Autumn Budget 2024: Winners and Losers

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Chancellor of the Exchequer Rachel Reeves outlined the Government’s financial plans for the next five years. The measures, which will raise up to £40 billion for public finances, aim to “restore economic stability” and put “more pounds in people’s pockets”.

 

On 30 October 2024, Chancellor of the Exchequer Rachel Reeves announced the UK Government’s Autumn Budget alongside the Office of Budget Responsibility’s economic and fiscal forecast. The measures aim to raise more than £40 billion in taxes, plugging an alleged £22 billion black hole in public finances left by the previous government. Reeves committed to drive economic growth, but also said that the Government wouldn’t borrow to fund current spending whilst maintaining the Bank of England’s inflation target of 2%.

 

Commenting on the Budget, Reeves said: “This Government was given a mandate to restore stability to our economy and begin a decade of national renewal. To fix the foundations and deliver change through responsible leadership in the national interest. That is our task, and I know we can achieve it.”

 

So, what are the potential impacts of these new measures? Below we outline who stands to benefit from these changes and who might be negatively affected. Let’s start with the positives.

 

The Winners

 

The NHS

The Chancellor pledged to significantly increase public spending on the NHS. Reeves promised a £22.6 billion increase to the “day-to-day” budget of the NHS alongside a £3.1 billion boost to its capital budget over the next two years. The Chancellor commented that this would be the “largest real term increase in NHS spending outside of COVID since 2010.”

 

Sustainable transport and energy

Reeves also announced that the National Wealth Fund would be used to invest in key areas like gigafactories and green hydrogen plants across the country. Meanwhile, over £2 billion will be invested in supporting the automotive sector’s transition to electric vehicles.

 

Property developers

Funds for the Affordable Homes Programme will increase to £3.1 billion to help Labour deliver on its promise to build over 1.5 million homes. Reeves said the Government would hire hundreds of new planning officers and make reductions to Right to Buy discounts, putting more money into the pockets of local councils. This news could incentivise investment in the UK’s property market and make it easier for property developers to build new homes in the UK.

 

Drivers

Reeves confirmed that the freeze on fuel duty will continue for another year, meaning drivers could save approximately £60 a year at the pumps. The freeze will cost £3 billion a year, but the Chancellor was clear that she wanted to ease “the burden on motorists”. This move could help relieve the fiscal pressure on delivery drivers, couriers and supply chains throughout the country.

 

Young and low-income workers

The Chancellor announced that the Government is increasing the National Living Wage for workers aged 21 or over by 6.7% to £12.21 an hour (which could be worth up to £1,400 a year for a full-time worker) and increasing the National Minimum Wage for 18–20-year-olds by 16.3% to £10 an hour. Reeves also confirmed that National Insurance won’t be increasing for workers. Increases to the National Living and Minimum Wages are intended to provide much-needed support to those on the lowest incomes.

 

Small businesses

The employment allowance for business will increase from £5,000 to £10,500, reducing the National Insurance liability of small businesses. The Chancellor said that this would mean around 865,000 would pay no National Insurance in 2025, providing welcome relief for SMEs who are struggling to retain an effective workforce and attract applicants without a hit to their profits.

 

The Losers

 

Employers

Reeves confirmed that employers’ National Insurance contributions will increase to 15% from April 2025. The Government is also reducing the threshold at which employers start paying National Insurance from £9,100 to £5,000 per year. Furthermore, the Chancellor announced that the current freeze on income tax thresholds would end in four years. From 2028, personal tax bands will be updated in line with inflation.

 

These changes will have a direct impact on British employers, but they could also have a knock-on effect for employees. Many businesses use savings on National Insurance to fund pension contributions or employee benefits. If the increased burden of National Insurance contributions proves too harsh, employees could lose these benefits as a result.

 

New businesses and investors

The Chancellor announced an increase in the lower rate of Capital Gains Tax (CGT) from 10% to 18% and the higher rate from 20 to 24%. She noted that, even with these increases, the UK will still have the lowest capital gains tax rate of any European G7 economy. But some analysts argue that the move could alienate investors and even decrease tax revenue overall if investment is pulled from UK startups.

