It’s been a long time since there’s been this much uncertainty in so many areas. In the past few months alone we’ve seen:

• Many loan repayments getting more expensive due to rising interest rates
• Energy prices going up at a rate that means many are struggling to meet other basic costs
• Food prices increasing significantly
• Many investments bouncing around in value like a yo-yo

Against this backdrop you might be finding clients asking whether saving and investing is a smart move right now, given all the aforementioned volatility. At Multiply we always take the view that the following core areas should be taken care of first before investing:

• Budgeting
• Building an emergency fund
• Protecting any loved ones

But say your customers have budgeted properly, got an emergency fund in place and protected themselves and their family - could now be the right time for them to invest?

Here’s our take on advising those customers asking this difficult question.

First things first, gauge their attitude and ability

Your customers need to know themselves before entering into such an unpredictable market. A key part of that process is understanding:

• Their attitude to risk
• Their ability to take risks and manage losses

Attitude and ability are two very different factors. Someone may have an attitude where they might want to take lots of risks, but financially they can’t afford to. On the reverse, they may not like taking risks but could have accessible money they don’t need and could in a worst case scenario afford to lose.

Investors should understand both so they can strike the right balance between the two. We stress to prospective investors that even if they can afford to risk the money, they shouldn’t do it if they have a low attitude to risk and/or it would keep them up at night.

Secondly, get them to understand that the good times don’t last forever

Prospective investors also need to consider the bad times as well as the good. At the current time we’re finding some investors (who hadn’t taken advice!) encountering the following problems:

• They had previously invested, but are now finding out they don’t have the ability to suffer losses; If only they had built an emergency fund!
• Others have mis-calculated their attitude towards risk and are now seeing losses that they had not expected or thought were possible

Currently, we meet many worried investors who ask “Should I change anything?”. Well the answer is ‘Maybe’, but it wouldn’t be because of the current investment climate. It would be more about whether any existing investments are suitable for them.

If their existing investments are not aligned with their risk profile, then maybe they should be considering a change, but otherwise we revert to recommending that they hang in there.

Investing can be very emotional and at times like these, the volatility can be a real test of both attitude and ability to manage fluctuations. For some, they find that they just cannot abide being invested in something that fluctuates in value. So how can you assess their attitude and ability to take risks?

Thirdly, think about applying a more sophisticated risk tolerance tool

Pre 2000, risk within financial advice was as simple as asking if you had a ‘low’, ‘medium’ or ‘high’ attitude and rarely was any thought given to emotions or someone's ability to suffer losses. Today, there are numerous psychometric tools available, most of which can help a potential or existing investor pin down their attitude to risk and a few also consider the person’s ability to deal with losses.  

A good risk tool will ask a number of questions (usually at least 10), have detailed descriptions of the risk profiles and also show the likely extremes of volatility that you might see. We would encourage people to pay attention to the downward volatility figures because these are a better test of their emotions in the event of losses.

So whether we are serving someone new to investing or someone with existing investments, by using a risk profiling tool, we should be able to establish their current risk profile, which should in turn indicate the type of investments they should be holding.

Conclusion

In summary, our core message to investors, whether new or seasoned, is that investing is a long-term game and investors need to understand themselves first to make sure that any investments held match them.

If they do, all is good and we believe investors shouldn’t be changing investments based on short-term market circumstances. Instead, they should take the long-term view, which is that ‘over time the ups will outweigh the downs’.

That being said, if an investment portfolio is unsuitable, they really should be taking advice on the most suitable action to be taken.

Volatility will always be a major factor and when it drags an investment portfolio down in value, investors need to be able to ride it out. Obviously, there are times when they will want or need to make changes, but selling when values are low is generally not advised.

If there is a positive to be taken about the current climate, then if someone does have cash available which they can afford to invest, buying in whilst markets are low can be better. Buy low, sell high is a very simple mantra to invest by and is the reason why such investments are for the longer term.

Back in 2019, Multiply was the first holistic financial advice app to get the FCA’s regulatory approval.

It was a huge achievement - nobody had fully automated financial advice before - and over the past three years we’ve given digital advice across pensions, investments, savings and insurance products.

Now with over 250,000 recommendations delivered, I want to share what we’ve learnt along the way. Here’s the good, the bad and the ugly of building a digital advice business and the lessons you can take from our journey.

Identify your experts

My background prior to Multiply was in derivative trading, while my co-founder Mike Curtis had been working on a PHD in astrophysics. This is us way back at the start of the journey, looking a lot more fresh faced.

Neither of us had given financial advice before, but we’d both engaged with it and believed technology could revolutionise the industry. Clearly we couldn’t achieve this vision alone though, so we tapped into the experience of people who knew the advice business best - financial advisers.

A key hire we identified in the early days was Peter Fairweather (that’s him in one of his many bright shirts above) who’s a financial adviser with over 25 years experience. He gave us an immediate understanding of the operational and compliance aspects of delivering advice - two areas that can really keep you awake a night when you're trying to automate them.

It’s not just experienced advisers who’ve been essential to shaping our digital advice though. Behind our advice platform there’s been product managers, designers, developers and copywriters, and all of these different skill sets have played a crucial role in building the technology we have now.

Pick your target market and build your advice rules

Defining our target market was key to creating digital advice that would scale. We accepted early on that we wouldn’t be able to help everyone, so we focused specifically on delivering plans to people within the 20-40 age bracket who had previously been neglected by the advice industry.

Once this target market was defined we needed to formulate the advice. There were two key methods that drove our decision making here.

Create clear house views

The advice had to revolve around clear ‘house views’, which can be best described as the core principles driving our advice. These were the backbone to the advice engine within our consumer-facing app and latterly the solutions we’re now building for business clients.

Follow a cascading needs framework

We decided to deliver our advice through a series of priorities and allocations of both a customer's income and assets. Different objectives and goals are fed in different ways, with some areas being filled before others.

Our analogy loving advisers describe it like the Trevi Fountain in Rome, where water cascades in several ways but the result is a perfectly designed structure. Only an adviser could look at the Trevi fountain on holiday and come up with that analogy.

Create a culture of collaboration

Everyone in the Multiply team will say it’s really powerful to mix advisers, engineers, product experts and designers in the same conversations. Doing so allows the right level of information transfer to occur, which will enable you to solve the challenging parts of the build down the line. And believe me, the challenges can be many.

During our time at Multiply we’ve recruited a blend of advice veterans and rookies, and this has really helped with first principles thinking. When we'd come across complicated problems, such as correctly applying the Pension Annual and Lifetime Allowance rules within our advice engine, we broke down the challenges into their basic elements and then reassembled them from the ground up. This allowed us to reverse-engineer the complicated problems and unleash creative possibilities.

When doing this exercise our advice rookies often offered fresh perspectives, showing that a lack of experience can be seen as a help rather than a hindrance.

This constant collaboration amongst the Multiply team has led to the cross-pollination of ideas, which is vital when you’re trying to disrupt an industry and provide digital advice at scale.

Never stop testing, and your advice will never stop improving

Get financial advice wrong and not only will your customers suffer, you could face prison too.

Three years on from launching our app though I’m glad to say none of us are behind bars, in fact we’ve not even had one advice complaint amongst our 250,000 recommendations.

I’d put this down to rigorous testing, which was key to getting our FCA approval and allowing us to confidently unleash advice at scale.  

When planning our testing we regularly thought of the extremes, as these are often the areas that create the problems. However, don’t let the extremes become an obsession and don’t focus too much on the edge cases, as this will limit your ability to digitise your advice.

Providing full holistic advice on an automated basis is not an easy task. It’s a path full of treacherous, technical hazards and it isn’t something that's possible straight out of the gate. We needed to be confident in our advice, and to gain this confidence, we started with the areas of digital advice which were easier to deliver.

This was our starting point and we've strived to continuously add to this. You need to be clear on what your starting point is and where you want to end up.

The future of Multiply

After three years spent giving financial advice through our consumer-facing app, it’s fair to say we’ve learnt a lot. That’s why we’re now partnering with other businesses to help them launch their own digital and hybrid advice propositions.

We can help with everything from creating fact finding solutions to helping you generate your own advice. Whether you want the full advice lifecycle automation package or just some of our capabilities, we can cater to your needs.

In today’s tough economic climate, closing the advice gap is more important than ever and we want to share all our technology and expertise, to bring financial advice to even more people.

So, if you’re interested in discovering how your business could work with Multiply or you just want to find out more about our backstory, drop me a line at vivek@multiply.ai or book a demo on our new B2B website.

15 million households will face higher gas and electricity bills from today, as a new energy price cap takes effect. The price cap - which limits the amount providers can charge - is going up by £139 a year. Customers with a prepayment meter will see a £153 increase. The change comes amid rising gas prices, which have forced 9 companies to go bust so far.

Adviser view: With prices having risen so steeply, we believe there is now potentially as much savings to be had by looking at how you use utilities as opposed to reviewing just the supplier of them, e.g. turning down the thermostat by just one degree on your central heating could save around £80 per year.

Stagflation?

Business confidence has taken a knock as rising prices and supply chain shortages threaten to create “stagflation”. Despite sounding like a game you’d play on a lads’ holiday, it actually describes a situation of zero growth and high inflation. Last seen in the 70s, stagflation is bad news for business, leaving them squeezed by high prices and low revenue.

Sainsbury’s hiring spree

Sainsbury’s is planning a massive Christmas hiring spree, to help it get through the seasonal rush. The retail group, which also owns Argos, needs 22,000 temporary staff including drivers, logistics workers and store staff.

Spoons doubles losses

Wetherspoon has suffered double its usual losses in the past year as sales slumped by 38% due to coronavirus restrictions. The pub chain also said it’s struggling to recruit staff in the aftermath of Brexit.

French fishing boats have accused the UK of playing politics with fishing rights, after three quarters of small vessels were denied permission to fish in British waters. It’s a fraught issue; earlier this year both France and the UK dispatched patrol boats to Jersey to monitor a protest flotilla of French trawlers.

Claim against BT

2 million customers who may have been overcharged for their landline by BT will have their day in court. The £600 million case has been approved for a full trial next month. If it’s successful, affected customers could receive £500 each in compensation.

Crypto hamster triumphs

Traders, take note: a hamster is beating human crypto investors with his tactical trades. His lifetime performance is up 20%. Mr Goxx makes trading decisions by running on his “intention wheel” and running through either the “buy” or “sell” tunnel in his cage. And if you’re looking to learn from the master, you can watch his livestream on Twitch.

Mortgages restart

Lending has increased again in August, after a post-stamp duty holiday blip earlier this summer. Overall lending went up by £5.3 billion, although the number of mortgage approvals dipped slightly. 74,453 mortgages were approved in total in August.

The furlough scheme comes to an end today, leaving an estimated 1 million people in limbo. Experts predict a small rise in unemployment after the support is withdrawn. It cost nearly £70 billion in total and kept many businesses afloat without needing to lay off staff, particularly in hard hit sectors like travel and hospitality.

House price growth eases

House prices are slowing down, with just 0.1% growth between August and September according to Nationwide. It means prices are up 10% from September 2020. The mortgage provider also says Wales and Northern Ireland were the strongest performers, while London lagged behind.

Adviser view: We had expected to see the house prices slow down. In the longer term, we'll be looking to see if this is just a slowdown or a turn towards falling prices. We think this figure is a good barometer for the house market but you need to make sure that you understand what is happening in your local market - all areas are different.

Eviction risk

100,000 renters could be at risk of eviction when £20 Universal Credit cut comes in next week, Crisis warns. The housing charity says 1 in 3 private renters in England rely on benefits. Scotland, Wales and Northern Ireland have extended eviction protections until next year, to give struggling families some breathing space.

Adviser view: If you're struggling to meet your rent, we recommend talking to your landlord before you miss a payment. That way, they're more likely to be sympathetic.

Cost of living grants

The government has announced £500 million in grants to help families struggling with the rising cost of living. Rising energy prices and the end of coronavirus support are making it hard for many to make ends meet. The grants will be available from next month and will run over winter.

The army is on standby to deliver fuel to forecourts which have run dry. After 4 days of long queues and panic buying, 150 military tanker drivers are prepping to get behind the wheel. Fuel is running low at the pumps, but remains plentiful at refineries.

Rail takeover

Southeastern train services have been taken over by the government after an investigation found £25 million of undisclosed taxpayer funding. This “serious breach” by the rail company could be looked into by the Serious Fraud Office. All the money has now been recovered.

30% pay rise

Warehouse workers are enjoying a 30% pay rise as bosses struggle to recruit enough staff. The warehouse sector says it needs tens of thousands more workers, and warns that stacked crises could hit stretched supply chains in the run up to Black Friday and Christmas.

Progress from home

Over half of women surveyed say working from home helps them to progress in their careers by making it easier to balance childcare with full time work. Women did two-thirds more childcare than men during the first lockdown, according to the Office for National Statistics (ONS).

Competition law is set to be suspended to help get petrol into pumps, following a weekend of panic buying and long queues at fuel stations. The move will apparently make it easier for companies to share information and prioritise the worst-hit parts of the country. The government is also considering bringing in the army to deliver fuel. Around half of the UKs fuel stations are empty, and many more are running on fumes.

Price growth predictions

House prices could continue to rise up to 3.5% a year between 2022 and 2024, according to Hamptons.The estate agent reckons the race for space is set to continue, with buyers still hankering after gardens and home offices. However, it thinks growth peaked in summer 2021 and will now start to slow down.

Adviser view: This is just one estate agent’s forecast, but it’s plausible. A lack of properties in the market and an expectation that more people will work from home will surely have some impact on the property market over the coming years.

Debt doctor

GPs could start prescribing debt advice and job support to help people recover from economic hardship, according to the Social Market Foundation (SMF). The think tank says financial prescribing could be a lifeline for those who’ve lost income. Currently, patients can be referred to services to help them get fit, connect with others, or find mood-boosting hobbies - the NHS aims to hand out 900,000 of these social prescriptions by 2023.

A landmark supreme court ruling forced the company to guarantee its 70,000 UK drivers a minimum hourly wage, holiday pay, and pensions. Today, Uber announced its drivers will now be auto-enrolled to a pension scheme, and receive back payments. Drivers can choose to contribute up to 5% of qualifying earnings but will be able to opt out.

Tips must go to staff

Government plans will make it illegal for hospitality firms to withhold tips from workers. If an employer breaks the new rules they could be forced to pay compensation or face fines. Highstreet chains including Pizza Express, Cote Brasserie and Bill's, have been accused of keeping tips.

Calls to recycle buildings

Britain’s top engineers are urging the government to reuse buildings where possible, and to build using recycled material and clean fuels. They are concerned about "embodied emissions", which is the CO2 emitted when buildings and materials are made. Making cement alone causes 8% of global emissions.

Nearly 1.5 million customers face being switched to a new energy company after their suppliers’ collapse. Avro Energy and Green went bust on Wednesday, becoming the latest casualties of soaring gas prices. So far, the big energy companies are staying afloat - but Green boss predicted that they’d soon face problems too.

Lorry driver shortage

Tesco has warned that empty shelves will get “ten times worse” by Christmas if the lorry driver crisis goes unaddressed. There’s a shortage of around 100,000 drivers across the industry, thanks to a triple whammy of Brexit, the pandemic and changes to tax rules. The supermarket wants the government to make it easier to recruit drivers from abroad.

Easy to be green

In a speech to the United Nations, Boris Johnson has told the world to “grow up” and tackle the climate crisis. He was speaking to world leaders ahead of the COP26 climate summit in Glasgow next month. Carbon emissions will be 16% higher in 2030 than they were in 2010, according to UN analysis of countries’ pledges - far off the 45% cut needed to avoid disastrous climate change.

The gas price crisis could lead to more gaps on supermarket shelves, as fizzy drinks, food packaging and the meat industry all face a shortage of carbon dioxide (CO2). 2 major plants which produce CO2 have been forced to shut down amid soaring gas prices. And without their output, supply chains face running out of fizz.

Unpaid pensions

Pensioners short-changed to the tune of £1 billion were let down by human error according to the government spending watchdog. It said the catalogue of errors, rendered inevitable by complex rules and outdated IT systems, has meant 134,000 people have been underpaid. Those affected can claim up to £8,900 each.

Pret’s going local

Fancy popping down to your friendly neighbourhood Pret a Manger for lunch? The coffee and sandwich chain plans to open 200 new shops in residential and suburban areas, aiming to double its size within 5 years. Its CEO says hybrid working is here to stay, meaning quieter urban trade on Mondays and Fridays as well as weekends.

Ofgem and Business Secretary Kwarsi Kwarteng have confirmed that the price cap - which limits how much you pay for energy - will remain in place. Energy providers are struggling amid soaring gas wholesale prices, but can’t pass on the costs to their customers. The current price cap is £1,138 a year, but is set to rise to £1,277 in October.

Inflation bites

Government borrowing went up unexpectedly in August, as interest payments rose on the back of higher inflation. The costs of coronavirus, coupled with a lower tax take, have pushed government debt to more than £2.2 trillion, or about 97.6% of GDP. When inflation goes up, this debt becomes more expensive.

All-electric taxis

Want an emission-free ride? You’ll soon be able to hail an electric Addison Lee. The taxi company has pledged to electrify by 2023, shifting its 4,000-strong fleet onto battery power. It’ll put 200 electric vehicles on the road every month from November.

Working from home

The right to request flexible working will become law on Thursday, allowing any employees to put in a request from their first day at a new job. Before the pandemic, you had to accrue 26 weeks of service before asking to work from home.

Energy suppliers, including Bulb - the UK’s sixth largest supplier - might need emergency bailouts just to keep the heating on this autumn. 4 smaller companies have already gone bust. The government is holding crisis talks this morning to discuss state-backed rescue loans. Why? Gas wholesale prices have skyrocketed 250% since January, with an especially steep hike since August.

Adviser view: “If a supplier fails, the energy watchdog, Ofgem, will make sure that household supplies continue and customers will not lose any money owed to them”

House prices level off

Asking prices for properties in the UK increased by just £15 in August, according to Rightmove. The average home now costs £338,462 when it first comes to market. 14% more hore homes were listed in the first 2 weeks of September, compared to the first 2 weeks of August, which could help to ease some of the competition between buyers.

Adviser view: “This data shows price growth slowing down, which was expected. We have also seen an increase in the number of properties coming on to the market, boosting supply and potentially reducing pressure on prices.”

Climate finance goals

Boris Johnson says there’s a 60% chance of raising $100 billion to help developing nations cope with climate change and transition to low-carbon technologies. This $100bn fund, raised from richer nations, is a key part of the COP26 climate summit in November. But the PM says it’ll be “tough” to secure the funding.

Office loungewear?

Sales of leggings, jogging bottoms and fleece are continuing to climb as workers return to the office, still clad in their elasticated waists. Employers are ripping up dress codes to allow more casual clobber  in the workplace, according to HR experts. And retailers are tuned in; M&S recently announced it’s no longer selling suits at half of its stores.

4 astronauts have blasted off from the Kennedy Space Centre in Florida aboard the SpaceX Inspiration4 rocket. No biggie - except that they’re all amateurs with only 6 months training under their belts. The passenger flight was chartered by a billionaire who invited 3 others aboard, and marks a giant leap for space tourism. They’ll circle the Earth for 3 days.

Underpricing climate risk?

The Bank of England must do more to penalise banks who fund the fossil fuel industry, according to a group of 51 MPs. The group wrote to the Bank’s governor, Andrew Bailey, to warn him that the financial sector is underpricing climate-related risk. It also suggests providing cheaper credit to banks who fund climate-friendly projects.

Wires on fire

Wholesale energy prices have soared by 19% after an electricity cable connecting the UK and France had to be shut down. A fire broke out at a site in Kent, sending the cable offline until 25th September. It’ll then operate at half capacity - losing a gigawatt of power - until March 2022. National Grid says it expects to "continue supplying electricity safely and securely".

Prices on everyday items have jumped 3.2% since last August, according to the Consumer Price Index measure of inflation. That’s the biggest jump since records began in 1997, driven by higher food costs. It means inflation is now well above the Bank of England’s target of 2%, which aims to keep prices steady. But the Office for National Statistics warms against reading too much into the data, saying the increases are temporary.

Lockdown lie-ins

68% of home workers wake up less than 30 minutes before starting work, according to a survey by Poly. The research warns that many may be hooked on “home comfort syndrome”. Almost a quarter said they’ve done exercise such as yoga while on a conference call, and the same proportion of French respondents confessed to enjoying a beauty treatment while on the phone.

Piles of pennies

The Royal Mint cranked up its penny printing machine last year for the first time in 2 years, producing 88 million new 1p coins. Many coins were boarded at home during the lockdowns, meaning more were needed in circulation. Overall, coin production is falling as more shoppers pay by card or contactless for payments.

A winter lockdown would be an “absolutely last resort” this winter, according to vaccines minister Nadim Zahawi. Plan A? Covid booster shots and extra flu jabs. Boris Johnson will set out the winter Covid plan later today, which is expected to include more details on the vaccination programme plus the end of the travel traffic light system.

Employment surge

Employee numbers returned to pre-pandemic levels in August, according to the Office for National Statistics. That’s with 1 million people still on furlough. Vacancies are still rising too, with more than 1 million jobs advertised in the last 3 months. However, businesses are warning that staff shortages could slow their recovery.

“Zero-click” spyware

Apple has rushed to block a spyware that threatens to infect iPhones and iPads via iMessage, even if the user doesn’t click anything. The software giant has released the security update after independent researchers at Citizen Lab identified the vulnerability.

The government has cancelled its Covid vaccine contract with French manufacturer Valneva, scrapping a pending order for 100 million doses. Why? Apparently the vaccine maker breached their agreement, which it “strenuously denies”. The Valvena jab is still in trials and hopes to get approval later this year.

Heathrow 10th busiest

Heathrow airport has fallen down the rankings of Europe’s busiest airports and is now sitting in 10th place as the travel slump continues. It says passenger numbers last month were down 71% on pre-pandemic levels, blaming “ever-changing restrictions, expensive and unnecessary testing requirements and lack of a common approach across borders”.

More economic shocks?

The UK must get ready for future economic shocks, says the Trades Union Congress (TUC). Speaking at its annual congress in London, TUC general secretary Frances O’Grady will highlight the threats of further pandemics, climate change and technological disruption.

MPs will vote today on whether to increase National Insurance to fund extra spending on health and social care. Boris Johnson announced the 1.25% tax hike yesterday, saying it would raise £12 billion to help reduce waiting times in the NHS and pay for care. Critics say it’s not enough money to address current problems in social care.

Rents rising

Rents are rising at their fastest rate for 13 years, according to Zoopla. The property site says that, excluding London, rents are up 5% on last year, costing the average renter an extra £450 a year. Estate agents say rents in popular areas have jumped 25%. Meanwhile, London rents are down 3.8% on last year as tenants quit the city for more space elsewhere.

London to Edinburgh for £15

Lumo, a new all-electric train service, has launched its first London to Edinburgh tickets for just £15. The first service will depart on 25th October. It aims to offer a low-cost, low-carbon alternative to the 74,500 people who fly between the two cities each year.

Bike shortages

Halfords says supply chain issues are hitting its bike business, but says it can manage the challenge. Brexit and the pandemic means factories and lorries are both struggling to deliver, and raw material costs are going up. Many Brits took up cycling last year as a safer alternative to public transport, putting extra demand on bike repairers and retailers.

House prices hit another record high in August, but the pace is starting to slow according to mortgage lender Halifax. August prices were 0.7% higher than July - a smaller jump than in previous months. It means average prices are now up 7.1% compared to this time last year. London continues to trail the rest of the country, with an annual increase of just 1.3%.

“Sausage wars” on ice

The UK has postponed indefinitely its plans for post-Brexit checks on goods entering Northern Ireland, after negotiations with the EU reached a stalemate. This is the second extension of the grace period as part of an ongoing row over border checks dubbed “the sausage wars”. And now, there’s no deadline set for the completion of talks.

Fewer job cuts

The number of planned job cuts is at its lowest for 7 years, despite the end of the furlough scheme looming at the end of the month. Employers planned 12,687 job cuts in August, a fall of 11% since July, according to the Insolvency Service. The data suggests the predicted surge in unemployment this autumn might not be as bad as expected.

Former Health Secretary Jeremy Hunt says taxpayers should pay more to fund social care - he thinks the best way is with a "health and care premium". In his opinion piece in the Telegraph*, he reasons that "a rise in income tax feels very unconservative”. Newspaper reports suggest the government is considering raising national insurance rates - but Mr Hunt thinks this “disproportionately targets the young”.

Paying later

One in ten shoppers who use Buy Now Pay Later get chased by debt collectors, according to Citizens Advice. These options often appear at retailers’ checkouts, offering to spread the cost of purchases, interest-free. Those referred to debt collectors report sleepless nights, being scared to answer the door, and borrowing money to repay the debt.

Exports to Europe rise

UK financial service exports to the EU rose in the months after Brexit, according to the Office for National Statistics (ONS). Despite warnings that the City would be hit by a collapse in trade, the bloc imported 1.4% more from UK banks, insurers, and other firms in the first three months of the year compared with the same period of 2019.

Exports to Europe drop

UK food and drink exports to the EU plummeted, according to the Food and Drink Federation. Brexit triggered a sharp drop in trade - a 25% contraction in sales - that saw food and drink exports reduce by £2bn in the first half of this year.

UK energy bills will rise after wholesale electricity prices increased by 14% in August versus July, according to Imperial College London. If the increase is sustained then households can expect higher bills through the winter, with campaigners saying it could push 500,000 households into fuel poverty. This follows Ofgem’s announcement last month that it would lift the cap on default energy deals for the winter months by 12%.

Can crypto fund uni?

Students are increasingly turning to cryptocurrency investing to help fund their time at university, a study has found. Due to the pandemic, part-time jobs have been harder to find so students have looked for other ways to make money, with around 6% trying out crypto. Investors and experts have warned, however, of the volatility and risk involved, with one student reporting losing hundreds of pounds.

