• Spring has Sprung

    Spring has Sprung

    This article was published on 29 April 2025. At the time of publishing, this article was true and accurate, however, over time this may have changed. Some links may no longer work. If you have any concerns about this please contact us.

    Spring is the time of year that we dust off the winter blues, enjoy longer days and look forward to the return of sunshine. Traditionally spring also sees a boost to the mortgage market with potential buyers starting house hunts in earnest, or people looking to re-mortgage for home improvements. If you’re considering a house purchase this spring, here are some hints and tips to help you through the process.

    Consider your budget:

    Buying a home is an expensive business. It’s not just about getting a mortgage, you also need to consider the other costs associated with your move. Legal fees, surveys, stamp duty and removal costs are just a few so make sure you include these in your upfront budgeting. It’s also worth remembering the potential for rates to rise.

    Get a mortgage agreement in principle:

    Most lenders will offer a ‘mortgage agreement in principle’ – this confirms the amount you’ve specified to the lender which you believe you’ll need to borrow. This isn’t a guarantee to lending, as it’s subject to acceptance and completion of various checks and surveys. However, having an agreement in principle could give you an advantage when you’re putting in an offer on a property. You can research the mortgage market yourself but this can be very complex. Consider contacting a mortgage advisor who can help you find the deals you qualify for and guide you through the process.

    And don’t forget… If you choose to take out a mortgage with a fixed rate, that deal will come to an end after the period specified by the mortgage provider.

    Consider resale potential:

    If the property you’re buying is not going to be your forever home you need to consider how easy it will be to re-sell when you’re ready to move on. If a property has been on the market for a while think about why it hasn’t sold, is it the surrounding area or the layout of the property?

    Get the correct survey:

    The mortgage company will request a survey of the property but this is only for lending purposes and will not give you a full view of the condition of the property. To protect yourself, you should consider obtaining either a more detailed homebuyer’s report or a full structural survey, which is the most comprehensive of the three. These reports are more expensive but they’re very detailed and any problems they identify may help you negotiate the purchase price of the property.

    Arrange your home insurance:

    Before you exchange contracts you need to ensure that you have suitable home insurance in place – buildings insurance is mandatory for exchange. Shop around and get as many quotes as possible but remember to balance the cost of the policy against the benefits. Some of the cheapest policies may not offer the cover you need or have high excesses in the event of a claim.

    Police Mutual offer insurance to help you protect your home and belongings – to find out more and to get a quote click here.

    Should you move or improve?:

    If there is room for improvement, you might want to think about making changes to your current home rather than moving. Adding space can generally add value to your home. Do your research on what you might be able to add by speaking to local estate agents or looking at similar homes in the area. You may be able to fund smaller home improvements with savings but for larger projects you could consider talking to your existing mortgage provider about extending the loan or speaking to an independent mortgage adviser about a remortgage.

    You can find more information on the Police Mutual Fee-Free Mortgage Advice Service here.

    Joanne Palmer

  • Mortgage Broker or Direct Deal?

    Mortgage Broker or Direct Deal?

    This article was published on 28 April 2025. At the time of publishing, this article was true and accurate, however, over time this may have changed. Some links may no longer work. If you have any concerns about this please contact us.

    With so many mortgage deals available, how can you ensure you find the right one for you?

    You could decide to go direct, searching the market yourself and approaching a lender directly for a specific mortgage deal. Lenders may provide advice, but only on the products they offer. Going direct could save you money as you’re not charged fees that some brokers charge for mortgage advice, but only if you know what mortgage is best for you.  You could arrange a new mortgage with your existing bank or building society, but you could be limited solely to their own mortgage products, significantly restricting the deals available to you.

    What is a mortgage broker?

    A mortgage broker is a person or company that arranges a mortgage between you (the borrower) and a mortgage lender.

    They will:

    • Help you assess your financial situation
    • Search the market to find deals that match your criteria
    • Recommend the most suitable mortgage for your needs

    What are the benefits of using a broker?

