When it comes to protection insurance, we hold two firm beliefs:

1. It should form the foundation of your financial plan.
2. Cover should be reviewed regularly to make sure it continues to meet your needs.

The latter is particularly important when you are at a particular 'life stage'. Whether that's buying a house, getting married, starting a family, setting up in business, or all of the above, protection insurance will help to protect your loved ones and your financial responsibilities. 

So what type of cover is right for you?

• Term Insurance pays out a lump sum if you die within the agreed ‘term’ (the amount of time you have chosen to be covered for). Suitable for mortgage protection or while children are financially dependent on you.

• Whole of Life Insurance pays out a lump sum when you die, whenever that is, as long as you are still paying the premiums. Suitable for estate planning or to cover things like funeral expenses.

• Critical Illness Insurance pays out a tax-free lump sum on the diagnosis of certain life-threatening or debilitating conditions, like cancer, heart attack or stroke. You may decide to buy Critical Illness Insurance when taking on a major commitment, like a mortgage or starting a family, but it can be bought at any time to provide peace of mind.

• Income Protection Insurance pays out a regular, tax-free income if you become unable to work because of illness, injury and (on some policies) unemployment. It could help you keep up with your mortgage or rent payments, as well as other living costs, until you’re able to return to work.

Things change – and so should your cover

You may already have one or more of these in place, but it’s still worthwhile reviewing your current cover levels – especially if your circumstances have changed. Ask yourself:

• Whether your family could cope financially if either you or your spouse/partner died?
• How much income would you have if you were taken seriously ill and couldn’t work?
• Would your business survive without you or your key people?
• How would your lifestyle change if you had an accident and couldn’t do the things you do today? 

For a Life and Protection Insurance review, contact Cox Financial today. We are based in the North West of England, but service the whole of the UK.

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Even a seemingly straightforward financial goal can involve numerous decisions and a lot of time and effort getting it right. Whether it’s buying a home, investing for the future or protecting the people and things you cherish, we're here to help you make the right choices for your needs. Here are some of the services we provide, which our clients have told us they value the most. 

Mortgages

With so many mortgage lenders offering products on the high street and online, it can be tempting to cut out the middle man. But when you’re making such a huge financial commitment, professional guidance can be invaluable, particularly if your needs are out of the ordinary. As well as arranging your mortgage we can also recommend specialist professional services that can help with other elements of your home-buying process, including solicitors and surveyors.

Protection

When using comparison sites and direct insurers, how can you be sure their “off-the-peg” solutions meet your specific needs? Using our expert product knowledge we can help you find the most appropriate solution for you. Whatever your particular need – be it income, family, mortgage or business protection – we can access high quality products from a range of handpicked providers; providers we have selected because they are proud to stand behind claims when it matters the most.

Investment Planning

As well as your pension, you may have opportunities to invest lump sums – such as an inheritance or bonus – but are unsure about how to do this. As with all areas of financial planning, it pays to have a clear objective or vision. We can talk you through the important things to consider and help you create a balanced and diversified portfolio, taking into account your financial goals, attitude to risk, and any appropriate tax planning.

Retirement Planning

The responsibility to create a comfortable retirement is falling increasingly on the individual, and the new pension regulations, whilst bringing welcome freedoms, introduce additional complexity to your at-retirement choices.

The right financial plan could help secure a more comfortable retirement – not just for you, but also for your loved ones and heirs. We can help you navigate the complexities of the new rules. Knowing what can be achieved and establishing the right strategy as early as possible can help you prepare for the future. 

Inheritance Tax Planning

Passing our hard-earned wealth to loved ones often forms a big part of our ambitions. The right forward planning can help you maximise your heirs’ inheritance by minimising tax liabilities. We can help you put the right structures in place.

Your needs in any and all of these areas will change over time, and regulatory changes can impact the effectiveness of any structures already in place. That's why we recommend regular reviews to ensure your plans remain on track.

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

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

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

Ref: OW0736 

With demand outstripping supply in many areas, the average UK house price has been pushed beyond the reach of many of the UK’s estimated 335,750 first time buyers. A report from The Land Registry (based on data from November 2016) shows an annual price increase of 6.7%, taking the value of the average UK property to £217,928.

