Financial Health magazine – issue 2

ISSUE 2 – SUMMER 2021

H E L PI NG Y O U MA N A GE YOUR MONEY

CHOOSING COUNTRY LIFE

Leaving London for a cheaper home in the sticks

YOUR GUIDE TO MONEY APPS

Can they help you budget and save, and are they safe?

FINANCIAL FREEDOM FOR LIFE Protection plans made easy

PROPERTY MARKET PREDICTIONS What will happen to house prices this year?

EQUITY RELEASE MYTHS BUSTED The changes you need to know about

YOUR PENSION FEARS SORTED

5 ways to avoid running out of money

MORTGAGE ADVICE FOR YOU Working hard to understand your needs and exceed your expectations

‘Excellent service provided from start to finish.’

Gerry Halls

‘We knew we were in safe hands.’

Zoe Withersby

‘Responsive, super efficient and amazingly effective.’

Madeleine Shearer

‘Outstanding and knowledgeable service.’

Tom Webster

Mortgages|Financial Protection|Wills & Trusts* Call us today for a free consultation on 020 8652 5240 Email: info@mbassociates.net Visit: mbassociates.net *This is provided through our trusted business partners.

Your home may be repossessed if you do not keep up repayments on your mortgage.

A fee of up to 1% of the mortgage amount may be charged depending on individual circumstances. A typical fee is £495.

PUT YOUR MIND AT REST What does financial freedom mean to you? For some, it can mean not having to work again. For others, it might mean not having to worry about paying the bills every month. For many of my clients though, it can mean financial peace of mind when health issues arise. As a mortgage and protection adviser, I’ve unfortunately had many calls over the years from clients I know well who have been struck down with serious health conditions. The first question they ask me is if their financial protection plan will cover them. I always do my best to reassure them and navigate them through making a claim that will offer financial peace of mind while they focus on getting better.

One of the best bits of financial advice I can give to anyone is to ensure they are covered in the event of the unexpected happening. Financial protection doesn’t have to be expensive and there are different options available. Find out more on page 12.

Also in this issue we look at whether personal finance apps can help you save and manage your money more effectively (page 14).

And if you’ve ever thought about relocating to a more competitively priced area to save money, read Bea Taylor’s story on page 16. Bea and her family left FIND US ONLINE! London behind in favour of the North and have saved money but have taken on Visit mbassociates.net a period property in need of some serious renovation. Find out more about their experiences and read our top tips on relocating before making a decision.

Finally, if you’re worried about not having enough money to live on in retirement, read our feature on how to take control of your pension on page 5.

I always say to my clients not to bury your head in the sand. Take charge of things now and give yourself peace of mind in future.

Monica Bradley Managing Director MB Associates

H EL PI N G Y O U M A N A G E YOUR M ON EY

Editor: Christina Neal Email: chris@mbassociates.net Tel: 020 8652 5240 Art Editor: Xavier Robleda Financial Health is published quarterly by Healthy Content Ltd on behalf of MB Associates, 16a The Broadway, Cheam, Surrey SM3 8AY, tel: 020 8652 5240.

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Need mortgage advice?

Feel free to email me at monica@mbassociates.net

Your home may be repossessed if you do not keep up repayments on your mortgage. A fee of up to 1% of the mortgage amount may be charged depending on individual circumstances. A typical fee is £495.

CONTENTS ISSUE 2 – SUMMER 2021

H EL P IN G Y O U MA N A G E Y O U R M O NE Y

05 Five ways to take charge of your pension Make sure you’ll have enough money to cover you 06 Money, Work, Life All the latest news on work and money 10 Property market predictions How the market is looking for the rest of this year 12 Prepare for the unexpected Why financial freedom should include protecting your income in case you can’t work 14 Can apps help you save money?

We look at personal finance apps for budgets and savings

16 A new life in the country One family’s story of leaving London behind in favour of more space 20 Equity release myths busted Find out how plans have changed and improved in recent years 22 Financial health workshops Help your team manage their money well 23 ‘Money and me’ Our senior mortgage adviser Phil on his attitude to spending and saving

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FIVE WAYS TO TAKE CHARGE OF YOUR PENSION If you don’t want to work until you’re 87, here’s how to curb your fears and get on top of your pension situation...