    • Convenience – if you’re not sure what you’re looking for and aren’t clear on the mortgage markets, or just don’t have the time to search for deals and speak to lenders, then a broker can be very useful. They could save you a considerable amount of time.
    • Access – mortgage brokers will usually have access to a wide range of lenders, with deals that aren’t always available if you go direct. This means they have a wider choice of options to recommend from.
    • Expertise – if you’re not familiar with the different types of mortgages available, knowing where to start can be overwhelming. For such an important financial decision, having an expert who can provide impartial advice and explain things, will make the whole process clearer.

    What are the disadvantages?

    • Cost – mortgage brokers receive commission from the lender, some charge a fee for their services. This can be charged an hourly or ‘flat fee’ basis and can either be charged up front or on completion of your mortgage.
    • Limitations – not all brokers have independent access to the mortgage market, some only use certain lenders. Not all mortgage deals offered by banks and building societies are available through brokers.
    • Quality – getting a mortgage is one of the biggest financial decisions you’ll make, so it’s important to make sure you choose a broker carefully and get recommendations where possible.

    What types of mortgage brokers are there?

    • Brokers who only offer mortgage from a single lender
    • Brokers who offer mortgages from a limited number of lenders
    • Brokers who offer a comprehensive range of mortgages from across the market.

    You can find more information on the Police Mutual Fee-Free Mortgage Advice Service here.

    Joanne Palmer

  • Understanding Mortgage Rates: How They Work and Future Trends

    Understanding Mortgage Rates: How They Work and Future Trends

    This article was published on 28 April 2025. At the time of publishing, this article was true and accurate, however, over time this may have changed. Some links may no longer work. If you have any concerns about this please contact us.

    Mortgage rates play a crucial role in the property market, influencing homebuying decisions and the overall economic landscape. In this article, we will explore the mechanics behind mortgage rates and the factors influencing them.

    How do mortgage rates work?

    Mortgage rates represent the interest that lenders charge borrowers for home loans. These rates fluctuate based on several factors, including:

    1. Economic Indicators:

    Key economic indicators such as the Bank of England Base Rate, inflation, employment rates, bonds yields and Gross Domestic Product (GDP) growth, impact mortgage rates. Lenders assess these indicators to determine the level of risk associated with lending money.

    What is inflation?

    You may have heard this mentioned in the news. Inflation is the rate of change in the consumer price of goods and services. It’s most commonly measured using the Consumer Prices Index (CPI) and the Retail Prices Index (RPI). It compares the price of consumer goods in the current year with the previous year.

    So how does inflation impact mortgage rates? The Bank of England takes into consideration inflation when deciding interest rates. Previously when inflation has gone up then interest rates have also tended to increase.

    2. Credit Scores:

    Borrowers’ credit scores play a significant role. Individuals with higher credit scores often qualify for lower mortgage interest rates as they are considered less risky to lenders.

    In addition to your credit score personal factors such as your deposit, income and assets can also affect what mortgage rates are available to you.

    3. Loan Terms:

    The length of the loan term also affects mortgage rates. Generally, shorter-term loans have lower interest rates compared to longer-term ones.

    Are mortgage rates likely to come down?


    Predicting future mortgage rates is challenging due to the multitude of economic factors and market conditions. Although some mortgage lenders have started cutting mortgage rates, predicting future rates remains uncertain. Staying informed about economic trends and regularly monitoring market conditions can help individuals make informed decisions about their home financing options.

    You can find more information on the Police Mutual Fee-Free Mortgage Advice Service here.

    Joanne Palmer

  • Improve Your Odds of Getting Your Mortgage Loan Approved

    Improve Your Odds of Getting Your Mortgage Loan Approved

    This article was published on Fri 09 Feb 2024. At the time of publishing, this article was true and accurate, however, over time this may have changed. Some links may no longer work. If you have any concerns about this please contact us

    Are you thinking of applying for a mortgage soon? Navigating the mortgage application process can be difficult, with lenders having different criteria for assessing mortgage applications. Getting your mortgage loan approved depends on a range of factors including:

    • The size of loan you want to take out
    • How much you’ve saved as a deposit
    • Your employment status and income
    • Your credit rating
    • Your outgoings
    • Your existing debt

    We take a look at what steps you can take to boost your chances of getting your mortgage application approved.