When you consider that first-time buyers would typically put down around 20% against their first home, it’s no wonder that finding a sufficient deposit is becoming increasingly difficult – especially for those currently renting. In fact, one of the major lenders reported the average first-time deposit has more than doubled since 2007 to more than £32,000.

If you're struggling to save a large deposit you may be able to find a mortgage rate of 90% or 95% – provided you can meet the lender's affordability criteria. 

The bank of mum and dad

Meanwhile research by the Social Mobility Commission has found an increasing proportion are turning to their parents for help buying their first home. In fact, over a third of first-time buyers in England (34%) are relying on the bank of mum and dad, compared to one in five in 2010.

The ‘bank of mum and dad’ has been a useful financial foot-up for many, but what about parents who want to help their kids but don't have savings?

 Government help

Although the Help to Buy: mortgage guarantee scheme ended in December 2016 the Help to Buy: Equity Loan is still available. The Government lends you up to 20% of the cost of your newly-built home, so you’ll only need a 5% cash deposit and a 75% mortgage to make up the rest. Equity loans are available to first time buyers as well as homeowners looking to move. The home you want to buy must be newly built with a maximum price tag of £600,000. 

Other initiatives to help first-time buyers include The Help to Buy: ISA which helps you boost your savings by 25%. For every £200 you save you receive a government bonus of £50. The maximum government bonus you can receive is £3,000. 

Sound mortgage advice can take the complexities out of the home-buying process and maximise your chances of getting an affordable mortgage.

If you want to discuss how we can help you to get on to the property ladder, please get in touch.

At a glance:

335,750 first time buyers in the UK

x2 first-time buyer deposits doubled since 2007

34% of first time buyers rely on parents

£217,928 average value of a UK property

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

Ref: OW0673 

• in 2016 there were an estimated 335,750 first-time buyers - the highest figure since 359,900 in 2007
• the average first-time deposit has more than doubled since 2007 to more than £32,000 
• the average price of a first home broke through the £200,000 barrier for the first time in 2016
• those buying their first homes have an average age of 30 across the UK 

And then there are the schemes to help people get a foot on the property ladder:

• Help to Buy ISAs let first-time buyers save for a deposit tax-free
• Help to Buy Equity schemes provide a government loan of up to 20 per cent to first-time buyers
• Shared ownership offers the chance to buy a share of between 25 and 75 per cent of a home, typically a new-build, and pay rent on the remaining share.

With all this news about borrowers we rarely hear about first time savers. Whatever stage you are at in your life, whether you are saving for yourself or others, there are many options for your near, mid and long-term plans.

You’re never too young

Kids aged 4-14 received an average of £180.44 in pocket money over the last year. An important lesson to instil from a young age is not to spend more than you have. Dividing money into different pots labelled “spend now” and “save for later” is a great way to help your child visualise where their money is going – and how valuable saving can be.

Investing for children

The arrival of a new baby may make parents, grandparents, aunts and uncles think about saving for the child’s future. When thinking of investing for children you may consider putting a little away each month to provide a lump sum at 18. With higher education, marriage and getting on to the property ladder all becoming increasingly expensive, it’s a good idea to make investment plans beyond 18 or even beyond 21. When it comes to a child’s pension plan it doesn't matter what relation you are to them you can start to put money aside until they take their benefits, which can be any time from age 55. You can contribute a maximum of £2,880 year and get 20% tax relief which means the government tops it up to £3,600.

Help to Buy

Whether saving for your own home or helping a child with their first home, the Help to Buy ISA is available until 30 November 2019. If you open your Help to Buy ISA before that date you can keep saving into your account until 30 November 2029 but must claim your bonus by 1 December 2030. There is no minimum monthly deposit but you can save up to £200 a month and the government will boost your savings by 25%. That’s a £50 bonus for every £200 you save.

Personal pensions

If you don’t have your own pension, the sooner you start saving the better; there's no minimum age. There are different types of personal pension, including:

• stakeholder pensions - these must meet specific government requirements, for example limits on charges
• self-invested personal pensions (SIPPs) - these allow you to control the specific investments that make up your pension fund

You can either make regular or individual lump sum payments to a pension provider and you usually get tax relief on money you pay into a pension. You usually pay tax if savings in your pension pots go above:

• 100% of your earnings in a year - this is the limit on tax relief you get; or
• £40,000 a year - the ‘annual allowance', if lower.