Wish you were beer

Wetherspoons is experiencing a beer shortage, as some of its pubs have run out of Carling and Coors. It’s one of a number of major UK businesses that have recently experienced supply issues because of both Covid and Brexit challenges. However, Wetherspoons have reassured punters that their pubs won’t run dry, and shortages are expected to be resolved in the next week.

House prices in the UK rose by 2.1% in August, the second biggest month-on-month rise for 15 years, meaning they are 13% higher than pre-Covid levels. This comes as a surprise given the stamp duty holiday on properties up to £500,000 came to an end in June, but Nationwide said it could be explained by a shortage of supply in the market and by a boost in demand for properties up to £250,000, on which the stamp duty relief will remain in place until September.

Shop price inflation

Supply chain bottlenecks have pushed shop prices up by 0.4% in August, as retailers compete with each other to secure their supply of goods. The shortages are a result of various Covid-related issues including a lack of lorry drivers, port closures in Asia, and a surge in demand as economies emerge from the pandemic. Although the disruption has been somewhat limited so far, the situation could worsen in the lead up to Christmas.

Shell bets on electric

Oil firm Shell has announced that it plans to install 50,000 on-street electric vehicle (EV) charging points in the UK over the next four years, in collaboration with local authorities. This represents one third of the UK’s target of 150,000 public charge points by 2025, to make EVs more accessible and encourage drivers to switch away from petrol and diesel. The government already subsidises 75% of the local authority’s cost of installation and Shell are offering to cover the rest.

Banks are becoming landlords after a surge of interest in companies building new property specifically to let it out*. It’s been driven in part by a housing market that’s stayed strong through the pandemic. With 62,000 homes already built, and 40,000 in development, the trend looks to grow as companies like Goldman Sachs and Lloyds Banking Group look to secure long term predictable investment returns.

Covid takeaway

Spending on takeaways and home dining has increased even after lockdown has lifted, according to research. Britons’ spending has increased to £53 per person each month, up from £38 before the pandemic, according to KPMG. The change in habits is driving investment across the sector - Pizza Hut, for example, is looking to open 125 new locations to serve home delivery.

Holmes on the wrong side of the law?

The founder of failed blood testing company Theranos faces up to 20 years in prison as her trial begins in California. Elizabeth Holmes who founded the company, which was once worth up to $10 billion, is charged with 6 counts of fraud. Theranos finally dissolved in 2018 after years of controversy, after claims about its core technology were revealed to be fabricated.

Playtime's over?

Chinese authorities are looking to tighten restrictions on children's ability to play video games, limiting them to three hours a week. The system will be enforced by a real name based registration system. The new rules, which seem to specifically target online games, have been introduced as governing authorities are worried about the impact of games on children’s development.

83% of high street department stores have closed in the last five years, according to a newly-released report. Only 79 stores remain across the UK’s largest chains such as Debenhams, BHS and House of Fraser, compared with 467 in 2016. The data highlights the change in consumer shopping habits, which has been accelerated by the pandemic, with landlords now working out how best to repurpose these large town centre spaces.

BA short-haul relaunch

British Airways is planning to launch a new short-haul carrier that will operate out of Gatwick from next summer, in response to consumer demand as travel restrictions gradually ease. BA’s short-haul routes out of Gatwick have been suspended through the pandemic, but they believe the new subsidiary will allow the airline to build a sustainable short-haul business, competing with the likes of EasyJet and Ryanair.

A whale of a time

A boy from London has made £290,000 after selling non-fungible tokens (NFTs) of a series of digital artworks he created, called Weird Whales. NFTs can be used to create a digital certificate of ownership of a piece of art that can be bought and sold. He created 3,350 digital emoji-type whale images, and is now holding the proceeds from the NFTs in the cryptocurrency Ethereum.

The government’s plan to cut universal credit by £20 per week could drive 2.3 million people into debt, according to Citizens Advice. The amount cut corresponds to the Universal Credit top up introduced at the start of the pandemic. The plan is part of the government’s policy of “getting people into work” the Prime Minister said. Experts say that combined with rising energy prices and the end of the furlough scheme, many families will face hardship. The Joseph Rowtree Foundation has said the move would push 500,000 people below the poverty line.

Older homeowners stay put

Over 55s, three quarters of which own their home, are opting to stay put in their homes in response to new perspectives given by the pandemic. Legal & General Financial Advice estimates that less than one in four over 55s are planning to downsize their home, a smaller proportion than three years ago. This trend has exacerbated the housing supply crunch, which is the biggest we have seen since 2004.

Is Christmas cancelled?

Food sector chiefs have urged the government to relax immigration rules so some EU workers who have left the UK following Brexit can help fill gaps in the workforce. This comes following other supply chain issues caused by the “pingdemic”. Iceland’s boss warns that Christmas could be “cancelled” for some families this year as a result of the disruption. Other supermarket chiefs have indicated that empty shelves and limited choice would continue for the foreseeable future.

Deep down, everybody knew it

A recent Harvard study has indicated that “PowerPoint was rated (by online audiences) as no better than verbal presentations with no visual aids”. Another study, conducted by the University of New South Wales may offer an explanation. It found that showing audiences the same words that are being spoken reduces, rather than increases, audience comprehension.

Several suppliers will raise their standard tariffs to the limit set by the energy regulator. For 11 million households who pay by direct debit, energy bills will increase from a yearly average of £1,138 to £1,277, a difference of £139. Prepayment meter customers would see a difference of £153.

Domestic holiday prices soar

BBC Panorama and consumer group, Which?, revealed the average cost of self-catered accommodation in the UK is 40% more than last year. Brighton has seen the largest increase; one night for two people increased from £109 to £206 - a rise of 89%.

Biden’s budget approved

The US Congress approved a $3.5tn (£2.54tn) budget blueprint. The rule allows the Democrats to move ahead with key policy proposals; Biden's party wants to spend on family support, health, and climate schemes. It’s largely financed with tax increases on the rich and large corporations.

Did you see that?

Expensive designer glasses have been stolen from a string of opticians across Scotland. One had 21 pairs stolen in one day. The suspected thief has a Glaswegian accent, stocky build, and is about 50-years-old.

McDonalds has been forced to remove milkshakes from their menu in England, Scotland and Wales. The cut comes after supply chain issues stemming from a shortage of lorry drivers, caused by Brexit and Covid-19. The news comes a week after Nando’s closed around 50 restaurants because it could secure enough chicken from its suppliers.

Care Costs

Vulnerable and disabled adults in England have seen their care costs sharply rise, according to a BBC investigation. On average people are being asked to contribute 13% more over the last two years to their care, with 22 councils upping charges by £500 per person. The situation however, varies across the country - in Hammersmith and Fulham, residents are not charged for their care.

EU Exodus

Up to 80,000 EU nationals may be unable to continue living in the UK, due to issues with their applications for EU Settled Status. The scheme has seen an extensive backlog after the Home Office received many more applications than expected, with many applications being ruled 'invalid' or being declared 'void'. Applicants unable to secure their status to remain in the UK could lose their jobs or face deportation, according to law firm Bates Wells, which provided the data.

Nutella needs nuts

A drive by the makers of Nutella to improve its supply chain is leading to intensive hazelnut farming taking over Italian farm land, with devastating environmental consequences according to campaigners. Ferrero's decision to move its nut supplies to Italy from Turkey comes after it has faced political pressure to move operations to Italy. Environmentalists and farmers worry that the push towards a single crop - a monoculture - means diseases and insects spread more easily, leading to increased damage from pesticides and herbicides, and a decrease in biodiversity.

Users in the UK will be able to buy and sell Bitcoin, Ethereum, Litecoin, and Bitcoin Cash. This year has seen Bitcoin’s price climb to an all-time high, fall by almost 50 percent, then rebound in recent weeks. The FCA (regulators) warned investors to be prepared to lose money; it was revealed 14% of investors had used debt to invest.

Lorry drivers wanted

Brexit and Covid-19 caused lorry drivers to leave the UK, according to Logistics UK (the largest freight trade association). Business Secretary Kwasi Kwarteng has been warned that the impact on supply chains is getting worse. Lobby groups are calling for various measures, including granting work visas, speeding up training, and improving Covid testing.

Travel test clampdown

Some private Covid travel test providers are being removed from the government website because they either no longer exist or provide the right services. Others will be issued warnings over misleading pricing. Health Secretary Sajid Javid said the move was to clamp down on "cowboy behaviour".

Mountain queues

About 700,000 people visited Snowdon this year, compared with about 500,000 in 2018. It has resulted in 45-minute queues at the peak, and a sharp increase in litter, footpath erosion, wild camping, traffic, and parking.

Rental demand has hit a five-year high, according to the National Residential Landlords Association. But the situation is not the same across the country - half of central London landlords reported falling demand.

Rising public debt

The expensive response to Covid has pushed public sector debt to £2.2 trillion. Representing 98.8 percent of GDP, it’s the highest debt ratio the UK has had since 1962. Rishi Sunak, chancellor of the exchequer, said “our recovery from the pandemic is well underway”, but that the pandemic “had a huge impact on our economy and public finances, and many risks remain”.

Race for Morrisons

The former boss of Tesco leads the race to buy Morrisons. Sir Terry Leahy’s private equity firm has had its £7bn offer approved by the supermarket’s board. Some politicians raised concerns - a private equity buyer could cut jobs and sell real estate - but Sir Terry claims the firm “values Morrisons’ distinctive business model and is committed to supporting it”.

OnlyFans bans content

The popular UK-based subscription site - known for adult content - will block sexually explicit photos and videos from 1 October. The change was introduced after receiving pressure from its banking partners. The site grew during the pandemic to 130 million users.

It’s official: the last 12 months have seen the fastest house prices rise since 2004. The Office for National Statistics has released its numbers, which show prices in June 2021 were 13.2% higher than last year. The north west saw the biggest increases, with an 18.6% jump in prices. Even in London, which saw the least growth, prices still went up 6.3%.

Cheaper mortgage rates

Lenders have started offering cheaper deals* to customers with smaller deposits, according to Moneyfacts. The average 2-year fixed deal for a buyer with a 10% deposit dropped by 0.14% in August. The biggest savings for buyers with a 5% deposit came from Nationwide, which cut its 2-year fixed rate by 0.15% and its 5-year fixed rate by 0.2%.

Aid for Afghanistan

The UK has pledged to double its aid to Afghanistan to £286 million this year. That’s just under the £292 million we sent in 2019. It’s also set to welcome 5,000 Afghan refugees this year, as part of a 5-year settlement program for 20,000 people fleeing the Taliban.

Nando’s has had to shut 50 of its restaurants temporarily after running out of peri peri chicken. The debacle has put diners in a fowl mood, with many taking to Twitter to complain. The restaurant chain has sent some of its staff to help out its suppliers who are struggling with a lack of workers due to the “pingdemic”.

Price rises ease

The inflation rate slowed down slightly in July, falling back to 2%. That’s bang on the Bank of England’s target rate. The dip was driven by cheaper clothing and footwear costs. Prices had been rising at 2.5% in June, with many experts predicting that inflation would continue to speed up.

Triple lock scrapped?

The government is set to break its triple lock pledge by raising state pension payments by 2.5% next year instead of the higher figure of wage growth. The triple lock policy states that state pension will rise by whichever is highest: inflation, wage growth, or 2.5%. But amid soaring wages and expected inflation hikes, the treasury is expected to go for the latter to ease pressure on the public purse.

The number of job openings hit 1 million for the first time ever in July, according to new data from the Office for National Statistics. The jobs market seems to be bouncing back strongly, with 182,000 more people added to payroll last month. That’s still 201,000 below pre-pandemic levels though.

Pay cut for wfh?

Two thirds of bosses say they could cut pay for workers who choose to work remotely rather than return to the office, according to a survey by CIPHR. However, it also found that 53% of companies say remote work saves them money. Most of them were medium or large businesses.

Data for drinks?

Punters should think twice before parting with personal data when ordering drinks via an app or website, according to the Information Commissioner’s Office (ICO). It’s become the norm to order via QR codes in pubs and restaurants, but the data privacy body says customers should be aware they have a choice over whether to share information.

Asking prices fell by 0.3% in August according to Rightmove, as demand fell slightly for larger homes. It’s the first time this year that asking prices have fallen. A dip in asking prices usually reflects a decline in confidence among home sellers. The Royal Institute of Chartered Surveyors (RICS) reported the same trend last week. They reckon the end of big stamp duty savings in June has meant fewer people are looking to buy.

Overtime epidemic

Working from home during the pandemic has caused an “epidemic of hidden overtime” according to thinktank Autonomy. It says mental distress and negative health impacts are on the rise, particularly for women. It’s calling for a right to disconnect, with no obligation to respond to work calls or messages outside of working hours.

Crackdown on greenwashing

The government is set to investigate energy deals which claim to be climate-friendly but fail to walk the walk. 9 million British households are currently on green tariffs, but firms are allowed to label tariffs “100% green” even if some of the energy comes from fossil fuels.

Japan’s Olympic recovery

Japan’s economy bounced back twice as fast as predicted in the run-up to this summer’s Olympics. Individuals and businesses spent big in April to June, helping to propel the world’s third-largest economy to 1.3% growth. However, its recovery is still slower than other advanced economies’ like the US.

Amazon is set to move production of its multi-million pound Lord of the Rings TV series to the UK from New Zealand. It’s expected to be one of the most expensive TV shows in history; the first series cost £336.5m to make and there are 4 more in the pipeline. The company says the move is part of its plan to expand its production space in the UK.

Hacker returns loot

A “white hat” hacker who stole £440m from a cryptocurrency platform has now returned most of the looted digital currency. It was one of the biggest ever crypto heist and targeted a little-known platform called Poly Network. It says the attack came from an ethical hacker, who generally aim to expose weaknesses in a system’s security.

Job ads

Vacancies are rising sharply across the UK, with 1.7 million job ads posted in the first week of August. Most in demand? Photographers and camera operators, which saw a 19% rise in ads. You’re also in demand if you’re an insurance underwriter, an agricultural worker, or a plasterer.

The UK economy grew 4.8% from April to June as coronavirus restrictions eased. The boom was driven by consumer spending on shopping, hotels and restaurants, according to figures from the Office for National Statistics. This growth is roughly what the Bank of England expected, and GDP is now 4.4% below its pre-pandemic size.

Pingdemic over?

From next week, fully jabbed Brits won’t need to self-isolate if  they’re pinged by the NHS app - but they will be advised to get a PCR test as soon as possible. The changes will come as a relief to businesses who’ve struggled with staff shortages during the “pingdemic”.

No time for jabs

A quarter of workers are not allowed time off work to get their coronavirus jab, according to a new survey by Acas. They also found that some employers were not paying sick pay to people dealing with the jab’s side effects.

Dirty spending

The government is spending far more on polluting policies than on climate-friendly measures, according to charity WWF. In the 2021 spring budget, only £145m was earmarked for environmental spending, mostly on a post-Brexit emissions trading scheme for industry. But measures that would increase emissions were worth far more, at £40bn.

The city of Winchester is the least affordable place to buy a home in the UK, according to mortgage lender Halifax. Average property prices are 14 times higher than the average salary, beating London where prices are 11x salaries. The research also shows that house price growth continues to outstrip wage growth. UK-wide, house prices are 8.1x average earnings, up from 5.6x a decade ago.

Day trading craze

1.8 million adults have taken up day trading during the pandemic, with 50% claiming they’ve made money from their exploits. A new survey from GraniteShares suggests people had more time on their hands to look into stocks and digital currencies, while the GameStop saga put trading on the front pages. One fifth of those surveyed said they’re trading in order to save for a home deposit.

Deliveroo doubles

Takeaway favourite Deliveroo saw its revenues jump 82% in the first half of 2021. Its orders have doubled since last year, taking its annual revenues close to £1 billion. The food delivery company says people are continuing their takeaway habits even as lockdown restrictions have eased.

Cosy home scheme?

Last year’s “cosy home” scheme could be making a comeback under housing minister Kwasi Kwarteng. Officially called the Green Homes Grants, the scheme offered homeowners a £5,000 voucher to improve insulation or install efficient new heating systems, but it was axed after 6 months. Now a new version could be on the cards to try and reduce carbon emissions from heating our homes.

Second-hand car sales more than doubled in April to June 2021 compared with last year, due to a fall in new cars on the market that was caused by a shortage of computer microchips. This has driven up used car prices with the disruption expected to go well into 2022. Ford Fiestas, Vauxhall Corsas and Volkswagen Golfs were among the most sought-after cars.

Retail spending curtailed

Growth in retail sales slowed down in July, indicating the first signs of consumer fatigue since lockdown restrictions began to ease. So-called “Freedom Day” in mid-July didn’t boost in-store sales as much as expected, with the wet weather partly to blame. Experts think that the slow down will continue over the coming months as consumers rein in their spending.

Climate crisis

Major climate change is inevitable and immediate action is required to reduce its effects, according to a report by the International Panel on Climate Change. It warns that rising temperatures caused by human activity will lead to extreme weather and rising sea levels. In response, world leaders have said that new policy is required urgently to reduce carbon emissions and limit global warming.

More home buyers could be facing mortgage rejections amid a rise in “down valuations”*. If a surveyor - working on behalf of the lender - values a property at less than a buyer has agreed to pay for it, the lender can reduce the amount they’re willing to lend. After a year of surging house prices, high demand, and bidding wars between buyers, it’s happening more often.

More homes, less high street?

We could start seeing more homes for sale in former shops, offices and restaurants, under the government’s newly relaxed planning laws. Developers no longer need council permission to turn commercial buildings into residential space. But not everyone’s happy - town planners warn communities could lose essential services, and insurer Zurich also say rushed-through homes could be “sub-standard”.

Hargreaves to the moon

Hargreaves Lansdown has seen its profits rise thanks to a boom in traders wanting to get in on the GameStop squeeze. The UK’s biggest fund supermarket says it has signed up record numbers of new clients over the past year.

“Exploitative” PCR tests

Health secretary Sajid Javid has ordered the competition watchdog to investigate the costs of coronavirus PCR tests. Some holidaymakers say they’ve been charged hundreds for a test, which is essential for some travel. They’re meant to cost £75.

Starting salaries are rising at record rates as companies struggle to fill vacancies, according to KPMG. It’s good times for job hunters, with the fastest entry-level wage inflation in 24 years. There was a lack of candidates in July due to Brexit, the economic shocks of the pandemic, and the fact that lots of people already have a job.

Party insurance

From next month, live events will be protected from the costs of Covid cancellation by a £750 million government-backed insurance. It’s designed to give organisers the confidence to plan ahead. More than half of all this summer’s music festivals have been cancelled already, and many say a lack of insurance was one of the reasons.

Energy bill hike

Households will see energy bills soar to 10-year highs after the energy watchdog, Ofgem, lifted price caps on gas and electricity. Energy suppliers will be allowed to charge up to £153 a year more for energy. 15 million customers will see their bills climb this winter, including homes on default energy tariffs and those using prepayment meters.

Stimulus at full speed

The Bank of England is keeping the stimulus taps open and the base rate at 0.1% as the post-pandemic recovery continues. However, it warned that inflation could rise to 4% by the end of the year, double its target of 2%. The Bank also said it would start to reign in the stimulus sometime in the next 3 years, once it makes sense for the economy.

A third of homes for sale in London have had their initial asking prices slashed while on the market in a bid to tempt buyers. The new figures by estate agent Benham and Reeves suggest the capital is more of a buyers’ market than other areas of the country. Why? Lower demand, with fewer foreign buyers and former commuters leaving the city in search of more space.

Holidays are happening

From Sunday, seven countries including Germany, Austria and Norway will be added to the travel green list. That means people can travel there without quarantining on the way home. Double jabbed jet setters will have the same deal with France, which will jump to amber from amber-plus.

Minimum wage shame

Pret, McColls, and John Lewis are among almost 200 firms which have been named and shamed for paying workers less than minimum wage. A report found that 34,000 workers were underpaid between 2011 and 2018 to the tune of £2.1 million. The businesses were forced to repay the money and were also fined a further £3.2 million.

More investment, please

Boris Johnson and Rishi Sunak have written to pension fund managers bigging up UK startups and infrastructure projects. They want them to put more money into long term domestic investments. Pension funds from Canada, Australia and others already invest here. But there are more regulatory hurdles for UK pension funds, which Johnson has said he’ll try to reduce.

Reusing and repairing household goods instead of throwing them away could create 450,000 new jobs over the next 15 years. The Green Alliance think tank reckons many of them would be in areas where traditional manufacturing has declined. The UK bins thousands of tonnes of electronic waste each year which could be refurbished and sold on.

Mike Ashley steps down

After nearly 40 years in charge of Sports Direct, Mike Ashley is set to hand over control of his retail empire to his son in law. The Frasers Group chief exec is expected to confirm the news tomorrow, and will probably stay on as chairman. He’s one of the high street’s most infamous characters and counts Evans Cycles, Game, Jack Wills, and House of Fraser among his portfolio.

Petrol hits 8-year high

The price of petrol has reached an 8-year high after rising continuously for the past 9 months, according to the RAC. You’ll now pay 135.13p per litre at the pumps, a level not seen since September 2013. Why? Oil prices are rising as demand increases, driven by the post-pandemic coronavirus recovery.

New holiday options?

15 new countries are set to join the green list tomorrow at the latest update on the travel traffic light system. Austria, Canada, Germany, Norway and more are due to make the jump, more than at any other time since the system started. Boris Johnson is under pressure from tourism and aviation sectors to lift restrictions further to make travel more accessible for holidaymakers.

The NHS Covid app has been updated to try and reduce the numbers of people self-isolating. It’ll now only ping you if you’ve had contact in the 2 days before someone tests positive for coronavirus. It used to be 5 days. The update took effect yesterday, amid rumours of many people deleting the app to avoid being pinged. A record 6850,000 were told to isolate in the week of the 21st July.

Office perks

Young people benefit most from being in offices according to Rishi Sunak. The Chancellor's all about the office life; he reckons he wouldn’t have formed such strong relationships in his early career if it’d all been over Zoom. The official “work from home” advice came to an end on 19th July, replaced with an expectation that companies and individuals will find arrangements that work for them.

Amber watch list binned

Boris Johnson has abandoned the idea of an “amber watch list” for foreign travel due to fears of widespread disruption. A watch list would have meant that amber countries could be at risk of moving to the red list at short notice. Travellers arriving from red list countries face the toughest restrictions, including paying £1,750 to quarantine in a hotel.

A tax on meat could help reduce consumption of animal products, according to the founder of Beyond Meat, the world’s biggest plant-based meat firm. He reckons the money raised from a tax could help developing countries to invest in plant-based protein. Beyond Meat products and other vegan and veggie alternatives are often more expensive than meat products, but Brown says prices will come down as they scale up operations.

HSBC doubles profits

HSBC has doubled its profits for the first half of the year, driven by the economic recovery in the UK and Hong Kong. They’re the banking giant’s 2 biggest markets. It’s also lost far less on loans than it expected. Like all banks, it set money aside to cover loans that weren’t repaid - in HSBC’s case $700 million - and ended up not needing it.

New film studio

A new film and TV studio is slated to be built near London, the first expansion of Sunset Studios outside the US. The £700m project will become one of the biggest studios in the UK and is expected to create 4,500 jobs. Developers are racing to add studio space amid booming demand from broadcasters and streaming platforms - Netflix doubled its UK content budget to $1 billion last year, and others are spending big too.

Travel experts are predicting that France will be moved back to the amber travel list next week, from its current amber-plus rating. The controversial new category was created specially for France a few weeks ago, stating that arrivals should self-isolate even if they were double jabbed. Why? Rising cases of the Beta variant, which now seem to be falling again.

Mortgage approvals boom

Mortgage lending showed a record surge in the run up to the stamp duty holiday ending, with £17.9 billion in new deals approved in June alone. That’s the most since the Bank of England started keeping records in 1993. Other debt though? Not so much. Unsecured debt rose by just £300 million, well below the pre-pandemic average, as consumers grow cautious amid rising coronavirus cases.

5 million missing parcels

More than 5 million people had parcels lost or stolen last year according to Citizens Advice. The charity is calling for firms to be fined if they lose people’s deliveries - currently only Royal Mail gets fined for problems. It says complaints about parcel deliveries have tripled since before the pandemic.

Shortages of goods began to take their toll on the UK’s economic recovery last month, as swathes of the workers had to self-isolate after getting pinged. Factors, building sites and shops have all struggled to maintain output. Construction companies reported two months in a row of declining activity and retail has seen footfall drop to around 75% of pre-pandemic levels as cautious shoppers stay away.

Furlough winds down

The furlough scheme will be scaled back from Sunday, with employers asked to make a bigger contribution to workers’ wages. There were 1.3 million people on furlough at the start of July, down from 5.1 million in January. The scheme is due to end for good on 30th September, after almost 18 months and £50 billion later.

Bunkers at the ready?

The UK and Ireland have made it into the top 5 countries most likely to survive a collapse of global civilisation. An academic study says we could see worldwide breakdown within a few decades. The best place to be? New Zealand, where billionaires are reportedly buying plots of land for their bunkers. But as fellow island nations in temperate zones, Iceland, the UK, Ireland, and Australia are good shouts too.

House prices fell by 0.5% in July according to mortgage lender Nationwide. It’s the first monthly drop since March, as the stamp duty holiday was scaled back to offer buyers a less generous tax break. Despite the drop, house prices are still 10.5% higher now than they were in July 2020.

Homeowners cash in

Homeowners are taking advantage of higher house prices to release cash for a second home*, according to UK Finance. 57% of remortgage deals in March saw borrowers taking out extra money against the equity in their homes - and the amounts withdrawn have increased too. One of the most common reasons? To buy another home, including investing in buy-to-let or helping family members.

Travel corridors

England is set to open its borders and allow quarantine-free travel for double-jabbed arrivals from the US and EU. The plans are expected to be green-lit today and could come into force from next week.

Charging costs

Prices for charging an electric car in public must be fair to protect drivers from excessive costs when petrol and diesel car sales are banned in 2030, MPs have said. Public charge points are currently a lot more expensive than plugging in at home. They also say charging infrastructure must be reliable and accessible everywhere, including in rural areas.