    When should you start looking for a mortgage deal?

    New house purchase – If you’re looking to buy a house then the earlier the better! Start the process and speak to an advisor before viewing properties. That way you’ll not only know how much you can afford to borrow, but it could identify any hiccups early on to prevent any delays in getting a mortgage. You could also be at an advantage compared to other buyers if you have a mortgage already agreed in principle.

    Remortgaging – You should generally start looking for a remortgage deal no later than three months before your current deal ends. Moving to a new lender could take up to two months so you need to give yourself time to consider your options.

    What are the main reasons for a mortgage application being declined?

    • Poor credit history
    • Too many credit applications
    • Not on the electoral role
    • Too much debt
    • Insufficient income

    How can you improve your odds?

    It’s not easy securing a home loan as lenders apply affordability rules to ensure they offer mortgages that people can afford. The following tips could help you boost your mortgage chances.

    Get your finances in order– you need to be as financially attractive to lenders as possible. So getting your finances in order and reviewing your spending habits up to 12 months before you apply for a mortgage will help.

    Cut back on your spending as Lenders will ask for detail about your outgoings and are likely to ask to see your bank statements to verify what you’ve told them. This is to make sure you’d still be able to afford your mortgage if your circumstances changed. Your application could be rejected if you fail to show you’re managing your money responsibly.

    Manage your credit and pay bills off on time – Pay your credit cards and bills on time. Any missed payments can remain on your credit file for six years, so keeping up payments is a must. Setting up direct debit payments for credit cards can avoid the risk of you missing a payment.

    Check your credit report – Lenders will check your credit report(s) to see if you’ve got a good repayment history. Your report lists your credit cards, overdrafts, loans, mortgages, mobile phones and some utility payments for all accounts opened within the last 6 years. You can check your credit file at all of the three main credit agencies – Equifax, Trans Union & Experian.

    If you’ve applied for joint credit, such as a mortgage or bank account, then you will be financially linked to someone else. If you’ve since separated or have nothing to do with them then they could be affecting your credit score, so you’ll need to update your file. If you spot anything wrong with your credit file then you need to request an amendment.

    Are you registered to vote? – If you’re not on the electoral register then your chances of getting a mortgage could be reduced. Lenders will often use the register to confirm your current residency. Your credit report will tell you if you’re on the electoral role. If you’re not you can register here.

    Don’t apply for credit 6 months before applying for a mortgage – If you apply for a loan, credit card, utility contract or even a mobile phone then a search may be registered on your credit report, even if you don’t take out the contract. If your credit file shows multiple searches then this can reduce your ability to obtain credit. If you’ve had a payday loan in the last 12 months then you could be declined for a mortgage.

    Put down extra on top of your deposit – All mortgages have a maximum loan-to-value (the amount you borrow compared to what the property’s worth). Keeping the loan-to-value as low as possible – for example putting down a little bit more than the minimum deposit required – can make you more attractive to the lender.

    Get your paperwork organised – Lenders will need to see proof of your income before they can offer a mortgage so getting it ready in advance could speed the process up. Your lender may want to see any or all of:

    • Your last three months’ payslips
    • Your last three months’ bank statements
    • Proof of bonuses/commission
    • Your latest P60 tax form (showing income and tax paid from each tax year)
    • Proof of deposits (eg, savings account statements)
    • ID documents (usually a passport)
    • Proof of address (eg, utility bills or credit card bills)
    • A gift letter, this is where you receive part of your mortgage deposit as a gift. If you’re getting deposit help, the lender needs to know it is a gift (not a loan), and that the giver won’t part own the home.

