improved and there are signs that the Bank of England Base Rate has peaked, affordability remains stretched for many home-buyers. The Bank has indicated that Base Rate cuts are not imminent, and interest rates are likely to remain elevated during 2024, which is likely to continue limiting some home-buyers’ spending power.

If you are thinking about buying or selling this year it is crucial you get the right advice. Seeking the assistance of a good Mortgage Adviser is important. Feel free to get in contact and we will gladly discuss your options.

Christmas is a time to get together with loved ones

Thu, 08 Dec 2022 10:23:37 GMT

The content of this article is provided by Sesame Bankhall Group.

For many, Christmas is a time to get together with loved ones and show we care through thoughtful gifts and good food.

But it’s also a time when many households see their waste increase by more than 25% , as we buy more food, more goods, and generally indulge a little bit more than we might do at other times of the year.

To help you make this time of year a merry yet more sustainable one, we’ve pulled together 11 simple but effective tips.

1 Christmas trees

Real trees really are greener than fake ones. If you do buy a tree, try to source locally and, even better, select one you can replant for the following year. Of course, if you already have a fake tree, don’t throw away just yet, and be sure to keep it for as long as you can.

2 Switch to LED lights

Because LED lights use about 75% less energy than conventional light bulbs, switching to LED lighting at Christmas could be a great way to save energy. Plus, while many of us are guilty of throwing away a whole string of fairy lights when a bulb or two goes out, replacing bulbs would be a much more sustainable approach. To reduce the wear and tear of your lights, try using a timer to cut down on carbon while saving money.

3 Charity: the spirit of giving

Christmas is all about the spirit of giving. So this year, rather than sending the usual Christmas cards that will end up in the recycling by Boxing Day, or buying a gift that you know will never get used, consider donating to a charity instead. Plus, if you or your loved ones receive any gifts that are unlikely to be loved, you could consider donating these to charities as well.

4 Minimise your online ordering

While quick and easy, the packaging and travel required to deliver your online shopping can have a big impact on our environment. To minimise this, try using fewer shops and order multiple items together where possible. For example, Amazon lets you request for orders to be sent together in one box rather than across multiple deliveries – it may just mean you have to wait a few more days for some of your items.

5 Shop local

Just one of the many reasons why it’s great to support your local businesses is because they tend to make more local purchases themselves – meaning less transportation. So this Christmas, whether it is presents, food or the tree, why not shop locally where you can, to help reduce on the carbon miles of your shopping.

6 Reuse and recycle old wrapping paper and gift bags

With many shops now stocking recyclable wrapping paper, it’s never been easier to reuse and recycle this key Christmas component. And gift bags are even easier to reuse – you could even cut out the pictures from the cards you receive and use these as gift labels another time. Plus, where possible, be sure to minimise the amount of cellotape you use, as this can affect the recyclability of your paper.

7 Regifting

Think about giving unwanted old presents as new presents to someone else. Just be careful not to regift your present to the person who originally gave it to you!

8 Food: buy what you’ll use and use what you buy

While for many, Christmas is a time to indulge and forget about the waistline till January, those looking to have a more sustainable Christmas should try not to over-buy food at this time. And, where you maybe do have a few bits leftover, be sure to incorporate this into new meals like a great turkey curry!

9 Homemade crackers

Store-bought ones are full of metallic paper (non-recyclable, and certainly not suitable for pet ingestion) and filled with single-use plastic. This year, why not try your hand at making your own crackers? You could reuse toilet loo rolls and left-over odds and ends of wrapping paper to make your own crackers. You can tie with string or ribbon that can be used year on year. OK, so perhaps no bang – but the gift could be anything from homemade biscuit to a lottery ticket, or local charity raffle. You could include a penguin chocolate – the wrapper already has a joke on it.

10 Away from home

If you’re planning to go away this Christmas, be sure to unplug any unnecessary electricals you leave behind to try to offset any travel emissions if you can.

11 Give where you can: food bank donations

If you can, why not try making a donation of food over this Christmas by either buying something especially for the food banks or donating any excess food you may have left-over that you won’t be able to use.

2024 Reflections: Never A Greater Need For Quality Advice

Wed, 07 Dec 2022 10:55:03 GMT

The content of this article is provided by Sesame Bankhall Group.

Reflecting on 2023 begs the question – has there ever been a time of such change?

Standing in the shoes of the public, there can be no doubt that the road ahead seems concerning, confused, and complicated. And whether buying a house or investing for their future, today’s customers need help, reassurance, and trusted advice.

Of course, that’s exactly where you come in.

At Sesame Bankhall Group, we believe in the power of advice, especially in times like these, when the need for your expertise and service has arguably never been greater.

And we appreciate the trust that you place in us in our role supporting advisory businesses who strive to achieve great outcomes for customers. We take this responsibility seriously and are sincerely grateful for your continued support.

Looking back

Throughout 2022, we worked hard to deliver the solutions you need to help you meet the demands of an ever-shifting marketplace, a challenging regulatory landscape, and high customer expectations. We launched new technology partnerships, brought you a dedicated Consumer Duty Hub, and placed the spotlight back on the protection and refinance opportunities through our campaign activity.

Now, when we look back on the last 12 months, we can see the impact we’ve achieved together. Events like our Annual Conference brought together advisers from across the country, while our work with lenders and providers continues to help shape the support and solutions available for you and your customers. Plus, against challenging economic conditions, through a wide range of fundraising activities we’ve raised a staggering £24,000 for our charity partners, St. Ann’s Hospice in the UK and the TYCIA Foundation in India.

Looking forwards

As we look ahead to 2023, we can already see the key factors likely to shape the next 12 months, which include:

Consumer Duty: we’ll be here to help you address the biggest step-change in regulation since the Retail Distribution Review in 2012 with dedicated solutions and insight.
Protection: the Consumer Duty undeniably places protection centre-stage, and we’ll be here to support you to continue engaging on protection.
Refinance: with new lending on a downward trend, we remain focused on delivering the tools that will help you leverage your existing customer relationships.

As always, we’ll be here, working closely with you to embrace change, and deliver the insights and support you need to navigate the year ahead – whatever it brings.

Thank you, and best wishes

None of what we do would be possible without the unwavering support of our adviser community, and the ongoing collaboration with our lender and provider partners.

From all of us here at Lime and Sesame Bankhall Group, I’d like to thank you for your support over the last year, and for your continued support into 2023. If you’re celebrating, we wish you a very merry Christmas, and to everyone we send our very best wishes for the New Year and beyond.