Worried you won’t have enough pension funds in the pot when you retire? You’re not alone… a 2020 Scottish Widows survey showed that 54 per cent of Brits were worried their pension pot will run out during their retirement. Here’s how to take control of the situation and make sure that doesn’t happen to you…

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Get the facts ‘Establish what pensions you have, then look at what income you need in retirement and establish any shortfall,’ says wealth expert John Boss from Aegis Financial Planning.

To trace a pension from a previous employer, visit the government’s Find A Pension search facility by clicking here.

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Get a pension review Speak to an advisory pension firm and ask them to carry out a review of your pensions. Some firms may charge for this service.

‘Advisory firms differ. Some will charge, but others, like ourselves offer a complimentary review at our expense,’ says John Boss.*

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Increase your annual pension contributions Even if you can only top up your contribution by a small amount each month, they will add up over time.

‘Small increases of even five per cent per annum can make a huge difference,’ adds John.

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Consider combining your pensions into one This may well be worthwhile as it can reduce your costs as you only have to pay one policy or platform fee instead of multiple fees.

John says: ‘It assists people in keeping track of how their pensions and indeed advisers are performing.’

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Monitor your pension fund annually Once you have had your pension funds reviewed and know what you have, keep an eye on your pension to make sure it’s working for you. Be prepared to seek advice on moving your money, if need be, and have it reviewed every year.

*Aegis Financial Planning will provide Pension reviews

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Millennials are being pickier about their work and are expected to quit their jobs despite the pandemic causing predictions of rising unemployment. Anthony Klotz, associate professor of management at Texas A&M University was recently quoted as saying: ‘The great resignation is coming’.

A study by Microsoft found that 41 per cent of workers worldwide were planning to resign. In the UK, HR software firm Personia found that four in ten employees wanted to change their jobs in the next year. According to an article in The Telegraph, middle class millennials aged 25-40 are leading the way in quitting their jobs.

People want to work, but the pandemic has made many review their careers and look for more enjoyable roles.

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QUES G I T B

N IO

CAREER PREFERENCES

THE

MONEY. WORK. LIFE. What’s happening in your world.

IS IT WORTH LOOKING INTO REMORTGAGING? In 2020, 1.5 million people remortgaged according to UK Finance. It’s definitely worth looking at whether there is a saving to be made. Remortgaging simply means moving the mortgage on your existing property to a new deal, possibly with a new lender or maybe even with the same lender. Interest rates are currently low and anyone with a 40 per cent deposit may be able to get a rate of one per cent or even less. Even if you don’t have that much of a deposit, you could still make a considerable saving. However, some lenders will charge an early repayment fee if you exit a mortgage deal early so it’s worth checking the smallprint and knowing where you stand. That said, even with an early repayment fee it could still be worth doing. Run the numbers and see. Saving money is a key reason for remortaging, but other reasons include carrying out home repairs or making a large overpayment.

THE STAMP DUTY HOLIDAY DEADLINE

EXPENSIVE HOMES BY THE SEA Coastal towns in the UK have seen some significant increases in property values. The average price of a property in a British seaside town has gone up by ten per cent in just 12 months – now standing at £265,978, a leap of over £24,000. Salcombe in Devon is reported to be Britain’s most costly seaside town. The average house price there is a whopping £950,325.

RECOMMENDED READ: Money: A User’s Guide, Laura Whateley If you’re serious about trying to get on top of your finances, this is a book you need to read. Journalist Laura admits she’s not a financial expert but has spent years researching financial topics and interviewing money experts, so she’s well placed to write this informative guide. The book covers a range of topics including housing for renters and buyers, student loans, pensions, clearing debt, stocks and shares and money and love. Mainly aimed at an audience of millennials though worth reading at any age.

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The first phase of the stamp duty holiday came to an end on 30 June, meaning the nil rate band for stamp duty tax relief was reduced from £500,000 to £250,000.

Buyers have until the end of September to obtain the £250,000 tax relief.

From 1 October it will go down to £125,000.

If you’re searching for a property, or in the early stages of buying one, we recommend you budget to pay the stamp duty as the process of buying is still taking longer than usual. ‘If you’ve got no chain but a slow solicitor on the other side, or a slow vendor, there is every chance you could miss the deadline,’ says MB Associates Mortgage Adviser James Watson. ‘But if you can get everything up and running and moving quickly you might be OK.’

MONEY. WORK. LIFE. What’s happening in your world.

ARE WE BOUNCING BACK FROM THE PANDEMIC?