    Joanne Palmer

  • Mortgages for the Police family – Frequently Asked Questions

    Mortgages for the Police family – Frequently Asked Questions

    This article was published on Thu 26 Oct 2023. At the time of publishing, this article was true and accurate, however, over time this may have changed. Some links may no longer work. If you have any concerns about this please contact us

    With so many mortgages on the market, you may have a lot of questions when you first start doing your research. It’s hard enough to find the time when you’re working 9 to 5 and it can be even tougher if you’re working all hours in your role with the Police.

    Can I get a ‘guarantor mortgage’?

    There’s actually no such thing as a ‘guarantor mortgage’ as such. However, it’s not uncommon for people, especially first-time buyers to turn to their parents for financial support. Sometimes this could mean your parents contributing towards the deposit you need to put down. But it could also involve them acting as ‘guarantor’ on any mortgage you take out. This means that they would be responsible for making payments on your mortgage, if you were unable to. If you think you’ll need financial help from your parents when taking out your mortgage, it’s worth having a chat with a mortgage advisor.

    What size of mortgage can I get?

    The amount of money you can borrow depends on a number of factors, including your income, credit rating, how much of a deposit you can put down and the value of the property you wish to buy. Traditionally lenders would lend no more than four times your salary, however many have individual affordability calculators which will help you establish roughly how much you could borrow.  

    Do I have to have worked in the Police for a certain length of time before applying for a mortgage?

    Broadly speaking, the longer you’ve been in your job the better, as far as mortgage lenders are concerned. Lenders require proof of your income before approving a mortgage application. They may ask to see up to 3 months worth of payslips. If you have been in your role for less time than that, you might need to provide other evidence to support your application. That said, there are some lenders who will consider mortgage applications from people who have only just started their career in the Police.

    Can I get a joint mortgage?

    If you and your partner are looking to buy a home together, it makes sense to get a joint mortgage. The biggest advantage in doing so is that it could increase your buying power. This is because the amount of money you can borrow is based on your income (amongst other things). So, when considering your application, your mortgage provider will look at you and your partner’s combined salary.

    How much of a deposit do I need?

    The amount of deposit you will need to buy a home depends firstly on how much the property you wish to purchase is valued at. This can be around 15% of the property value.

    Joanne Palmer

  • Have You Prepared Your Home for Winter?

    Have You Prepared Your Home for Winter?

    This article was published on 23 Sep 2021. At the time of publishing, this article was true and accurate, however, over time this may have changed. Some links may no longer work. If you have any concerns about this please contact us

    Christmas can be hectic even at the best of times – especially if you’re on those long, cold night shifts! Which means it’s even more important that when you are home with your family, you can relax and enjoy yourself. With this in mind, we’ve put together a few handy hints and tips to help you and your family through the festive period.

    Around the home

    Boiler and radiators
    No one wants a cold home to come back to. Bleeding radiators is one of the easiest ways to improve the efficiency of your heating. It’s also a good idea to have your boiler serviced by a registered engineer to ensure it’s ready for the coldest months, when it will be working hardest.

    Smoke and carbon monoxide alarms
    You should regularly check that your smoke and carbon monoxide alarms are functioning correctly and not low on battery power. It’s a quick job that will give you lasting peace of mind. Many fires start in the kitchen so never leave any cooking unattended.

    With temperatures dropping during December, it’s a good idea to check the loft to see whether you need additional insulation. Lagging pipes and water tanks will prevent heat escaping while also reducing the risk of ice forming and the plumbing problems it can cause. It’s also a good idea to leave your heating on at a low temperature even when you’re not there, to help prevent things like frozen or burst pipes.

    Windows and doors
    Faulty seals or gaps around windows and doors allow warm air to escape and cold air to get in. Blocking these draughts can make a big difference to the warmth of your home and help cut your energy bills. Using draught excluders at the bottom of doors can also be an effective measure.

    Christmas lights
    Christmas normally means fairy lights and lots of them. So make sure that you switch them off and unplug them before you go to bed, or when you leave the house. Check your Christmas tree lights conform to the British Standard. Worst case scenario are fires causes by faulty lights left on unattended.

    Christmas gifts and presents
    With Christmas gifts galore, your home will probably contain more items such as jewellery, watches, cash, laptops and other technology, just to mention a few. Although many insurers will increase your contents cover value during a religious festival, it is worth checking with them to see if you are covered.