The number of homes on the market in the first half of 2021 is down 25% compared to last year according to Zoopla. The property website says high demand is pushing prices up, even after stamp duty holiday savings were reduced at the end of June. Houses are the most sought after, with flats less in demand, as buyers seek more home working space.

5G revolution?

The manufacturing industry could get a £6 billion boost by 2030 thanks to the rollout of 5G. A report by Vodafone found that faster and more reliable mobile tech could make factories more efficient and reduce delays on assembly lines. 5G is particularly important for building advanced products like electric cars, which is a priority for the government ahead of the diesel and petrol car ban in 2030.

Pingdemic continues

More workers will now be able to do daily tests instead of self-isolation if they’re pinged by the Covid app. The government is expanding its pilot scheme for key workers to try and reign in the pingdemic, which has caused staff shortages across the country. Prison staff, vets, soldiers and bin collectors will now be able to avoid self-isolation. 1,200 new sites are being set up to process the daily tests.

The economy is growing at its fastest pace for 80 years according to EY Item Club, which predicts that GDP will grow 7.6% this year. That would be the biggest bounce since 1941. The forecaster reckons the economy could get back to its pre-pandemic size by the end of 2021 thanks to the vaccine rollout coupled with a big bounceback in consumer spending.

Heathrow losing cash

London’s Heathrow Airport has urged the government to open up travel for vaccinated passengers, after its pandemic losses hit $4 billion. It used to be Europe’s busiest airport - but it’s had just 4 million fliers in 2021 so far. That’s less than 18 days worth of traffic at pre-pandemic levels.

NHS pay rise

Senior doctors will be consulted over whether to strike in response to a 3% pay rise that the government put on the table last week. The British Medical Association union previously said they might, unless senior doctors got a 5% rise at minimum. It argues NHS staff are exhausted and feel undervalued because of previous below-inflation pay rises.

Supermarket depot workers and other supply chain workers will now be exempt from self-isolation. They’ll do daily tests instead if they’re pinged by the NHS Covid app. The government’s trying to keep food supply chains up and running, after supermarkets struggled to keep shelves full due to staff shortages.

Bank accounts blocked

Customers who’ve had their bank accounts frozen are calling on the Financial Conduct Authority (FCA) to take action. Around 10,000 people claim they were blocked from accessing their money for no reason, with NatWest and Monzo being accused of being among the worst offenders. The issue? Seems to be to do with automated money laundering checks.

Thirsty fans boost retail

Retail sales surged to 10% above pre-pandemic levels in June, with food sales spurred on by football fans buying beers and snacks for watching the Euros. The proportion of shopping done online has dropped, suggesting people are returning to pre-lockdown habits.

EV charging points

The competition watchdog has launched a probe into electric vehicle charging points to make sure there are enough points across the country. It’s concerned that a “postcode lottery” means some areas might not have enough. There are currently 25,000 charging points - and the CMA reckons we’ll need 10 times that by 2030.

Shops are racing to keep shelves stocked as rising numbers of staff are having to self-isolate. They’re not alone - lorry drivers and meat processing staff are also getting pinged by the app in huge numbers, leading industry bosses to warn that supply chains are “starting to fail”. The government says it’ll publish a list of key workers who are exempt, which is expected today.

High street’s back?

Post-lockdown shopping habits could revive high streets, with retailers planning to open up to 17,000 more small stores in neighbourhoods. A quarter of consumers surveyed by Barclays said the best way a retailer could attract them is to open a store in their local area. Following the large-scale store closures by M&S, John Lewis and more, 18% of retailers say they plan to move back into high streets.

Tesla accepting Bitcoin again

Elon Musk says Tesla will start taking payments in Bitcoin again, once it completes checks on its environmental impact. Tesla stopped accepting he cryptocurrency in May, citing concerns about carbon emissions. But now, Musk is saying that as long as 50% of Bitcoin’s massive energy usage comes from renewable energy, he’s fine with it.

Pubs and restaurants are battling the so-called “pingdemic” - a surge of self isolation alerts from the NHS Covid app. Some say it’s hampering their recovery, and one boss admitted he told his staff to delete the app altogether. Meanwhile, business minister Paul Scully has suggested it might be okay to ignore the app, in contrast to official advice.

Recovery slows

The economic bounce back slowed down in June despite a boost in business for the hospitality sector. That’s according to a survey by Lloyds Bank, which found that overall growth dropped compared to May. Their head of economics reckons this is to be expected, saying we’re "less likely to experience the rapid month-on-month output growth we've typically seen when businesses have been able restart operations”

Never commuting again? 1 in 10 Londoners says they plan never to commute again and 60% say they’re concerned about the post-lockdown commute. That’s according to a survey by transport expert Kura, which found that people’s main concern is infection control and social distancing while travelling to and from work.
No Christmas in M&S? Marks and Spencer has warned that it’s cutting Christmas products from its Northern Ireland stores due to concerns about Brexit checks. Changes to border checks could also mean higher prices and less choice for customers. Products are currently only subject to “light-touch” checks - but that changes at the end of September.

There’s a lack of homes for sale at the moment after the recent surge in buying activity, according to Rightmove. The first half of 2021 saw 140,000 more sales agreed than average, and 85,000 fewer new homes listed, creating a shortfall of 225,000. The demand is pushing prices up - average asking price hit £338,447 in July, a new record high for the fourth month in a row.

Double jab to dance

Boris Johnson announced yesterday that from the end of September, you’ll need to have both coronavirus jabs to go into nightclubs and other crowded places. The u-turn came just a week after the government said neither jabs nor testing would be needed to go clubbing - and just 17 hours after clubs reopened for the first time since March 2020.

Ready for take-off

EasyJet is ramping up its capacity to 60% of its pre-pandemic business, offering more European routes to countries with looser restrictions. It’s a huge jump up from the 17% they’re running at the moment - but the airline says it’s confident people are keen to travel.

Power of attorney overhaul

The lasting power of attorney (LPA) system is set for a revamp, letting people go online to nominate someone to take financial and health decisions on their behalf. 5 million people already have LPAs, but the current paper system is slow and tricky to use.

Bezos in space

At 12:30pm UK time, Jeff Bezos will blast off into space alongside his brother and 2 other passengers who’ll be the youngest and oldest people in space. The Amazon founder will be the richest man off the planet for 11 minutes before descending back to Earth.

Today marks the end of most coronavirus restrictions in England. Nightclubs are open, workers can return to offices, and any number of people can meet. There’s no longer any law on wearing a mask inside or on public transport. But Boris Johnson has urged caution as case numbers continue to rise - he’s currently self-isolating after being in contact with the health secretary, who tested positive on Saturday.

Oil supply boost

Oil producing countries have agreed a deal to increase their output from next month, which should help to bring petrol prices down. The OPEC cartel and partners such as Russia control over 50% of the world’s oil. They slashed production last year, which has sent oil prices skyrocketing as economies reopen and demand returns. Now, they’ve agreed to phase out those cuts.

4-day week?

UK businesses have become the latest to trial a 4-day working week* while keeping full pay. They’re aiming to maintain their productivity, while boosting employee morale and reducing sick leave. Is it working? Seems to be, according to research by the Henley Business School. Businesses with a 4-day week save £92 billion a year thanks to staff sticking around and taking fewer sick days.

Meat production lines might be forced to shut down because they don’t have enough staff, after 1 in 10 of their workforce have been pinged to self-isolate by the NHS Covid app. Customers could start to see shortages of meat products according to the British Meat Processors Association (BMPA).

Debt mountain

Small shopkeepers are struggling under a growing pile of debt, with indie businesses now owing 4 times as much as they did a year ago. Bill Grimsey, ex-boss of Wickes, and Iceland, warns we could see a “tsunami” of closures unless the government steps in. He’s calling for a forgiveness scheme for viable businesses, to write off the state-backed loans they took out during the pandemic.

Addicted to printing money?

The Bank of England risks becoming addicted to quantitative easing (QE), under which it creates new money to buy up government bonds. That’s according to the House of Lords, who want to see the Bank’s plans to wind down its pandemic bond-buying programme. They reckon there’s a risk it could lead to higher inflation and widen the wealth gap by boosting asset prices.

Help for hospitality

Pubs and restaurants are set to get extra help to recruit staff from the government as part of a post-pandemic boost. The plans come amid concerns about staff shortages, as many immigrant workers left the UK during lockdown. They’ll try to get young jobseekers into hospitality jobs as a long-term career option.

Self-employed people who received government grants during the pandemic are struggling to get approved for a mortgage. Brokers reckon people who work in sectors like travel, entertainment, and hospitality are the worst affected. Many lenders are also demanding higher deposits; Metro Bank, for example, says customers who have taken a grant will need a 20% deposit.

Hiring boom

The number of workers on payroll went up by 356,000 in June to 28.9 million - the highest it’s been since last April. At the same time, the number of people on furlough has halved as businesses reopen after lockdown.

Vacancies soar

The hiring spree isn’t over yet - there were 862,000 job vacancies posted between April and June, which is back above pre-pandemic levels. All but one industry saw an increase in job ads in the second quarter.

Inflation accelerates: Annual inflation hit 2.5% in June as the economy continues to open up. That’s the highest it’s been for 3 years, and the second month in a row above the Bank of England’s target of 2%. The price rises were driven by increasing fuel and food costs. The Office for National Statistics says clothing, footwear, and second hand cars are also going up in price, at a time of year when they’d normally be cheaper.

Foreign aid cut

Parliament has backed a temporary cut to foreign aid to help pay for the cost of the pandemic. MPs voted to reduce the UK’s aid commitment from 0.7% of GDP to 0.5%. Boris Johnson won over many MPs who weren’t sure about the cut, by promising to reverse the cut once public debt is falling and the country is no longer borrowing to fund day-to-day needs.

Back to work rules

Bosses are still waiting for guidance from the government about how to manage a safe return to office working. It was meant to be published yesterday - but publication was delayed. Top businesses have called out the “mixed messaging” from the government, warning that the lack of clear guidance could dent confidence and delay economic recovery.

Binance stops withdrawals

Cryptocurrency trading platform Binance has suspended withdrawals of British pounds and euros after an issue with its payments provider. Last month, the Financial Conduct Authority (FCA) ruled that Binance isn’t allowed to conduct any regulated activity in the UK, although users here can still buy and trade cryptocurrencies on its platform.

A major nightclub chain has said it won’t ask for vaccine passports or a negative coronavirus test at its 42 venues which include Pryzm and Bar&Beyond. Clubs will be able to reopen from Monday and have been advised by the government to check clubbers’ coronavirus status on the door. But REKOM UK says testing would get in the way of a good night, and that its clubs are well ventilated and well cleaned.

London rents surge

Rental prices in the capital went up 4.3% in June* in the biggest monthly increase in 7 years. Tenants are returning to London as offices start to call workers back and the city’s social scene comes back to life. But the impact of the pandemic means the rent on an average inner London home is still £415 per month less than this time last year.

Retail rebound

Shops enjoyed a massive surge of growth in April to June, as shoppers set new records on the high streets. Sales increased 28.4% compared to 2020 - the biggest annual rise ever - and were 10.4% higher even than 2019. The data comes from the British Retail Consortium (BRC), whose members are mainly supermarkets and large chains.

Masks on trains?

From Monday, bus and train companies must make their own rules about wearing face coverings while on board. Masks have been mandatory for the past year, but now the government is scrapping the rule, and replacing it with guidance to mask up on busy services.

Care less about work since coronavirus? You’re not alone. Almost half of employees are less career-focused than before the pandemic according to a survey by Aviva. As well as caring less, 40% are worried about burning out, blaming the increasingly blurred lines between work and home.

Home sales collapse

Exchanges fell by more than half* in early July, after the stamp duty holiday came to an end. According to Knight Frank, the number of sales going through is at around 60% of its usual level for this time of year. Unless it’s their first property, buyers must now pay the tax on anything over £250,000, cutting the possible saving from £15,000 to £2,500.

Wealth gap widens

Household wealth grew by £900 billion during the pandemic - but most of it went to the richest, according to thinktank the Resolution Foundation. The richest 10% of adults gained over £50,000 each on average, widening the existing wealth gap even further. They benefited from saving more, paying off debt, and seeing their homes gain 8% in value.

Business confidence jumps

Business optimism is growing ahead of the 19th July lifting of lockdown restrictions, according to a survey by BDO. Firms are at their most confident since 2005, with big hiring plans to match. Two thirds of firms expect business to pick up in the coming year and they’re also planning to raise wages.

Bookings for holidays to amber list destinations have surged by 400% according to EasyJet. This follows the government’s announcement that anyone returning from an amber list country from 19th July who is fully vaccinated will no longer be required to quarantine. Mainland Spain, the Canary Islands, Portugal, and Greece are all on the amber list.

TikTok clamps down

TikTok has banned the promotion of all financial services* and products across its platform globally. The social media company said this includes cryptocurrency, investment services and foreign exchange. The decision comes amid concern that young people are taking on too much risk when investing, in part due to misleading information on social media.

Eating out to help out

The UK’s economy grew by 0.8% in May, driven by huge growth in the hospitality sector as lockdown restrictions were eased. It’s the fourth consecutive month of economic growth, however it represents a slowdown from April, and the economy is still 3.1% below pre-pandemic levels.

Government ministers are set to approve a policy that will allow travel from amber destinations without isolating for up to 10 days. It will apply to travellers who can prove they’re fully vaccinated, provided they do a test before flying and on the second day after their arrival. This comes as welcome news for the travel industry, which has been hit hard by the coronavirus pandemic.

UK adviser bias

Research from Quilter Investors has shown UK investor portfolios to be biased towards domestic investments. The UK has been the worst performing major equity market of 2020. Moreover, investors who receive financial advice had an even higher tendency towards home bias in their portfolios.

Who gets hit the hardest

The Bank for International Settlements (BIS) found that countries with higher income inequality recover from recessions less effectively than lower inequality nations. In more equal countries, monetary policy proves more effective. The economists’ view is that only a more holistic framework, one including better safeguards for firms and individuals can improve economic stability.

Violence’s coming home

A study has found that football matches starting at midday link to domestic abuse. It has found a 5% fall in domestic abuse incidents during the two-hour duration of a game. After the game abuse started increasing. It peaked about 10 hours after a game started, with about 8.5% more incidents than average at that point. The day drinking associated with football matches can amplify existing domestic abuse in both frequency and intensity.

House prices dipped slightly as the stamp duty holiday wound down at the end of June. The tax break meant that home buyers were spared paying any stamp duty on the first £500,000 of their property price. Purchases that complete before October will still benefit from reduced stamp duty, with the tax only kicking in at £250,000. House prices have still risen over the last year by almost 9%.

Gloom looms for spoons

Despite England’s performance in Euro 2020 being a boon for most pubs, Wetherspoons, which has not televised most matches, has seen the decline of its sales double. Even during the tournament, sales are down 20% on pre pandemic years. The company has also indicated that it will raise its food prices in the near future, as a temporary cut in the VAT rate to help businesses deal with the pandemic disappears over the coming year.

The nuclear option

Households in the UK could see higher energy bills as the government looks for ways to fund the building of new nuclear power plants. One £20 billion plant is planned for England’s east coast, and would produce enough electricity to power 6 million homes. The government sees the building of new nuclear power plants as key to achieving the UK’s target of zero net emissions by 2050.

Welsh wine shines

A “deliciously fresh” pinot noir has become the first Welsh vintage to win gold at the Decanter World Wine Awards. The wine competed with more than 18,000 other wines in blind tasting, with 635 gold medals being awarded in total. The result comes on the back of increasing success for UK winemakers, with an English sparkling wine winning one of a select number of “best in show” awards at the same competition.

86% of Iceland's workforce have either moved to shorter hours for the same pay, or will gain the right to, thanks to trials that were declared an "overwhelming success" by researchers. The government ran trials between 2015 and 2019, paying workers the same amount for shorter hours. In the majority of cases, productivity remained stable or increased.

London homebuyers return

Estate agency Knight Frank claims that homebuyers are returning* to the London suburbs as lockdown eases. Last year, London prices didn’t see the same boom as the rest of the country - but transactions last month were 86% higher than the 5 year average.

Back in the office

Government guidance to work from home is set to end with other restrictions. Human resources body CIPD says this "shouldn't signal a mass return to workplaces", but instead “the start of greater freedom and flexibility” in how we work. Others are hoping for a lot more office workers - their absence has been a "real challenge" for local shops, cafes, and pubs, according to the Centre for Cities think tank.

Later today, Boris Johnson will set out the final lockdown easing plans for England on 19th July. He’s expected to give new guidance on working from home and wearing face coverings, but will emphasise that Britons will have to “learn to live” with Covid as cases rise with the reopening of society.

Landlord John Lewis

Retailer John Lewis will build 10,000 rental homes over the next few years as the company looks to diversify into the residential property market. Tenants will have the option to rent the homes fully furnished with John Lewis products and they’ll all have a Waitrose store nearby. The first homes are planned for the South East of England.

Morrisons bidding war

Supermarket chain Morrisons has agreed to a £6.3bn takeover bid led by US private equity firm Fortress Investment Group in what would be considered the biggest shakeup of the UK grocery sector in over a decade. This could spark a bidding war, with rival private equity firm Apollo* now considering making an offer to buy the retailer.

15 years to take action

Housing Secretary Robert Jenrick has said that homeowners in England and Wales will be given 15 years from when a property is built to take legal action against developers for poor building work. This is an increase from the current 6 years. The extra protection for home buyers comes in response to the cladding crisis that was brought to light by the Grenfell tragedy.

George Cross for the NHS

The Queen has awarded the George Cross to the NHS to mark seven decades of public service. It’s the UK’s highest award for gallantry and heroism and it follows a particularly challenging year for the NHS in the face of the Covid-19 pandemic.

130 countries have agreed to overhaul tax systems to make big companies pay their fair share. All G20 countries - including the US, UK, and China - backed the deal. Negotiators proposed a minimum corporate tax rate of at least 15%. The US Treasury Secretary is happy, saying international tax competition and the “race to the bottom” is coming to an end.

No EU access for City

Chancellor Rishi Sunak has suggested that Britain's financial services sector won't get access to the EU's markets, and that he has given up on the equivalence deals that he wanted. Instead, he plans to make the most of the UK’s freedom to set its own rules.

New UK job ads

200,000 new job ads were posted in the final week of June, and there are now 1.5 million job vacancies across the country. As the post-pandemic economic recovery begins, the Recruitment and Employment Confederation (REC) described the demand for staff as “buoyant”.

Rich vs Jeff

Virgin Galactic’s Richard Branson has announced he will take off into space on 11 July. He’s aiming to beat fellow billionaire Jeff Bezos by just nine days. Virgin Galactic’s fourth trip to space will launch from New Mexico, and Bezos will launch from West Texas on the 52nd anniversary of the Apollo 11 moon landing.

The Treasury has revealed plans for the world’s first green bond. The interest rate is yet to be set, but they will be available to anyone aged 16 or over through National Savings and Investments (NS&I). The money raised through the new product will likely help finance the UK’s net zero push.

Robinhood penalty

The retail trading platform has been ordered to pay $70M in penalties for causing “widespread and significant” harm to its customers. This is the largest penalty ever issued by The Financial Industry Regulatory Authority. The Wall Street regulator alleges multiple failures, including technical problems costing customer money, allowing customers to trade inappropriately risky products, and giving misleading information.

Furlough wind down

Today, employers start paying some of the costs of furlough. With 1.5 million workers still on furlough, The Institute for Fiscal Studies (a think tank) believes this could prompt layoffs. The Treasury responded to say that furlough funding is still "substantial", “in place until September”, and “amongst the most generous schemes in the world”.

Right to repair

New rules mean manufacturers of washing machines, TVs, and fridges, will have to make spares available to consumers. The government says the aim is to extend the lifespan of products by up to 10 years. Higher energy standards also should mean savings on energy bills - but some say this could result in white goods getting pricier.

Nissan bets on UK

The company has pledged $1.4 billion with its Chinese partner to build a giant battery plant in Sunderland. It will power 100,000 vehicles a year, and it’s estimated that it will create 6,200 jobs at the plant and in British supply chains.

Investing is the best way to grow your money over the long term. It’s great for your big picture goals like sending your kids to uni or retiring early.

Around half of first-time buyers on Multiply are investing already, and the other half are interested in giving it a go. Whichever group you’re in, we’re talking to you.

Whether you’re investing already or you’re keen to get started, it’s important to understand how it could fit alongside your homebuying plans.

Should I invest my deposit?

Here’s the thing: we don’t recommend investing as a way to build your deposit.

Why? Because of volatility. The value of your investments can go down as well as up. That’s not a problem over the longer term, but it can cause problems for homebuying, which is generally a shorter term goal with a more specific target date.

If some or all of your deposit savings are invested in stocks and shares you run the risk of their value taking a dip, leaving you unable to afford the home you want, when you want.

After a loss like this, you’d either need to adjust your budget and look at buying a cheaper property, or push your purchase back and wait for the market to recover.

You might decide you’re comfortable with these risks. If you plan to use any kind of investments towards your deposit, make sure you:

• Keep good accounts to show your mortgage broker or adviser
• Withdraw your investments in good time to show proof of funds

How much should I invest?

We recommend investing money you don’t plan to use towards your deposit. If you’re thinking of diverting some of your monthly savings into investments, check out the goal-setting tool in the app to see how this will affect your homebuying target date.

We also strongly recommend that before you get started with investing, you pay down any high-interest debt build up some emergency savings.

What should I invest in?

When you invest with Multiply, your money is invested into funds rather than individual stocks and shares.

Investing into funds is a simple way to diversify your investment portfolio. A fund contains lots of different investments, and pools your money with other peoples’ to invest across lots of different assets.

We’ll help you assess your risk profile in order to recommend funds that are suitable for you.

Open your stocks and shares ISA or general investment account to find out what investments we recommend for you.

Taxpayers could lose tens of billions to fraud and error with coronavirus support measures. A committee of MPs found that a lack of scrutiny on schemes such as the business bounce back loans have meant up to £27 billion could have been given away wrongly. HMRC has launched 13,000 probes to investigate businesses that might have abused the support measures.

Saving spree

Brits went on a saving spree in the first three months of 2021, as lockdown shut off spending. The savings rate jumped to 19.9%, the second highest on record after April-July 2020. The savings rate is calculated as a proportion of disposable income, which is the amount left over after essential costs like rent.

Mortgage switching slumps

Borrowers could be paying thousands extra in interest by sticking with the same lender* when their fixed rate deal ends. 150,000 product transfers were sold in January - the highest on record. These are deals offered by your existing lender with no need for a new affordability check: good news for anyone furloughed or earning less. But brokers warn that sticking with the same lender could mean missing out on the best deals.

Green list islands

Malta, Madeira, the Balearic islands all joined the UK travel green list this morning at 4am, meaning people can go on holiday there without needing to quarantine on the way home. They’re joined by far-flung islands including Bermuda, the Caymans, and Barbados. They’ll be under constant review though - and could be moved back to amber at any time.

House prices have gone up 13.4% in the past year according to mortgage lender Nationwide. That’s the fastest annual rise since 2004. The average UK home now costs £254,432 - up 0.7% from May. Northern Ireland and Wales saw the biggest rises, with price growth of 14%, while London and Scotland lag behind.

Higher stamp duty

The rapid rise in property prices has pushed 1.8 million homes into a higher stamp duty bracket, according to Zoopla. The land tax is calculated based on the sale price of the property, but the stamp duty holiday has meant no tax to pay on the first £500,000. The spike in buyer activity has pushed prices up, meaning more homes are over the threshold for paying the tax in normal times.

Money confidence

Financial jargon is a major barrier to investing for many people, according to a survey by TSB. 35% of Brits say they have low or no confidence in their financial abilities, and 30% say jargon makes financial products confusing.

Facebook tops $1 trillion

Facebook has joined the trillion club after escaping 2 antitrust lawsuits. The judge threw out the legal challenges last night, saying there wasn’t enough evidence that the social media giant is a monopoly. It’s a major blow to regulators’ hopes of reigning in powerful tech companies. Facebook’s shares climbed 4% on the ruling.

Conveyancers are warning that thousands of property transactions could fail to complete by 30th June, putting chains of sales at risk. Homebuyers are attempting to get over the line before the end of the stamp duty holiday. And if they can’t? They’ll be hit with tax bills of up to £15,000. It’s feared many buyers would be unable or unwilling to pay and decide to pull out instead.

Binance banned

The world’s biggest crypto exchange has been banned from operating in the UK by the Financial Conduct Authority (FCA). Binance won’t be allowed to advertise here or set up a UK-based team. However, customers will still be able to access their crypto accounts. The move rumoured to be the first in a string of crypto crackdowns to try and combat rising financial crime.

Business help ends

Small businesses have called for more help to bridge the 18-day gap after support winds down. Crucial measures such as business rates exemptions will end on 1st July, but social distancing rules stay in place until the 19th. Many companies had budgeted for being able to trade as normal from 21st June, and will now struggle financially, according to the Federation of Small Businesses.

Get the adviser view on the week’s homebuying headlines.

This week in homebuying

More buyers are paying the asking price (or more) for their home than ever before. 37% of homes that changed hands in January went for at or above asking price - that figure is usually around 25%. We reckon things are likely to calm down again soon when stamp duty holiday fever wears off.

Mortgage rates are still low, and likely to stay that way, which is good news for anyone looking to take out a mortgage in the near future. The Bank of England voted yesterday to keep the base rate at its record low of 0.1%.

But brokers are warning buyers to watch out for so-called “honeytrap” mortgages, which tempt you in with a low headline rate and then sting you with high fees. Check out your plan to see an example deal you’d be eligible for, including the monthly repayments and any fees attached.

Trending in the app

When you set your target in the Multiply app, you can tell us where you’re looking to buy and we’ll show you homes in your budget in that area.

Some places are more popular than others. Check out the top 10 places Multipliers want to get away from, and where they want to move to:

The homebuying headlines

Record asking prices

Property asking prices have risen again for the third month in a row according to Rightmove. The property site says the average asking price has hit a new record of £336,073 after rising 0.8% in June. Some property experts reckon the boom might be starting to slow down though, as the stamp duty holiday comes to an end.

