Your mortgage should be your top priority debt over any other forms as missing or falling behind on payments could result in serious consequences.

What will happen If I can’t pay it back in full?

Most lenders will allow for 3 missed payments before they start taking action.

If you have taken out a mortgage and are now struggling to pay back the full amount then you could be in danger of being taken to court to have your property repossessed.

The mortgage lender will take possession of your property so they can sell it and cover the costs of your repayments with the value of the house. You will no longer own your house and could only buy the house back by making a lump payment

What you could do

• Ask your lender if you can pay your debt over a longer period of time.
• Talk to your lender if there has been a sudden, unexpected change in your household income.
• You could be allowed to have a pause on payments for a few months.
• You could switch to a cheaper mortgage

The UK property market has seen sky rocketing prices including rising mortgage rates making it more difficult for people to get on the property ladder. House prices have been falling slowly even in places like Manchester.

Where has seen the biggest price falls?

East of England, South East and South West have seen the largest price falls in the last year with the average home costing £344,000.

This is still +30% above the UK average.

The Property market 2024

Zoopla has recorded that there is currently an increase in sales and demand for house meaning on either side of the transaction this could be getting easier

There is 15% more property sales agree than in 2023.

An 11% uplift in buyer demand as buyers return to the market.

There are also 21%  more homes for sale which is increasing the choice for buyers.

The most expensive places to buy a house

London will always win the top spot and currently the average price here id £523,400 which is almost two times more than the UK Average.

The war in Gaza has now been going on since October 2023 with millions of people injured, relocated or having died from the conflict. Those who are lucky have been able to be evacuated from Gaza but there are millions more who are still trapped in the dangerous climate.

The Cost

The cost for any individual to claim passage through this route is $5000 (£4000) for each adult and $2500 for each child wanting to travel.

Hala Consulting and tourism have become the only way for people to gain access to the border.

The prices on this route have surged since the war began and many are calling out the Egyptian authorities for this advantageous price increase.

The Route

Egypt is offering a route out of Gaza from Rafah, the southernmost city in Gaza.

Egyptian authorities have reported around 83,000 people having left Gaza since the beginning of the war.

This region only had a population of around 28,000 people before the war began, now the population is about 1.7 million people trying to obtain safe passage. Many here will be without the correct documentation to travel with friends and family desperately searching for a way for them to escape.

Many people are trying to escape Gaza and the conflict however with the high prices and need for multiples forms of documentation as well as the weeks of waiting whilst violence and danger still surrounds them makes the route incredibly difficult

Is the UK sending aid?

In January 2024 the UK, working with Qatar sent 17 tonnes of tents to provide shelter for those families who are displaced by the conflict.

In February 2024 the UK, working with Jordan delivered 4 tonnes of aid to Tal Al-Hawa Hospital. Included in this package was medicines, fuel and food for patients and staff.

In March 2024 the UK Royal Air Force airdropped over 10 tonnes of food to the northern Gaza coastline.

The United Nations will be distributing aid including blankets and more tents.

The World Food Programme is distributing more than 2000 tonnes of UK-funded food aid which will be the largest delivery of aid from the UK.

If you feel yourself often giving into impulse buying this could be hurting your finances and cutting off your savings. Most people give into impulse buying at least a few times a month and regret it quickly afterward. If you are trying to save, reducing your impulse buys could help you do this.

Avoid impulse buying by avoiding email reminders from retailers and deleting any shopping app you may have on your phone. By planning your purchases in advance you can avoid picking up unwanted buys.

Know how impulse shopping can trap you so you can avoid this.

HSBC data shows that 54% of people in Britain have had the same current account for over a decade and 2 in 5 remain at their same bank for over 15 years.

This is despite 64% of people reporting they receive no benefits at their current bank.

So, is switching bank accounts a good idea or not?

Switching your bank account is a personal decision and many people are happy to remain with their existing account for the simple reason of convenience. If you want better interest rates so you can earn on your savings then it could be beneficial to shop around for better deals.

Be careful not to switch too many times as this could affect your credit score!

Reasons for switching banks

• Many banks offer rewards to new customers, you could receive a cash, travel, voucher rewards if you switch
• A new bank could offer better interest rates than your existing one.
• You may have had some issues with your existing bank account e.g. fraud issues or service and need a switch.
• You may want to open a savings account with better interest and need to have a current account with the same bank first.
• You want to open an appealing junior account for your children and you need your own current account at the same bank.
• Your local branch shut down so you need to move to a bank with a branch nearby.

Does Switching banks accounts affect my credit score?

When applying for new bank accounts they will run a check on your file which leaves a trace on your credit report which other lenders later on could see.

With multiple checks on your file leaving a mark this could reduce your chances of being accepted.

When applying to a bank they will either run a hard or soft credit check, make sure to avoid too many hard credit checks as these leave a noticeable trace on your file.

If you plan on taking out a loan e.g. getting a mortgage within the next 12 months then you should wait before you switch bank accounts as the file will not have recovered from the credit check yet.