    If you are with Police Mutual for home insurance, it is worth noting that you are covered with an additional £5,000 of contents cover at no extra cost during any month in which you celebrate a religious festival, to cover gifts and food bought for the occasion. Terms & conditions apply.

    Out and about


    The festive period creates a higher risk of burglaries and with many families away from the home, consider the following:

    Leave lights on
    Keep valuables out of sight and connect lights to timers so that they come on at different times of the day. It’s even a good idea to connect the timer to the radio, so it appears that you are home. It’s also a good idea to have external areas well-lit as well.

    Secure your property
    It’s stating the obvious, but be sure to lock every door and window when you’re out of the house. If possible ask a friend or neighbour to check on your property regularly if you’re going away for a while.

    After Christmas


    Reassess contents cover
    When normality returns, you will probably find that you may have some new jewellery, new phone or even a new TV. So now is a good time to check with your insurer that you have sufficient contents cover.

    Great protection, no hidden costs, easy to switch
    With no admin fees* and interest-free monthly payment option, Police Mutual’s Home Insurance could help alleviate the financial strain we can all feel at this time of year. We also make it easier to switch straightaway by paying any cancellation fees you might be charged by your current provider, up to the value of £125.

    For more information on our Home Insurance click here or call our dedicated team on 0151 242 7460.

    Police Mutual Home Insurance is provided by Royal & Sun Alliance Insurance Ltd. Home Emergency Cover is provided by ARAG plc.

    PMGI Limited, trading as Police Mutual is authorised and regulated by the Financial Conduct Authority. Financial Services Register No. 114942. Registered in England & Wales No.1073408. Registered office: Brookfield Court, Selby Road, Leeds, LS25 1NB. For your security, all telephone calls are recorded and may be monitored.



    *PMGI Limited may make a charge for policy cancellation.

    Want to learn more? Access our wellbeing hub here.

    Joanne Palmer

  • A Guide to Home Security While on Holiday

    A Guide to Home Security While on Holiday

    This article was published on 23 Sep 2021. At the time of publishing, this article was true and accurate, however, over time this may have changed. Some links may no longer work. If you have any concerns about this please contact us

    It probably seems like a lifetime ago since your last holiday with one lockdown after another, but positive developments mean you may be heading away on that well-deserved break sooner rather than later! As Police professionals, much of the following will come as second nature to you, but it might be handy to share with your family.

    Before going on holiday most people consider the things that they’ll need whilst they’re away – passports, luggage, and travel insurance – but it’s all too easy to forget the things that need to be taken care of back at home during that time.

    If you’re going to be leaving your home unoccupied for more than just a few days it’s important to consider some of the safety and security factors below.

    After all, an owner-free home still filled with valuable electrical goods such as televisions, laptops or state-of-the-art coffee machines are both a potential fire hazard and a burglar’s dream. And then of course there’s the possibility of gas or water leaks and the resulting damage. So, here’s how to best prepare your home for when you’re gone…

    Keep burglars at bay

    If you have a burglar alarm be sure to turn it on as soon as you leave, but do be aware that there are other factors in keeping your house secure whilst on holiday. Whether you have an alarm or not reducing or entirely removing obvious signs that no one is home is imperative.

    Cancel milk and paper deliveries so they don’t create an evident backlog making it apparent that you are away. Plus, no one wants to arrive home from holiday to find two-week old milk sitting on their doorstep, especially in summertime.

    Consider connecting lights to timers so that they come on at different times of the day. Invest in some for your living room and a few bedrooms to give the appearance of someone being home in the evenings.

    Involve the neighbours

    If you’re friendly with your neighbours ask them to drop round to the house either every day or every few days to give the impression of someone being home.

    Ask them to clear up piles of post or parcels which may well be visible from outside. Suggest they draw the curtains in the evening and then back again the follow day. And, if they’re really amenable, ask if they will keep an eye on your flower pots, lawns and bushes – overgrown grass or plants in the front garden is another sign that a property is currently uninhabited.