Honeytrap mortgages

Brokers are warning home buyers to watch out for “honeytrap” mortgages* that seem like good deals but come with high fees. In a race to offer the most attractive deals, lenders advertise a competitive headline interest rate - but the extra product fees can outweigh any savings. The average fee on a fixed-rate mortgage is now £1,075, up £57 from last year.

Achieving asking price

37% of homes that changed hands in January 2021 were sold at or above their asking price, according to Rightmove. That’s a record high - usually only around 1 in 4 sellers achieve their asking price. Even homes that sold for below asking price in January achieved 98% of the amount the seller was hoping for, on average.

37% of homes that changed hands in January 2021 were sold at or above their asking price, according to Rightmove. That’s a record high - usually only around 1 in 4 sellers achieve their asking price. Even homes that sold for below asking price in January achieved 98% of the amount the seller was hoping for, on average.

Green list

Ibiza, Majorca, Malta and Madeira are among the 16 new holiday spots added to the green list for travel. From Wednesday, you can travel there without needing to quarantine for 10 days on the way home. Travel bosses say the changes don’t go far enough and question why destinations such as the Canary Islands and Greece remain amber.

Inflation warning

The Bank of England has warned that inflation will break 3% this year as the economy reopens further - but only temporarily. For now, the Bank has decided to keep its stimulus pumping into the economy and hold the base rate at its record low of 0.1%. That means no increase to loan or mortgage rates - for now.

Ethnic pay gap

Business lobby groups, trades unions, and the human rights watchdog have called for ethnicity pay gap reporting. In a letter to Michael Gove, they say mandatory reporting of pay disparities would help to spark action by employers. Big companies have had to report on their gender pay gap since 2017. The data has exposed differences in pay between men and women and the lack of women in senior roles.

The traffic light system is due to be updated today, revealing which countries are joining the green list to allow quarantine-free holidays. The travel industry says people who’ve had both jabs should also be able to skip the 10-day isolation on the way home from amber list countries. But German Chancellor Angela Merkel has thrown a spanner in the works by suggesting that Brits should quarantine on arrival in the EU to slow the spread of the Delta variant.

Honeytrap mortgages

Brokers are warning home buyers to watch out for “honeytrap” mortgages* that seem like good deals but come with high fees. In a race to offer the most attractive deals, lenders advertise a competitive headline interest rate - but the extra product fees can outweigh any savings. The average fee on a fixed-rate mortgage is now £1,075, up £57 from last year.

FCA overhaul

The Financial Conduct Authority (FCA) has promised to do better, after a committee of MPs demanded more protection for consumers. They slammed the FCA for failings in dealing with the mini-bond scandal, in which thousands of savers lost money when London Capital and Finance went bust. The committee reckons a change in the FCA’s culture is needed to protect consumers from future scandals.

5 million new people became millionaires in 2020, boosted by recovering stock markets and soaring house prices. There are now 56.2 million people in the world with over $1 million in wealth according to Credit Suisse. Despite the economic damage wrought by the pandemic, wealth held steady for the first half of the year and then grew rapidly in the second half - overall, total global wealth grew 7.4% in 2020.

Happy bosses

UK employers are feeling more confident about the economy than they have in almost 5 years according to the Recruitment and Employment Confederation. Optimism is riding high on the loosening of coronavirus restrictions. The only thing they’re worried about? A shortage of staff to fill vacant roles.

No jab, no entry

Morgan Stanley is planning to ban staff and clients who aren’t fully vaccinated from its New York offices. The Wall Street giant is urging its workers to return to the office - but only if they’ve had both jabs. The rule should allow the bank to do away with social distancing and face coverings in its workspaces.

Selling Channel 4?

The government is considering selling off Channel 4, which could lead to the broadcaster being privatised as soon as next year. It’s state-owned by 90% funded by adverts. It also wants to look at clamping down on streaming services such as Netflix and Amazon Prime to subject them to the same bias and accuracy rules as the BBC, ITV and Sky.

Brits who’ve had both jabs could be allowed to go on quarantine-free holidays from August. We’ll get more details on Thursday when the government shares its first review of the traffic light system. It’s unlikely that many countries will be added to the green list, but fully vaccinated people might be free to visit amber countries without quarantining on the way home.

Borrowing falls

The government borrowed less in May thanks to a cheaper furlough bill and a higher tax take from VAT and fuel duty. Public borrowing for the month was £24.3 billion according to the Office for National Statistics. That’s £20 billion less than the same month last year, and a drop from April too.

Hedge fund closes

A London hedge fund that bet against GameStop in January is closing down, after suffering double digit losses. White Square Capital will shut its main fund this month and return investors’ money. It’s one of the first closures of a hedge fund after losing out to meme stocks. GameStop was targeted by Redditors, who drove up the price from $20 a share to over $480 in a few weeks.

No lunch

A Michelin-star restaurant in London has become the latest to stop its lunch service because it doesn’t have enough staff to serve it. Pied a Terre says it will no longer open at lunchtimes due to shortages. Hospitality is struggling to recruit new people because so many have left the industry, the UK, or both, after the double whammy of Brexit and coronavirus.

Property asking prices have risen again for the third month in a row according to Rightmove. The property site says the average asking price has hit a new record of £336,073 after rising 0.8% in June. Some property experts reckon the boom might be starting to slow down though, as the stamp duty holiday comes to an end.

Flexible season tickets

Working a few days a week from the office? New flexible season tickets are now on sale, allowing commuters to travel on eight days within a month. They’re part of a planned government shake up of the railways, but they’re being released now to meet post-pandemic demand for more home working.

Amazon wants Morrisons?

Private equity firm CD&R is keen to buy Morrisons, but could face a bidding war with Amazon and rival private equity firms. The supermarket rejected CD&R’s initial offer of £5.52 billion on Saturday. It wants more, along with assurances on the safety of its workforce and pension fund.

Get the adviser view on the week’s homebuying headlines.

This week in homebuying

We’re close to the end of the stamp duty holiday, with less than 2 weeks to go before the threshold for paying the tax drops from £500,000 to £250,000. That means many buyers are rushing to complete before the 30th June deadline, and some are even skipping essential steps like getting a survey done.

The economic impacts of the pandemic are still hitting aspiring homeowners from all sides. With the over-50s facing higher redundancy rates than any other age group, many can no longer rely on a leg up from the Bank of Mum and Dad.

Plus, higher mortgage rates could be on the horizon if another Bank, the Bank of England, decides to respond to rising inflation by putting up the base rate.

The good news? Renting’s cheaper than buying (for now). Average rent payments are lower than mortgage payments for the first time since 2014, which could give savers the chance to stash a bit extra each month.

Trending on the app

We had a little look at the targets people set in our app. Here's what we found:

• First-time buyers aim to save their deposit in just under 3 years on average. In London it's 5 years, and in Edinburgh and Brighton people save for 4.
• The average age to start planning to buy a home is 25, and at this stage it's typical to have around £5,000 saved up so far.
• Many buyers are looking to leave London in search of more space. But where are they going? Our data shows that the top 10 towns Londoners want to move to are:

1. Romford
2. Maidstone
3. Slough
4. Basildon
5. Edinburgh
6. Saint Albans
7. Milton Keynes
8. Brighton
9. Manchester
10. Bristol

The homebuying headlines

Here's what happened this week, and what we made of it.

Renting's cheaper than buying

It’s cheaper to rent than to buy a home for the first time in 6 years, according to Hamptons. The estate agent reckons that in March 2020, buyers with a 10% deposit would end up £102 a month better off on average by buying a home. But falling rents mean it’s now cheaper to rent a home in most of the UK.

BOMAD dries up

Thousands of first-time buyers are putting their plans on hold* as the “Bank of Mum and Dad” (BOMAD) tightens its belt. Half of first-time buyers fear that cash gifts from family will be hard to come by after the pandemic. Why? Parents are under financial pressure now too, with over-50s the most likely to have lost jobs in recent months.

Inflation jumps

The inflation rate rose to 2.1% in May, fuelled by rising clothing and petrol prices. It’s now above the Bank of England’s 2% target for the first time since summer 2019. Inflation was expected to go up as the economy reopens and people start to spend more - but not by this much.

Moving companies overwhelmed

Removal firms are entering their busiest weeks ever, as homebuyers race to complete before the stamp duty holiday ends. Many say they’re overwhelmed and turning people away. Rightmove reckons 700,000 home sales are nearing completion in the UK - if they can complete before 30th June, they stand to save up to £15,000 but Zoopla estimates 50,000 won’t make it.

Stamp duty deadline approaches

Frazzled home buyers are cutting corners* to try and complete before the deadline. Conveyances say some are skipping essential surveys that check for flood risks and Japanese knotweed - problems that could cost thousands down the line.

Spike in offset mortgages

More borrowers are using their lockdown savings to reduce the interest they pay on their mortgage. Brokers are reporting a spike in applications* for offset mortgages, which save you interest in the same way as making overpayments does without tying up cash savings.

Spending in supermarkets dipped in May as people piled into restaurants and pubs rather than cooking at home. Retail sales suffered a shock drop of 1.4% - they’d been predicted to keep growing. They’re still well above pre-pandemic levels though, thanks to last month’s bumper 9% rise.

Stamp duty deadline

Frazzled home buyers are cutting corners* to try and complete before the stamp duty deadline at the end of June. Conveyances say some are skipping essential surveys that check for flood risks and Japanese knotweed - problems that could cost thousands down the line. If they can complete before 30th June, they stand to save up to £15,000 - but experts are warning that many won’t make it.

Export “disaster”

British food and drink exports to the EU fell by £2 billion in the first 3 months of 2021, with dairy exports plummeting by 90%. Just a blip? Not according to the Food and Drink Federation (FDF) which calls the loss a disaster and says its a structural issue with Brexit rather than just teething problems.

Offset mortgages

More borrowers are using their lockdown savings to reduce the interest they pay on their mortgage. Brokers are reporting a spike in applications* for offset mortgages, which save you interest in the same way as making overpayments does without tying up cash savings.

Missed our webinar on mortgage success? No stress, we’ve rounded up the most popular questions that people put to our advice team, so everyone can enjoy the answers.

Q: Should I close my credit card account?

I currently have one that I’m thinking of getting rid of because I ever use it.

Dan from Multiply:

Having a credit card with no balance will not impact your ability to borrow, or the amount you can get. Using it a little bit and clearing the balance each month looks good to lenders because it shows you can borrow and repay.

Q: Is there any value in paying a mortgage broker?

I've heard you can access the same deals online.

Dan from Multiply:

It’s fine to go without a broker if you’re happy to deal with the whole process yourself and you are absolutely sure they can’t get you a better deal. However, in my experience, a good broker should usually be able to get you a better deal.

Q: What impact does a payday loan have on a mortgage application?

I've heard it stops mattering after six years but I'm not sure when this counts from.

Peter from Multiply:

Lenders generally don't like payday loans, as they indicate that something may have happened that required a quick solution. However, the six years you mention seems very harsh - generally only Debt Management Programmes and CCJs remain on your credit file for that long. Each lender has different rules, but basically the longer ago it was, the better. If it was more than three, it should not prevent you from getting a mortgage offer, even if it’s not the best deal. However, we'd recommend you take advice from a mortgage broker.

Q: What’s the best way to show proof of savings?

We’ve been saving for 2 years - are bank statements enough?

Dan from Multiply:

Yes, bank statements will be fine to show as evidence of your deposit savings. They will also want to see statements for all of your active bank accounts.

Q: Is day trading negative for your mortgage application?

I'm getting an income from trading but I'm not sure how a lender would view it.

Dan from Multiply:

The lender would not view it as guaranteed income, so it doesn’t count towards your affordability. However, the money you put into it does count as outgoings. That means you wouldn’t be able to borrow any more based on your day trading income, and the money you put into it might even count against you a lender's eyes.

Still got questions?

We're holding live webinars every Tuesday in June to help you get onto the property ladder. You can book your free Zoom ticket now for our sessions on Finding "the One" and Sealing the Deal.

You can also watch all of our previous webinars on YouTube, including this week's session on Mortgage Success.

People who’ve had both jabs could return from amber list countries and skip the 10-day quarantine under plans being considered by the government. Most popular holiday destinations are currently on the amber list, and official advice says not to travel to them. But looser restrictions could see travellers using the NHS app to prove their vaccine status.

Movers overwhelmed

Removal firms are entering their busiest weeks ever, as homebuyers race to complete before the stamp duty holiday ends on 30th June. Many say they’re overwhelmed and turning people away. Rightmove reckons 700,000 home sales are nearing completion in the UK.

Named and shamed

Jodie Marsh, Chloe Khan, Lucy Mecklenburgh, Chloe Ferry and others are in trouble for flouting ad rules. The Instagram stars were named and shamed by the Advertising Standards Authority for not clearly marking their paid posts as adverts, and they risk being fined or having their posts deleted.

Airline action

Ryanair and the Manchester Airports Group are taking legal action against the government over its traffic light travel system. They want more transparency around how countries make it onto the green list - and why they can suddenly be taken off it again.

Right to remote work

Employees could win the right to work from home permanently under plans being considered by the government. Bosses wouldn’t be able to force staff to come into the office unless they can prove it’s essential. Other plans include flexible start and finish times.

The UK risks missing out on the booming electric car market, leaving us reliant on imported vehicles. In 2018, half of Europe-made electric cars were built in the UK. By the end of the decade, that figure could be just 4%, according to the Transport & Environment group. It reckons UK manufacturers aren’t investing enough and will be left in the slow lane by 2030 when petrol and diesel cars are outlawed.

BOMAD dries up

Thousands of first-time buyers are putting their plans on hold* as the “Bank of Mum and Dad” (BOMAD) tightens its belt. Half of first-time buyers fear that cash gifts from family will be hard to come by after the pandemic. Why? Parents are under financial pressure now too, with over-50s the most likely to have lost jobs in recent months.

Inflation jumps

The inflation rate rose to 2.1% in May, fuelled by rising clothing and petrol prices. It’s now above the Bank of England’s 2% target for the first time since summer 2019. Inflation was expected to go up as the economy reopens and people start to spend more - but not by this much.

Asda refills

Asda is expanding its refill scheme to more stores, after a successful trial in Leeds. The supermarket said many of the refillable products outsold packaged options, with shoppers keen to cut down on their plastic use. Many others including Morrison’s, Waitrose and M&S are trialling similar ideas, allowing people to bring their own containers from home to fill in-store.

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The hospitality industry has warned the 4-week delay to lifting restrictions is very bad news for businesses’ finances, with many having to cancel a month of sold-out events. Clubs were due to reopen on 21st June, but will now have to wait until 19th July. Wedding venues and planners are having a slightly better day though, after Boris Johnson confirmed that celebrations would still be allowed to go ahead with unlimited guest numbers.

May payday

197,000 new employees were added to company payrolls in May, in a record-setting surge. That figure comes from tax data, and it’s backed up by official stats: the overall unemployment rate fell to 4.7% for the three months to April. However, the furlough scheme is still paying the wages of an estimated 2 million workers.

G’day trade

The UK and Australia have agreed a new trade deal - our first big one since leaving the EU. As well as supporting the trade of goods between the two countries, the deal expected to revamp visa requirements to make it easier to migrate both ways.

It’s cheaper to rent than to buy a home for the first time in 6 years, according to Hamptons. The estate agent reckons that in March 2020, buyers with a 10% deposit would end up £102 a month better off on average by buying a home. But falling rents mean it’s now cheaper to rent a home in most of the UK.

Freedom day delayed

The current coronavirus restrictions are set to stick around for another 4 weeks after 21st June, as “freedom day” is pushed back. Later today Boris Johnson is expected to confirm the delay to the next and final stage of unlocking. It means social distancing measures will remain, and nightclubs will stay shut.

Women’s hours increase

More women are in full time work now than before the pandemic, bucking the trend for falling working hours. The Resolution Foundation found that, on average, the employment rate among men has dropped 2.4%, and just 0.8% among women. The think tank reckons it’s because women dominate public sector jobs in health and education. Plus, whose without children are working an average of 5% more hours than before the crisis.

Show can go on?

Theatres are close to agreeing a deal with the government for state-backed insurance. They say the scheme would allow shows, concerts, gigs, and festivals to go ahead. A lack of insurance has been a major barrier to events restarting after lockdown, because no insurance companies are providing coronavirus cancellation cover.

The economy jumped 27.6% in April compared to April 2020 according to official data from the Office for National Statistics. That’s the biggest annual rise on record. Hairdressers, holiday accommodation and hospitality led the charge, enjoying a huge surge in business. Output rose 2.3% month on month, which is the fastest rate since July. The recovery is gathering pace, but the economy is still 3.7% below pre-pandemic levels.

Lack of homes for sale

The gap between the number of buyers and properties on the market is at its widest since 2013*. That’s according to the Royal Institution of Chartered Surveyors (RICS). A lack of homes for sale has created an imbalance between demand and supply, according to estate agents. And it’s a vicious cycle, as home movers decide against putting their home up for sale in case they can’t find their next place.

Selfridges on the market

Fancy buying the iconic department store? You’ll need to find more than £4 billion to beat the current bid. Selfridges owners the Weston family are considering selling after being approached about a takeover. It’s been a tough year even for top end shops, with retail and travel restrictions taking their toll on sales.

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Student loans: Making graduates repay their student loans sooner would save the government £4 billion a year according to a new report. The government wants to cut costs on student loans, and this proposal comes from Nick Hillman, the adviser who helped design the current £9,000-a-year system. His new report suggests graduates start repaying their loans once they earn over £19,000 a year - it’s currently £26,000.

Atlantic Charter: US President Joe Biden arrives in the UK today, for talks in Cornwall as part of the G7 summit. He and Boris Johnson will sign the Atlantic Charter, a new pledge modelled on the 1941 agreement between Churchill and FDR. It’ll see the two leaders commit to working together on global challenges like climate change and the post-pandemic recovery.

Rogue coronavirus testers: Travellers to the UK are falling foul of rogue testing firms touting misleading price and availability information. Arrivals have to get tested on day 2 and day 8 after landing in the UK. But consumer group Which? found some government-approved test providers are quoting prices for just 1 test, or marketing testing slots that don’t yet exist.
Investors want climate action: A group of investors controlling £29 trillion in assets have signed a joint statement calling for governments to do more to cut carbon emissions. The 457 investors include the biggest British asset manager and together they hold almost a third of the world’s assets. It’s the largest group of investors ever to join a united call for action to limit the damage from climate change.

BA and Ryanair are under investigation by the consumer watchdog for failing to offer refunds to passengers who couldn’t take their flights. During the pandemic, travel restrictions meant that many people were lawfully unable to fly. By only offering rebooking or vouchers, they may have breached consumer law - and now the Competition and Markets Authority (CMA) has opened enforcement cases against them.

Mortgage mayhem

Mortgage deals are now only on the market for 28 days* on average, giving buyers less time to secure a deal. Amid a rush to complete before the end of June, lenders are continually cutting rates and making new deals available. But swapping to a new mortgage deal at the last minute can slow things down and risk delaying completion.

Green investments

The UK has taken a step towards labelling green investments properly, with a new working group that’ll look at how to classify climate-friendly assets. Its aim? Stop the “greenwashing” of investments that claim to be sustainable but don’t walk the walk. It’ll come up with a new taxonomy, setting the bar for investments that deserve the green label.

Pop-up campsites

Landowners and rural businesses are calling on the government to allow “pop-up” campsites amid surging demand for UK holiday accommodation. You can currently run a temporary campsite for up to 56 days without planning permission - but campaigners want to make it 6 months to take advantage of the entire camping season.

Brits have landed back in the UK from Portugal in the nick of time before the country was moved to the amber list at 4am. Airlines put on dozens of extra flights, but the scramble to re-book flights has cost some people hundreds. Returning from an amber country would mean taking 2 coronavirus tests and quarantining at home for 10 days. The government has urged people to avoid foreign travel, asking them to holiday in the UK if possible.

£275k London homes

The quiet suburb of Thamesmead is the most affordable place to buy in London - the average house price in SE28 is currently just £275,194. 5 of the top 10 most affordable postcodes are in southeast London, featuring SE2, SE25, SE18 and SE20. The priciest areas are in west London, with typical homes in Kensington going for almost £2 million.

Shopping spree

Retailers saw a big sales boost in May, as restrictions eased and people returned to high streets. Total sales for the month were 10% higher than in May 2019 according to the British Retail Consortium (BRC). Clothes, shoes, and furniture were hot ticket items, with shoppers finally able to see them after months of online-only browsing.

$82,500 floor?

A viral TikTok video of a woman’s home renovation has sparked intrigue that the poster might have missed out on a fortune. After glueing down 7,700 pennies to create a unique bathroom floor, Jordan Darian of West Hollywood was told by one of her followers that one of the pennies could be a rare vintage coin. One sold in the 90s for $82,500.

First-time homebuyers have been unable to complete purchases because of a new rule for developers. To qualify for the loan, homes reserved this year must be fully built by 31 December - at least, that’s what some homebuyers have been told by Homes England, the public body that funds affordable housing. But when the Observer called advice lines, staff insisted there was no such date.

Reduced foreign investment

Attracting foreign investment is a key aim of the current government. This year, the UK lost out to France as the most popular European destination for foreign investors for the second year in a row, amid disruption from Brexit and the pandemic. The UK had dominated foreign direct investments into Europe for the prior 18 years. C'est la vie.

Tesla sales surge

Its Model 3 has become 2021’s most popular battery electric car in the UK, pushing the Nissan Leaf into 2nd place. Electric car sales are up across rich nations, as carmakers respond to new regulations, and the threat of bans.

UK gov swipes right

Tinder, Match, Hinge, Bumble, Badoo, Plenty of Fish, OurTime, and Muzmatch, have partnered with the UK Government to add vaccine badges to their platform. Online daters can choose to display a badge that reflects their vaccination status. A YouGov poll of nearly 5,000 UK adults saw 28% of respondents say they would not date someone unvaccinated.

Aspiring homeowners who struggle to afford to get on the ladder could get their home half price from today. First-time buyers can apply for a discount of up to 50% on a new build under the government’s new First Home scheme. The first eligible properties went on the market today in Derbyshire and around 1,500 are expected in autumn. The discount is only for those with a total annual income of under £80,000 - or £90,000 in London.

Job vacancies soar

Firms are in desperate need of workers as the economy reopens, but staff are in short supply. Demand for workers has risen at its fastest rate in 23 years according to KPMG. Hospitality and tech workers are particularly hot property right now, and recruiters are urging the government to address the skills ress the skills shortage.

Car sales rev up

New car sales rose 670% last month compared to May 2020 when all dealerships were shut. 156,000 sets of wheels rolled off forecourts throughout the month, which is still lower than the 183,724 recorded in May 2019.

Tax deal

G7 finance ministers are meeting in London this weekend to try and work out a global deal for taxing tech giants like Amazon and Facebook. It’s a point of disagreement between the US and other countries, but Chancellor Rishi Sunak says he’s confident of making progress. They’ll also discuss climate change and a green recovery from the pandemic.

On Tuesday 1st June we held an exclusive webinar with The Homebuyer Coach, all about how to get started with saving for your first home.

Missed it? No worries. There are 4 more events to come - and in the meantime, here's a rundown of the key takeaways plus highlights from the live Q&A.

1. Buying a home isn't an investment

Let's bust some myths.

Myth #1: “You can’t lose”
Myth #2: “It is always better to own than rent”

You might make a profit if your property goes up in value, but it’s your home above all else. And even if the value rises, it’s irrelevant while you still live there or move within the same area.

Before taking the plunge, ask yourself if now's the right time to sink savings into a long term commitment and take on the responsibility of a large long term debt.

2. Debt can reduce how much you can borrow

Existing debt repayments can affect how much a mortgage provider is willing to lend you.

Here's an example for a couple with a total annual income of £44,000.

If you have £0 debt, your borrowing potential is £193,070.

But if you have a £350 pm car finance payment and a £2,500 credit card balance, your borrowing potential is just £157,165.

That's a difference of £35, 905 - and that kind of cash can go a long way in the property market. That's why you should aim to pay down any existing debts before applying for a mortgage.

3. Homebuyers need an emergency fund

Emergency savings can come in very handy when you move into your first home. If anything goes wrong that isn't covered by your insurance, you'll be on the hook for the costs.

Plus, mortgage lenders love to see that you have some spare cash in the bank. From their point of view, it means you're more likely to be able to cover any unexpected costs and less likely to fall behind on mortgage repayments.

Q&A highlights

Q: Should you instruct a solicitor before getting the mortgage agreed? What about the risk of losing money to the solicitors?

A: It's quite normal to start the process before you get the mortgage offer. But as you say, there is a risk you could lose money if you do not get the mortgage approved. If you're willing to possibly delay the purchase slightly, you can wait until you have the mortgage approved before instructing a solicitor.

Q: Given interest rates are so dire, where should you store an emergency savings as to not lose value? Stocks and shares seem favourable but they aren't suited for emergencies given it takes a while to withdraw the money.

A: For your emergency fund, we would always recommend cash-backed assets so that it's not at the whim of market volatility. Yes, inflation can be a problem and you can lose money over time. You should have at least 1 month's worth of outgoings in easy access accounts and for the rest you can use fixed-term accounts which often pay higher rates.

Q: I currently rent and I'm looking to buy in the north west, but my bank accounts are registered at my parents' address. Is this an issue for mortgage brokers?

A: This could cause an issue with lenders, mainly around anti-money laundering rules. We would recommend that you change the address with your bank so it matches your rental address.

Bosses could be banned from calling or emailing staff outside normal working hours under proposals from the Prospect union. It wants the government to give employees a legal “right to disconnect”. Working from home has blurred the lines between work and life for many. The Office for National Statistics says home workers did an average of 6 hours unpaid overtime each week.

Legal fees double

Home buyers are facing a spike in conveyancing costs* amid the rush to complete before the stamp duty deadline. Many solicitors are increasing their rates due to increased demand and the extra work created by delayed transactions. Hamptons estimates it currently takes 91 days from having an offer accepted to exchanging contracts - the pre-pandemic average was 82 days.

