As the year ends and winter approaches, it’s a good time to take stock of your finances.
At Bakerhill Associates, we can help you check you’re getting the right value and make sure you’re prepared for the months ahead.
This article covers your options if your interest-only mortgage is coming to an end, changes to mortgage rules and flood insurance, and ways to keep your private medical insurance affordable.
We also explore why income protection matters if illness affects your ability to work, alongside the latest updates from the Autumn Budget.
In This Article
Interest-Only Mortgage Coming to an End? You May Have More Options Than You Think
Flood Insurance Is Changing: Could Your Home Benefit?
Mortgage Rules Could Open Up More Options for Borrowers
Could You Save Money on Your Private Medical Insurance Before Christmas?
Income Protection Isn’t Just for Physical Injuries
Autumn Budget Update: What It Means for You
Interest-Only Mortgage Coming to an End? You May Have More Options Than You Think
For many homeowners, the thought of their interest-only mortgage ending can be daunting. After years of monthly payments, the outstanding mortgage balance remains, and the question of how to repay it suddenly becomes very real.
For some, downsizing has always been the plan. Selling up, moving somewhere smaller, and freeing up some money might have seemed perfectly sensible a few years ago. But when the time comes, reality can look rather different. Perhaps you love your home, have family nearby, or simply cannot imagine leaving somewhere you’ve spent years making your own.
The good news is that moving isn’t necessarily your only option. If your interest-only mortgage is approaching its end date and you don’t have enough savings or investments to repay the balance, you may be able to restructure your borrowing or arrange a new mortgage, depending on your age, income, property value, and outstanding mortgage. For homeowners aged 55 and over, a Lifetime Mortgage may also be worth considering.
What Is a Lifetime Mortgage?
A Lifetime Mortgage is a type of equity release that allows eligible homeowners to borrow against the value of their property without making regular monthly repayments, although interest is usually added to the loan over time. The loan, plus any accumulated interest, is generally repaid when the property is sold, usually following a move into long-term care or death.
In the right situation, it could help you repay an existing interest-only mortgage and stay in the home you love. However, you should understand the long-term costs and implications, including how it affects the equity left in your property and any inheritance you hope to leave.
Of course, every situation is different, and the amount available will depend on factors such as age, property value, the lender’s criteria and affordability where relevant. The right approach depends on your individual circumstances, and not every option suits everyone.
If you’re worried about how you’ll repay your interest-only mortgage, don’t assume that selling your home is your only choice. Speaking to a specialist adviser early can help you understand what’s possible, weigh up the costs and make a decision that works for your future.
Get in touch to discuss your circumstances and find out what solutions may be available to you.
This is a lifetime mortgage. To understand the features and risks, please ask for a personalised illustration. Check that this mortgage will meet your needs if you want to move or sell your home or you want your family to inherit it. If you are in any doubt, seek independent advice.
Flood Insurance Is Changing: Could Your Home Benefit?
As we head into the colder months, flooding might not be something you want to think about. But with new measures being developed to help homeowners understand and manage flood risk, now is a good time to check that your home and insurance are ready for winter.
Flood Performance Certificates
The new Flood Performance Certificates are designed to work a little like Energy Performance Certificates but focus on flooding instead. They aim to give homeowners a clearer picture of their property’s flood risk, the protection already in place, and improvements that could reduce potential damage.
According to the Government’s announcement, the first pilots will begin in 2026, with further testing planned throughout 2027 and beyond.
Practical measures could include installing flood barriers, self-closing air bricks or flood-resilient flooring. The longer-term ambition is for insurers to recognise improvements that genuinely reduce a property’s flood risk, potentially helping to improve the availability and affordability of cover.
However, the certificates are still being tested, so homeowners shouldn’t assume that having one will automatically reduce their insurance premiums.
Flood Re Changes From April 2027
From April 2027, Flood Re plans to reduce the premium it charges insurers for eligible contents-only policies in Council Tax Bands A and B from £52 to £25.
The Government expects insurers to pass these savings on to eligible customers. The change is intended to help households, including renters, who may find insurance costs difficult to manage. You can read more in Flood Re’s update on its future plans.
It’s important to remember that this is a reduction in the premium charged by Flood Re to insurers, rather than a guaranteed £27 reduction in every customer’s annual insurance bill. The actual saving will depend on the policy and insurer, and eligibility rules apply.
Steps You Can Take Now
You don’t need to wait for the new certificates to take action. There are a few simple steps you can take to help protect your home:
Check your flood risk: The Government’s ‘Check Your Long Term Flood Risk service’ can help you understand the potential risks in your area.