 

Foreign investors

Reeves also announced sweeping changes to the tax status for non-domiciled high-net-worth individuals operating in the UK. The Chancellor said that Labour would “abolish the non-dom tax regime, and we will remove the outdated concept of domicile from the tax system from April 2025.”

The government is also set to extend the Temporary Repatriation Relief to three years with the aim of bringing billions of new funds into the UK. The independent Office for Budget Responsibility estimates that this could raise £12.7 billion over the next five years.

 

Second homeowners

The Stamp Duty land tax for owners of second homes (known as the Higher Rate for Additional Dwellings) increased to 5% from 31 October 2024. The Chancellor said that the move is designed to “support over 130,000 additional transactions from people buying their first home or moving home over the next five years.” However, this increase could have an impact on landlords, property developers, and the owners of holiday homes and other rental properties.

 

Private schools

All education, training and boarding services provided by private schools will now be subject to VAT at the standard rate of 20% from 1 January 2025. Private schools also won’t be able to claim back VAT on the supplies and services they pay for.

 

What’s Next?

 

The Autumn Budget contained several key changes that are likely to have significant impacts on individuals and businesses across the UK. There’s a lot of information to process and it may not be immediately clear how the changes set out in the Budget will affect you. If you have any questions about whether you are a winner or a loser from the Autumn Budget, and how it will affect you and your finances, please get in touch.

 

The value of investments and any income from them can fall as well as rise and you may not get back the original amount invested.

HM Revenue and Customs practice and the law relating to taxation are complex and subject to individual circumstances and changes which cannot be foreseen.

Approved by The Openwork Partnership on 30/10/2024.

How to recover from a financial scam

How to recover from a financial scam

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Knowing what to do if you’ve been scammed and where to get help is crucial. Here are five key steps to recover from a financial scam.

1. Act quickly

Time is crucial when dealing with financial scams. Take immediate action if you think you’ve been scammed to minimise any further damage. If you’ve shared personal information, contact your bank or building society right away to report the fraud and freeze your accounts to prevent further unauthorised transactions.

If scammers have posed as a person you trust, such as a family member or your financial adviser, it’s important to let them know in case their identity has been stolen. If the scam involved theft of your own identity, you may want to contact major credit reference agencies like Experian and Equifax to place a fraud alert on your credit report. This will make it harder for scammers to open new accounts in your name.

2. Gather evidence

Collect as much relevant documentation as you can to aid the recovery of stolen funds. This should include any emails, texts or other correspondence between you and the scammer, as well as any contracts, marketing materials or web addresses they sent to you. Be careful not to click on any suspicious links.

Make detailed records of any transactions or bank statements that show suspicious activity, and retain any fake invoices or payment requests the scammer sent you. Keep a close eye on the accounts you think may be compromised and record any further suspicious transactions.

3. Report the scam

Report the scam to the police, especially if your money has been stolen or if a scammer is threatening or harassing you. If you live in England or Wales, you can also report a scam to Action Fraud at www.actionfraud.police.uk or by calling 0300 123 2040. If the scam involved phishing or malware you can report it to the relevant online platform or service provider.

You should also tell your bank, building society or other financial institution about the scam so they can secure your accounts, reverse fraudulent transactions if possible, cooperate with the police and advise you on what to do next.

4. Seek support

The financial impact of scams is evident, but being the victim of fraud can take a serious toll on your mental health. Reaching out to family, friends or support groups such as Victim Support can help to alleviate distress and provide you with practical advice from people who have experienced similar situations.

You can also seek professional support. Financial advisers and lawyers can give you guidance on how to recover lost funds and deal with the aftermath of a scam. Many charities also offer free or low-cost services to scam victims.

5. Stay vigilant

Once you’ve addressed the immediate impacts of a financial scam it’s important to remain alert and protect yourself from future scams. Fraudsters are increasingly engaging in repeat scamming, stealing money from victims using one method before returning in the guise of an organisation offering to recover lost funds for a one-time fee.