Hermes investigated

A government committee is looking into claims that Hermes couriers were forced to accept pay cuts or risk losing work. Couriers, who are paid per delivery, have also claimed that they spend unpaid time sorting parcels in order to make their deliveries on time.

Whisky exports

The UK is looking to slash the 5% tariff on Scotch whisky exports as part of trade negotiations with Australia. The Department for International Trade is aiming to strike a deal this month - the first from scratch since leaving the EU. Australia is the eighth largest market for Scotch and drank £113 million worth of drams last year.

Competition in the mortgage market seems to be hotting up, with a new 0.99% interest deal launching today from Nationwide. The 2-year fixed-rate mortgage is only for buyers with a 40% deposit, but the lender said its cutting rates on other deals too. The average two-year fixed-rate mortgage across all deposit sizes is currently 2.58%.

Supermarket price hikes

The big shop could make more of a dent in your wallet come autumn as food prices rise, the British Retail Consortium has warned. Brexit bureaucracy and rising food and shipping costs are putting pressure on supermarkets - and these price hikes will likely be passed onto shoppers.

Want EU back

Brexiter and ‘Spoons owner Tim Martin has joined industry bosses calling for relaxed visa rules for EU migrants. Pubs and restaurants are struggling to recruit enough staff, with many stopping lunchtime service. Trade body UKHospitality estimates the shortfall at 188,000 workers, after many left the industry - or the country - during the pandemic.

The Bank of England is keeping a close eye on the housing market, in case rising property prices have knock-on impacts for price inflation more generally. House prices have jumped 10.9% in the past year, according to the latest data from Nationwide. Inflation is currently at 1.5% and is expected to exceed the Bank’s 2% target for a few months as people start to go out and spend more.

Economic boom incoming

The UK economy is set to grow 7.2% in 2021 in the fastest growth spurt since WW2. That’s according to the Organisation for Economic Co-operation and Development (OECD), which previously thought the recovery would be a lot slower. It also forecasts 5.5% growth in 2022, bringing the economy back to pre-pandemic levels in the first few months of next year.

Ketchup’s coming home

Kraft Heinz plans to make ketchup, mayonnaise, and salad cream in the UK once again, for the first time in over 20 years. It’ll invest £140 million in Wigan’s Kitts Green plant to start producing the British favourites. The pandemic has squeezed the sauce maker, which had to step up production of sachets after the takeaway boom created shortages.

Cash crash

Just 7% of UK in-store purchases could be made in cash by 2024, according to a report by Worldpay. The pandemic has accelerated the switch to card and contactless payments; cash use in shops has more than halved since 2019. Other countries such as Sweden are forecast to be “almost cashless” within the next 3 years.

The sun has finally come out, but pubs are still expecting to sell 21 million fewer pints than normal this bank holiday weekend. The rain has put a damper on pub reopenings, and social distancing measures mean they can’t accept as many punters. They’re calling for all restrictions to end on 21st June - but with cases of the Indian variant rising, the decision seems to be hanging in the balance.

Mortgage support scheme

Lenders have warned that struggling homeowners are slipping into arrears† while they wait for mortgage support to kick in. The Support for Mortgage Interest (SMI) scheme helps homeowners on benefits by paying the interest on mortgages of up to £200,000. But homeowners have to wait 39 weeks after losing their job to make a claim, and lenders say it’s too late for many.

Indoor dining

Brits flocked to restaurants after indoor dining restarted on 17th May, making 32% more bookings than the same period in 2019. The proportion of employees on furlough fell to 8% in the first 2 weeks of May according to the Office for National Statistics. That’s the lowest since the start of the year.

London loses confidence

Business confidence has risen to a 5-year high in the UK - but dipped in London. The Lloyds Bank Business Barometer measures how optimistic firms are feeling about the economy. National optimism has climbed to 38%, but the post-lockdown buzz has faded in the capital where optimism has dropped to 24%.

If a financial adviser skips lunch, it could affect what they tell you to do with your money. Research by Oxford Risk found that a group of advisers gave wildly different advice to the same hypothetical client, based on factors like their mood, time since their last meal, and the weather. Also, advisers who are married or who went to uni are more likely to recommend lower risk investments.

Hospitality hiring spree

Hotels, bars, and restaurants are taking on new staff at the fastest rate since 2015, according to a survey by the Confederation of British Industry. The services sector, which also include accountancy and legal firms, makes up almost 80% of the UK’s output. Companies are optimistic about the next few months, as the economy begins its predicted bounceback from the coronavirus recession.

Pet boom

Pets at Home revenue jumped 8% in the last year, as locked down Brits turned to animals for comfort. Pet sales soared among people working from home, with many looking for ways to avoid loneliness, reduce stress, and get out for walkies.

Uber drivers unionise

Uber will now recognise the GMB Union, allowing it to represent and negotiate on behalf of its 70,000 drivers. They’ll have quarterly meetings on issues such as pay, pensions, and safety. Uber has a long history of disputes with unions, but says it puts drivers first. In March, drivers gained workers’ rights following a Supreme Court ruling.

Zoopla is projecting 1.52m home sales in 2021 - a rise of 45% on 2020. They claim their forecast is based on the largest underlying data sample of any UK house price index. Last week the Office for National Statistics reported that UK house prices had increased by 10.2% in a year. Demand for family houses outside of London is exerting upward pressure on prices.

Banks bad for climate

Greenpeace research suggests finance is one of the biggest contributors to climate change in the UK. The report claims that if the City of London were a country, it would be the ninth biggest emitter of CO2, ahead of Germany. Campaigners say without proper regulation, financial institutions are not required to align their activities with the UK’s climate commitments.

Bitcoin ad banned

The Advertising Standards Authority has banned a high-profile campaign that featured heavily across London’s transport network, which ran with the strapline “If you’re seeing Bitcoin on the underground, it’s time to buy”. The ASA received complaints that the ads failed to illustrate the risks, and were therefore misleading. The ban comes a week after Bitcoin prices plunged as much as 30% in a day.

Personal finance struggles

A new study suggests that young people are more likely to use social media platforms like TikTok and Instagram to access financial advice than go to a bank. Nearly half of 16-24 year olds wouldn’t say they were confident with their finances, and one in 10 claim to have no confidence at all. Just a fifth knew what an overdraft was, and only 5 per cent claimed to know the meaning of arrears.

The government has warned sunseekers against taking a trip to Spain unless they really need to. Spain has opened its borders to British travellers, so tourists can fly in without quarantine or a negative test. But it’s on the UK’s amber list, which means essential travel only - and testing and quarantine on the way back

Bury the Brexit hatchet

Businesses and the government should put Brexit behind them and look ahead, according to the Confederation of British Industry (CBI). The employers’ organisation wants everyone to focus on building a greener, fairer economy. In a new report, “Seize the Moment”, it says the UK could generate an extra £700 billion economic growth by 2030 by tackling long term challenges like decarbonisation and reducing inequality.

3,550 new charge points

Ofgem, the government department for energy, has put £300 million into building new charging stations for electric vehicles. It says the expansion will triple the current network, and help to support the UK’s plans to hit net zero emissions by 2050.

"Should I invest in crypto?"

"Can I use my crypto gains as a deposit for a home?"

A cryptocurrency is a digital or virtual currency that is secured by cryptography, which makes it nearly impossible to counterfeit.

Cryptocurrencies are a relatively new phenomenon, but there are now over 5,000 with more appearing every day. Bitcoin is the most well known.

Here’s our guide to the key facts you need to know.

Are they legal?

Cryptocurrencies are legal to own and trade, but they’re not legal tender.  Legal tender is a form of money that courts of law are required to recognise as satisfactory payment for any monetary debt.

Are they taxable?

In the UK, cryptocurrencies are not eligible to be held in tax-free wrappers such as ISAs, so you may have to pay tax. Crypto doesn't pay an interest rate or any dividends, so it isn't subject to income tax. However, any gains generated from crypto may be subject to capital gains tax.

For tax purposes, UK residents are eligible for a Capital Gains Tax allowance, which means in the 2021/2022 tax year an individual can make gains (from all sources) of up to £12,300 before any tax is payable. Losses can be offset, but any excess gains are taxed at the rates applicable to your marginal rate. This means gains in excess of the allowance will be taxed at 20% if you are a higher or additional rate taxpayer or 10% for non or basic rate taxpayers.

The value of any crypto on the date of an individual’s death also forms part of their estate for inheritance tax purposes.

Our view on crypto for homebuying

Let’s cut to the chase - we do not recommend you use crypto as a means of saving for a house deposit. This is due to the usual short-term nature of homebuying and the high volatility attached to crypto.

Cash-based savings are usually the most appropriate for your homebuying fund. In particular, we recommend using a Lifetime ISA if you're eligible, to take advantage of the 25% government bonus.

If you have cryptocurrency already invested and plan to use it for a home deposit, make sure you cash out into your bank account  before starting the mortgage application process. That way, the lender can see that your deposit funds are in a secure, non-volatile location.

A lender is likely to want to see your source of funds for anti-money laundering reasons.Make sure you keep an audit trail of your crypto trades to prove how you made the money and show your gains are not ill-gotten.

Our view on crypto investing

It’s certainly not for everyone. If you do invest in crypto, it should only be part of a larger and more diversified portfolio.

It’s only suitable for certain goals. If you'll need a certain amount of money at a certain time (especially if it's a shorter term goal) the volatility of cryptocurrencies means they may be a poor investment choice.

Before investing, it is important to understand your attitude to risk (the risk you are prepared to take) and your capacity for loss (the risk you can afford to take).

If you can only afford a loss of 20%, for example, investing in cryptocurrency is not right for you. You must be aware you can lose your entire investment.

Investing is a personal decision for everyone and you shouldn’t invest just because your friends are or you've seen posts or comments on social media.

If you do decide to invest, make sure you do your research. We can’t tell you what the best cryptocurrency is for you to buy and there is lots to learn if you do want to get involved. All of the cryptocurrencies have their own aims and goals which you should ideally understand before buying.

Let’s explore the risks in more detail.

Risks

Price volatility

At 10am on 17th May 2021, Bitcoin, which is often seen as one of the more stable cryptocurrencies, was down 27.62% over the last month, but up 302% over the last year.

This demonstrates the volatility of cryptocurrencies and highlights why they are not appropriate for short-term investing where you may need to access the money at a particular time.

Let’s think about saving for a home deposit as an example. If you were looking to buy a home in a year’s time, a massive drop in the value of your investment could leave you without enough.

How much you can afford to lose

No matter your attitude to risk, we would not recommend investing money  that you cannot afford to lose. These are very risky investments and you could lose everything you invest.

That's why, if you do invest, you should have a diversified portfolio of investments and only invest a small portion of this via crypto assets.

No regulation

This is an unregulated market which leads to lots of scams and unscrupulous business practices. UK financial regulator the Financial Conduct Authority (FCA) has stated: “there is growing evidence that crypto assets are causing harm to consumers and markets''.

In January 2021,  the FCA banned cryptocurrency derivatives and exchange-traded notes being sold to retail investors as they are concerned about consumers being able to understand the real value of these investments.

No protection

In the UK, most FCA regulated investment products receive protection via the Financial Services Compensation Scheme which would mean that some or all of your investment is protected if the provider goes out of business.

As cryptocurrency is unregulated, you would not receive such protection with these assets.

Other factors to consider

There are environmental concerns around cryptocurrencies. The electricity needed for mining, which is the process by which new Bitcoin are entered into circulation, exceeds that of many countries. It is estimated that the carbon footprint of mining for Bitcoin matches that of Argentina.

Adviser Top Picks

1. Understand it is a very high risk investment strategy
2. Only invest a small proportion of your savings into crypto
3. It is rarely suitable for short term goals
4. If you plan to use crypto gains for your deposit, cash out before applying for a mortgage
5. Don't be surprised if lenders get nervous about crypto as a source of deposit funds
   
   
   

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Retail sales surged 9.2% in April according to the Office for National Statistics, as nonessential shops reopened their doors for the first time this year. That’s far higher than most economists had predicted. Many shoppers ditched online shopping in favour of bricks and mortar browsing, leading to a 5.6% dip in online sales. And fashion led the charge with a 70% jump in clothing sales.

Happy spenders

UK consumers feel as good as they did in March 2020, before the full effects of the pandemic hit home. The GfK consumer confidence index has been rising since January and hit -9 in April. That doesn’t sound very high, but it means the public is in a better financial mood than it has been for over a year. Banks and businesses follow this data to understand how likely we are to go out and spend in the economy.

10p plastic bags

Single-use bags now cost 10p in all shops in England, as a 5p price increase takes effect today. The original 5p charge was brought in in 2015 and has been incredibly effective - plastic bag use has gone down 95%. Environmental groups want the government to go further and ban so-called “bags for life” which contain more plastic and are often just used once.

The price of Bitcoin plummeted to below $34,000 yesterday on news that China banned banks and payment firms from offering crypto-related services. It’s since recovered some ground. Cryptocurrency trading has been illegal in China since 2019, but 75% of Bitcoin mining still happens there. This move marks a new effort by the Chinese government to crack down on crypto activity.

House prices jump

It’s official: house prices surged 10.2% in the year to March 2021. That’s the biggest annual rise since 2007, according to the Office for National Statistics. The data confirms the trend for people moving away from urban areas in search of more space. Detached houses have seen the biggest rises, while flats dawdled at 5%. And Yorkshire tops the table with 14% regional growth, compared to just 3.7% in London.

Return to the city?

Buyer demand for city-centre flats is coming back, according to Rightmove data. Searches on the property site tell a new story: flats are the most in-demand property type at the moment, for the first time in 10 years. Plus, searches for city-centre homes have risen 35% since January.

Great British Railways

New flexible season tickets will go on sale on 21st June as part of new government plans to modernise the railways. A new state-owned body, Great British Railways (GBR) will set ticket prices and timetables from 2023. Apparently, the changes will mean cheaper and more flexible tickets, and trains that run on time.

The annual UK inflation rate more than doubled to 1.5% in April, driven by higher clothing and energy prices. The Bank of England aims to keep it at 2%. Prices are now rising at their fastest rate since March 2020, and petrol prices are at their highest since January last year. Inflation has been low throughout the pandemic, but is rising now as people start to spend more.

Don’t go to amber countries

Boris Johnson has warned against going on holiday to countries in the government’s amber list. It comes after reports that some holiday companies are refusing to give refunds for cancelled trips to amber-rated destinations. There are lots of tourist hotspots on that list, including Greece, France, Spain, and Italy.

Worst face masks revealed

Some reusable face masks have “alarming flaws” according to Which?. The consumer watchdog tested a range of masks and found the worst one: an Adidas mask that filters out only a third of particles. The best? The Airpop Pocket, which managed to block 99% of particles, making it as effective as a disposable mask.

The unemployment rate fell unexpectedly to 4.8% in the first 3 months of the year - that’s 0.1% lower than it was at the end of 2020. The data comes from the Office for National Statistics and suggests the jobs market held its own during the latest lockdown, supported by the furlough scheme. There are still 772,000 fewer people on payrolls than in February 2021, but hiring picked up again in April.

More job vacancies

In more good news for job hunters, vacancies have hit their highest level since the start of the pandemic. There were 657,000 vacancies between February and April, and the hiring spree seems set to continue as businesses reopen after lockdown. These official figures confirm what we’ve been hearing from job sites and recruiters over the past few weeks.

Long Covid compensation?

It could take a year for the government to decide whether key workers with long Covid should get compensation. 65 MPs and peers want it to be recognised as an “occupational disease” as many caught it at work. More than a million people in the UK, including 120,000 healthcare workers, have long Covid symptoms and many of them are unable to work.

The average asking price for homes in the UK has surged to £333,767 in May, the highest ever. The data comes from Rightmove and shows double-digit price growth in Wales and north west England since March 2020. Meanwhile, asking prices in London have grown by just 0.2%.

Crypto buyers blocked

Homebuyers using profits from cryptocurrency trades for their deposit are being rejected by solicitors and lenders. Mortgage brokers are reporting an increase in the number of buyers who made their money in crypto. Many have resorted to hiring “forensic accountants” to show how they made the money and prove their profits are clean.

Staff shortages

Bars, restaurants, and hotels are hiring at their fastest rate for 8 years but could struggle to fill vacancies according to the Chartered Institute of Personnel and Development (CIPD). Many EU workers have left the country amid Brexit and the pandemic. Data from job site Adzuna tells the same story, with 18% more job ads than 6 months ago but half the number of searches from Western Europe and North America.

Covid fakes

If you know where to go, you can buy a fake NHS vaccine card or test certificate for just £25. There are now more than 1,200 vendors in the UK selling the forgeries to people hoping to get around strict travel rules. Who’s buying them? Anti-vaxxers apparently, and people coming to the UK from poorer nations.

Pubs and restaurants saw their sales rebound in April, after many opened for outside service from the 12th. With good weather and eager punters on their side, pubs bounced back to 80% of pre-pandemic sales. Restaurants lagged slightly behind at 70%.

End coal cash?

The government wants a global agreement to stop funding coal projects as part of the Glasgow COP climate summit in November. Britain gets just 2% of its electricity from coal, down from 40% in 2020. But our banks are still financing coal projects in other countries like China where it’s widely used.

Fish for finance

It’s too late to strike a finance deal that would give the City access to European markets, according to a Cityof London Corporation official. UK financial firms have been shut out of the EU since 31st December when the Brexit transition deal ended. French ministers say they’ll block any deal unless their fishermen get more access to British fishing waters.

Planning to buy a Tesla with Bitcoin? You may have missed your chance. Tesla has suspended Bitcoin purchases due to environmental concerns. Bitcoin uses a huge amount of energy to create (mine) new currency and to process transactions, and at the moment that’s coming from burning fossil fuels like coal. Musk says Tesla will hang onto the £1 billion of Bitcoin it bought in February and use it when the cryptocurrency goes green.

House price inflation

A UK house price gauge has hit its highest level since 1988, according to the Royal Institute of Chartered Surveyors (RICS). More of its property surveyors are reporting house price rises than at any other time in the last 3 decades. It also says buyer demand is going up in every region in the country, but the number of properties coming to the market has slumped since March.

Back to the office?

Boris Johnson says the advice to work from home will come to an end on 21st June, as long as the coronavirus roadmap continues as planned. The issues of social distancing and the future of work are still under review ahead of the next step of lockdown easing.

The economy only shrank 1.5% in the first 3 months of the year according to official numbers from the Office for National Statistics. Not bad considering the country was in lockdown the whole time. March marked the start of the bounce back; GDP grew 2.1% in a month as schools reopened and retail picked up. Overall, it’s still 8.7% smaller than before the pandemic, but the Bank of England thinks we’ll recover most of the lost ground this year.

Affordable London rents

London isn’t known for being an affordable place to rent. But prices in the capital have fallen to their cheapest in a decade, down 9.4% from last year. Meanwhile, demand for space during lockdown has driven rents up elsewhere, with prices in the north east and south west of the country rising fastest.

Losing out to Wall Street

The City of London lost £2.3 trillion of trades in March as derivatives traders took their business across the pond. 40% of Euro-based trading used to happen via British clearing houses - it’s now around 10% according to research by Deloitte and IHS Markit. The culprit? Brexit. EU firms are blocked from using British platforms for derivatives trading under new rules.

Apple has been hit with a £1.5 billion class action lawsuit that claims its App Store charges are excessive and unlawful. The tech giant is accused of shutting down competition by forcing apps to use its payment system and charging them 30% for the privilege. But Apple isn’t worried. It says the lawsuit is “meritless” and points out that 84% of apps on its platform are free and their developers don’t pay anything to Apple.

Record house prices

House prices have surged 8.2% in the past year according to mortgage lender Halifax. The average price of a UK home has hit £258,204, around £20,000 higher than this time last year. It seems to be driven by high buyer demand, with people trying to get their keys before the stamp duty holiday ends later this year.

Knitwear comeback

Brits spent big on coats and jumpers in April ready for al fresco nights out and holidays in the UK. Retail data shows total sales were 7.3% higher than April 2019, with fashion retailers doing particularly well.

Lifetime skills guarantee

Boris Johnson is promising a skills revolution in the UK by making loans available for adults to upskill or retrain. The plans will be set out in the Queen’s Speech today that marks the opening of parliament. The “lifetime skills guarantee” is part of the government’s plans to help the country recover from the pandemic.

Pubs and restaurants in England are set to reopen fully from next Monday under the next stage of lockdown easing, with indoor mixing allowed for groups of up to 6 people. Boris Johnson will confirm the specifics later - and might even say it’s okay to start hugging friends and family again.

Greggs back to normal

Greggs says its profits for the year will rise to pre-pandemic levels, as long as there are no further coronavirus restrictions around the corner. The steak bake maker has been rolling in dough in recent weeks, with takeaway sales soaring since lockdown lifted.

Scam refunds

Scam victims who lose money to fraudsters could be reimbursed using funds from criminals’ bank accounts under new government plans. Thousands of people fell foul to scams in 2020, a huge increase from the year before, with billions finding their way to fraudster’s bank accounts.

Demand for staff has surged this month at the fastest rate since the 90s, according to the Recruitment and Employment Confederation (REC). UK employers are on a hiring spree as shops and hospitality reopen after lockdown. Yesterday the Bank of England said unemployment is likely to peak at 5.4% later this year, slightly higher than what it is currently.

Holiday costs jump

The price of foreign holidays is likely to rise this year due to pent-up demand and a lack of flights. Airlines are reluctant to bring planes back into service in case they have to cancel flights again. Confusion over different vaccine and testing rules in different countries is also adding to the uncertainty.

On the rebound

The UK is on track for the biggest economic recovery since WW2, according to the Bank of England. It’s revised its growth estimates for the year, forecasting a 7.25% surge in GDP - in February it was expecting 5%. The economy should be back to its pre-pandemic size by the third quarter of 2021.

10p plastic bags

The charge for single use plastic carrier bags is set to double to 10p in all shops in England from 21st May. Even corner shops will have to charge. Plastic bags have cost 5p since 2015, and usage has dropped 95%.

Two Royal Navy ships are patrolling Jersey amid concerns the island could be blockaded by French fishing boats. The protest marks the latest escalation in a post-Brexit row over fishing rights. French fishers say the new system makes it too difficult to get a licence to fish in Jersey’s waters - they’re so unhappy that the French maritime minister has threatened to cut off Jersey’s electricity supply.

The Starship has landed

SpaceX’s Starship rocket has safely touched down after a successful test flight. Getting a spacecraft to take off is easy but coming down again in one piece has proved harder; 4 previous attempts have ended in explosions. Starship’s next mission? Fly around the moon in 2023, with paying customers on board.

Hacked via WiFi?

6 million people could be at risk of being hacked via outdated routers that might not have received essential security updates. Which? says two thirds of the routers it tested had flaws such as weak default passwords which could allow the device to be hijacked. Virgin, BT and TalkTalk have all said that most customers are using up-to-date devices and can update any time.

Got an old Billy bookcase you’re no longer using? You can now trade it for something new, under Ikea’s keenly anticipated buy-back scheme. It’s offering vouchers of up to 50% of the original sale price for items in good condition. The recycling initiative will re-sell the used furniture in store, to help meet the retailer’s aim to be “climate positive” by 2030.

Car sales rev up

Dealerships saw a 30-fold increase in new car sales in April compared to last year, as they reopened their doors for the first time in months. 141,000 vehicles were driven off the forecourt last month - still down 13% on the decade average.

Green pensions charter

Businesses and pension funds have been urged to switch to low-carbon investments ahead of the Cop26 climate talks in Glasgow this November. Campaigners have called on companies to sign up to the green pensions charter to make pensions net-zero by 2050. The UK pensions sector accounts for about £2.6 trillion, and several funds managing around £400 billion of pension savings have already signed up to the charter.

Squid pro quo

A Japanese seaside town has found itself in hot water for spending emergency coronavirus funding on a giant statue of a squid. The 13-metre long statue cost ¥25m (£164,000) and is intended to boost tourism to the town, where squid is a seafood delicacy.

A new £1 billion deal between the UK and India will create 6,000 jobs in the health and tech sectors, according to Boris Johnson. The deal was announced today and includes millions in investment, including £240 million from India’s Serum institute which is currently pumping out coronavirus vaccines. This isn’t a full free trade deal though - talks for that will start in the autumn.

Breathing space

People getting advice for problem debt can now apply for a 60-day break from new charges, letters from lenders, and other enforcement. The “breathing space” scheme is designed to stop people falling into a vicious cycle of borrowing. It starts today after years of campaigning by debt charities, and could help an estimated 700,000 people in the first year alone.

The adviser view: "This break is designed to let people make a plan for paying off their debt. If you are struggling with debt, there are a number of debt charities around who can be a great help"

Holiday rules

The EU has confirmed that vaccinated travellers will be allowed to travel to Europe from June. The UK could put an end to holiday hopes though, with a strict traffic light system which will be announced this week. Fewer than 10 countries could get the green light for quarantine-free travel - and some of those might not be classic holiday destinations.

The adviser view: "If anyone is thinking of a holiday (either at home or abroad), you should consider taking out travel insurance. Make sure you understand what you are and aren’t covered for, especially any Covid-19 related clause."

Prime property boom

London estate agents say the supercars are back in Knightsbridge. Home sales in the capital’s priciest addresses are up 80% since the end of lockdown*, the highest in the UK, according to Zoopla. The property site says coastal and rural areas have also seen big jumps in transaction volumes.

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Steep monthly rise

House prices have jumped 2.1% in April compared to last month according to Nationwide. That’s the biggest monthly rise since 2004, and puts prices 7.1% higher than they were last April. The lender reckons the surge is down to buyers rushing to complete before the end of the stamp duty holiday. The threshold for paying the tax drops to £250,000 at the end of June, then to £125,000 in September.

Beginning of the boom

The economy is building momentum, according to key signs including a surge in consumer spending in April. Unemployment has also dropped for the second month in a row. The Bank of England is likely to upgrade its predictions next week - it’s expected to forecast 7% GDP growth for 2021, 2% more than it said in February.