Review your home insurance: Check that your buildings and contents cover is suitable, paying particular attention to the excess you would need to pay and any exclusions that apply to flood damage.
Consider preventative measures: Depending on your property and its location, improvements such as flood barriers or flood-resistant materials may help limit damage if flooding occurs.
Even if your home has never flooded before, it’s worth being prepared. And if you’re thinking of buying a property, remember that flood risk can affect insurance options and should form part of your decision.
If your home insurance is coming up for renewal, or you’d simply like to check that your cover still meets your needs, get in touch. We’re happy to help you review your options. A little preparation now could give you greater peace of mind as we head into winter.
Mortgage Rules Could Open Up More Options for Borrowers
Getting a mortgage isn’t always straightforward. If you’re self-employed, approaching retirement, have an irregular income, or have had credit problems in the past, you may have found it isn’t always easy to get the mortgage you need. However, changes to mortgage rules introduced in October, along with further proposals from the UK’s financial regulator, could give some borrowers more options.
Could Lenders Offer More Flexibility?
The Financial Conduct Authority (FCA) is reviewing mortgage rules to help more people access suitable mortgages while maintaining safeguards to keep borrowing affordable.
Its proposals, published in June 2026, cover several groups that can sometimes struggle to secure a mortgage.
Self-employed borrowers could benefit from greater flexibility when lenders assess variable or irregular income. If your earnings fluctuate, a more tailored assessment could help a lender understand your financial position.
Borrowers with past credit problems may also have more opportunities if lenders can take a more individual approach to assessing their circumstances, rather than automatically ruling someone out because of historic credit issues.
Older homeowners are another group in focus. The FCA has proposed changes to its guidance on retirement interest-only (RIO) mortgages, which could help eligible older borrowers explore ways to manage their mortgage in retirement.
The proposals also cover interest-only and part interest-only mortgages, which may be particularly relevant if you’re approaching the end of an existing deal and need to consider how to repay the outstanding balance.
The FCA’s consultation closed in July, and the proposals are part of its ongoing Mortgage Rule Review. They should not all be treated as changes that are already in force. You can read more in the FCA’s Mortgage Rule Review consultation.
Borrowing More Relative to Your Income
A separate development also affects people who need to borrow more relative to their earnings. From 28 October 2026, new regulatory arrangements allow lenders more flexibility over how many higher loan-to-income mortgages they offer. Previously, individual lenders were generally restricted to having no more than 15% of their new mortgage lending at 4.5 times a borrower’s income or above.
The revised arrangements remove that individual limit while retaining an overall market limit. This could give some lenders greater scope to offer mortgages to borrowers who need to borrow more than 4.5 times their income.
However, this doesn’t mean everyone can borrow more. Lenders will still assess affordability, and their own lending criteria will continue to apply.
You can read the details in the Bank of England’s announcement on high loan-to-income lending.
If your circumstances are a little more complicated, we’re here to help. Get in touch to discuss your mortgage options and find out what might be available to you.
Your home or property may be repossessed if you do not keep up repayments on your mortgage or any other debts secured on it.
Could You Save Money on Your Private Medical Insurance Before Christmas?
Christmas is just around the corner, and for many households, the cost of presents, food and festive plans can put extra pressure on the monthly budget. If your private medical insurance renewal is also creeping up, you might be wondering whether it’s still worth the cost.
The good news is that you may not have to choose between keeping your cover and keeping your costs under control.
Why Are Premiums Rising?
Private medical insurance (PMI) premiums can rise for several reasons, including rising treatment costs, your age, and your level of cover. The Association of British Insurers reported that insurers paid a record £4 billion in health insurance claims in 2024, an increase of 13% on the previous year. More people are also using their cover, putting further pressure on insurers’ costs.
You can read more in the Association of British Insurers’ health and protection insurance information.
Could a Few Changes Make Your Cover More Affordable?
If your renewal quote is higher than expected, review your policy before deciding to cancel. There may be ways to reduce the premium while keeping the benefits that matter most to you.
Consider increasing your excess. A higher excess can reduce your premium, but make sure you could comfortably afford it if you needed treatment.
Review your hospital list. If you don’t need access to every hospital on the list, a more restricted network could help reduce the cost.
Check your outpatient cover. Your policy may cover consultations, diagnostic tests and scans up to a set limit. Adjusting this level of cover could lower your premium, although it may mean you pay more yourself for some appointments and tests.