Educate yourself on common fraud tactics and adopt good security practices, such as using strong, unique passwords and regularly monitoring your accounts. Be cautious when sharing personal information and verify the legitimacy of offers or payment requests.

Recovering from a financial scam is challenging but it is possible. Acting quickly, gathering evidence and reporting the scam to the police and your financial institutions gives you the greatest chance of recovering lost funds and preventing future attempts. Seeking support can help you overcome the impact of a scam on your emotional well-being and help you better protect yourself in the future.

Contact the police if you think you’ve been the victim of a financial scam. You can also forward suspicious emails to report@phishing.gov.uk and forward suspicious text messages to 7726 for free.

For more information about financial scams visit www.actionfraud.police.uk. If you’re in England or Wales, you can also report fraud or cybercrime to Action Fraud on their website or by calling 0300 123 2040.

How to recover from a financial scam

How to recover from a financial scam

Financial Scam Signs

Four key signs of financial scams and what to do if you spot one

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Financial scams are more sophisticated than ever before, but a few telltale signs can give them away. Here are four ways to spot a financial scam and what to do if you think someone’s trying to scam you.

We’d like to think we wouldn’t fall for a financial scam, but the truth is we’re all vulnerable. Even amateur fraudsters can create convincing ads or replicate the websites, emails and phone calls of genuine financial businesses.

But no matter how sophisticated the attempt there are usually a few key signs that someone is trying to scam you.

1. You weren’t expecting to be contacted

A good indication of a financial scam is sudden, unexpected contact. It’s very unlikely that a genuine business would contact you out of the blue with an investment opportunity, and if you’d lost your credit card then you’d probably already be aware.

Most fraudsters try to contact victims by phone or email and pose as a legitimate business, but you should also be wary of other forms of contact. That might be by post, someone stopping you on the high street, or someone knocking on your door.

Once contact is made, scammers often attempt to ingratiate themselves by asking about your circumstances, family and financial plans before using that information to empathise with you.

2. They offer you guaranteed returns

Another sign of financial fraud is a promise of guaranteed returns. Investment opportunities that offer high rewards with minimal risk are almost non-existent.

Scammers might use strong past performance (which could be real or fake) as evidence for their claims, but this is never a reliable indicator of future performance. Even leading investment experts can’t offer guaranteed returns.

If ‘get rich quick’ schemes were genuine, we’d all be millionaires. So, if an opportunity seems too good to be true it’s likely to be a scam.

3. The opportunity is vague or unusual

An unmissable, exclusive or poorly described opportunity is likely to be fraudulent. Scammers often bombard potential victims with jargon and headline figures without elaborating on the fundamental features of an investment.

For example, has someone offered an opportunity to invest in an emerging market but failed to describe the precise breakdown of the investment? Have they asked you to invest in an organisation that doesn’t show up in an online search?

4. They pressure you to make a quick decision

This is a key sign of a financial scam. Fraudsters want you to invest without thinking so they frequently use high-pressure sales tactics to force you into a quick decision. They’re unlikely to provide their details for you to contact them after mulling over an opportunity, or they might offer to contact you after a very brief period.

Time-sensitive opportunities are likely to be fake. Scammers might claim that others have already benefitted from the offer and pressure you to invest before it ends. They may even offer you bonuses or one-time discounts if they think you might be wary of the opportunity.

What to do if you think you’ve spotted a scam

Scammers play on your emotions and try to get you to make quick, irrational decisions. If you think someone’s trying to scam you then stop, take a moment, and do the following things:

  • Check that the person or company is legitimate. Search the Financial Services Register for the name of the individual or organisation offering you an opportunity. If you can’t find them then it’s probably wise to avoid the opportunity.
  • Always be on guard. Be wary of unsolicited contact and never agree to investments or decisions in the heat of the moment.
  • Talk to an expert before investing. Always speak to a financial expert that you trust before making investments. If a scammer claims to be someone you trust (such as your financial adviser), end the contact and get in touch with them using a method you’ve used in the past.

Get in touch with us if you’ve been offered an investment opportunity that you’re not sure about, if you think you’re being targeted by scammers, or if you think you’ve been the victim of a financial scam.