Staff shortages

Bars and restaurants are struggling to recruit enough staff ahead of reopening fully next month. They’re expecting huge customer demand, but say they might have to limit opening hours. 1 in 10 hospitality workers has left the industry in the past year due to the pandemic and Brexit, either moving into other sectors or leaving the UK altogether.

Amazon profits triple

Stay-at-home habits have driven a surge in sales for Amazon, which has reported that its profits have tripled. From grocery sales to streaming, the tech giant has been well placed during the pandemic and it expects the boom to continue. Apple, Microsoft, Facebook and Alphabet have all reported strong sales this week.

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John Lewis nightmare

Boris Johnson’s £85,000 refurbishment of his Downing Street residence is now under investigation by the Electoral Commission. It says there are grounds to suspect an offence has been committed. The prime ministers opponents accuse him of letting Tory part donors contribute tens of thousands in secret to pay for the luxury refurb - which is against the rules.

Recruitment drive

Uber is aiming to sign up 20,000 new drivers in the UK to keep up with rising demand. The ride hailing app has seen a 50% jump in trips since pubs and restaurants reopened for outdoor service on 12th April. Tempted? Remember, Uber drivers now get workers’ rights including minimum wage, holiday pay and sick pay after the company lost a Supreme Court case last month.

Mental health

People who have become newly reliant on universal credit and self-employment grants during the pandemic have suffered the biggest rise in mental illness. That’s according to a major new survey, which found 42% of “help seekers” are struggling with poor mental health. Other groups, including “multi-strugglers” who have multiple financial difficulties, also reported a variety of mental health conditions.

100 days of Biden

US President Joe Biden has marked his first 100 days in office with a speech to Congress promoting an $1.8 trillion (£1.3tn) spending package. The plan includes funding for childcare and payments to parents and would give free access to preschool and community college. Biden also hailed the country’s vaccination programme, which has delivered over 220 million jabs so far.

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Green light

Motorists can allow cars to drive themselves from later this year, as long as they’re on a motorway and going less than 37mph. The government says drivers with “Alks” tech can go hands-free, letting the car keep itself in lane and a safe distance from other vehicles. Insurers aren’t sure though - they say more work is needed to make self-driving cars safe, and it’s confusing to call them “automated” as the driver might need to take the wheel at any time.

Home sales double

£149 billion worth of homes have been bought so far this year†, double the figure over the same period in 2019 and 2020. It seems to be driven by demand, with buyer numbers higher than ever but fewer properties on the market. Zoopla reckons 1 in 50 homes has changed hands over the past year, compared to 1 in 100 in the 12 months before that.

Rents hikes

Rental prices are at their highest since 2015, averaging £982 per month outside London. Supply and demand is the culprit here too, with a big drop in available properties since before the pandemic. It’s a different story in the capital though - central London rents are down 6.5% compared to 5 years ago.

Amazon drivers speak out

MPs are under pressure to do more to protect Amazon workers, after a survey found 4 in 5 drivers have been pushed to drive dangerously, including by speeding, to meet their delivery targets. 90% have had to wee in a bottle during shifts and 86% they don’t have time to wash or sanitise their hands between deliveries.

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Review fines

All fines handed out for breaking lockdown rules should be reviewed, according to a committee of MPs. More than 93,000 fines of up to £10,000 have been handed out across England and Wales since the pandemic began. But the committee says the system is confusing and unfair, and that unclear rules mean many people could have been fined wrongly.

Mafia trial

Defendants in Italy’s largest mafia trial for decades will be questioned over charges of laundering billions of euros in the City of London. Members of ‘Ndrangheta allegedly set up UK companies to launder money. The criminal organisation is one of the richest and more feared in the world, with an estimated £44 billion annual turnover - more than Deutsche Bank and McDonalds combined.

Musk profits soar

Tesla sold 185,000 cars in the first 3 months of 2021, nearly twice as many as last year. It’s a new record for the electric car maker, and netted a £315 million profit for the quarter. The result entitles Elon Musk to options payouts worth £7.9 billion.

Bookworm boom

Sales of fiction books soared 16% in 2020 and audiobook sales climbed by nearly a third, as locked down readers turned to pages for pandemic escapism. It was a tricky time for authors though - shops were shut for large parts of the year, and school visits, literary festivals and promotional events were cancelled.

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Growth to race ahead?

The UK is on track for speedy economic growth this year, and seems set to grow faster than the US economy according to Goldman Sachs. The bank predicts GDP will grow by 7.8% in 2021, driven by Britain’s rebound from the coronavirus crisis. As the vaccine rollout continues and businesses begin to reopen, the pace of the recovery seems to be accelerating.

Older workers losing jobs

The past year has seen the biggest drop in employment among over-50s since the 1980s, according to a report by the Resolution Foundation. As a group, older workers have been hit second hardest by job losses, after under-25s, and take longer to return to work. The think tank is calling for specific retraining opportunities for over-50s.

Scrap shared parental leave?

Campaigners are calling for shared parental leave (SPL) to be replaced by a “use it or lose it” policy for both mothers and fathers. Campaign groups, trade unions, and economists say the current set up, which was introduced 6 years ago, is “deeply flawed” and that many dads can’t afford to take time off.

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Borrowing hits new high

The government borrowed £303.1bn in the year to March, according to the Office for National Statistics. That’s the highest since the Second World War. It has needed to borrow to support the economy through the coronavirus crisis and make up for lower tax incomes caused by the recession. The director of the Institute for Fiscal Studies says the debt figures are actually lower than expected.

Shopping spree

Brits went on a spending spree ahead of lockdown restrictions easing - retail sales rocketed 5.4% in March. Economists had expected a rise of just 1.5%. Clothes shops did particularly well, as shoppers rushed out to refresh their wardrobes ahead of pubs and restaurants reopening. The extra activity was mainly online, as non-essential shops didn’t open their physical doors until 12th April.

Coronavirus passports

People in England could have access to coronavirus passports by 17th May to allow them to take a holiday abroad without needing to quarantine. The passports would prove if you’ve had a coronavirus vaccine. They’re different to the domestic certificates which we might need to show to get into pubs and restaurants - that’s a separate scheme.

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New build premiums

Many big lenders won’t offer 95% mortgages on new builds* due to fears of negative equity. The government-backed mortgage scheme launched this week, making deals available to buyers with small deposits. But 1 in 10 new build buyers end up selling their property for less than they paid for it, and those price premiums are putting lenders off.

Climate consensus?

Joe Biden will host 40 world leaders today to ask them to get more ambitious on climate action as part of an Earth Day summit. He’s expected to commit to cutting US emissions by 50% by 2030. The summit will focus on economic opportunities, green finance, and technological innovation.

In emergency, break glass

Extinction Rebellion activists have smashed windows at HSBC offices in Canary Wharf. They’re protesting the bank’s continued financing of the fossil fuel industry, despite pledging to reduce its carbon footprint to net zero by 2050. They did the same at Barclays HQ 2 weeks ago.

Financial greenwashing?

The UK should consider labelling financial products such as investments to show how green they really are. The idea comes from a committee of MPs which wants to prevent people being taken in by misleading claims of green credentials. It says many products described as “green” or “climate-related” don’t really offer what consumers would expect.

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Subscribers switch off

Netflix has seen its growth stall, signing up just 3.98 million new subscribers between January and March. It was aiming for 6 million. The streaming service saw its figures boom last year as lockdowns forced people around the world to stay at home. Show’s over? Maybe. Netflix says the problem is a lack of fresh content, because the pandemic makes it harder to create new shows.

Super League own goal

All 6 English football clubs have pulled out of the European Super League, after fans, other leagues, and even Boris Johnson gave the plans a red card. The teams’ decision comes just 48 hours after the venture was announced. The Super League, which is backed by £4.3 billion in funding from JP Morgan, was accused of putting profit before the game.

New Barclaycard limits

Credit card customers saw their spending limits slashed* last week with very little warning. Many with good credit histories say their limits have been cut by as much as 96%. Barclaycard says it’s due to the ongoing impact of coronavirus, but hasn’t confirmed how many customers are affected. It says it’s unrelated to the £26 million fine it was handed in December for failing to take care of customers behind on payments.

Net zero alliance

Dozens of banks and financial institutions have joined a global alliance aimed at reducing greenhouse gas emissions. Between them, they manage over $70 trillion in assets. The 43 banks from across the world have pledged to cut the carbon content of their investment portfolios by 2030. The alliance, which is chaired by former Bank of England governor Mark Carney, will encourage the financial sector to invest in green tech and infrastructure.

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Fewer out of work

The unemployment rate fell to 4.9% in the three months February - that’s still 0.9% higher than it was in February 2020, but less than many predicted after the winter lockdown. The Office for National Statistics (ONS) says 813,000 jobs have been lost in total since the start of the pandemic, and around 80% of those were to people under 35. 5 million are still on furlough.

Britcoin?

Chancellor Rishi Sunak has confirmed he wants the Bank of England to investigate the idea of a new central bank digital currency (CBDC). Dubbed “Britcoin”, the currency could allow people and businesses to hold accounts at the Bank of England, and speed up foreign and domestic payments.

Cheaper premiums

The cost of car insurance has fallen by £87 over the last 12 months - the biggest drop for 6 years. The data from confused.com shows UK motorists can expect to pay an average of £538 for their car insurance this year. How come? We’re driving less since the pandemic started, so the risk of accidents has gone down.

Green plan?

A stimulus programme earmarked for green and digital projects could create 1.2 million jobs within 2 years, replacing every job lost to the pandemic, according to Green New Deal UK. The new research comes as the government commits to new climate targets, promising to cut carbon emissions by 78% before 2035.

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Asking price jump

Rightmove has reported that asking prices jumped by 2.1% in April 2021. The surge is being attributed to several factors; banks now offering mortgages that cover 95% of a purchase price, an extended stamp duty holiday, and a shortage of properties.

Crypto crackdown

Days after reaching a record high, Bitcoin prices slid by 15% on Sunday - the biggest drop for two months. Reports linked the drop to speculation that the US Treasury will crack down on money laundering via digital assets.

Bank backs breakaway league

Six English football teams announced plans to join a breakaway European Super League. JP Morgan has backed the new venture with $6bn, which is set to be joined by the likes of Arsenal, Chelsea, Liverpool, Manchester City, Manchester United and Tottenham.

Just what the doctor ordered

A pilot scheme in London will see GPs prescribing financial advice to help people with long-term health conditions. Patients will be helped to paydown debts, obtain grants, and claim benefits. The chief executive of one of the groups behind this initiative explained that “debt, money worries, and financial insecurity can have a profound effect on our physical and mental health”.

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New jobs

Last week, the UK saw 181,000 new job openings - the highest number since the pandemic began. That’s been followed by a further 140,000 this week, meaning that there are 1.37 million active adverts in the UK. Thanks to the vaccine rollout being on track, experts believe this trend will continue as business confidence rises.

Trading app under fire

Robinhood has rebuffed claims that it put restrictions on crypto trading, instead claiming technical issues. This came as Dogecoin rallied to all-time highs, benefiting from Elon Musk’s tweets and the listing of crypto exchange Coinbase. Robinhood controversially placed restrictions on cryptocurrencies in January this year, in response to “extraordinary market conditions”. Regulators are now seeking to revoke Robinhood's brokerage license, on the basis that they “lured” young and inexperienced investors.

Travel firm optimistic

The boss of travel company TUI shared that they had 2.8 million bookings in March, and expect to operate up to 75% of their normal summer schedule. They have suffered heavy losses during the pandemic, and borrowed billions from the German government to stay afloat.

Cake controversy

Marks & Spencer has lodged an intellectual property claim with the High Court, arguing that Aldi’s Cuthbert the Caterpillar cake infringes its Colin the Caterpillar trademark. M&S was the first retailer to sell a caterpillar cake, but others have followed, including Waitrose, Sainsbury’s, Tesco, and Asda.

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Permanent holiday?

The stamp duty holiday should be made permanent*, according to the Organisation for Economic Co-operation and Development (OECD). It says the property tax should be cut as part of a post-pandemic overhaul to make it easier for people to move jobs. The UK has the highest property taxes of all 37 OECD member countries - in 2019, the government got £91 billion from taxing property - that’s 12% of its revenues.

Cheers

Drink sales soared on Monday, with pub gardens doing a roaring trade despite the snow. As hospitality reopened for the first time time since December, landlords described a Christmas-like vibe - and sold more than twice as much booze as they normally would on a Monday.

British Gas row

Around 500 engineers have lost their jobs after refusing to sign new contracts which they say would cut their pay by 15%. The row has been going on for weeks, with many engineers going on strike to protest the changes to their contracts.

Call before donating

Charities have urged the public to call ahead before dropping off donations at shops. Lockdown clear-outs have left many people with plenty to give away, raising concerns that pent-up donations will cause overcrowding. Charity shops have seen record sales this week, as non-essential retail reopens after lockdown.

The unemployment rate among young black people has risen by a third over the past year to hit 35%, according to the Resolution Foundation. It’s 13% among white youth and 24% for those of Asian descent. The think tank says job losses from coronavirus have widened inequalities between ethnic groups and have hit young people hardest as they’re more likely to work in locked down sectors like hospitality and leisure.

Hottest property market

Rightmove has named Newquay as the hottest property market in the UK, where 8 out of 10 homes for sale have been snapped up since the start of the year. Birmingham city centre is at the bottom of the table, with just 2 in 10 homes sold in 2021. The property site says the data reflects a trend for moving rural - Cornwall has recently overtaken London as its most searched for area.

Foxtons’ doing all right

Foxtons has seen its takings jump 5% in the first 3 months of the year, amid climbing house prices and rocketing sales volumes. It’s one of the largest estate agents in the country and reckons it’s their best start to a year for a long time.

Tesco profits stall

Tesco has seen its profits slide 20% for the year to 27th February, despite strong sales throughout a year characterised by lockdows and stockpiling. The supermarket paid out £892 million in extra coronavirus costs, including bonuses for its staff.

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England unlocks

Pub gardens, shops, hairdressers and gyms in England open their doors today as lockdown restrictions ease. Eager shoppers queued outside retailers as the sun rose on Monday morning, and others seized on midnight pints and haircuts.

Back in business

Optimism among business bosses is at a record high on hopes that Brits will go on a summer spending spree after getting out of lockdown. Surveys by Deloitte and the Federation of Small Businesses show confidence soaring to highs not seen since 2014, with firms planning to hire and invest more than they have for 6 years. A third by NatWest found that business activity is booming in almost every region of the country.

Housebuilders remove bad reviews

Barratt, Bellway and Taylor Wimpey have removed hundreds of negative reviews* from unhappy customers including some from victims of the cladding scandal. All 3 housebuilders have average scores of 4 or more on Trustpilot, but can remove any critical reviews which are deemed to be fake or biased.

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Travel might be allowed

Holidays abroad might be back on the cards for this summer, with tests and a traffic light system to manage the risks. Going to "green" countries will need a test but no quarantine, "amber" will mean quarantine at home, and "red" countries will require a 10-day hotel quarantine. The travel industry is concerned about the cost of testing, and says the £100 PCR rest will make holidays unaffordable for many. We’ll find out next month whether international travel will restart on 17th May.

Steel jobs at risk

Thousands of jobs across British steel works are at risk, as Liberty Steel owner Sanjeev Gupta faces issues in Australia. The tycoon has been left struggling for cash after his main backer, Greensill Capital, went under last month. Now, 2 of his Australian businesses may be shut down, which would put his operations, including 4 UK steel plants, at risk.

Digital pound

A digital version of sterling could help boost London as a financial hub according to think than CityUnited Project. The government is out to make the capital more attractive to traders, after Amsterdam overtook London as Europe’s share trading centre. A central bank digital currency (CBDC) would be based on blockchain, the tech that underpins Bitcoin, and could bring benefits like lower costs.

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Women could be owed thousands

Women pensioners on £1-a-week State Pensions could be owed tens of thousands. Retirees who haven’t built up enough National Insurance contributions aren’t entitled to the State Pension. But there’s an exception for married women, entitling them to extra cash. Up to 5,000 women could be owed huge refunds from the government, after years of underpayments.

Housing market still booming

The stamp duty holiday extension is pushing up house prices once again, according to the Royal Institute for Chartered Surveyors (RICS). Activity was slowing down before the March announcement, which extended the tax break until June for anyone buying a home under £500,000. RICS also reckons prices will continue to rise, with demand for homes continuing to outstrip supply.

Hiring spree

UK companies have stepped up hiring efforts and are offering juicer pay, according to the Recruitment and Employment Confederation. They’re recruiting at the fastest rate in 6 years, with the vaccine rollout going strong and lockdown restrictions set to loosen up on schedule. Who’s getting hired? Nurses, IT workers and finance people apparently.

Boohoo bargains?

If you need a new coat, better go to Dorothy Perkins. It would set you back £55 - but the same one cost £89 at Coast. The online retailer has been accused of charging different prices for the same clothes across its shops. Boohoo, who bought both brands when the retailers went under, says the price differences were a mistake and have been fixed.

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First Moderna jab

The third coronavirus vaccine will be rolled out across Wales from today, after the first Moderna supplies arrived. The jab was approved back in January and the UK has ordered 17 million doses in total. It’s good timing - delays to shipments of the Oxford-AstraZeneca vaccine means we’ll have fewer doses available in April.

Growth forecast raised

The International Monetary Fund (IMF) has said the UK economy will grow 5.3% in 2021, after last year’s record slump. That’s higher than its previous prediction of 4.5%, and means we’re set to outpace the Eurozone economy. It also reckons UK GDP will get back to its pre-pandemic size by 2022.

Vaccine passport backlash

Pubs, restaurants, and nightclubs have hit back against possible plans to check punters’ Covid status on entry. They feel the hospitality sector is being unfairly targeted, and say the plans would lose them money. The government is still considering the possibility of a scheme to show proof of a vaccine dose, a recent negative test, or antibodies from having coronavirus.

Rich list

Jeff Bezos and Elon Musk top the Forbes rich list*, while Donald Trump has fallen 300 places after losing $1 billion during his time in office. Others did better; 86% of billionaires have got richer during the pandemic

*this article may need a subscription to read

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On track for 12th April

The next step out of England’s lockdown will go ahead as planned on 12th April. Yesterday, Boris Johnson confirmed pubs and restaurants will start serving outside and gyms and hairdressers will open their doors. He also said vaccine passports could be a feature of our social lives in the future - but not yet. The government is looking into it and they will be trialled at events like the FA cup semi final.

“Don’t book a holiday”

Brits shouldn’t book a summer holiday abroad yet, according to Boris Johnson’s latest update. With cases rising in many countries, the ban on international travel might not be lifted on 17th May after all. We’ll get full details of the government’s review by the end of the week.

Sick pay rise

Statutory sick pay rises today - but only by 50p. It’s now £96.35 a week. Unions say it’s too little to live on, and that low sick pay has meant people can’t afford to self-isolate if they develop coronavirus symptoms. They want sick pay to rise in line with the national living wage, which is now £8.91 for people over 23.

Start the tax year right

Unity Mutual’s 12-month fixed rate Lifetime ISA launches today, offering 1.5% interest on the entire balance for the whole year - guaranteed. It’s the first day of the new tax year, meaning ISA allowances have been renewed. You can save up to £4,000 a year into a Lifetime ISA and get up to £1,000 government bonus. Plus, if you open the Unity Mutual account through Multiply, you’ll get a £20 welcome bonus.

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North west growing fastest

The north-south divide in the property market has been turned on its head, with house prices growing fastest in the north west. London is the worst performer. Overall, prices slipped 0.2% in March, according to mortgage lender Nationwide. It reckons the slowdown was driven by a fall in demand ahead of the original end of the stamp duty holiday, which would have been yesterday.

Pay rise

The national living wage goes up today, delivering a pay bump to 2 million people, including 23 and 24 year olds for the first time. It has risen 2.2% to £8.91 an hour, a pay rise worth £345 a year for a full-time worker. The voluntary Real Living Wage also rises to £10.85 an hour in London and £9.50 outside the capital, but only a few employers have signed up to pay it.

£5bn restart grants

From today, businesses can get up to £18,000 in restart grants to help them reopen after lockdown. Councils have been urged to get the £5 billion funding into companies’ pockets as soon as possible. Non-essential shops, pubs, restaurants, and gyms will all be eligible for the funding.

1.5% rate renewed

Unity Mutual has fixed its market-leading Lifetime ISA interest rate at 1.5% for another year, guaranteeing the rate until 5th April 2022. Amid a landscape of low cash returns, other providers such as Moneybox have dropped their interest rates. Unity Mutual has been offering 1.5% interest on its LISA since April 2019.

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GDP bounce

The economy grew 1.3% in the last 3 months of 2020, according to the Office for National Statistics (ONS). That might not sound like much, but it’s higher than the previous estimate of 1%. The savings rate also jumped in the final quarter, meaning Brits saved 16.3% of their income in 2020 - that’s the highest on record.

Key workers priced out

Frontline workers are priced out of home ownership in 98% of the UK, according to analysis by The Guardian. It found the average earnings of some workers are too low to qualify for the mortgage needed to buy an average-priced home in many areas, even with a 10% deposit.

Worst tax year ever

The tax year is coming to a close, and many savers will be happy to see the back of it. It’s been the worst tax year on record for returns, with the average Cash ISA rate sitting at just 0.63%*. Inflation since April 2020 has averaged 0.78%, meaning savers have lost money in real terms.

Hot cakes

Waltham Forest has topped a list of London boroughs where homes sell fastest, with two-bed terraced houses snapped up in just 35 days. Suburban boroughs dominate the list, with Barking and Dagenham, Bexley, and Redbridge close behind.

4 day week?

1 in 5 small businesses are considering cutting their work week to 4 days* in a bid to boost productivity. Many large companies are already trialling the idea. The survey by Be the Business also found 5% of small firms already have a 4 day week.

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Global treaty

20 world leaders including Boris Johnson have called for countries to work together to defeat future pandemics. They say the coronavirus crisis has been a reminder that “nobody is safe until everyone is safe”. The treaty would be similar to the post-WW2 agreement, and would aim to share resources, data, and research between countries to build resilience.

Deliveroo IPO

Deliveroo will float its shares on the London Stock Exchange tomorrow. It’ll be the UK’s biggest initial public offering (IPO) in a decade. With a strong year of lockdown business under its belt, it was fully subscribed within hours. But many big investors are sitting this one out, over concerns about riders’ working conditions and the threat of strike action.

Even more Spoons

Wetherspoon has announced plans to open 18 new pubs and create 2,000 new jobs, starting within weeks of pubs reopening. It’s investing £145 million to boost its business across the UK, and says it’s just the start of a 10-year expansion plan. Spoons boss Tim Martin did warn that the investment is conditional on the UK reopening its hospitality sector permanently, with no further lockdowns.

Tube squeeze

Transport for London (TfL) is facing a 12% hit to revenue with passenger numbers predicted never to return to pre-pandemic levels. 1 in 5 will no longer need TfL’s services, according to analyst Moody’s. London transport relies on fares to cover 70% of its costs, more than the likes of Paris and New York where fares make up just 35% of income.

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Step out of lockdown

Picnics, barbecues, and afternoons on the golf course or football pitch are all back on the cards, as England takes its latest baby step out of lockdown. Groups of 6 are allowed to meet up outside, and organised sports are starting up again. Northern Ireland will follow suit on Thursday and Scotland on Friday, while Wales already lifted its “stay local” rule over the weekend.

EU exports stalled

1 in 5 small British exporters have paused sales to the EU amid Brexit disruption and delays. Companies trying to export to the continent have been struggling with the new paperwork and unfamiliar rules. British exports to the EU fell by a record 40.7% in January, and imports fell by 28.8%.

Ever Given freed

The mega-container ship lodged in the Suez Canal is finally floating, after nearly a week of blocking £6.5 billion a day of global trade. She is still stuck though, so the job’s not done yet. The traffic jam has pushed up global freight and oil prices, and forced ships to take the long way round the Cape of Good Hope. Oil prices have slipped back 2% on today’s news.

Al fresco takeover

Towns and cities across the UK are getting ready to turn streets into al fresco dining rooms once again. Outdoor hospitality is slated to reopen on 12th April, but just 40% of pubs and restaurants have their own outside space. 60 roads will be closed in central London, and Manchester and Birmingham are also planning to pedestrianise some areas.

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Ever Given still stranded

The mega-container ship stuck in the Suez canal is holding up £7 billion of global trade every day - and it could be there for weeks. The Ever Given got lodged earlier this week, causing huge tailbacks. The delayed ships at either end are loaded up with oil, furniture, clothing, and other goods.

Retail rebound

We bought slightly more stuff last month, especially garden furniture and DIY supplies. Overall sales volumes rose 2.1% in February - a small bounce from the 8% nosedive we saw in January as the third national lockdown took hold. 36% of all shopping was done online - another record, according to the Office for National Statistics.

FCA failing investors?

The Financial Conduct Authority needs to do more to warn investors about investment scams and fake websites, according to Which?. The number of rogue investing sites more than doubled last year, from 573 to 1,184, and the regulator is struggling to keep up. It publishes an online warning list of known scams, but Which? says there are many unaccounted for, and they give FCA the slip too easily.

Even more on furlough

Over 100,000 more companies turned to the furlough scheme in January, pushing the total relying on the payouts to 858,629. Many other businesses increased their ask, with pub chains JD Wetherspoon and Mitchells & Butlers remaining the largest claimants in January.

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Pub passports

Pubs could soon ask to see your vaccine certificate before pulling you a pint, and it might be up to individual pubs to decide their own rules. The idea is currently under review, along with an option of showing a negative coronavirus test. We’ll find out in May if it’s a goer.

95% mortgages

The low deposit lending market is opening up again* a year after most 95% deals were withdrawn. Many big banks have signed up to the government’s mortgage guarantee scheme, which will launch next month. But Yorkshire Building Society, Bank of Ireland, and Skipton Building Society have already launched their own 95% mortgages, without the government support.