ONLINE SHOPPING CAUSES IMPULSE SPENDING

With the increased popularity of online shopping, a survey from the website, Finder, has shown that 78.2 per cent of British adults make impulse buys online. Finder says that 64.9 per cent of online shoppers make spontaneous purchases at least once a month. How disciplined are you when it comes to monitoring your spending? If you find that you constantly spend more than you should, put items you want to buy on a 30-day list. Decide that you’ll only buy essential items during the next 30 days, then when day 30 arrives, look at the items on your list and evaluate whether you really want or need them.

With time to think about it, you may decide you don’t really want the items.

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How well is the UK bouncing back from the numerous lockdowns caused by the pandemic?

Ongoing signs of recovery can be seen according to The Money Charity, with inflation picking up to an annual rate of 1.5 per cent in the year to April 2021. The housing market of course remains strong, with UK house prices rising by around nine per cent in a year. However, reports show that, while the economic recovery may appear to be moving in the right direction, 30 per cent of the UK population have suffered from a drop in income or lost their job due to Covid restrictions.

The charity says that 10.1 million people were showing signs of financial distress in January 2021.

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THE TRUE COST OF COVID It’s no surprise to hear that

the pandemic has come at a huge financial cost to the UK, as well as other countries worldwide. According to the BBC, the furlough scheme has cost the government over £100 billion. The NHS and other public services have also received extra funds to pay for the cost of dealing with the pandemic.

The government has had to borrow more money, but in recent months has borrowed less than expected. So far this year it has borrowed £53 billion, which is less than predicted in the spring.

Tax bills are expected to rise next year with businesses being hit by tax increases.

Corporate tax will increase from 19 per cent to 25 per cent in 2023.

THE AVERAGE INCREASE IN FIRST-TIME BUYER HOUSE PRICES IN THE YEAR TO APRIL 2021 SOURCE: THE MONEY CHARITY

£1928

The average credit card debt per household in April 2021 Source: The Money Charity

FIVE WAYS TO TELL IF YOU’RE GOOD WITH MONEY

What does it mean to be good with money? It’s a phrase we often use but what do we really mean by it? Here’s five ways to tell if you’re handling your money well…

• You have a steady flow of income. Money is coming in on a regular basis and you know how much you are going to be earning each month, or at least have a fairly good idea, even if you are self-employed and your income can vary.

• You know how much you spend. Most of us know what our rent or mortgage is every month, and even have a good grip on what our monthly bills are likely to be but are less clear on what we spend each month on going out and shopping.

• You know you can pay your bills each month. You know they are covered, and you don’t have to worry about being able to pay them.

• You are saving money on a regular basis. You consistently save without thinking about it.

DID YOU KNOW? The top one per cent of wealthiest people have over 50 per cent of the world’s wealth.

• You think about your retirement and how you will manage in later life. You have asked a pension expert to review your pension and check that it’s going to tide you over financially when you retire.

Source: Oxfam 9

PROPERTY MARKET PREDICTIONS Thinking of moving house but not sure what’s happening with the property market? We asked some property experts for their predictions for the rest of the year…

June saw a vast amount of activity in the property market as buyers tried to complete before the stamp duty holiday deadline on 30 June in order to save money. HMRC showed sales of 213,120 in June, a record figure and above 200,000 for the first time.

The end of the first phase of the stamp duty holiday was predicted to slow the pace of the housing market.

Things have quietened down a bit, but the market is still healthy.

However, research published in June might have shaken your faith in the market a bit. Hamptons revealed that renting was cheaper than buying for the first time in six years. Anyone with a ten per cent deposit or less would find it cheaper to rent, with several exceptions, the agent’s research said. Areas in the UK where it’s cheaper to buy than rent include the North East, North West, Yorkshire & Humber and Scotland. In June, renters were reported to be £71 per month better off than homeowners.

On average, renters were spending £1054 per month

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compared to homeowners with 90 per cent mortgages paying £1125.

You might be wondering if it’s a good time to buy a property. It’s worth pointing out that house prices are still rising.

Rightmove’s house price index showed that prices went up by 0.7 per cent in July.

We asked the experts what the rest of the year will have in store for the property market and whether 2021 is still a good year to buy…

DEMAND FOR HOUSING ‘The stamp duty holiday wasn’t the only thing that has boosted the property market recently,’ says Duncan Kreeger, CEO of lender TAB HQ, a bridging loan finance and property investment company. ‘It undoubtedly contributed to the demand as there was a rush of property acquisitions ahead of the deadline. However we have also seen the demand for housing

increase as a result of Brexit, and the current record low interest rates on borrowing. With fixed interest rates now sub two per cent per annum, this means for the first time in a long time, those with borrowing power are able to live in their own home at a cheaper price than renting something similar.’