Contact the police if you think you’ve been the victim of a financial scam. You can also forward suspicious emails to report@phishing.gov.uk and forward suspicious text messages to 7726 for free.

For more information about financial scams visit www.actionfraud.police.uk. If you’re in England or Wales, you can also report fraud or cybercrime to Action Fraud on their website or by calling 0300 123 2040.

The value of investments and any income from them can fall as well as rise and you may not get back the original amount invested.

Approved by The Openwork Partnership on 15/08/2024

Financial Scams

Eight types of financial scams to be aware of

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Fraudsters use a variety of approaches to convince you to part with your money. Here are 8 financial scams you should be aware of.

1. Impersonation fraud

Scammers often pretend to be a familiar organisation like your bank, a utility provider or HMRC. They might inform you of a (fake) threat to your account and offer to help move your money to a more secure location, or they might claim that you’ve failed to make a payment and encourage you to settle it immediately.

Fraudsters may also pretend to be an individual you trust, such as a family member in urgent need of money or your financial adviser asking for a downpayment to secure an investment. They’ll try to play on your emotions and get you to act without thinking.

If you’re unsure of a person’s identity, if the contact is unexpected or they’re trying to get you to act quickly, terminate the interaction and contact the genuine person or organisation to check if the situation is real.

2. Social media fraud

Cybercriminals increasingly use social media and other digital platforms to defraud their victims. They can set up convincing social media profiles, apps, websites and marketing materials that make them seem like genuine experts or organisations.

Be wary of anyone who messages you unexpectedly on social media with offers that seem too good to be true, avoid downloading any apps from unofficial platforms, and don’t click on any suspicious links.

3. Romance fraud

Romance scammers target people by feigning romantic interest to gain their trust. These scams almost always start online with fraudsters spending weeks, months or even years pretending to form an attachment to their victim. They use emotive language to flatter or encourage you into transferring money to them, after which they promptly disappear.

Be aware of how much personal information you put online. Your age, relationship status and the photos you post can all indicate to a scammer that you might be vulnerable to romance fraud.

4. Investment scams

Fraudsters may contact you out of the blue with a fake investment opportunity. They might claim to be a genuine financial organisation or expert with seemingly credible marketing materials, or they might impersonate someone you trust like your financial adviser.

Investment scammers may try to distract or confuse you with headline figures or lots of jargon but fail to describe the opportunity in significant detail. Be wary of vague investment offers, especially ones that are time-sensitive or seemingly exclusive.

5. Payment diversion

Scammers may pose as a person or business you’ve been dealing with to request a payment or inform you of a change of bank details. They may create convincing fake email addresses, invoices or web payment platforms and encourage you to transfer money quickly to avoid a penalty.

It’s important to verify that you know who you’re talking to. Stop the interaction and contact the genuine person or organisation to confirm if the situation is true.

6. Courier scams

This occurs when cybercriminals contact you pretending to be a police officer or bank official. They’ll claim to be investigating fraudulent activity at your bank branch or a business like a jeweller, electronics retailer or currency exchange.

They’ll ask you to cooperate by purchasing a high-value item, withdrawing money from your account or foreign currency from an exchange. They’ll then ask you to hand it over to a courier (who’s also a fraudster) for further investigation and promise to return the money or item once they’re finished.

The police or your bank will never ask to verify personal or financial details over the phone. If you’re calling your bank to verify the situation, use the phone number on their website.

7. QR code phishing

This scam, also known as ‘quishing’, involves the use of QR codes to redirect victims to a fraudulent website that downloads malware or asks for sensitive information. Quishing encourages you to use your mobile phone to complete an action because they tend to have weaker anti-phishing measures compared to laptops or desktops.

Never scan a QR code from an unfamiliar source and always review the preview of the QR code’s URL before opening it. Inspect physical QR codes on menus or billboards to see if a genuine one has been covered by a bogus code.

8. Repeat scamming

If you’ve been a victim of fraud there’s a greater chance that cybercriminals may try to scam you again. All these scams may be repeated either by the same people who defrauded you the first time or other criminals who have acquired your leaked data.