Ask about a six-week NHS option. This can reduce the premium, but it may not be suitable if quick access to private treatment is one of your main reasons for having insurance.
Before making changes, think about why you took out private medical insurance in the first place. Perhaps it was to access eligible treatment faster, choose your specialists, or reduce the worry of a large private medical bill.
With Christmas spending on the horizon, now is a good time to check whether you’re getting the right value from your private medical insurance. If your renewal is approaching, or your premiums have increased, we can help you review your options. A little time spent reviewing your policy now could help you keep the cover that matters while freeing up budget room for the festive season.
Income Protection Isn’t Just for Physical Injuries
When we think about being unable to work, we might picture a broken leg, a serious accident or a physical illness. But mental health conditions can affect our ability to earn a living too, and it’s something worth considering when thinking about protecting your income.
According to figures published by the Association of British Insurers (ABI) in June 2026, insurers paid out £39 million in individual income protection claims relating to mental health conditions during 2025. That accounted for nearly one in five individual income protection claims paid during the year.
Whether you’re employed, self-employed or running your own business, mortgage payments, household bills, food and childcare costs don’t stop if you’re too unwell to work. Statutory Sick Pay or employer sick pay may provide some support, but it might not cover all your usual outgoings, particularly if you’re off work for an extended period.
How Income Protection Could Help
An income protection policy can pay you a regular benefit if illness or injury prevents you from working, subject to the policy’s terms and conditions. Depending on the cover you choose, payments may continue until you can return to work, the policy ends, or you reach the end of the agreed benefit period.
Some policies also include additional support, such as access to rehabilitation services or help with mental health concerns. What’s available will depend on the insurer and the policy. Check what benefits you already receive through your employer so you can identify any gaps.
A Little Preparation Can Make a Difference
It’s not always comfortable to think about what might happen if illness stopped you working. But having a plan in place could ease the financial worry in an already difficult situation.
If you have a mortgage, a family to support or simply rely on your salary to cover your monthly commitments, it’s worth considering how long your savings would last if your income stopped.
Could your finances cope if you were unable to work for several months? If you’re unsure, get in touch. We can help you review your existing arrangements and explore whether income protection could provide a useful safety net for you and your family.
Autumn Budget Update: What It Means for You
On 28 October, the Chancellor’s Autumn Budget set out measures to ease the cost of living, support families, and help more people get onto the property ladder. But what do the announcements mean for your household finances, your mortgage and your plans?
Help With Energy Costs
One of the main announcements is a £100 Household Energy Payment for eligible households in England, expected from January 2027. The payment will be available to households in council tax bands A to D that meet the eligibility criteria. The Government is also extending the temporary VAT cut on electricity bills until July 2027, helping to reduce energy costs.
These measures could offer some welcome breathing space for household budgets, although the overall impact will depend on individual circumstances and other living costs.
First-Time Buyers
The Budget includes plans for a new First Time Buyer ISA from April 2029, alongside an equity loan scheme designed to help eligible buyers purchase new-build homes with a smaller deposit and mortgage.
While these measures won’t help everyone immediately, they could provide additional routes into homeownership for some aspiring buyers. If you’re hoping to buy your first home, it’s worth understanding the options available now rather than relying on future schemes alone.
Savings, Property Income and Pensions
From April 2027, tax rates on savings and property income are due to increase by two percentage points across all tax bands. This could affect some people with savings interest or rental income, so landlords and savers may wish to review their financial plans with an appropriately qualified tax adviser.
The Budget also introduces a new Pensions Tax Allowance from April 2027, intended to help eligible pensioners with income up to the value of the new State Pension.
What About Your Mortgage?
Although the Budget includes measures affecting housing and household finances, it doesn’t automatically mean mortgage rates will fall. Mortgage pricing depends on a range of factors, including inflation expectations, swap rates, lenders’ funding costs and the wider economic outlook.
If your current mortgage deal is ending, or your monthly repayments are becoming difficult to manage, it may be worth reviewing your options. Depending on your circumstances, you may have other deals or mortgage arrangements worth exploring.
Please note: Tax rules and eligibility criteria can change. The information above is a general summary of selected Budget announcements, not personal financial or tax advice.
Get Help Reviewing Your Options
Whether you’re planning a move, approaching retirement, reviewing an interest-only mortgage or simply trying to make your household budget go further, professional advice can help you understand your options.
If you’d like to discuss your mortgage or review your protection arrangements, please get in touch. We’re here to help you make sense of your options and find a solution that suits your circumstances.