Duncan adds: ‘I think it’s unlikely we’ll see a dip in the market until something major happens with interest rates which might not be for another three to five years anyway.’

A NEED FOR SPACE Another positive sign is high demand for property.

There are more buyers than properties, mainly

due to people re-evaluating their living needs during the pandemic. More people are working from home and therefore need more space, while some quite simply prefer to leave city life behind and live in more rural locations. ‘The demand for housing has never been higher, and we could link several factors to the rise in demand including stamp duty, lockdowns, Brexit and interest rates,’ says Duncan.

‘The next moment that I think will trigger movement in the property market will be the end of the furlough scheme at the end of September and also when bounce back loans that have been issued over the course of the pandemic begin to be repaid.’

MAKING A MOVE ‘Demand is still likely to be at a good level with many buyers having waited for over a year to make a house move,’ says Kirsty Burnham from Movewise. ‘With many people’s priorities changing over the last 15 months, I envisage a good, stable market for the rest of the year.’

RENTING VERSUS BUYING

You might think it’s worth renting at the moment to save money if you only have a ten per cent deposit, but that’s quite a shortterm outlook. Buying a property will mean you’ll get a foot on the property ladder while you can afford to do so and will stand you in good stead in future. ‘As well as having a property that should grow in value, your payments will – assuming the mortgage is arranged on a capital and interest basis – reduce the balance of the mortgage over time, providing you with greater equity,’ says MB Associates’ senior mortgage adviser Phil Leivesley. ‘When you rent, you’re performing the same service for your landlord.’

PREPARE FOR THE UNEXPECTED

Financial freedom might mean buying luxury items, but it should also mean being able to pay our bills if we are unable to work.

Christina Neal explains how to protect your income When we think about money, we tend to think about having enough of it to buy the luxuries we want to enjoy. A bigger house, a sports car, the holiday of a lifetime. We don’t like to think about the less glamorous scenario of how we would cope financially if we became ill and couldn’t work. Yet with 11.5 million people* in the UK having less than £100 in savings, and nearly nine million of us in serious debt, it’s very important to think about financial protection.

None of us like to think about getting ill but if you were diagnosed with a serious illness, the last thing you’d want to worry about on top of your health would be whether you could still afford to pay your mortgage. ‘The stress of having an

illness can be debilitating for families,’ says MB Associates’ managing director, Monica Bradley. ‘But the added pressure of having to worry about money at such a devastating time is something that can be completely avoided altogether if you have the right cover.’

Despite this, less than ten per cent of people in the UK have income protection cover, but at least 26 per cent cover their mobile phones. Crazy but true. With this in mind, here’s a quick guide to the various types of financial protection…

CRITICAL ILLNESS This is an insurance policy that pays out a tax-free lump sum if you are diagnosed with a serious condition such as a heart attack, cancer, Parkinson’s disease, or

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INCOME PROTECTION Income protection pays out a monthly sum if you couldn’t work due to accident, injury, illness, or sickness. Each plan is tailored to suit your individual needs, with the premium based on your age, health, and occupation. You can take out income protection whether you’re employed or self-employed. It usually covers between 50 to 65 per cent of your salary. The more

of your income you cover, the higher your monthly premiums. There are lowcost options where you compromise on the length of the cover, but this can give you cheaper premiums.

Do you need it? The majority of people do need it, unless your employer has already set up an income protection scheme for you, which is fairly unusual. In reality, very few of us could realistically live on statutory sick pay.

LIFE INSURANCE This is a policy that pays out a tax-free lump sum in the event of your death from illness or accident during the term of the policy. A life insurance policy will typically last for between ten to 25 years. You can choose how long you want the cover to last.

Do you need it? It’s certainly very sensible to have it if you have children.

You may want to consider taking out a policy that covers you until they become adults or until your mortgage is paid off.

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DO POLICIES COVER MENTAL HEALTH CONDITIONS? Mental health conditions in the last five years are usually excluded with income protection policies. Life insurance or critical illness plans can be increased to include this cover and you will need to pay more, depending on the severity of the condition. If you have had a lot of time off work due to depression, the premium would be more expensive. If not you would pay the same premium.