Victims of investment scams are particularly vulnerable to repeat scamming. Fraudsters may dupe you with an investment scam before returning disguised as an organisation offering to recover your lost funds for a one-time fee.

Contact the police if you think you’ve been the victim of a financial scam. You can also forward suspicious emails to report@phishing.gov.uk and forward suspicious text messages to 7726 for free.

For more information about financial scams visit www.actionfraud.police.uk. If you’re in England or Wales, you can also report fraud or cybercrime to Action Fraud on their website or by calling 0300 123 2040.

Mortgage Mould

Don’t Fit the Mortgage Mould? We can help you

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If you’ve ever felt like you don’t quite fit the conventional mould when it comes to securing a mortgage, you’re not alone. In fact, more and more people are in the same boat, challenging the standard lending rules.

If you’re self-employed, had a credit blip or over 50 you may have encountered challenges when applying for a mortgage because traditional mortgages don’t always cater to everyone’s needs. Luckily, there are specialist mortgage products designed just for people like you and we can help.

Self-Employed?

Do you feel like you have to jump through more hoops when applying for a mortgage just because you’re self-employed?

We understand the complexities of self-employed finances and can help you find the right mortgage product tailored to your needs.

Whether you’re a sole trader, in a partnership, a company director, or a contractor, we’ll guide you through the process and help you gather the necessary documents to prove your income.

Dealing with a Credit Blip?

Don’t let past credit issues hold you back from getting a mortgage.

We have access to specialist lenders who work with people with varying credit histories.

Whether you’ve had late payments, past debts, or no credit history at all, we’ll help you explore your options and find a mortgage solution that works for you. We understand that life circumstances can impact credit, and we’re here to help you.

Over 50 and Need a Mortgage?

Getting a mortgage in your 50s and beyond used to be a challenge, but things have changed!

With access to a wide range of mortgage products, including those with age-friendly terms, we’ll guide you through the process and ensure you find a mortgage that fits your needs.

Whether you’re looking to downsize, renovate your home, or explore new living arrangements, we’ll help you find the right mortgage solution for this exciting chapter of your life.

How we can help you?

We offer personalised guidance tailored to your unique circumstances and can help you if your financial situation, age, or employment status don’t fit the traditional mortgage mould. Together, we can explore the options available to you.

Call Brooke Financial on 01132555762 or drop them an email on info@brookefinancial.co.uk

 

Approved by The Openwork Partnership on 08/05/2024.

Mortgage Mould

Mortgage Mould

Seven things you can do to minimise will disputes

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We all hope that our estates will be dealt with in an orderly, considerate manner after we pass away, but the number of will disputes is increasing.

Up to 10,000 people in England and Wales dispute wills every year according to a report by The Guardian, and a growing proportion of these are being taken to court – 195 in 2022 compared to 145 in 2017. Thousands of families have been embroiled in challenges to wills that are often “ruinously expensive”, time-consuming, and emotionally draining.

Disputes can be taxing for our loved ones, but they can also affect how our estates are handled. Your assets might not be passed on in the way you intended, and people you wanted to benefit from your estate might be overlooked. Fortunately, there are some steps you can take to help minimise disputes over your will.

1. Speak to your loved ones about your wishes

It’s not any easy conversation to have, but discussing how you want to pass on your estate with your family can help to avoid disputes. It gives you the chance to explain your decisions and ensure that there are no surprises for the inheritors when your will is read.

2. Write a letter of your wishes

You can also write a letter which outlines your wishes to be read alongside your will. This gives you another opportunity to explain your estate planning decisions which could be helpful for beneficiaries and the executor of your estate. This letter can also act as further reinforcement of your wishes if a dispute does arise.

It’s important, therefore, to make sure that your letter of wishes doesn’t go against what’s written in your will. You may want to ask a solicitor to review it to remove any errors or contradictions.

3. Include a no-contest clause in your will

Adding a no-contest clause doesn’t prevent someone from raising a dispute, but it can be an effective deterrent. This clause generally states that a beneficiary forfeits any inheritance they may have been entitled to if they challenge your will and lose their dispute. It’s another tool you can use to help ensure that your assets are passed on in the way you want.