    If you’re taking your car away with you, see if a neighbour is happy to park theirs on your drive every so often so it appears as though someone is coming and going whilst you’re away too.

    Lock up your valuables

    It goes without saying to double-check that you’ve locked doors and windows before leaving the house, but make sure that nothing potentially appealing to thieves is left on display as well.

    Even when you’re not on going away, locking up valuables and keeping sought-after items out of sight is a great idea, but if you’re leaving them around for days on end, put phones, tablets, laptops and other coveted technology in a safe, in drawers or in boxes out of view.

    As for jewellery, heirlooms and other precious pieces, lock them away in a chest, bureau or a well-hidden secure safe if you have one.

    Any spare door or car keys you don’t need whilst you’re on your travels put in drawers, and definitely do not leave them in reach of intruders. Make sure to empty side tables in the hallway and key racks near the front or back door.

    Consider your outside space too

    It’s not just the contents of your home that you need to think about before heading away. Make sure that any items of value normally kept outside, like garden furniture, bikes and children’s toys, are locked away in a shed, garage or brought inside the house.

    Though you might not think garden furniture is at risk of being taken, due to its light weight and durability, it’s very easily carried or thrown over an outside fence.

    Expensive plants, pots, and barbecues are also worth locking away while you’re gone too.

    Think about fire and escape of water prevention

    Aside from burglary, reducing the risk of fire and leakages while you’re on holiday is important too.

    Turn heating appliances (portable heaters, electric fires, electric blankets) and kitchen appliances (toasters, kettles, coffee makers) off at the switch and unplug them from the wall to be on the safe side.

    With items most often kept on standby (televisions, radios, satellite boxes), be sure to turn them off at the wall unless you’re using them as an additional method of security (see above).

    Dependent on whether you are leaving your central heating on a timer, during your time away, you may want to turn off both your gas and water supply at the mains too to avoid any such leaks, and of course be sure to check no taps are left running when you leave the house.

    If it seems there’s an overwhelming amount of things to consider before you leave for your holiday, consider making a holiday checklist and tick things off as you go. The security of your home is something that should never be forgotten.

    Police Mutual Home Insurance

    Of course should the worse happen, home insurance is always needed to rely on. Police Mutual Home Insurance includes up to £75,000 contents cover and £1,000,000 buildings cover as standard. With Home Emergency Cover as standard, provided by ARAG Insurance plc. Plus, interest-free monthly payment and no charges for making mid-term policy amendments*. We also make it easier to switch to Police Mutual Home Insurance by paying any cancellation fees you might be charged by your current provider, up to the value of £125.

    Find out more about or get a quote for Police Mutual Home Insurance here. Or call our dedicated team on 0151 242 7640.

    Police Mutual Home Insurance is provided by Royal & Sun Alliance Insurance Ltd.

    *Please note an administration fee may apply for policy cancellation.

    PMGI Limited, trading as Police Mutual is authorised and regulated by the Financial Conduct Authority. Financial Services Register No. 114942. Registered in England & Wales No.1073408. Registered office: Brookfield Court, Selby Road, Leeds, LS25 1NB. For your security, all telephone calls are recorded and may be monitored.

    Want to learn more? Access our wellbeing hub here.

    Joanne Palmer

  • Adding Value to Your Home

    Adding Value to Your Home

    This article was published on 23 Sep 2021. At the time of publishing, this article was true and accurate, however, over time this may have changed. Some links may no longer work. If you have any concerns about this please contact us

    From a lick of paint to building an extension or conservatory, there are a number of ways to add value to your home.

    Your home is probably the biggest asset you’ll ever own, and whether you’re looking to sell it, or simply make it more comfortable, there are some DIY jobs that can add value to it.

    A fabulous frontage
    If you have a viewing planned, remember that first impressions count, so make sure your home’s frontage is spick and span. Tidy up the exterior by clearing the front garden, cleaning up your garage and front door, and consider adding new door accessories such as a smart letterbox or doorknocker.