MasterCard owes you £300?

This week a court will decide whether to allow a class action against MasterCard. A former financial ombudsman claims the credit card company overcharged 46 million people over 16 years. If the case goes ahead and is successful, the people affected could receive £300 each in compensation.

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Travel review

The government will reveal its report into international travel a week early, and expects to give guidance on holidays on 5th April. However, Boris Johnson has warned that rising cases in Europe mean foreign holidays look “difficult” for now. The news has fuelled a rush of interest into UK holiday bookings, with booking sites enjoying a new surge of enquiries.

TUI shutting shops

Holiday company TUI is closing another 48 shops, on top of the 166 it has already shut over the last year. Many travel firms are bracing for a second “lost summer”.

Inflation drops

The rate of inflation has dipped slightly due to discounted prices on clothing and shoes. The Consumer Price Index recorded a 0.4% increase in February, down from 0.7% in January. Prices usually rise at this time of year as the January sales come to an end - but this year, prices have been driven down by low demand.

Fossil financing

The world’s biggest 60 banks are continuing to fund fossil fuel companies to the tune of $3.8 trillion since the Paris climate agreement in 2015. A report from a coalition of NGOs reveals that fossil financing is still rising across the world - the opposite of what’s needed to combat climate change. The culprits? The US and Canada accounted for over half of the funding, and Barclays was the worst in Europe.

Scams on the rise

£34.5 million has been stolen in scams since the start of the pandemic, with 6,000 cases of coronavirus-related scams recorded by police. Internet shopping scams, which con people into giving over money and bank details, is up 42%. Bank loan scams are also on the rise, with scammers calling people up pretending to be from their bank.

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Lockdown anniversary

Exactly 1 year ago today, Boris Johnson told us to stay at home for the first time. He’s described the past year as “one of the most difficult in our country’s history”. A year on since the start of the first national lockdown, we’ve lost 126,172 people to the disease, vaccinated 28 million people against it, and endured unprecedented restrictions to our freedom.

Employment rate rises

The number of people in work has risen for the third month in a row, with an increase of 68,000 according to the Office for National Statistics. The rise in employment means there were 200,000 more employees on payroll in February than in November. But overall the employment rate is far lower than before the pandemic, with almost 700,000 people fewer in work than in February 2020.

£5k holiday fine

Brits who try to travel abroad before the end of June will be hit with a £5,000 fine, amid concerns over rising cases in Europe. The government is planning to review the rules on foreign holidays - which are currently banned - on 12th April, and might still give jet-setters the green light from 17th May. But if not, the travel fines will stay in place.

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Vaccine wars

The EU has threatened to block exports of AstraZeneca vaccines to the UK, as the row over supplies continues. EU leaders will discuss the possible ban on Thursday. Boris Johnson is phoning them all individually over the next few days, to make the case for allowing the jabs to make the journey the UK from a Dutch factory.

Bike boom rolls on

January bike sales rose 41% compared to last year, and bike makers and sellers are struggling to keep up with demand. Last year’s lockdown kicked off a cycling boom, which is showing no signs of braking. Electric bikes and road bikes are most in demand. Servicing and repairs are on the up too, with many hauling rusty wheels out of storage.

Instagram for kids?

Facebook is working on an under-13s version of Instagram. Under privacy rules, young children are not allowed to use the regular app. The company describes the app as a “parent-controlled experience”, but Amnesty International has warned it’s one of the biggest threats to children’s privacy.

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Government debt

February was another record-breaking month for borrowing, as costly pandemic support measures continued. The government borrowed £19.1 billion last month, the highest for February since records began in the 90s. The public sector is spending a lot and has less coming in from income tax, business rates, VAT and fuel duty.

Less than forecast?

Total borrowing for the year is likely to undershoot official estimates. The government deficit (the gap between public income and spending) was officially forecast to hit £350 billion. But unless there’s a major surge in March, we’re likely to come in well below that.

NatWest buys itself back

The government has sold a £1.1 billion chunk of NatWest back to the bank. Taxpayers still own 59.8% of the state-backed bank though, after it was rescued during the financial crisis. The bank, which used to be called RBS, tends to buy back a tranche of its own shares every few years.

Hey, sports fans

Keen to get back into a stadium? Remember to pack your vaccine passport. Culture minister Oliver Dowden has said certification of Covid status and vaccine history could help facilitate the return of sports events, and let big crowds into stadiums again.

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Fewer jabs in April

After a speedy start to the vaccine rollout, there’ll be a drop in the number of jabs available next month. A shipment of 5 million AstraZeneca doses from India has apparently been held up by around 4 weeks. The government says it’ll still hit its targets to offer a first dose to all over 50s by mid April, and all adults by the end of July.

#ad#spon?

Influencers are in trouble with the advertising watchdog for failing to flag up their sponsored or freebie posts as ads. Social media stars are required to state clearly when they have been paid or given free products. But last year the Advertising Standards Agency found that only 35% of ads Instagram Stories were clearly labelled.

No more big 4?

New rules could weaken the “big 4” auditors and make directors responsible for spotting fraud. After last year’s high-profile collapses of BHS and Carillion, the auditors had the spotlight turned on them. The plans include getting the big guys to share work with smaller firms so they can build expertise to take on the dominant firms: PwC, Deloitte, KPMG and EY.

Trump lost £500m in office

Donald Trump’s fortune flopped during his presidency, with his hotels, resorts, and office blocks faring badly in the pandemic. Trump’s net worth is now £1.65 billion. He’s currently under criminal investigation into his financial affairs and family business.

Apes together strong

WallStreetBets Redditors have adopted 3,500 gorillas and donated £250,000 to a gorilla charity. The online investor community hit headlines earlier this year by “squeezing” GameStop shares and sending share prices skyrocketing. Why gorillas? Fair question. Redditors often refer to each other fondly as “apes”, inspired by the Planet of the Apes movies.

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Driver rights start today

In a U-turn, Uber will guarantee its 70,000 UK drivers the right to a minimum hourly wage, holiday pay, and pensions. Until last night, it was insisting the ruling only applied to a small number of drivers. The move takes effect today, after the Supreme Court ruled the company must treat drivers as workers, rather self-employed “partners”.

Energy bill refunds

People who overpay for their energy should get an automatic refund, according to watchdog Ofgem. Energy companies currently hang on to thousands in overpayments, simply adding the cash to customers’ balances as credit. Ofgem claims they hold £1.4 billion surplus, and says the balance should be refunded once a year.

Mortgage payments rising?

A third of homeowners could face higher mortgage costs by going onto their lender’s standard variable rate (SVR) when their current deal expires. Research by Legal & General suggests people are put off remortgaging because they don’t want their finances scrutinised. But going onto a SVR mortgage could add £2,500 a year to repayments.

£50bn spending spree

Brits plan to spend a quarter of their lockdown savings once restrictions lift, according to research by Scottish Friendly. It found people want to spend big on holidays and meals out, and warned the spree could push price inflation above 2%. The Bank of England is more cautious; it reckons we’ll only spend 5% of the £192 billion built up in spare cash since March 2020.

£100k pension shortfall

Millions of over-50s risk running out of money a decade early* according to a report by Standard Life. 1 in 4 workers over 55 have only budgeted for a 10-year retirement - but most people can expect to live for 20 years after stopping work.

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New mortgage on the block

Yorkshire Building Society has become the first lender to relaunch a 95% mortgage, after the government’s mortgage guarantee scheme was announced on 3rd March. It’s almost a year since lenders first withdrew their mortgage options for buyers with small deposits. The deal will only be available to first-time buyers and can’t be used to buy a new build property or a flat.

Dumbbells defeat chocolate

Hand gel, dumbbells, and loungewear are joining the official consumer price index this month, marking a shift in the UK’s spending habits. The index is used to measure price inflation, so it needs to be representative of what we’re buying. Kicked off the list were white chocolate and staff canteen sandwiches.

Theatres worse off

After spending a year with the curtain down, 95% of theatres are worse off due to the pandemic. The industry body UK Theatre also reported that 16 organisations have lost more than £5 million. Theatres are planning to reopen with half-full audiences on 17th May, and some hope to break even this year.

Trouble on the high street

Greggs will open 100 new shops this year, despite failing to rise. The baker sank to its first loss in 36 years in 2020, but cranked up its delivery and click-and-collect services. Elsewhere on the high street, Thorntons is set to shut its 61 shops and move to online-only, putting 600 jobs at risk.

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Sellers asking for more

Asking price growth was already accelerating, even before the stamp duty holiday was extended, according to Rightmove. The property site says asking prices went up 0.8% in the 4 weeks to 6th March, higher than the 0.5% in the previous 4 weeks. The number of people enquiring about each property hit a new record at the same time.

17,500 closures

Shops, restaurants and other hospitality venues closed at a rate of 48 per day last year as the impact of the pandemic continues to hit. 2020 saw 17,500 outlets disappear from high streets, shopping centres, and retail parks across the country. Non-essential retail will reopen on 12th April - but our towns and cities could look very different.

Business feeling buoyant

Business confidence has hit a 3-year high as the vaccine rollout continues. That’s according to the global business outlook survey by IHS Markit. Firms are hopeful that restrictions could soon be lifted, and are planning to start investing and hiring again, with hiring optimism at its highest level since 2015.

Pub plans “irrational”?

Big names in hospitality have threatened to sue the government for letting non-essential retail open 5 weeks ahead of pubs and restaurants. Indoor hospitality is set to resume on 17th May. Pizza Express investor Hugh Osmond and adviser Sacha Lord called the plans “irrational” in a letter to the prime minister. The government has defended its timelines, saying the lockdown easing must be cautious.

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GDP shrank in January

The economy went into reverse in January as the latest lockdown restrictions took effect and trade slumped after Brexit. GDP took a 2.8% hit according to the Office for National Statistics, less than the 4.9% experts had feared. We’re likely to see a decline for the first quarter of 2021 caused by the double whammy of coronavirus and Brexit disruption.

Wales & Scotland relax rules

Lockdown restrictions are gradually being eased in some places. In Scotland, groups of 4 can now meet up outdoors. It’ll be the same in Wales from tomorrow, plus you’ll be able to get a haircut or play a round of golf.

Insurance claims stall

Car insurance claims fell by a fifth in 2020, according to the Association of British Insurers. It’s because there were fewer cars on the road. With fewer accidents, premiums are also idling at a 4-year low.

Post on Sundays?

Royal Mail is trialling Sunday parcel deliveries in a bid to match rivals like DPD and Hermes. The online shopping boom caused by the pandemic has seen a surge in demand for delivery services - and Royal Mail has struggled to keep up.

The 1-minute read to get the money news you need.

Shops closing doors

John Lewis has said not all its stores will reopen their doors next month, as it revealed a pre-tax loss of £517 million for the year to 30th January. It announced the closure of 8 stores last year, and now warns there are more on the way. Lockdowns have hit the department stores’ sales hard, with non-essential shops still closed.

Brexit delays

74% of British manufacturers are struggling to cope with delays on moving goods in and out of the EU. Disruption caused by Brexit and coronavirus are causing long backlogs and imposing higher costs on companies. A third of firms said they’re losing sales as a result.

Export boost

Stamping “Made in UK” on products could boost exports by up to £3.5 billion, according to research by Barclays. In a global survey, people said they’d be willing to pay extra for goods bearing an official Union Jack kite mark. Consumers in India were the keenest for British exports - they said they’d pay an 11.8% mark-up on products made in the UK.

Buffett worth $100bn

Warren Buffett has seen his personal net worth hit $100 billion (£72 billion) for the first time, after shares in his investment firm Berkshire Hathaway rose to a record high. It puts him in an exclusive club that also counts Elon Musk, Jeff Bezos, and Bill Gates as members.

The 1-minute read to get the money news you need with expert adviser commentary.

Jobless at risk

Criminals are preying on young people whose finances have been hit hard by coronavirus, posting fake job ads targeting people struggling to find work. 40% of money mules are aged 21-30, and the numbers are on the rise amid the pandemic. Mules allow their bank accounts to be used for money laundering, and take a cut of the dirty cash in return.

Pensions commit to net zero

Major pension funds worth £870 billion have said they’ll cut the carbon emissions of their investments. The pledge by Scottish Widows, Royal London, and Nest to reach net zero by 2050 is the latest in a string of high-profile commitments to green investing.

Cheaper flights?

Taxes could be cut on flights within the UK, according to new plans being considered by the government. Air passenger duty is a tax on flying and is paid per person. The government wants to make internal travel cheaper, and could slash the tax on domestic flights.

Renters return

Central London rentals have seen a surge in interest according to Rightmove, suggesting Londoners are keen to get back to the big smoke as lockdown lifts. The property site’s top 10 most searched neighbourhoods are all in central zones, with a 100% rise in some areas.

Right to repair

From the summer it’ll be cheaper and easier to fix your washing machine, fridge, or TV. Manufacturers will have to make spare parts available at fair prices and make their appliances more energy efficient, to save people money and reduce the environmental impact.

The 1-minute read to get the money news you need.

Fake reviews

Google isn’t doing enough to stamp out fake reviews on its business listings, according to consumer group Which?. The group set up a fake company as part of an investigation, and managed to buy sham five-star ratings. It follows Amazon and TrustPilot who’ve both got into hot water over fake reviews, and are being threatened with legal action by the Competition and Markets Authority.

Thrifty February

Brits cut back on spending in February as the third national lockdown continued to bite, according to Barclaycard. Spending was 13.8% lower than in February 2020, although spending on groceries and other essentials rose slightly. Barclaycard also says consumer confidence in the economy is up at 28%, the highest since the pandemic began.

No post-lockdown boom?

It’ll take a few years for households to spend the extra money they’ve saved up during lockdown, according to Charlie Bean of the Office for Budget Responsibility. He’s not sure we’ll see the massive economic boom that’s been forecast. Higher earners have saved £180 billion over the last year - but they might not spend it all at once.

Steel jobs at risk

Greensill Capital, main lender to one of the UK biggest industrial groups, has fallen into administration. The collapse risks 5,000 jobs at Liberty Steel, which is owned by Sanjeev Gupta. In its filings, the lender said Mr Gupta’s business operations are in “financial difficulty” and defaulting on debt.

The 1-minute read to get the money news and adviser commentary you need.

Gender pensions gap

Women in their 20s will retire with £100,000 less in their pension pot on average than their male peers, according to new research by pension firm Scottish Widows. It says women would have to work an extra 40 years if they wanted to make up the lost retirement income.A lifetime of lower earnings, breaks to raise children, and bigger childcare responsibilities mean women save less into their pensions than men do.

Half a million mortgages queued

Mortgage brokers have warned that buyers who make an offer now may risk not completing their purchase before the end of June. From 1st July, the 0% stamp duty threshold will drop from £500,000 to £250,000. Why the wait? Almost half a million mortgages are already in the queue to be processed, with many lenders dealing with big delays.

New cladding guidance

Some homeowners will find it easier to sell or remortgage, under new guidance about what surveys are required. From January 2020, thousands of flats in low-rise buildings started being asked for EWS1 external wall safety forms, which took ages because they could only be done by a specialist. Now, the Royal Institute for Chartered Surveyors (RICS) has released new advice that clarifies who needs the extra survey - and who doesn’t.

The 1-minute read to get the money news you need.

Downtown prices drop

London’s inner-city house prices fell 4.4% in February, according to property firm Knight Frank. With declining demand from international tourists and students, 20% fewer transactions went through than this time last year. The suburbs tell a different story though; areas like Dulwich and Wimbledon recorded a 4% price increase since April last year.

Unpaid state pension

200,000 women are owed money by the government*, after their state pensions were underpaid for decades. Married, divorced, widowed and elderly women, whose husbands reached state pension age before 2008, were entitled to a 60% income boost. But many never got the money. The payouts will total an estimated £3 billion, and will continue until 2026.

Let’s all go to Cyprus

Brits who’ve had the jab will be welcomed in Cyprus from 1st May, with no need for a negative test or any time in quarantine. You’ll need to have had both doses of the vaccine at least 7 days before you travel, so most people will have to wait. Plus, the UK government has said the earliest we can travel abroad for a holiday is 17th May.

The 1-minute read to get the money news you need with expert adviser commentary.

Generation buy?

In his budget yesterday the chancellor announced key measures to help first-time buyers. The stamp duty holiday has been extended by 3 months, keeping the threshold for paying the property tax at £500,000 until the end of June and then reducing it to £250,000 until September. He also confirmed a guarantee for mortgage lenders to encourage them to offer 95% mortgages again, from April until the end of 2022.

Taxing times

Pandemic spending is expensive stuff - and the chancellor’s plans are set to increase taxes to their highest levels since the 1960s. It’s not happening just yet though. From 2023, large companies will pay more corporation tax on their profits. Income tax thresholds will be frozen, meaning that an estimated 1.3 million people will start paying the tax by 2026.

Public approves

2 early opinion polls suggest the majority of people seem to approve of yesterday’s budget. In a poll by Opinium a few hours after the speech, 52% approved and 12% disapproved. And in one by YouGov, 46% of people liked it and 11% didn’t.

Amazon Fresh

In non-budget news, Amazon’s first till-free supermarket outside the US has opened today in London. Shoppers will be able to pick up their groceries then skip the checkout queue and just walk straight out. Amazon’s tech will work out what they’ve bought and charge them automatically.

The 1-minute read to get the money news you need with expert adviser commentary.

Furlough extension

Rishi Sunak will deliver his budget speech at around 12.30pm today. He’s set to announce a 6-month extension to the furlough scheme, plus extra support for the self-employed. He’ll outline a 3-point plan to help the country recover, promising to use “full fiscal firepower” to protect jobs and livelihoods. The other headlines to look out for: possible extensions to the stamp duty holiday and the £20 Universal Credit uplift.

UK’s most-hated

There’s a new winner at the top of the complaints chart according to the Financial Ombudsman Service (FOS). Guarantor loans have overtaken PPI, the previous favourite which dominated for over a decade. Many turned to the loans during the pandemic, requiring friends and family to step up and take on the risk.

Vaccine passports

Dreaming of hot sunshine and beaches? A “digital green pass” could make it happen; opening up European travel for anyone who’s had the jab. Lots of countries - including the UK - are working together on this, and will present plans later this month.

Record-breaking binge

We spent £9.3 billion on entertainment such as films, music, and gaming in 2020 - a record high, driven by lockdown binge-watching and streaming. It’s the sector’s eighth year of growth in a row, with an 18% boost in spending.

Fly me to the moon

Fancy a free trip to the moon? Billionaire Yusaku Maezawa is seeking 8 fellow passengers to join him on a SpaceX flight around the moon in 2023. He’s paid for the whole thing, and says he wants people of all backgrounds to apply.

A tax year begins on April 6th and runs to April 5th the following year.  This was established by the British Treasury in 1752 and has never changed. We’re sure there’s a reason for these dates, but let’s just accept it.

HMRC works out how much tax you have to pay based on the income and capital gains you receive during these dates. If you're self-employed, you'll know all about this from doing your self assessment.

What has tax got to do with savings? ISAs and personal pensions are two ways to save that guarantee you won't pay tax on your savings - ever. Plus, some of them even offer tax relief in the form of a bonus on your savings.

At the end of the tax year, various allowances will run out, such as the amount you can pay into a Lifetime ISA.

Date for your diary: 5th April 2021

The tax year ends at midnight on the 5th April each year.

That's when you need to have opened any accounts you want to open, and deposit any savings you want to count towards your current ISA allowance.

It can take a few days to open a new ISA, and some providers require a few days to transfer the money over. Don’t leave it too late!

Here are the timings for opening ISAs through the Multiply app:

Unity Mutual Lifetime ISA: open the account and deposit funds by 3pm on Monday 5th April.

Multiply Stocks & Shares ISA: open the account and deposit funds by 3pm on Thursday 1st April.

What does it means for ISAs?

The government gives you an annual allowance for how much you can save tax-free. The overall amount for ISAs is £20,000 per individual and you’re allowed to split this via the different types of ISAs available. You’re allowed to pay into each ISA type every tax year:

• Cash ISA: Low risk - best used for short-term saving goals or for those who are unwilling to accept any market risk with their money.
• Stocks and Shares ISA: Can be higher risk and is typically used for longer term goals and for those willing to accept a level of risk with their money.
• Lifetime ISA (LISA): Can be Cash or Stocks and Shares. Benefits from a 25% government bonus but can only be used towards a deposit for a home or for later in life (60 onwards) without losing the bonus.
• Innovative Finance ISA: High Risk - Invests via Peer to Peer lending.

Another limit to keep in mind: the LISA allowance is £4,000 a year, although it’s included in your overall £20,000.

If you use this £4,000, you can still use the remaining £16,000 across the other three ISA types. You can split  your annual allowance however you like across the different ISA types, such as putting £4,000 in a LISA, £10,000 in a Cash ISA and £6,000 in a Stocks and Shares ISA.

Your ISA allowance runs in line with the tax year, so you don’t have long to utilise your available allowance in the current tax year.

If you can, it could be worthwhile to add to your ISA, especially if you’re looking to utilise your LISA allowance and benefit from the 25% government bonus.

Make the most of your allowance

How should you use your ISA allowance? It depends on your current position and what your goals are.

If you have any high interest debt, you may be better paying this off first. We would recommend downloading the Multiply app so you could receive advice around this.

As advisers, we wouldn’t recommend investing money when you don’t need to. If your only goal is to make use of the available allowances, your best bet for now is a cash ISA. You will still have the option of transferring to a Lifetime or Stocks & Shares ISA  later on if your goals change.

First-time buyer accounts

If you’re a first-time buyer, a LISA is generally going to be your first choice for saving for the deposit because of the annual £1,000 bonus.

Unity Mutual’s Lifetime ISA could be the right fit for you. It offers a market-leading guaranteed 1.5% interest rate and if you apply via Multiply, you will also benefit from a £50 welcome bonus (£62.50 with the government bonus).  Find out more here.

You can’t have more than one active LISA in any one tax year. So, if you have already paid into a Lifetime ISA since 6th April 2020, you should continue to utilise your existing LISA. You can start a different one next tax year and even transfer LISAs from one provider to another.

Savings

Most people don’t use their full ISA allowance every year. But something is always better than nothing. Any money you add to and keep in an ISA will be tax-free - and there’s always next year.

If you can only afford £500, put in £500. It'll be tax-free forever and it's good to put aside whatever you can. Each year, you have the same opportunity to maximise your ISA allowance.

Got kids? The Junior ISA allowance is £9,000 a year for children and resets at the end of the tax year like all other ISAs.

Pensions

Personal pension contribution allowances are also set by the tax year, although there’s no actual limit to how much you can put into a pension. However, if you’d like a bit of tax relief to help your retirement planning along the way, then you can only get tax relief on the lower of your income or £40,000 per tax year each year. This is called your Pension Annual Allowance (PAA).

This includes contributions from you, your employer and the government’s tax relief being added to all contributions.

Similar to the ISA, this allowance resets on the 6th April and you can start contributing again. Your pension will stay tax-free for as long as it stays in your account. From age 55 onwards you can take out up to 25% tax-free with the balance being taxed as income. Clever planning can optimise both your contributions going in and the withdrawal of income in your retirement years.

If you have any questions about tax year end payment, please get in touch via support@multiply.ai

The 1-minute read to get the money news you need with expert adviser commentary.

High fuel costs

Plug-in hybrid cars burn a lot more fuel than they claim, according to new tests by Which?. On average, the 22 cars tested burned 61% more fuel in real life than they did in manufacturers’ tests. The worst performer? The BMW X5, which claims to do 188.3 miles per gallon, but managed only 52.8 miles for Which?. The consumer group said the difference could add up to £650 per year in fuel costs.

New homes selling well

Taylor Wimpey’s had a good start to the year, reporting strong demand for its new build homes. It’s the third largest homebuilder in the UK, after Barratt and Persimmon, both of which have also said their properties are selling well. Developers had a tough 2020, with sales halted during the first lockdown, but they’re now on the rebound.

Tourism hotspots lose jobs

Areas of the UK that rely heavily on tourism have been worst hit by the coronavirus jobs crisis according to analysis by the BBC. In some places, 3 out of 5 people who started claiming Universal Credit at the start of the pandemic were still doing so 6 months later.

It’s the budget tomorrow

Chancellor Rishi Sunak will lay out his economic plans for the country at around 12.30pm tomorrow. Budgets often come and go without much fuss, but this year everyone’s on tenterhooks. What do we know so far? Sunak has promised to support the economy and protect jobs. He’s expected to talk about furlough, support for the self-employed, the stamp duty holiday, and Universal Credit, as well as targeted funding for struggling sectors.

Finding the one is very exciting but the process of getting there can be a tearful, exhausting experience for some…

...on the other hand, it can sometimes be a breeze. Let’s be prepared for either.

#6 - Finding your home

Hi everyone, it’s Dan here.  I’m not saying he’s getting old, but I think Peter’s needed a break from writing and to be honest I’ve got more recent experience of finding a home. This article could be huge, so I’m going to cover the beginning part of the process and leave the actual viewing for another day.  

So, you have your deposit in place, or nearly at least? Well done, that can be hard going. Anyway, now comes the fun but sometimes frustrating part - the property hunt.

Like any treasure hunt, preparation is king. The more prepared you are, the easier the hunt, although beware that the rarer the prize, the harder the hunt, or basically if your property really does need 7 bathrooms, your options are going to be limited somewhat.

In our post about the homebuying process, we highlighted it’s key to know what you want and don’t want from a property. This can help you drill down to only the properties which cover your non-negotiable needs. We also established in the Setting your Target article the need to be realistic, but now it’s time to put this to the test.

Where does the search begin?

I remember the days of walking around to each of the estate agents in town and heading home with an exciting pile of paper with lots of property details on. It was always interesting to do your property search via the interpretations of an estate agent.

These days have largely gone, as nowadays most estate agents post their properties on websites such as Rightmove and Zoopla, meaning you can see all of the properties in one place. It also means you can properly exclude those 2 bedroom homes with larger cupboards!! If you’ve done your planning now you can easily focus your search on exactly what you want. Let’s be honest, there’s a chance you’ve been spending countless hours on these websites before you started even saving.