More information MB Associates can help with financial protection advice and offer you a free no-obligation consultation. For more info, contact Phil Leivesley on 020 8652 5240 or you can email phil@mbassociates.net

*Source: Money & Pensions Service Financial Capability Framework

multiple sclerosis. Some policies also cover conditions such as organ failure, paralysis, and Alzheimer’s disease.

Do you need it? Critical illness would benefit you if you needed a lump sum of cash in the event of a serious illness, such as funding private healthcare. You might want to think of it as having a lump-sum you could live on for two years if you didn’t want to rush back to work following a serious illness.

THERE’S AN APP FOR THAT! If you want to take control of your money, you may be wondering if money apps can help with budgeting and saving. Christina Neal decided to find out

Like a lot of people, I struggle to keep track of my spending. I know what my mortgage and bills are every month but other expenditure can be harder to track.

Research conducted in 2018 by money app Yolt showed that 70 per cent of UK consumers were using apps to keep track of their money. I decided to ask a few friends on Facebook if they use them. I got a mixed response. A few people said they use Excel spreadsheets or write their expenditure down. If you’re disciplined enough to add new entries as and when you spend, they could work for you. Yet a spreadsheet is only useful if you keep it updated.

BANKING APPS A larger number of my Facebook friends said they have been using apps and finding them helpful. One told me he’d been using the NatWest app. ‘I don’t think I’ve been in a branch for over five years,’ he said. ‘It’s useful for keeping a check on balances and moving funds from one account to another.

It also helps clearly see the various things I spend money on. It’s evident that through the pandemic my grocery spend has increased dramatically.’

Another friend said: ‘I use the Barclays app. It lets me manage my account but the only way I use it to help me “save” is checking my balance and transactions, which may well cause me to decide against making a purchase!’

If you have a current account, your bank may well have a mobile banking app that you can download to your phone. It will usually allow you to check your balance and transfer money between accounts.

However, it may not have all the features you need.

Find out what it can do and if it offers other features you require such as the ability to save or set a budget.

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PERSONAL FINANCE APPS There are other independent personal finance apps. But are they safe? So long as you’re cautious with passwords – i.e. you choose a strong password and don’t reuse the same one, you should be fine. Overall, finance apps are reported to be as safe as banking apps (they use the same bank-grade security).

Chip and Money Dashboard. Emma links to your current accounts and tells you what’s coming in and going out. It can even help you set a monthly budget. It is free to use but there’s also a paid version, Emma Pro, which costs £59.99 per year. The paid version has personalised categories of spending and extra cashback.

APP FEATURES Plum is an app that links to your current account and tells you your balance every day. It’s ideal if you want to try and save money – even small amounts. It looks at your current account and calculates how much you can save, then transfers money from that account to top WHY USE A up your savings. There’s a free MONEY APP? ‘Some of version, a pro version at £1 per Money apps the apps can month and Plum Pro at £2.99 can help you to per month. It’s handy that tell you when monitor what you spend, transfers have Plum can calculate how much you can save if that’s your and you can been made’ goal. It also tells you if you are keep an eye on overpaying on regular bills. multiple accounts.

Chip is a similar app that has the Some can tell you when same function and costs around £1.50 per transfers have been made month from when you have saved a certain which may protect against amount of money. fraud. Some will help you Money Dashboard helps you link your set a monthly budget and current and savings accounts. You can also put money aside. use a budget tracker that tells you what you’ve spent, broken down by categories.

WHICH MONEY APP You can set yourself a monthly budget and SHOULD YOU CHOOSE? the app will let you know how close you Some of the best-known are to spending it! It’s free to use. apps include Emma, Plum,

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CHOOSING THE RIGHT APP • Decide what you want to use it for – if you want to save money, choose an app that will help you do just that. If you want to keep track of your spending, then a budget app would be the best.

• Know how the app works – make sure you understand the features and benefits so that you can be sure it’s right for your needs.

• Make sure it’s a reputable app – do your homework and make sure the one you have in mind lives up to expectations. Look at reviews of the app and find out when it was created. Has it been around for a good amount of time?

• Look at what your bank offers – see what your bank’s mobile banking app is like and if it has any features you would find useful. What will it enable you to do?