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

The tax efficiency of ISAs is based on current rules. The current tax situation may not be maintained. The benefit of the tax treatment depends on the individual circumstances. Although no fixed term you should consider stocks and shares ISAs to be a medium to long term investment of ideally 5 years or more.

The value of your investment and any income from it may fall as well as rise. You may not get back the amount you originally invested.

There are a range of different ways to invest for yourself or your family. If you want any more information, please get in touch.

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The decision to sell up and move to a smaller property could come as a result of children flying the nest, the need to free up cash, or both. Whatever the reason, there are costs to downsizing that are important to know about before you make the move.

The ‘hidden’ fees

Research from online estate agent OwnerSellers.com suggests it costs an average of £17,843 to downsize, thanks to estate agency fees, stamp duty, conveyancing fees, surveys and removal costs. These add up to a sizeable chunk that can eat into any equity released from the sale of the house.

The figure is based on downsizing from a detached family home in England worth £381,211 to an average two-bedroom apartment costing £268,174. In principle the move would free up £113,037, but when you take into account the additional costs this drops to £95,194.

Reducing the cost of downsizing

If you’re thinking of downsizing, there are ways to reduce the fees you’ll incur. For instance, if you’re looking to relocate, you might be moving to a cheaper area where properties don’t attract as much stamp duty. Estate agency fees can vary so it pays to shop around for offers; like free valuations, or no up-front fees, or perhaps choose an agent who’ll sell your property for a fixed fee.

If you still require a mortgage after downsizing, we can help you find the right mortgage rate for your circumstances, particularly as we have access to some exclusive deals that you may not be able to get on the high street.

Researching all the costs up front, from stamp duty and estate agency fees to conveyancing and finding the right mortgage can help make downsizing work out for you financially.

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

Please talk to us if you’d like any help or advice on your next property move.

Ref: OW0692

Financial advisers, Cox Associates has announced a new brand identity, relaunching as Cox Financial with a new look and feel across its marketing channels.

The brand refresh is a progression and modernisation of the North West-based business which, to date, has been driven by client recommendations and referrals.

As well as a striking suite of new client brochures, report folders and business cards, Cox Financial has launched a website at www.cox-financial.co.uk and established an online presence on Facebook and Twitter.

Founder and Practice Principal, Clive Cox said: “We recognise that more people are searching online for local financial advice.

“By introducing a website and using social media, we’re aiming to increase the awareness of our long-standing financial advice service and to reach the next generation of clients.

“The new brand reflects the business I founded 1986, but also acknowledges the contemporary approach we’re taking to support and communicate with clients.”

Whilst many financial advisors and lenders now only deal with customers over the phone, Cox Financial continues to provide advice at a time and place that is convenient to its clients.

“People often view financial planning as overwhelming and time-consuming. They are concerned about making mistakes that could impact their current and future financial well-being,” Cox said.

“We get to know our clients’ individual circumstances and work with them to deliver appropriate advice to help them become financially confident.

“The importance of receiving professional advice has never been greater to encourage people to foster a more long-term approach towards their finances.”

Cox Financial has over 30 years’ experience delivering mortgages, business protection, life and protection insurance and general insurance advice to businesses and individuals.

Cox Financial is based in the North West of England but serves the whole of the UK.

More updates to the website and social media channels will be rolled out over the coming months.

Facebook: www.facebook.com/coxfinancialnw

Twitter: www.twitter.com/coxfinancialnw

But have you considered what would happen if they suddenly died, or suffered a critical illness that forced them to be absent from work for a long period of time? If the unexpected happened, it could pose a serious risk to your business, so make sure you have the relevant safety nets in place to avoid any financial difficulty.

Protect the most important assets

You may have covered the tangible assets of your business, but have you protected the most important assets: the people that directly contribute to your profits?

Key Person Protection is a simple way for you to insure your business against the losses you might suffer as a result of the death or critical illness of a key individual.

To find out more about our full range of Business Protection products, please get in touch.

With a fixed rate mortgage, your payments are set at a certain level for an agreed period, regardless of whether your lender changes its Standard Variable Rate (SVR). Such an increase typically occurs when the Bank of England Base Rate starts to climb.