    Always make sure drain pipes are secure and not leaking, and a coat of paint can make them look as good as new. At the back, tidy the rear garden and maybe add a splash of colour by painting the fence or shed.

    Freshen up the interior
    The main reception rooms create the biggest impression, so always ensure the carpets or floors have been properly cleaned, and it’s always worthwhile touching up any paintwork.

    If you’re going to treat your living room to a fresh lick of paint, neutral colours are best. Upstairs, you can make over the bathroom with simple changes such as new taps, new grouting and a new shower screen or curtain. In the bedrooms, replace any broken storage and keep everything neat and uncluttered.

    In the kitchen
    Fancy a new kitchen but don’t want to fork out thousands for the pleasure? Then simply replace your cabinet doors and drawers. New facings can transform a tired-looking kitchen and give it a completely new look. They cost just a tiny fraction of the price of a full replacement kitchen, and there’s none of the mess involved in ripping out the old one.

    And best of all, you can do it yourself. New doors and drawer fronts are available for just a few pounds each, and they’ll completely change the look and feel of your entire kitchen. Or if you’re an experienced DIY-er, you might even consider fitting new worktops or laying new flooring.

    To DIY or not to DIY?
    Whatever home improvement projects you’re planning, doing them yourself can save a small fortune compared to hiring a handyman. But be careful not to bite off more than you can chew, because some jobs really do require the services of a professional, and a botched DIY job can leave you with a hefty bill to put it right.

    For anything electrical, call in a NICEIC-registered contractor. And don’t even think of going near a gas supply – call in a Gas Safe engineer. Even putting up a new shelf or hanging a picture can have disastrous consequences if you hit a cable or pipe in the wall – so always check using a multi-detector. You can buy a handheld detector for around £15, and it could be the smartest investment you ever make.

    Protecting your investment
    If you’ve invested in your home, make sure you’re adequately covered with home insurance. Police Mutual’s Home Insurance provides a range of benefits including £75,000 contents cover as standard (including contents in outbuildings), Domestic Emergency Cover as standard (up to £500 per claim) and a dedicated claims team should you ever need it.

    To find out more about Police Mutual Home Insurance call us on 0151 242 7640 or click here.

    Police Mutual Home Insurance is provided by Royal & Sun Alliance Insurance Ltd, Home Emergency Cover is provided by ARAG plc. 

    PMGI Limited, trading as Police Mutual is authorised and regulated by the Financial Conduct Authority. Financial Services Register No. 114942. Registered in England & Wales No.1073408. Registered office: Brookfield Court, Selby Road, Leeds, LS25 1NB. For your security, all telephone calls are recorded and may be monitored.

    Want to learn more? Access our wellbeing hub here.

    Joanne Palmer

  • How Can I Help my Children Buy Their First Home?

    How Can I Help my Children Buy Their First Home?

    This article was published on Thu 27 May 2021. At the time of publishing, this article was true and accurate, however, over time this may have changed. Some links may no longer work. If you have any concerns about this please contact us

    Buying their first home can be exciting, but many first-time buyers can struggle to get on the property ladder – with the demand for high deposits, along with the difficulty in qualifying for a mortgage. There are ways you could support your child in buying their first home, depending on your financial circumstances and your view on what support you wish to provide.

    How can you help?
    There are a number of ways that could help them get on the property ladder.

    • Gifting their deposit—worked out as a percentage value of the property. A larger deposit may give them access to better interest rates. There are currently no initial tax implications in doing this, however, if you die within seven years of gifting the deposit the amount gifted could be subject to Inheritance tax
    • Use your home to raise cash—a secured loan can use the equity in your home to raise money for their deposit. You do need to bear in mind that if you can’t keep up repayments on a secured loan your home may be repossessed
    • Equity release – lets you access the cash tied up in your home if you’re over 55. You could borrow up to 50% of the value of your home depending on your age and health
    • Joint mortgage/borrower – you would legally own a share of the property and may be liable for any mortgage payments. Some lenders may decline to give a mortgage to borrowers over a certain age. It may also be considered a second home and you will be liable to pay increased Stamp Duty when the property is purchased and Capital Gains Tax on the profits if it’s sold. Although some lenders offer this without the parent going on the deeds or owning the property, which means there is no additional Stamp Duty or Capital Gains tax to be paid. 
    • Family supported mortgage deals—you could deposit funds into a savings account linked to the mortgage which acts as a guarantee against the mortgage debt. This allows your child to secure a mortgage without needing a deposit. A condition is that you can only withdraw funds from your account after a certain period of time or once a percentage of the mortgage debt is paid off.