‘WE LEFT LONDON AND BOUGHT A PROJECT HOME’ More and more people are leaving city life behind in favour of more spacious homes in the country and aiming to make a saving in the process. Bea Taylor (pictured) talks about the practical and financial implications of starting afresh in a new area

Mum-of-two Bea Taylor and her family relocated from their three-bedroom Victorian terraced house in North London to Market Harborough in Leicestershire last year. Bea and her husband Simon had lived in their previous home for 14 years. They have two children, Joseph who is 13, and daughter Teddy who is nine.

Their new home is a ‘project’ property and has kept them busy. Bea talks about the challenges of relocating and taking on a property that needs a lot of work and how it has panned out financially.

The pandemic has not just changed how we live, but where we want to live. Last August, the London Assembly Housing Committee published a housing survey report and found that one in seven Londoners wanted to leave the city due to the pandemic. A third of Londoners wanted to move house. Many wanted more space.

Working from home has fuelled a demand for more space, and to achieve that, many Brits are happy to move out of busy cities and into more remote areas.

WHAT MADE YOU DECIDE TO MOVE UP NORTH AFTER BEING IN LONDON? We had toyed with the idea of living a

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‘We soon realised we also needed to replace the entire plumbing system’

country life for many years. Covid gave us a chance to give it more thought, and to re-evaluate what would be good about moving away and also look at what we wanted from the future. The area we moved to is very close to where I was raised and I know it well.

off street parking and a huge garden. The house was fine to live in though it was clear from the first time we saw it that we would like to replace everything. The previous owner was elderly, and I don’t believe much had been done since the early 90s.

There was a separate kitchen and dining room which didn’t fulfil our needs as a busy family. We were determined to knock through these two rooms to create a nice open plan kitchen space, plus add a huge sliding door across the back of the property to open it up to the beautiful garden.

The plumbing system and electrics need work. Long term we need to replace the three-bathroom suites, decorate the exterior and interior, and we also have big plans for turning an old pigeon coup into a beautiful outdoor entertaining area. We are currently living on site and have made a makeshift kitchen in the garage.

HOW MUCH DID YOU SELL YOUR LONDON HOME FOR AND HOW MUCH DID YOU PAY FOR THIS ONE? We sold for £645,000 and bought for £475,000, meaning we were able to pay off our mortgage plus have a small budget for some of the works.

WHAT ABOUT YOUR HUSBAND’S WORK? Simon is a photographer. Most of his work is based at home, though he occasionally travels into London. Market Harborough is less than an hour by train into St Pancras.

The town is a big attraction for commuters.

WHAT MADE YOU DECIDE TO TAKE ON A PROJECT HOME INVOLVING LOTS OF WORK? We were desperate for a period property. The town is full of new builds, but we have always lived in older properties. The new builds we viewed didn’t really have the space or potential to do what we wanted. This was the only house we saw which ticked all the boxes. It could also be a good investment property if we decide to sell on.

TELL US ABOUT YOUR NEW HOUSE. We bought a four-bedroom 1930s semidetached house, with a loft conversion,

WHAT SORT OF CHALLENGES HAVE YOU FACED WHEN RESTORING THE PROPERTY? My plans to knock down the adjoining wall between

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the kitchen and dining room opened up a can of worms. We soon realised we also needed to replace the entire plumbing system and dig the floor up.

This means more money and time but will be absolutely worth it to have a house that is safe and structurally sound. We have also found contractors and materials hard to come by at the moment. There seems to be a huge shortage of building supplies, making the prices of everything so much higher. Plumbers, glazing people, decorators and carpenters are so busy they have all offered us ridiculously long lead times, and I have found this pretty tough to deal with!

‘I have no idea if we will stay forever, but for now it works well’

WHAT HAS GONE WELL? We have a new boiler! We were excited when we uncovered an original 30s terrazzo floor in the hallway, but sadly it was unable to be restored, so we have had the hall tiled in a fantastic geometric design. It seems a good compromise as it is modern but with an art deco vibe.

HOW MUCH DID YOU ALLOCATE TO SPEND DOING THE PLACE UP? We had around £70,000 allocated to start the work. This won’t be enough to do

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everything we would like but it should set us on our way!

HOW MUCH DO YOU THINK YOU MIGHT HAVE SAVED BY MOVING UP NORTH ON EVERYDAY COSTS? We have saved £1000 a month on the mortgage alone, and car and house insurance are cheaper.