Fixed rate mortgages can offer protection from rate rises for an agreed period, but there are several considerations you’ll need to think about before making your decision.

Predictable repayments – but you won’t benefit from rate cuts

With a tracker mortgage, your monthly payment fluctuates in line with a rate that’s equal to, higher, or lower than a chosen Base Rate (usually the Bank of England Base Rate). The rate charged on the mortgage ‘tracks’ that rate, usually for a set period of two to three years.

Tracker rates might be more appealing if you don’t have a fixed budget and can tolerate higher mortgage payments if rates rise, whilst being able to benefit from reduced monthly mortgage payments if rates go down.

But with a fixed rate mortgage, the rate (and therefore your repayments) will stay the same for an agreed period. A fixed rate mortgage makes budgeting much easier because your payments will not change – even if interest rates go up. However, it also means you won’t benefit if rates go down.

Longer fixed terms will be more expensive

If you choose a fixed rate mortgage, you’ll need to decide how long you want your fixed rate to last. Two-year fixed rate mortgages typically offer the lowest initial interest rate. If you want to fix your interest rate for longer, you will probably pay more

for that longer-term security. This may be worthwhile in return for predictable repayments, or you might choose to take the lower rate for a shorter timeframe if you expect that your financial position will improve by the time the deal ends.

A change in circumstances could cost you

Do you have any known changes on the horizon that will have an impact on your mortgage?

With a fixed rate mortgage, you could face an early repayment charge if you repay all or a certain percentage of the mortgage during the fixed rate period.

If you have no known changes and want to benefit from a longer period of security, then a longer term fixed rate of five years may appeal. It might cost more initially, but you’ll benefit from knowing that your budget is fixed for that period.

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

Don’t be drawn into trying to second guess what will happen with interest rates over the coming years. We can help you come to the most appropriate decision for your next mortgage.

But did you stop to think that posting information like this on Instagram, Facebook, Twitter or Snapchat could be advertising your property, your whereabouts and your latest expensive Christmas gadget to criminals, and potentially void your home insurance?

Counting the cost of burglary
There were 650,000 domestic burglaries in the 12 months to March 2017, costing, on average, £2,267 in stolen valuables and £566 worth of damage.

Figures also show that the number of claims relating to domestic burglary increases by a whopping 36% from November to March. This could be down to the longer nights providing more opportunities for criminal activity, and the likelihood of burglars finding expensive purchases and presents following the Christmas period.

Take a break from social media
If you suffer a break-in shortly after publishing your latest holiday snaps on social media, it could lead to your home insurance provider deciding you are partly at fault for advertising an empty property and this could affect your claim.

Are you vulnerable?
When assessing an application for home insurance, insurers are reportedly considering asking homeowners if they use social media, as the risk of over-sharing becomes more and more common. If you use social media and think it could affect your home insurance, consider taking the following steps to reduce your risk:

1. Turn off location-based services on the social media accounts you use

2. Never share your home address on social media

3. Make your posts private so that only your friends and connections can see them

It also makes sense to review your home insurance cover, especially after Christmas or birthdays when you may have bought or received expensive items.

If you’re concerned you may not have the right type of cover, or you think you might be underinsured, please talk to us.

In this edition, we cover:

Plugging the protection 'gap'

Becoming your own boss could leave you exposed.

Valuations vs Surveys

Which should you choose when buying a new home?

The value of our advice

How we help people to set and realise their financial goals

Buying a house is probably the biggest financial purchase you’ll make in your lifetime and at a time when you’re already spending a lot of money, a survey can sometimes seem like a big expense. However, knowledge is power and it’s better to be informed of any potential issues before proceeding with the purchase otherwise it may end up costing you further down the line.

When you're at the exciting stage of buying a new property it's easy to get seduced by the appearance of your potential new home, and risk ignoring any hidden problems which could cost you later on.

That’s where a survey can give you peace of mind to purchase your new home with confidence. But with a number of options available, which is the best type of survey for the property you’re buying?

We’ve summarised the different types of surveys available to help you make an informed decision:

A summary of surveys
The type of survey you should go for depends a lot on the age and location of the property. For example, if you’re buying an older property it’s sensible to select for a more detailed report than perhaps someone who’s buying a new-build. The latter usually come with a National House Building Council (NHBC) 10-year guarantee for any big faults or defects in construction or materials.

