We’ve made it to 2023 after what has proved to be another difficult year. The cost-of-living crisis, rising mortgage rates and ongoing economic turbulence resulted in a challenging 2022 for many of us.
No matter what 2023 has in store, we’re here to help keep your finances on track.
Navigating a cooling housing market
With house prices predicted to drop by between 5% and 12% this year1 and two-year fixed mortgage rates now averaging over 5%2, conditions are likely to be more challenging for homeowners looking to sell or remortgage their property. Those remortgaging after the end of a previous fixed-rate deal may see an unwelcome increase in their monthly repayments.
For those looking to buy, the outlook is more positive, with falling house prices potentially reducing or negating the impact of higher mortgage rates.
Whatever your situation, you can rest assured I’ll be here to help with expert advice, ensuring you have all the information you need to make clear decisions about your finances. I can search the market for the best mortgage products for your circumstances, advise on the pros and cons of different mortgage types, and help you navigate any challenges that lay ahead.
Don’t neglect protection
With so many people feeling the pinch, it may feel tempting to cut back by reducing or cancelling your protection cover. According to Vitality3, one in seven UK adults are currently thinking about cancelling their life insurance cover to save cash. Concerningly, just three in 10 of respondents saw it as a non-negotiable financial priority.
In fact, it is during times of economic uncertainty that we most need protection insurance. When our financial resilience is low, we’re much less likely to be able to weather financial shocks such as losing a job, unexpected expenses and, of course, being unable to work due to illness or injury.
The cost of protection insurance also increases as you get older – so if you cancel now, you may face having to pay a much higher rate should you decide to take out another policy later in life. According to LifeSearch4, the average monthly cost of income protection cover when you are 25 is just £8.77 per month, whereas a 55-year-old pays £34.02 on average.
Don’t forget that we’re always here to help you organise your finances so that you have the budget to keep up your premiums.
And, if you’re taking out insurance for the first time, we can assess your circumstances and provide advice on the most suitable type of protection insurance for you.
Whatever your goals for 2023, let’s achieve them together.
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.