What is Inflation?

Inflation is when the price of an item increases over time and the cost of living becomes more and more expensive.

Inflation will mean than the worth of a £1 decreases the more inflation goes up and this is why it becomes difficult to maintain a standard of living when prices go up overall.

High inflation means prices are rising quickly and low inflation means prices are rising slowly over time.

So despite Inflation rates falling, unfortunately your weekly shops won't cheaper, the supermarkets are experiencing a decrease in inflation and prices are still rising but slower than before.

There are many causes of inflation including rising productions costs and rising wages.

For Example…

If a carton of orange juice cost £1 and then a year later the same orange juice cost £1.05 this would be an inflation rate of 5%.

When inflation happens this means that you could have £50 to buy a new microwave, but if you wait a year to buy it you could need £60 to buy the same microwave as the prices have increased and your money needs to be stretched further.

Who is most affected by inflation?

ONS reported that those on a lower income will experience higher than average inflation rates and will be more affected by the high food and energy costs than those from a higher income household.

In a survey from February and March 2024, it was found that 46% of adults reported an increased cost of living compared to previous months.

Trussell Group food charity found they had provided 1.5, emergency food parcels in April-September of 2023 which is a record for that period,

Citizens advice reveal that in February 2024 they had helped 46,640 people with debt advice.

The Office for National Statistics have released their data and revealed that inflation rates are falling slowly and have reached the lowest level since November 2021 at 3.2%

What does this mean?

Inflation levels falling does not mean items will be significantly cheaper when you go into the shops, just that they are rising slower than before.

Prices in the supermarkets are driving this inflation drop.

Most items of food have had the rate of inflation fall between February to March with items such as, chocolate, biscuits and other bakery items falling the most. There have been smaller increases in bread and cereals too.

The price of meat, particularly pork leading the way is having a big contribution to the falling inflation which fell by 0.5% between February and March compared to 1.4% the year before for meat.

Will the UK be better off?

With the rate of inflation slowing down this could put us on the right track towards meeting the Bank of England’s target of 2%. Once this target is met and stable, the Bank of England will be able to cut inflation rate from their current 5.25%. This has pushed the mortgage interest rate up and made borrowing money too expensive to many households.

As well as the rising prices of mortgages, the price of fuel has also been slowly increasing. So with decreasing inflation in some areas this doesn’t mean costs are being cut.

With the rate of inflation slowing just below the predicted 3.1% and the Bank of England’s hope to bring inflation down to 2% we can hope for more changes to come and prices to start rising more gradually.

When you are trying to save money it is best to find the right type of account to keep it safe and this could be a savings account or an ISA.

ISA

An ISA is an effective way to save large sums of money and be a secure account to keep the money from being used daily.

There are different forms of ISA’s including, Cash, Stocks and shares and lifetime which you can set up depending on what your purpose is.

Pros

• A tax efficient way to save money
• Your money will be passed on to a spouse or civil partner if you die.
• Option of a lifetime ISA where the government will give you a 25% bonus to buy a house.
• A great option for saving larger amounts where you can earn more.
• Investment opportunities.

Cons

• Annual deposit limit- usually £20,000.
• Limited on when and how much you can withdraw from your account.
• Some will have exit fees.
• You can only open one type of ISA a year.
• Must be over 18.

Regular savings account

Having a savings account is essential for savers and the most common way to save. This could be with a bank of your choice and will give you an easy way to put money away.

There are different forms of savings accounts including, easy access, fixed term and notice accounts.

Pros

• You can easily withdraw money making this a more flexible option.
• Easy to set up and transfer money with no limits on deposits.
• Junior accounts are available for over 11 and a great way to teach financial responsibility with supervision.
• You can open as many savings accounts as you need

Cons

• You could be taxed on your interest earnings.
• The interest rate fluctuates and so you could have to change your bank.

Opening an ISA is popular for longer-term savings such as for buying your fist home whereas a regular saving account is great for short-term savings when you need flexibility.

Often you will be able to earn better interest rates with a regular savings account as most people don’t reach the threshold for paying tax on earned interest.

You could also open both an ISA and regular savings account to help you save.

No matter what stage of life you are in at the moment, saving money is always beneficial, even if you are saving small amounts at a time.

There are so many ways to start saving money that can help you begin including, budgeting apps,  learning the 50-30-20 rule and more. You will be able to find a method that works for you and your finances.

It is important to have a separate savings account before you start so you can keep your savings safe and you could even earn interest.

Why you should save...

It’s time to fill in your self assessment tax forms again after the last financial year ended on April 5.

To ensure that the HMRC are up to date with your finances, you can send over your self assessment form online or request a paper form.

If you use the online service you will need to sign in with a Government Gateway user ID and password, which can be asked for and sent to you by email if you do not currently have what is a 12 digit code.

Additionally you will also need your 10 digit Unique Ta Reference number, which you can find in any of your previous tax statements or on the HMRC app.

It will also be necessary to have your national insurance number handy to complete the assessment.

