‘Advice gap’

A new study from the Financial Services Compensation Scheme (FSCS) ^I raises fears over a worrying financial ‘advice gap.’ Almost two-thirds of UK adults with savings, investments or a mortgage have not sought regulated financial advice in the last five years.

Not just for the wealthy

Additionally, more than half of all adults who hold a financial product believe professional advice is only for the wealthy. This is a common misconception the reality is that everyone can benefit from expert help, not just wealthy individuals with complicated assets.

Tailored plan

Taking the time to construct a clear and tailored plan that meets each client’s unique set of needs is the key to sound financial decisions. A strong and enduring relationship, developed through regular reviews, builds in the flexibility for plans to be adapted when life events inevitably dictate change.

Think about it

We’re always here to help bring clarity to your financial decision making. Get in touch today!

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.

^I FSCS, 2023

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Monthly rise

The Bank of England (BoE)’s Monetary Policy Committee (MPC) increased Bank Rate again in February. Now at its highest level since the 2008 financial crisis, Bank Rate is pushing repayments higher for many mortgage holders.

On average, homeowners with tracker deals are facing mortgage repayments £382 higher than they were in December 2021. For mortgage borrowers on SVRs, the equivalent increase will amount to £240 a month.

To fix or not to fix?

In the context of rising rates, the certainty offered by fixed-rate deals can seem more appealing. Having a fixed-rate deal offers a guaranteed interest rate, which means monthly payments will be the same from the start to the end of your term.

The ability to plan your budget is a benefit of fixed-rate deals, though your monthly payments won’t fall if interest rates do. With financial conditions posing a challenge to many, fewer people are taking out mortgages. Indeed, approvals dropped to 753,946 in 2022, an annual decline of -20.2%².

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

¹UK Finance, 2023, ²Octane Capital, 2023

https://www.msn.com/en-gb/money/other/misery-for-millions-as-mortgage-payments-rise-588-a-year/ar-AA170STE?ocid=FinanceShimLayerhttps://www.propertyreporter.co.uk/property-market-turbulence-sees-mortgage-approvals-slide-by-20.html

For more information get in touch with the Full Circle Mortgages team here.

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In total, homeowners used equity release to borrow £6.2bn in 2022, a 29% yearly rise and a doubling in the amount borrowed since 2017. It’s not only higher amounts being borrowed; there are now more individual equity release plans too. In 2022, 93,421 people chose to release wealth from their property, up 23% from a year earlier.

Cost-of-living pressures continue to be the main prompt for people choosing to release equity.

A lifetime mortgage is a long-term commitment which could accumulate interest and is secured against your home. Equity release is not right for everyone and may reduce the value of your estate

¹Equity Release Council, 2023

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