    Getting on the ladder without financial help

    If you’re unsure that you can afford to lend a hand financially, then there are other ways that could help.

    • Let them move back home—cutting down their monthly outgoings so they can save easier
    • Rent to Buy—Government scheme that enables subsidised rent on a qualifying property for a set period, after which they’ll have the option of either buying the property outright or entering into a shared ownership deal. No deposit is required
    • Help to Buy—another Government scheme where the Government lends up to 20% of the cost of a newly built home, so they’ll only need a 5% cash deposit and a 75% mortgage to make up the rest

    A mortgage is a loan secured against your home. Your home may be repossessed if you do not keep up repayments on your mortgage.

    It’s important to remember the risks in all of the above options and you should consider the following:

    • Can you afford to help, not just now but in the future
    • Get professional advice from a solicitor, an independent mortgage advisor or an independent financial advisor
    • Make sure you understand the terms of any mortgage before you sign up.

    Want to learn more? Access our wellbeing hub here.

    Joanne Palmer

  • Cutting Down Your Monthly Mortgage Costs

    Cutting Down Your Monthly Mortgage Costs

    This article was published on Thu 27 May 2021. At the time of publishing, this article was true and accurate, however, over time this may have changed. Some links may no longer work. If you have any concerns about this please contact us

    One of the biggest bills we face each month is a mortgage. Here are some ways you could reduce your monthly mortgage costs.

    Consider coming off a standard variable ‘lenders rate’
    If you’re on a mortgage deal, most lenders will revert you to their standard variable rate (SVR) once your rate comes to an end. This will usually see your mortgage payments increase as the SVR tends to be higher than the product rate your payments were based on. Now is a great time to shop around for a more competitive deal either with your current provider or by switching to a new one.

    Switching to a cheaper mortgage deal
    Even if you’re mortgage deal hasn’t come to an end you could still switch to a cheaper mortgage deal with another mortgage lender. Whilst this could reduce your mortgage payments, it is likely that you will have to pay charges for ending your current deal early. It’s worth looking at your current deal to see what these would be and working out if switching deals is a cost effective option.

    Get a deal that charges daily interest
    You could be paying more on your mortgage if you are charged interest annually rather than daily. Every payment you make reduces your balance and the lower your balance the less interest you have to pay. If your interest is calculated annually it doesn’t factor in all payments you have made during the year. So interest calculated at the start of the year will be higher than later on in the year.

    Annual interest mortgages are not very common today but if you are on one you should consider switching- however this option won’t be for everyone and you may incur charges.

    Review your term
    Repaying your mortgage over a longer period of time can reduce your monthly payments in the short term, making them more affordable if meeting your monthly payments is a struggle. You could talk to your lender to discuss your options in the first instance, as extending the term may not be suitable for everyone.

    By increasing your term you will pay more in interest over the duration of the mortgage. If this is something you’re considering you must make sure you get mortgage advice to make sure that all of the options available to you have been fully explored.

    Untie your home insurance
    Usually lenders will require you to have insurance for your property as a condition of the mortgage offer. This is so you’re able to afford to rebuild should your home be destroyed.

    Some mortgage providers bundle home insurance with the mortgage. These deals could end up with you paying a higher home insurance premium than if you paid your insurance separately. Your lender may charge a fee for cancelling or moving but it’s worth checking.

    Find out how much you’re paying and take a look at our home insurance to see if we could save you money.

    Want to learn more? Access our wellbeing hub here.

    Joanne Palmer