4. Hire a solicitor to write your will

You can write your will without professional legal support, but engaging a solicitor to write it for you can help you to express your wishes as clearly as possible. They’ll use language that minimises contradictions and clearly sets out the way you want your assets to be passed on.

That can be especially vital if your estate planning is complicated, for example if you own assets in other countries or if you have investments. The support of a solicitor can increase your confidence that your complex estate will be passed on smoothly.

5. Ask a medical professional to witness your will

Your will must be made or acknowledged in the presence of two witnesses for it to be valid. These people must be:
• Aged 18 or over (16 or over in Scotland).
• Have the mental capacity to understand what they are signing.
• Not be related to the person making the will or have a personal interest in the will.
You can ask a medical professional, such as your GP, to witness your will and confirm that you were of sound mind when you wrote or amended it if you’re worried that it might be contested on medical grounds.

6. Review your will regularly

A common cause of will disputes is a beneficiary claiming that it doesn’t reflect your circumstances at the time of your passing. A regular review of your will helps to ensure that it’s always up to date and minimise the risk of this kind of challenge.

Reassessing every five years will help keep the terms of your will current. You may also want to review it after major life events, for example if you welcome a new grandchild into your family, remarry, or if your wealth changes significantly.

7. Store your will securely

Make sure that you keep your will in a safe place and your executor knows where it is. Destroy previous versions of your will when you update it to avoid potential confusion.

You can keep your will yourself, leave it with your solicitor, or lodge it with the Probate Service if you live in England or Wales – each method has its pros and cons, and we’re happy to explain these so that you can choose the right one for you.

Understanding your estate can help you make decisions about your will

These seven actions can help to reduce will disputes, but having a full understanding of
your estate can give you the greatest peace of mind. We’re here to talk if you want to talk about your will or your estate planning to help you decide how you want your assets to be passed on.

Please note: The Financial Conduct Authority does not regulate estate planning. Will writing is not part of the Openwork offering and is offered in our own right. Openwork Limited accept no responsibility for this aspect of our business. Will writing and estate planning are not regulated by the Financial Conduct Authority.

Approved by The Openwork Partnership on 10/07/2024

Expiry 10/07/2025

Mortgage holders could benefit from rising property prices

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Homeowners who sold their properties in 2023 made an average profit of £74,000 according to data from property website Zoopla. But you don’t have to sell your house to benefit from rising property prices – they could help you get a better interest rate on your mortgage.

 

9 in 10 homes sold for more than their purchase price

Concerns that the Bank of England’s decision to increase its base interest rate might cause property prices to stagnate or fall appear to be unfounded as homeowners continue to benefit from long-term growth.

The average seller in 2023 had lived in their home for nine years and most made a profit. London homeowners saw the biggest gains of £137,000 on the average sale, whilst those selling a bungalow or detached home made an average profit of more than £100,000. Just 10% of property sales were sold for less than their purchase price, with the average loss weighing in at around £17,000.

You may discover that your budget is larger than expected if you’re searching for a new home this year. An accurate and timely valuation of your property is key to calculating your mortgage needs and setting the budget for your next move.

Rising property prices could cut your outgoings when you remortgage

You don’t have to wait until you sell your home to benefit from rising property prices – if the value of your home has increased it could help you secure a more competitive interest rate on your mortgage. Lenders compare the value of your home to your mortgage when reviewing your application to remortgage – this is known as your “loan-to-value” (LTV) ratio.

For example, if you purchase a property for £200,000 with a 10% deposit, your LTV ratio is 90%. If the value of your property rises to £220,000, your LTV ratio falls to around 82% because the size of your mortgage relative to the value of your property has now decreased. If you’ve selected a repayment mortgage, then your repayments will also lower your LTV as the amount you owe falls.

A lower LTV ratio usually results in a more competitive interest rate because you pose less of a risk to the lender. The combination of regular repayments and rising property prices could therefore lead to lower repayments in the future.

Lower interest rates could save you thousands over your mortgage term

The Bank of England has gradually increased its base rate over the last few years to help tackle inflation – it’s currently 5.25% compared to historic lows of 0.1% for much of 2020 and 2021. Many homeowners are dealing with sharp increases in their mortgage repayments as a result.