WHAT IS IT LIKE LIVING IN A NEW AREA AFTER BEING IN LONDON SO LONG? It’s very odd living in a new area, even though I grew up nearby. Coming back as an adult is very different. I have accepted it will take time to feel at home here entirely and to make new friends. In London I knew a lot of people as I was very involved in community projects, but we are all making friends gradually. The area is fantastic, with a blend of country life and a busy market town with lovely independent shops and a plethora of eateries, and I feel like it has a lot to offer us for this period of our lives. I have no idea if we will stay forever, but for now it works well. Also I am much closer to my family and have been able to see my father most days which is wonderful.

WHAT ADVICE WOULD YOU HAVE FOR ANYONE WHO WANTS TO TAKE ON A PROJECT HOUSE? Firstly, don’t be seduced by a beautiful house alone. Look at the area, look at the schools – do they have places for your children? Does it all work on every level?

LOCATION, NEW LOCATION

Look carefully at your budget and prioritise what you need to do to make it a house you can live in – and what can wait until later down the line?

HOW HAVE YOU COPED WITH ALL OF THE REPAIR WORK? By focusing on one thing at a time. It is very overwhelming when I think of all the things we would like to achieve – in fact, I feel like we are not progressing at all when I think too much. Instead, I try to think about what we have achieved so far and focus on just one room at a time. Shop around on quotes. We have had hugely different quotes for jobs. For tiling we had a quote which was nearly four times higher than the one we ended up using, and we didn’t compromise on quality. Don’t be afraid to change your mind, ask questions and pull up on anything which isn’t quite right – you have to live with it, and you want it to be exactly as you hoped.

Are you thinking of relocating?

Here’s some key things to think about first…

• Check out prices Do your research on prices in the area where you’d like to live. Are they affordable and can you buy a property that at least measures up to what you have now? Unless you plan to downsize, you may want the same amount of space.

• Speak to a good mortgage broker Know where you stand financially before viewing properties. Seek advice from a reputable mortgage broker who can tell you how much you could borrow. If you’re relocating, you’ll need to show that your work situation will be secure in your new location. A broker can 19

advise you on the paperwork required to prove this.

• Do your homework on the area What are the local schools like and what sort of transport links are available? How busy is the traffic? If you were to change jobs, would you be able to work remotely or is it an area that would enable you to commute from if you had to?

• Have a long-term mortgage strategy Know what your long-term plan is with your mortgage. When do you plan to pay it off? Will you sell up and downsize when you’re older? Or will your new place be your forever home?

Try to plan for the future to alleviate any worry. A good broker can advise you. You may want to borrow more than you need to cover the cost of repairs if buying a project house that needs work.

• Have a back-up plan Decide what you will do if you relocate and it doesn’t work out.

You might consider renting out your current property for six months while renting in a new area.

RELEASE MYTHS BUSTED

Equity release plans have improved significantly and could be a good way to fund your retirement. Our founder, Monica Bradley, debunks some commonly held myths Running out of money in later life is a common fear among older Brits and it’s easy to see why. Pensions don’t always go far enough these days and it’s common for people to worry about money in or near retirement. The pandemic has made things worse, with 19 per cent seeing a drop in income due to Covid.

Equity release could be a solution to help you to fund your retirement. You could also use it to fund the holiday of a lifetime or gift a deposit to your children for their house. Other reasons people use equity release typically include:

• To split assets in a divorce • To pay off an existing interest-only mortgage • To pay for a second home or holiday home • To adapt a home to cater for changing needs • To go on the holiday of a lifetime WHAT IS EQUITY RELEASE? Equity release is where you release equity from the value of your home. You can use the funds as you wish and don’t have to draw all the money in one go. You only pay interest on what you draw.

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Equity release plans have improved greatly – they are more flexible, interest rates are lower and most plans are regulated by The Equity Release Council. Here are some common myths about equity release…

MYTH 1 You won’t be able to move house If you decide to move in the future, most equity release providers will allow you to transfer your plan to another property. However, they will want to be sure that the new property is acceptable.

MYTH 2 You could end up owing more than the value of your home So long as the plan is approved by The Equity Release Council, you will never owe more than the value of your property. If your home sells for less than the loan, the debt will be written off.

MYTH 3 You will have to make monthly payments With a lifetime mortgage – the most popular type of ‘If you decide equity release plan – you to move in the don’t have to make any monthly payments unless future, most you want to. You may be equity release able to pay up to 10 per providers will cent of the loan amount allow you to per year. If you don’t, the interest will roll up over transfer your plan’ time and will be repaid when your home is sold.