Basic mortgage valuation
The sole aim of the basic mortgage valuation is to satisfy the lender that your chosen property is worth the price you're paying before they approve your mortgage. It doesn’t go into any detail on the state of the property.

It’s important to remember that this survey is for the benefit of your mortgage lender and doesn’t provide you with any guarantees about the state of the property.

Homebuyers report
This is a detailed report for 'standard' properties which are in reasonably good condition. It provides a more in-depth inspection that will help you find out if there are any structural problems, such as subsidence or damp, as well as any other hidden issues - inside and outside the property. It will also give advice on any defects that may affect the value of the property, along with recommendations for repairs and ongoing maintenance.

A homebuyers report excludes the cost of estimates for repairs.

Full structural survey
Now known as a Building Survey, this is a comprehensive report providing a full breakdown of the fabric and condition of the property, with diagnosis of defects and repairs and maintenance advice. Typically these types of surveys are more suitable for properties that are listed, have an unusual construction, or require significant renovation.

Your ability to maintain your mortgage payments relies on a constant income, so how would you continue to make your mortgage repayments if your income was reduced – or stopped? Here we look at two similar scenarios with very different outcomes.

David

David arranged a new mortgage with his financial adviser. They discussed protection insurance and David agreed to take out cover so that he could maintain the mortgage repayments if he had to stop work because of serious illness. As a father of two, David also wanted cover so that he could help maintain his family’s lifestyle. The mortgage went through and the protection insurance was put in place.

Feeling unwell just a few weeks later, David went to his GP for a check-up. After numerous tests he received the shocking diagnosis of thyroid cancer. David stopped work and started treatment. His adviser supported him through the claims process and the insurer paid the claim promptly and in full. Rather than having to worry about his financial situation, David was free to cope with a tough treatment regime and concentrate on getting better.

Thanks to his protection insurance, David maintained his mortgage payments and monthly bills. He even treated his family to a holiday as part of his recuperation. David made a full recovery, returned to work and life continued as normal.

Jane

Jane arranged a new mortgage with her financial adviser. She was advised to take out protection insurance that would cover the mortgage payments and help maintain her family’s lifestyle in the event she had to stop work due to serious illness. After thinking about the cost of the cover and the likelihood of having to claim, Jane declined.

Feeling overly tired a short while after the mortgage was put in place, Jane went to see her GP. After numerous tests she received the shocking diagnosis of thyroid cancer.

Jane had to stop work and apply for Statutory Sick Pay at the same time as coping with a tough treatment regime and looking after her kids. She started to struggle to cover her outgoings and had to use all her savings.

Unfortunately, Jane was forced to sell her house and move into a smaller property, turning her and her kids’ lives upside down. Even though she wasn't quite ready to, Jane had to return to work.

The importance of protection

You might be like Jane and think that it won’t happen to you, but one in two people born after 1960 in the UK will be diagnosed with some form of cancer during their lifetime and four in five people with cancer are affected financially. And if you think that protection policies don’t pay out, they do. In 2016 15,464 critical illness claims were made and 92.2% paid out an average £68,000.

There are a range of products available that can provide a lump sum or a regular income on death or diagnosis of a specified critical illness and they could cost less than you think.

Making sure you have the right protection in place is important. We can review your circumstances and the cover options available to you.

For many years how much you could borrow was a simple calculation of earnings – now though the calculation is based on affordability. The bank or building society will want to know about your regular spending. They look at car loans, nursery fees, gym membership, petrol and will even look at how regularly you have your hair cut – visit spas and go on holiday!

Spending can change radically when you buy your first house and, in many situations, buying rather than renting can mean more money in your pocket so you may well be able to afford your current spending but the banks and building societies factor in interest rate rises and can take a strict view on their affordability criteria.

It may sound a bit big brotherish, but it really will help to tidy up your spending now and cut back on more trivial regular spending in the months before you apply for a mortgage to ensure that you can borrow the amount you need and meet the lenders affordability criteria.

Car Loans

For many first-time buyers it is a natural process to get a job, get a car loan, through finance, and then look for a house and need a mortgage. Car finance will affect your mortgage affordability, so it can be advisable to wait until you are established with your mortgage before you get that new car.

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