Remortgage and review your life insurance to save money
Now is a difficult time for many families and homeowners up and down the country, and with the cost of living continuing to rise, and wages certainly not increasing at the same speed, its proving very difficult for many to make ends meet, and to save for future projects and purchases.
The rise in the price of petrol and diesel has made driving to and from work even more expensive, and the rise on the cost of gas and electricity makes powering and heating your home more expensive. Whilst everything else has risen, one thing that has fallen is the cost of life insurance, whilst the Bank of England base rate looks set to reach three years at a record low of 0.5%.
As a result, those who own their own homes are paying as little for their mortgage as they ever will, although borrowing more money is proving to be difficult with the increase in the deposit required by lenders.
One way to save money, but to make sure you are completely covered if the worst happens is to carry out a review of your mortgage and life insurance commitments, making sure you have the level of cover you need whilst it’s at its cheapest ever point, and making sure that you fix your interest rate whilst interest rates are still low, so you’re protected when they start to increase again.
A new ruling in the budget over the way life insurance companies avoid paying tax on their investments by offsetting the profits against the cost of running their life insurance arms is set to increase the cost of life insurance in the next year, so now could be your best chance to review and make sure you’ve got the level over cover you need to see you through the next ten to twenty years.
With many remortgage deals seeing customers fix their mortgage repayments at their lowest ever levels as well you’ll end up spending less in the long run, and you’ll have the right level of cover to pay off the mortgage if the worst did happen to you.