MYTH 4 Your partner will have to move out if something happens to you So long as you’ve taken out the equity release plan 21

together, it will remain as long as one of you stays in your home.

MYTH 5 You don’t own your home This depends on the type of plan. A lifetime mortgage is a loan secured against your home. The loan isn’t paid back until the last living borrower dies or moves into care. You still own your home and can remain in it until you die.

Another type of equity release scheme is a home reversion plan, where you don’t pay any interest on the scheme, but you receive a cash sum for selling part or all of your home to your equity provider. They will grant you a lease so you can remain in your home for the rest of your life.

Download our free guide to equity release.

Monica Bradley Associates works with MAB Later Life who provide our Later life lending proposition

HEALTHY FINANCES AND HAPPIER WORKERS Worrying about money is the biggest source of stress for British workers, and the pandemic has made things worse. MB Associates is offering free mortgage advice workshops to businesses. Find out how they could benefit your team…

It could be you or the person next to you at work. Someone in your firm is worried about money. We know this because we have researched the subject in vast detail.

And frankly, it’s worrying that so many of us are having these concerns.

Even before the pandemic hit the UK, research showed that one in seven people would be unable to pay their mortgage if it was just £99 more per month.

A survey of 5000 employers showed that 77 per cent of their staff had money worries that affected them at work. In fact, worrying about money was the biggest source of stress for British workers.

FINDING THE SOLUTION MB Associates is an award-winning mortgage broker based in Cheam, Surrey, established over 20 years ago. We offer mortgages and financial protection. We also like to empower our clients to take control of their finances. So the next natural step for us is to visit companies and

‘We can offer free mortgage and protection advice and help your staff plan for the future’

offer mortgage advice to employees. We can visit your offices and talk to your team and offer free mortgage and protection advice. We can also offer advice on getting on the property ladder and planning for the future. We cover all ages and situations.

These workshops are completely free and can be tailored to suit your employees.

HAPPIER AND MORE PRODUCTIVE A happier workforce is a more productive workforce. We genuinely don’t want anyone to be lying awake worrying about money when having access to the right information could alleviate their fears.

More information If you think your staff or colleagues would be interested in our free workshops, we’d love to hear from you. Please call Phil Leivesley on 020 8652 5240 or email phil@mbassociates.net 22

‘MONEY AND ME’ Phil Leivesley is MB Associates’ Senior Mortgage Adviser and is cautious with his finances, but still likes to make the odd frivolous purchase When did you first develop an interest in finance?

My dad was a financial adviser, but this didn’t make me want to become one. I studied history at university and then somehow fell into mortgage broking, but I’ve loved it since day one!

Did you get any guidance from your parents about managing money?

I did, but not in the way they would have expected.

My dad suffered from mental health issues in my late teens that were pretty serious. He had a good job beforehand but when his income suddenly stopped, they really started to struggle.

The experience has made me a little cautious and,

How well do you manage your money?

I’m a bit of a money nerd and stick rigidly to the 50-30-20 rule. I spend 50 per cent of my income on essentials, 30 per cent on more frivolous things and put 20 per cent into savings or investments.

What would you do if you were lucky enough to win the lottery?

I’ve devised a very elaborate game of hide and seek around the world that requires a EuroMillions win to make it work.

Do you set financial goals for the future?

Having full financial independence is a lofty ambition, but there are always short-term savings goals or projects around the house.

Tell us something unusual about you.

I am a Guinness World Record holder. I played in a high altitude game of rugby just below the summit of Mount Kilimanjaro.

while I’m certainly not risk-averse when it comes to investments, I’m wary of debt and I think that income protection is the most important financial product that every single person should have.

What’s been your most expensive purchase so far?

Aside from the usual house or car, I became an ‘expert’ on cryptocurrency earlier this year without ‘Having bothering to full financial develop the independence is expertise. If it all goes well you a lofty ambition’ can come onto my yacht for drinks!

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Why have financial protection?

• Your mortgage could be paid off in the event of your death and/or you could leave your family a lump sum • Cover is easy to arrange – we will handle all the paperwork for you

GET IN TOUCH FOR ADVICE!

Would you like to have a conversation with us about protection?

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• Peace of mind for you and your family • Cover can be tailored to suit your needs • It doesn’t have to be expensive or complicated • Protection for your loved ones if you were unable to work due to illness or injury

Call us today on 020 8652 5240 for a free consultation with our protection specialist or email info@mbassociates.net

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