The vast majority of the time it would be the SA100 tax return form that would need to be completed.

The deadline to tell the HMRC that you need to fill out a form if you have not done this before is October 5.

While a paper tax return is due for October 31, and any online submissions must be completed by midnight on January 31 next year.

There is a penalty of £100 for any tax return that is filed up to three months late, which is raised if it is any later.

Who must send a self assessment tax form and what needs to be disclosed?

You would need to fill out a self assessment form is if you are a self employed person,  or more specifically a “sole trader” whose has earned over £1,000.

Other reasons include if you had a taxable income for the last financial year of more than £150,000.

Also if you are involved in a business partnership then it is necessary to fill out a self assessment form.

If you have sold or disposed of something that has increased in value, that would make you liable for capital gains tax and would need to be disclosed.

You may have to pay the High Income Child Benefit Charge if your or your partner’s salary is over £60,000 and you receive child benefit.

Or if someone else gets child benefit for a child that is living with you and they contribute an equal amount towards the child’s upkeep, for both situations a self  assessment is necessary.

If you are currently renting out a property where the income from that was more than £2,500 then you need to declare this to the HMRC, or call them if the proceeds were between £1,000 and £2,500.

All earnings from other sources, for example from tips or commissions also need to be revealed to the HMRC via a self assessment.

Furthermore all income from savings, investments and dividends must be declared.

Plus any income that has been earned overseas must also be acknowledged to the HMRC.

Self assessment thresholds

You will need to be aware of what the limits are before you start to pay any income tax and national insurance on your earnings.

For the financial year that has just expired the personal allowance before you are liable for income tax is £12,570, and the government has said that this figure will remain the same for the 2024/25 financial year.

As for national insurance for the 2023/24 tax year class 2 contributions were £3.45 per week if your profits were above the £12,570 threshold.

While class 4 contributions were charged at 9% on profits between £12,570 and £50,270, and at 2% on profits over £50,270.

This financial year all class 2 contributions have been scrapped, and class 4 national insurance will be paid at the rate of 6% on profits between £12,570 and £50,270 and

2% on profits over £50,270.

Ways to pay your tax bill

The deadline to pay your tax bill is usually January 31 for the previous tax year.

If you do not meet this deadline then you will incur a penalty interest charge.

You can also set up a budget repayment plan, where you can make weekly or monthly payments towards your next self assessment tax bill.

This means that you will have less to pay in one go at the payment deadline.

If your circumstances are more serious where you cannot pay your outstanding tax bill,  then a payment plan known as “Time to Pay” could be set up with HMRC agreement.

Self assessment helpline is now open

Recently the HMRC made a huge u-turn after it had announced that it was to close the self assessment helpline between April and September every year.

After listening  to feedback it has halted the plans, but it has said that it will continue to encourage a transition to its online services to iron out any problems.

The number to call is 0300 200 3310, and the helpline is open between Monday and Friday starting at 8AM and closing at 6PM.

The amount of fraud cases has been rising and with digital banking becoming the new norm there are many ways someone can get access to your account. It is important to stay aware of scams so you can protect your accounts.

 The Guardian reported that fraud cases in the UK more than doubled in 2023 to £2.3bn.

Bank can help you prevent fraud as well as claim refunds if you are a victim to fraud. Some banks such as, Monzo have a high fraud rate as well as being rated poorly for reimbursing their customers which could be a factor to consider when choosing your bank account, especially if all your savings are there.

If you are a victim of fraud, you can report this and seek help from your bank.

If you are trying to save money and need some extra tips then the 50-30-20 rule could be super helpful to create a budget.

With this rule you will be splitting your income up and assigning each pot of money to a selected category.

This rule will work best if you have a separate savings account so you can keep that away from your spending money and visualise what you have left.

50 - Needs

50% of your income will be spent on your needs and necessities throughout the month.

This includes rent, house bills, car payments, grocery shopping, childcare and anything else that you absolutely need to pay. It would be best to be strict about this section and only put things you couldn’t live without in here, don’t be tempted to pay for any hobbies from this pot.

30 – Wants

30% of you income will be spent on your wants.

This would include any hobbies you have, gym membership or streaming subscriptions. Any days out or social events should also be paid from this pot of money. Also included would be any shopping that is not necessary such as a new dress or watch.

This will help you budget how much you can spend on your wants throughout the month and not be tempted to over spend. This would help you if you have a habit of impulse shopping. You will have a visual of how much you can spend and what will have to wait until next month.

20 – Savings

20% of you income should go into a savings account or an ISA.

Trying to save whilst on a small income or when you have other obligations can be challenging. Using this rule will help you put away a small amount each month and by budgeting like this you will know it can be done.

If you need to change the percentages to fit your situation, say if you have a long list of needs then increase this to 60% and only put 10% in you savings. This still allows you to save whilst not being super low on money at the end of the month.

For example...

If your monthly income is £1,700 and you followed the 50-30-20 rule then you would have,

£850 to spend on your needs list, £510 to spend on your wants and then £340 to put into your savings each month.