Securing a more competitive interest rate now could help to offset the previous increases you may have experienced. Even a small reduction could have substantial impacts over the full term of your mortgage.

Let’s say you borrowed £150,000 through a repayment mortgage with a 15-year term, if the interest rate is:
• 5.5% your monthly repayment is £1,126.
• 4% your monthly repayment is £1,109.
You would save £20,000 with a 4% interest rate over the full 15-year term of the mortgage compared to repayments at 5.5% interest over the same period.

Revaluing your home could therefore be a crucial money-saving strategy if your mortgage deal has expired or is due to do so soon. You can usually lock in a new mortgage deal up to 6 months before your current deal expires.

Being proactive and finding a new mortgage before your existing one ends could also mean you avoid paying your lender’s standard variable rate (SVR), which isn’t typically a competitive rate.

We can help you reassess your mortgage needs

Whether you’re moving home or looking to secure a better interest rate on your mortgage, we’d love to help you make the most of rising property prices. We’ll help you assess the mortgage market and match you up with the right deal for your circumstances.

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT.

Approved by The Openwork Partnership on 10/07/2024

Expiry 31/12/2024

Self-Employed Mortgage

Are you self-employed? We can help you navigate the mortgage market

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Do you feel like you have to jump through more hoops when applying for a mortgage just because you’re self-employed? And not sure which way to turn?

We’re here to help. We are mortgage advisers and we can help you navigate the self-employed mortgage market and any of the challenges you may face.

What is a self-employed mortgage?

There isn’t a specific product called a self-employed mortgage, you will be applying for the same mortgages as those who are employed. The key difference is that lenders look at self-employed earnings differently and have lending criteria that considers borrowers that do not have an employer to back up their earnings.

So, when it comes to applying for a mortgage, you will need to prove your income will cover your monthly mortgage payments.

How do I prove my self-employed income?

The documents lenders require as proof of income will depend on how you run your business and will be different for sole traders, partnerships, limited company directors and contractors. These proof of income documents could include SA302 forms, tax returns, business accounts, and bank statements.

You will usually be required to provide at least two to three years of business accounts and bank statements to prove that you have been earning consistently for some time. But if you haven’t, don’t feel you’re automatically written off, even if you’ve only been trading for a year – it’s possible we can source a mortgage for you.

Seeking advice is a good thing

If you’re self-employed, it makes sense to get a helping hand from a mortgage adviser.

We’ll help you compile all the documents you need and help you access a wide range of mortgages including those that are only available from specialists – who may offer more flexible options. An expert in your corner can find a solution that’s completely tailored to your needs.

Ready to get started? Speak to an expert self-employed adviser today.

Call Brooke Financial on 01132555762 or drop them an email on info@brookefinancial.co.uk

Approved by The Openwork Partnership on 15/04/2024.

Self-Employed Mortgage

Self-Employed Mortgage

Here’s how financial protection can offer security for parents

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Serious illness can place immense stress on our families. The cost of caring for an unwell child, worry over access to essential services, and the emotional toll of serious illness are all things that no parent wants to think about.

We can’t predict what the future will hold for the health of our families, but we can take proactive steps to prepare for the risk that we or our children might become critically unwell.

Appropriate financial protection can be a vital safety net for parents, providing essential cover for children and easing the pressure of caring for them.

Critical illness payouts can help you care for your child

No parent wants to consider the possibility of their child becoming seriously ill, but planning for the worst can offer the greatest peace of mind. Robust and appropriate financial protection can help shore up your finances and allow you to focus on caring for your child.

Critical illness cover pays out a lump sum if you are diagnosed with an illness covered by the policy. Many of these policies include cover for a child of the policyholder, paying out a proportion of the full amount if they become seriously ill. This payout provides a financial safety net, covering your expenses and allowing you to take time away from work to care for your child.

Critical illness cover may also come with other benefits that can offer further support for your family, such as:

  • A payout if your child is hospitalised because of an accident.
  • Cover for the cost of accommodation so that you can be close to your child if they’re in hospital.
  • Childcare costs if you’re diagnosed with a serious illness that’s covered by your policy.

The cost of critical illness cover varies depending on how large you want a potential payout to be, as well as other factors like your age and general health. It’s important to note that you’ll only be covered as long as you keep paying your premiums.

Children are often automatically included in critical illness cover but this isn’t guaranteed. Contact your provider for clarification and be aware that your premiums could rise if you add a child to a policy that doesn’t already cover them.

Cover for a child typically starts from the first few weeks after birth and lasts until they’re 18, or 21 if they’re in full-time education, but this can vary between providers. There may be other restrictions to critical illness cover that you should be aware of – some policies will only allow one claim per child whilst others might exclude certain conditions that are present from birth.

It’s important to check the details of critical illness cover thoroughly when comparing your option to make sure that you’re buying the right cover for your circumstances.

Private medical insurance could help provide better care for your family

You may want to consider taking out private medical insurance to complement the security that financial protection could offer you. The Guardian reports that the private health insurance market has grown by £385 million in the last year. At the same time, rising wait times and staff shortages are causing public satisfaction with the NHS to slump according to the long-running British Social Attitudes survey.

Private medical insurance can help to put your mind at ease by reducing waiting times for a range of services (like tests and consultations) whilst giving you a wider choice of treatment providers. It could also help to cover the cost of a private room, giving you and your family greater privacy if you need to stay in hospital overnight.

Private health insurance can cover much more than just physical illness. Some providers offer access to counselling and mental health services which are becoming increasingly important for the wellbeing of younger generations – the number of children and young people seeking support for their mental health increased by 25% from 2022 to 2023 according to data from Aviva.

The cost of private health insurance and the level of cover you’ll receive are influenced by a range of factors, including who you want the policy to cover, your lifestyle, and family medical history. It’s important to take the time to understand how comprehensive your options are and any exclusions that might affect your family.

Talk to us to see how we can help protect your family

Financial protection is just one way that you can prepare for the unexpected. Get in touch if you’d like to know more about financial protection for your family against serious illness.

Please note: Financial protection plans typically have no cash in value at any time and cover will cease at the end of the term. Cover will lapse if premiums are unpaid. Cover is subject to terms and conditions and may have exclusions. Definition of illnesses vary between providers and will be explained in policy documentation.

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Expires – 16 Jun 2025
Approved by The Openwork Partnership on 17/06/2024.

Financial Protection for Family - Critical Illness Cover and Private Medical Insurance

Financial Protection for Family – Critical Illness Cover and Private Medical Insurance

Credit History

Worried a “credit blip” will stop you getting a mortgage?

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How important is your credit history for mortgage lenders?

The cost-of-living crisis and inflationary pressures has put pressure on people’s finances and made it harder for people to get on the housing ladder due to affordability constraints and more people having a less than perfect credit history.

How important is your credit history for mortgage lenders?

Looking into your credit history is one of the ways in which a mortgage lender will gain information on how reliable you have been at paying back debts and loans in the past. A mortgage lender needs to be confident that you’ll be able to keep up with your repayments across the whole lifetime of the loan.

What if your credit history isn’t perfect?

Don’t worry, if your credit history isn’t perfect, you’re not alone! Many people experience minor setbacks in their credit history at some point. Such as missing a credit card payment, neglecting to pay utility bills on time, or going into an unarranged overdraft. These types of “credit blips” can leave a mark on your credit history but this doesn’t mean you aren’t eligible for a mortgage.

Specialist mortgage support

An expert adviser can assess your financial situation, including your credit history, guide you through the application process and increase your chances of getting approved for a mortgage by finding the most suitable mortgage deal for your circumstances.

We have access to lenders who specialise in working with people with varying credit, whether you’ve had late payments, past debts, or no credit history at all, there are options available for you.

Don’t let a credit blip throw you off track! Get in touch today.

Call Brooke Financial on 01132555762 or drop them an email on  info@brookefinancial.co.uk

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

Approved by The Openwork Partnership on 08/04/2024.

Credit History and Mortgages

Credit History and Mortgages