Quick tip for you: be aware that some of the smaller estate agents may not advertise on Rightmove and Zoopla, but they will have their own websites. Also, if you’re thinking of buying a new build (maybe to take advantage of any government scheme), it might be worth visiting the building sites of the areas you’re interested in. Most new builds do not appear on the property websites as they are often purchased off plan which means they’re sold before they’re even built.

Location, location, location

The right location is different for everyone. Some may know the exact road they want to move to, others could still be umming and ahhing over which county.

Hopefully if you’ve already worked out your ‘must haves’, you’ll be part way there, but it’s worth covering off some of the factors that help you decide the location;

• Distance to family/friends
• Distance to work
• Transport links
• Schools
• Crime rate of the area
• Social life
• Budget

It’s a long way to…

Moving 200 miles away from family and friends may be perfect for some of us, for others, being more than a few miles away would be unbearable. I can tell you from personal experience, if you’re planning to start a family then a whole bunch of babysitters nearby can be very useful.

Unfortunately, when my wife and I had our daughter, we were over 140 miles away from my family and 5,500 miles from hers; Not many nights out were had for a number of years.

With the rise of working from home, commuting distances are becoming less of an issue. That being said, many people like working in an office and even if you are working from home in the future you may still have to go into the office once in a while. Just make sure you are aware of your working situation and whether it is likely to change.

Link up

If you’re a commuter, make sure the transport links between where you’re buying and work are good and there’s a backup plan.Property websites will generally show you the distance to your nearest train/tube station and some googling will help with bus routes. Of course other good search engines are available!

Even if you won't be commuting for work make sure the transport links support your lifestyle. I know where Peter lives, he only gets three buses a day each way and less on the weekend.

We do need some education

If you’re young, free and single, you’re probably not too concerned about the quality of the local schools. Although even a young, free and single person who works night shifts might care about getting some sleep if they lived next to a noisy school.

For those who have a young family or are planning on having one, the quality of the schools might be the most important thing. Planning ahead makes sense but be aware that schools change. A school might be rated ‘excellent’ when you move in with your newborn, but it doesn’t mean it will be when your child is ready for school.

Try and have a backup plan; I moved to an area with two great local grammar schools, with the non grammar schools appearing somewhat poor. I had no backup plan if my daughter failed to get into a grammar school and I should have known better. You don’t put all of your eggs in one basket - this is financial advice 101.

Finally if you’re basing your decision on Ofsted scores, don’t just look at the most recent. A history of good Ofsted scores shows consistency.

“Lies, damned lies, and statistics"

So often we see statistics used to support weak arguments and another re-watch of The Wire will have you viewing policing statistics with a weary eye but hopefully, these numbers don’t lie.

If you’re moving within your local area, you’ll probably have a good feel for how safe an area is or at least your perception of it. If you’re moving to a new area, you may have no idea. The website above is a useful starting point to get an idea of the crime levels in the area you’re thinking of moving to.

Obviously these statistics won’t tell you the whole story but it can be useful to know because even if you’re happy to live in a Mad Max hellscape, insurance providers may be less thrilled and you might see a jump in your premiums.

If you’re moving to a new build within a significant development, take any figures with ‘a pinch of salt’. There may simply be no crime showing because it’s currently just a field, surrounded by other fields.

There ain't no party…

You like hitting the town at the weekend? Painting the town red? Just make sure there is a town.

If you want a lively scene, that quaint cottage in the middle of nowhere with no transport links might not be the one. If you think a three person dinner party is a rager and you like to be tucked up by 9pm, living next to a nightclub is going to cause problems.

These may sound really obvious, but I’ve seen people make mistakes because they haven’t done their homework.  You may love a good night out just as much as a quiet walk in the hills. You just need to be clear on what you want day-in day-out. So ask yourself: are you happy to take a short drive out into the country to get your quiet walk in the hills? Or can you accept the odd taxi ride into town to have the hills on your doorstep?

Also, make sure the area has what you want from a lifestyle point of view. For example, when I last moved, a local rugby club and a Brazilian Jiu-Jitsu gym were very important to me.

There are no rights or wrongs, you just need to weigh up what you want.

Found the right place? Now find the right place

So, we’ve buttoned down the location and now we need to drill down to the property itself.

If you are buying a new build it’s fairly easy - go to the building site and look at the show homes. If the property that you want to purchase is not one of the show homes on that site, find out if there is a show home at another site and travel to have a proper view (if current restrictions allow). If it is not possible, make sure you are googling to find out as much as you can about the developer and get to proper grips with the property information sheet that will be available.

However, a quick tip - insider information suggests developers might spend more time and effort on building the show-homes. Dare we say it, the build quality may be slightly higher or may have a slightly higher spec to help sell the houses. Plus, they are usually furnished.

If you’re not buying a new build, we’re still searching online, but at least we have the location locked in. Using the list of ‘wants and don’t wants’, you should be able to bring up a list of potential properties to buy, But what do you do next?

Let’s talk floor plans

Man, do I love a floor plan. I’ve looked for properties abroad and most websites don’t seem to have floor plans which makes no sense to me. Why would you not have a floor plan? It's essential to that online search. Alongside the photos, it helps give you a much better idea of the property.

A good plan should have measurements, but not all do. Some estate agents are also a bit too clever with their camera work. There is nothing more infuriating than finding that ideal home, going for a viewing (simpler times) and realising that the master suite you loved the look of is a generous box room at most.  Measurements on floor plans can help you visualise better and to work out whether your super king size bed will fit in or whether you are going to have to downsize.

Remember, estate agents take pictures in such a way to sell the property. They act on behalf of the seller - not the buyer!

Whilst a plan with measurements can help visualise the size of a place, how do you figure out how bright the house may be. Well, find the property on a map (the websites will probably show it), then visualise the sun rising in the east travelling via the south across sky to eventually set in the west.

New build vs period

Sparkling new or brimming with character? Whether to purchase a newer or older property will be a personal choice. Some people only buy new, whilst even the idea of a new build is awful to others.

Some people’s choices are steered by the available government schemes. The biggest home buying scheme offered by the government currently is the Help to Buy equity loan which is only available for new builds.

Under this scheme,  the government lends you up to 20% of the property price (or 40% if in London) and you need at least a 5% deposit. You will then need to get a mortgage for the remaining 75% (or 55% in London). Another option is shared ownership.

Shared Ownership gives you the opportunity to buy a share of a property (between 25% and 75% of the home’s value) and pay rent on the remaining share. It allows you to buy bigger shares when you can afford to.

If you’re not relying on any government schemes, you have more choices. But be aware that if you buy an older property, all of that charm and character might come at a price. Maintaining an older home generally costs more than you’d spend on a new one.

You should also think about energy efficiency. For example, does the property have double glazing or might it all a bit draughty in there? You can make older properties more energy efficient, but be aware of building regulations, especially if it’s a listed property where it can be difficult and more expensive to make changes.

That said, you won’t suffer from the immediate house price drop usually associated with purchasing a new build. Just like buying a new car, expect to suffer some depreciation. Even in a rising property market, you may not be able to sell without making a loss in the first couple of years.

The premium you pay for a new build does mean you get a 10 year warranty which should mean that you don’t have any big unexpected bills. As Peter highlighted in a previous article, when he purchased his home, the boiler broke almost immediately. If he’d bought a new build, this cost would have been covered by the warranty.

I’m sorry, how much?

Finding your dream home is all well and good, but it needs to be within your budget.  As I’ve said before, perfect is the enemy of good and the reality is that ticking all of the boxes on what you want from a location perspective may mean prices are simply out of your reach.

Time for tough decisions: location over property or most likely a mixture of both. Are you willing to forego the garden to be in the right location? Can you push out your distance to work by 5 miles? Do you really like your friends and family, or maybe being 50 miles away is a good thing? :)

It’s your decision, so just make sure you understand what’s most important to you. All the areas in this article add up to help you choose a location and give you a feel for a place before you decide whether or not to request a viewing.

In the next article, I’ll probably be handing back to Peter to discuss Mortgage Applications and Viewing Properties. Thanks for your time!

Adviser Top Picks

1. Plan your location first, then look at the properties themselves. If your budget doesn’t stretch, you can always revisit the location.
2. An estate agent is legally acting on behalf of the seller - not the buyer.
3. If buying a new build, expect to suffer some price depreciation in the first couple of years.

The 1-minute read to get the money news you need with expert adviser commentary.

Mortgage guarantee

A new scheme to help people buy a home with a 5% deposit is set to be announced in Rishi Sunak’s budget on Wednesday. Under this scheme, the government will incentivise lenders to offer more 95% mortgage deals. Low-deposit mortgages have all but disappeared in the past year - there were just 5 on the market at the start of February. The government is hoping to bring them back.

£1.65 billion for jabs

Rishi will also announce £1.65 billion of extra cash to boost the vaccine rollout. The government wants to make sure it hits its target of offering a first dose to every adult before the end of July. 1 in 3 have had the first jab so far - the chancellor wants this to continue so that he can crack on with reopening the economy as soon as possible.

Online shopping sets new record

Supermarkets set a new record for online grocery sales in January, doing 16% of business online. Supermarkets have been the only winners from lockdown restrictions, with the stay-at-home order pushing people’s grocery bills up. Shoppers spent £1bn more at supermarkets in total, compared with January 2020.

Finance pay gap

Female directors in top financial services firms are paid 66% less than their male counterparts. Women are more likely to occupy non-executive director roles, which are less hands-on than executive positions. The research by law firm Fox & Partners suggests firms have been slow to recruit women to top boardroom roles.

The 1-minute read to get the money news you need with expert adviser commentary.

Unpaid overtime

British workers racked up over £24 billion worth of unpaid overtime in 2020, according to new data from the Trades Union Congress. 3 million people did extra work for free, averaging 7.7 unpaid hours a week. People working from home such as teachers, managers, and directors are among those most likely to be doing the most.

Business regains confidence

Companies are feeling positive about the future, for the first time since March last year. A survey in early February by Lloyd’s Bank found that business confidence has nudged into positive territory, even before Boris Johnson announced the roadmap out of lockdown. The bank’s senior economist says this shows firms are “cautiously pinning their hopes on economic revival”.

4.7 million furloughed

700,000 people went onto the furlough scheme January, as the third national lockdown got under way. The number of furloughed workers now stands at 4.7 million - the highest since last summer. It’s around half the number who were furloughed last spring, at the start of the crisis. Next week, chancellor Rishi Sunak will announce what’s happening with the furlough scheme beyond April.

Airbnb predicts rebound

Airbnb is getting ready for a big surge in bookings when the world emerges from lockdown restriction. The booking platform saystravel is coming back, but reckons travellers will want different things. Remote working could allow people to take more weekend trips, or spend several months away from home. Plus, social distancing rules mean there’s greater demand for private homes.

The 1-minute read to get the money news you need.

Phone owners due compensation?

Around 29 million Apple and Samsung smartphone owners might be entitled to £30 in compensation, if consumer group Which? wins a court case. It’s suing chipmaker Qualcomm, saying it overcharged phone manufacturers which in turn inflated the handset prices. The payout to customers could total £480 million.

Teachers to give grades

This year’s GCSE and A Level grades will be decided by teachers, taking into account mock exams, coursework, and essays. Exams have been cancelled for a second year in a row, and last summer thousands of students had their results downgraded by an algorithm before being allowed to use their teacher-assigned grades after all. The education regulator Ofqual has confirmed teachers will all use the same system to make it fair.

Primark predicts £1.5bn hit

Primark expects to lose £1.5 billion in sales during its current financial year - that’s a 40% fall from last year. The fashion chain doesn’t do any business online, so it’s been hit hard in lockdown. Non-essential retail is currently closed, with no chance of reopening before 12th April. However, it says it expects to be very busy once it does, with a big surge in sales from pent-up demand.

The 1-minute read to get the money news you need with expert adviser commentary.

No stamp duty til June

Chancellor Rishi Sunak is expected to extend the stamp duty holiday by 3 months, keeping the tax break in place until the end of June. The deal would stay the same: anyone buying a home for up to £500,000 would have no stamp duty to pay. Under this temporary measure, 9 out of 10 homebuyers are exempt from the tax. We’ll get more details about the extension in the budget on 3rd March.

Vaccine passports?

We could soon be flashing the NHS app on entry to pubs, clubs, and theatres in England, to prove our coronavirus status. Businesses in England will be given powers to check if punters have had the jab, or the results of any recent tests. It would mean an update to the app, which currently can only offer “check in” at venues or tell you to self-isolate.

School’s not out

Kids will get extra support to help them catch up on the learning they lost during lockdown, including a programme of classes over the summer holidays. The government has announced an extra £400 million in funding for the measures, which also include extra tutoring.

Musk loses crown

Elon Musk is no longer the world’s richest person, after shares in his company Tesla took a 20% dip. The firm recently bought £1 billion of Bitcoin and announced it would accept the cryptocurrency as payment, causing the price to spike. But now Bitcoin and share prices are dropping, and the top spot is once again occupied by Amazon boss Jeff Bezos.

The 1-minute read to get the money news you need.

Lockdown exit plan

Boris Johnson has set out a 4-step plan to get England back to normal life. He’s prioritised schools, which will reopen on 8th March. Shops, gyms, and barbers could open their doors on 12th April if all goes to plan, followed by pubs and restaurants on 17th May. It’s a slower timetable than many expected - but the Prime Minister said he wants this to be the last lockdown, with all restrictions lifted by 21st June.

Holiday bookings take off

Airlines have seen a surge in bookings for summer holidays. EasyJet has reported a 630% jump in holiday bookings, with most people aiming to get away in August. According to the government’s plan, foreign travel won’t be allowed until 17th May, and it will depend on the verdict of a special report.

Unemployment rises

The jobless rate rose to 5.1% in the last 3 months of last year, according to the Office for National Statistics. That’s the highest since early 2016, and the majority of job losses have been among people under 25. Unemployment is being kept in check by the furlough scheme, which chancellor Rishi Sunak is expected to extend in his budget next week. The Bank of England expects the jobless rate to rise to 8% once the scheme ends.

No jab, no job?

Your boss can’t force you to get a coronavirus jab, if you don’t want it. Trade unions say employers could face legal action, if they discriminate against workers who haven’t been vaccinated. There’s concern that a “no jab, no job” policy could hit young people’s job prospects - they’ll be the last to get the vaccine, but are also the most likely to have lost their jobs.

The 1-minute read to get the money news you need

Big news from Boris

The PM is set to announce the plan for England to come out of lockdown today. He’ll say that schools will reopen from 8th March, with new freedoms to socialise outside with one other person to start at the same time. 3 weeks later, we’re likely to see the return of sports and the rule of 6 for outdoor fun. Pubs, restaurants, shops will have to wait until later.

Hiring spree?

British companies are feeling better about hiring than they have for over a year. 56% of firms say they’re planning to hire people in the next few months, according to the Chartered Institute for Personnel and Development. The number of bosses planning redundancies has dropped too - down to 20%, from 30% at the end of last year.

Cosy home scheme

Only 2,600 homeowners have been able to access £5,000 vouchers* to make their homes warmer and more efficient. The target? 600,000. The scheme has been extended to March 2022- but the funding hasn’t. That means over £1 billion of vouchers will remain unclaimed. The funding for the 2021/22 tax year will be enough to go around 80,000 households.

Planes grounded

Boeing 777s across the world are banned from flying while the company investigates an engine failure that struck one of its jets in Denver. Many are out of service anyway because of the pandemic. In other bad news for the industry, demand for new planes has dried up with no orders at all for passenger planes in January.

The 1-minute read to get the money news you need.

Perseverance pays off

Nasa’s Mars rover has landed safely after a perilous 7-minute descent through the red planet’s atmosphere. It’s apparently in “great shape” and is already beaming back images of the surface. It’ll spend the next 2 years looking for evidence of alien life.

Retail sales slump

Retail sales fell by 8.5% in January according to the Office for National Statistics (ONS). It’s a far bigger fall than the 2.5% that economists predicted. Non-essential shops were closed for most of the month under the latest lockdown, so shoppers had to go online.

January borrowing

The ONS also says that the government borrowed £8.8 billion in January - less than many expected. January is normally payday for the public purse, when many businesses pay their tax bills. But this year is different. Total government borrowing is expected to hit £393 billion for this tax year - the highest since the Second World War.

More inventions please

We’re getting a new science agency called Aria which will power advances to follow the internet and GPS, which came out of similar agencies in the US. Aria will get £800 million government money to fund 4 years of high-risk, high-reward research. That sounds like a lot - but it’s a fraction of the £10 billion total allocated for research this year.

No flight refunds?

More than 2 million people won’t get their money back from unused plane tickets, according to Which?. Most of them couldn't board their flights because of coronavirus restrictions. The consumer group recommends checking the cancellation policy before booking anything.

The 1-minute read to get the money news you need.

Budget countdown

There are less than 2 weeks to go until chancellor Rishi Sunak’s March budget. He’d hoped to be talking about rebuilding the economy and paying down public debt. But now his plans are expected to focus on support measures for struggling sectors like hospitality. Sunak backs a cautious reopening of the economy - which probably means he will extend schemes like furlough and business loans.

And if he doesn’t

1 in 4 firms will have to let workers go if the furlough scheme isn’t extended beyond the end of April, according to the British Chambers of Commerce (BCC). 61% of BCC member businesses have suffered a fall in sales since October. They’re calling for support to continue until they can reopen and rebuild.

No promotions?

Remote working will cost workers in lower wages and fewer promotions, according to HR execs in top companies. Two thirds think employees will spend less time at the office - and many believe wages would be adjusted if workers’ living costs are lower. Some also said they thought promotions could be restricted for people who work solely from home.

GameStop lawsuits start

An investor who became a key figure in the GameStop saga last month is now facing a class action lawsuit. He used his YouTube channel to urge people to buy shares in the gaming company. He’s accused of market manipulation in the lawsuit filed by a guy who bought into GameStop shares.

The 1-minute read to get the money news you need with expert adviser commentary.

Tests too pricey

Club, theatre and music venue bosses have warned that they can’t afford to do rapid testing at the door. Yesterday, Boris Johnson said testing would be the most likely route to enjoying nights out again - but the industry isn’t sure. With the cheapest lateral flow tests costing at least £7 each, they say they’d need government help to make it viable.

Inflation increase

The cost of living rose slightly in January, recording an inflation rate of 0.7% according to the Office for National Statistics. It was driven by small price rises for food and household goods. It’s a bigger rise than many economists expected, but still far below the Bank of England’s 2% target.

Oil firm confession?

BlackRock has said that oil companies should publish their carbon emissions and set targets to cut them. It’s the world’s largest and most influential investment manager, and will demand the data from all the highly polluting companies it holds shares in. Most big oil companies have already committed to reducing emissions by 2050.

Pub gardens only?

6 in 10 pubs would be unable to reopen if drinking is only allowed outside, according to the British Beer and Pub Association. 29,000 pubs in the UK don’t have enough space to offer outdoor service. Government plans suggest that al fresco pints will be the first step - but the industry is pushing for a full reopening at the same time that non-essential shops return.

The 1-minute read to get the money news you need.

Economy needs more support

The government must continue measures like the furlough scheme to keep businesses going and prevent job losses, according to the Institute for Fiscal Studies (IFS). The think tank has said Chancellor Rishi Sunak should focus on targeted support to meet the triple threat of the pandemic, Brexit, and climate change. It reckons we’ll have to raise £60 billion extra in taxes to pay for the pandemic - but his 3rd March budget is too early to start.

Falling behind on rent

450,000 families have fallen into rent or mortgage arrears since the start of the pandemic - and the government should step in to help, according to the Resolution Foundation. It’s calling for £375 million of low-interest loans, like those currently in place in Spain, Scotland, and Wales, to help England’s struggling renters and avoid an eviction crisis.

The show must go on?

Rapid lateral flow testing could give us a way back into nightclubs and theatres this year. Boris Johnson said yesterday that a combo of vaccinating the population and testing on entry could help to open some parts of the economy which have been closed since March 2020.

UK’s answer to Tesla

Jaguar will be all-electric by 2025, in a bid to make high-performance luxury cars that don’t damage the environment. It’s also planning to invest in hydrogen fuel cell technology. Jaguar is owned by Jaguar Land Rover, which plans to make its full range battery powered by 2030.

The 1-minute read to get the money news you need.

Demand for detached houses

Halifax is reporting that prices for detached homes increased 10% from December 2019 to 2020 - beating semis (6.3%), terraced (5.8%), and flats (3.2%). Remote working means more people have been looking for bigger homes in leafier areas.

Rishi told to keep spending

Funding the vaccine rollout and more furlough will push the UK deficit to over £295bn this financial year. But business leaders are saying carry on* - they argue if Chancellor Rishi Sunak stops spending, then it could derail the recovery. Economists warn if the recovery isn’t strong enough, or if we spend too much, then public finances will require higher taxes or lower government spending.

Social businesses shut out

Social Enterprise UK is calling for social business to have better access to business support schemes. They claim that hundreds of community-run businesses have closed because they are often customers of “ethical banks” - many of which are not accredited to offer the government's Covid support loans.

Investors slam Woodford comeback

Neil Woodford's failed investment fund lost large sums by betting big on high-risk small businesses. He’s now started a new investment management firm* that targets large investors and is focussed on biotech. With £200m stuck in the old fund at a 25% loss, a group claim is being made by old investors saying that it was mismanaged and did not comply with regulations.

*this article may need a subscription to read

You’re in the homebuying process and following all the required steps. Well done - and keep going.

However, there's something else that you should be doing alongside saving: making yourself look like a good bet to a mortgage lender.

#5 - Getting ‘mortgage-ready’

I’m going to start with a question: if you saw your neighbour every day, and one day she asked to borrow £1, would you lend it to her? I’m guessing you probably would. It’s only £1 and you’ll see her tomorrow.

Now imagine if a week later, your neighbour asked for £5. And then the next week, she asked to borrow £20. Would you lend it to her?  You might - but only if she paid you back each time.

But would you be so generous if your neighbour came straight up and asked for £20? What if she didn’t pay you back last time? At some point you’d either say no, or offer her less than she wants. You’d probably have a few questions before handing over the cash.

Now imagine it’s you doing the asking. You would want to give her the confidence that you’ll repay it. Finally, imagine that instead of asking for £1, you’re applying to borrow £200,000!

The reality is that you may be asking a bank or building society to lend you a significant amount of money, so you want to be as appealing to them as possible - after all it’s likely to be a long term relationship!

You’ve probably noticed by now, I love a quote, so here’s another you probably already know - “By failing to prepare, you are preparing to fail" - Benjamin Franklin. Preparation is key.  Getting mortgage-ready is something you should be doing as soon as you start saving.

So, what’s appealing to lenders? And what can you do to look your best? Broadly, you should be aware of the following areas:

• Your credit score
• Existing debt
• Your spending.
• Your job
• Your record keeping

Your credit score

Many advisers will say ‘It’s all about your credit score!’ and that’s a common belief, but it’s not strictly true. Your credit score is important and it’s something that lenders will most definitely pay attention to, but it’s not everything.

Basically, a credit score is a number that depicts your creditworthiness or the extent to which you’re considered suitable to receive financial credit.   A credit score is one of the factors a lender will use to evaluate the how likely you are to pay them back on time

The higher your score, the better you look to potential lenders. Your credit score affects:

• How many lenders might be available to you in the first place,
• How much you can borrow, and
• What interest rates and mortgage deals they will offer you.

It is affected by:

• How much unsecured debt you have
• Your Direct Debits
• Your payment history
• Any CCJs or bankruptcy
• How long your credit history is
• Whether you are on the electoral roll

So, what can you do to improve your credit score? There are a few things that everyone should do:

• Pay your bills
• Check your credit score
• Register on the electoral roll
• Build a repayment history

Pay your bills

Let’s start by looking at what a lender ideally wants from you? It’s simple really - pay them back on time, every month. So, your credit score aims demonstrate if you're likely to be good at this.

It might seem obvious but the single most important thing to do is to pay your bills on time. Any missed payments will look bad to a potential lender. You need to show you can manage your finances.

Missed or late payments will remain on your credit report for at least six years.

Know your score

The next step is to find out your score and check your credit report for its accuracy, especially any errors or omissions. If anything is incorrect, make sure you get it updated straight away.

Even having a slightly incorrect address can impact on your score!

You can get credit reports from a number of companies, some of the big names in the business are shown below and different lenders use different ones and sometime more than one -

Experian - https://www.experian.co.uk/

Equifax - https://www.equifax.co.uk/

Check My File - https://www.checkmyfile.com

Clear Score - https://www.clearscore.com/

Most offer a free version as well as premium options. So, have a search around and choose whichever grabs your fancy. They generally all do the same thing and it’ll help you get to grips with your credit score.

Welcome back Ben! Yes, it's Ben from the previous articles. He’s on track with his saving and his LISA is building up nicely.  He’s now looking at getting ‘mortgage ready’ and he’s just got his credit report, which shows 550 out of 999.

He’s shocked, it’s so low. He says he pays his mum and dad his rent money in cash on time and although he has a hefty car loan, he always pays it on time. He has no other debt and always has cash around the house.

Just picture what his credit report looks like and what a lender may see (or not see).

The electoral roll

The next thing to do is make sure that you are registered on the electoral roll. This is fairly easy to do and is a quick win. In England, Scotland and Wales, you can register to vote by post or online. In Northern Ireland, you can register by returning a completed voting registration form.

The reason this increases your credit score is simply that it means that lenders can easily confirm your name and address and they know you’re not trying to hide from a past bad debt.

Ben’s on the electoral roll, but only because his dad completed the form when it came through the post. Unfortunately, he spelt his name wrong(!), so that needs fixing for a start!

Build a repayment history

So you’re doing the basics, but what other steps can you take? This is likely to depend on your situation.

If you have a limited credit history, it would make sense to build it up. You can do this byvia several methods, such as taking out a credit card. Alternatively, as promoted by Which, you might even utilise a service like LoqBox or 118 118 Money, which are also good for repairing credit scores.

Credit cards

As a Financial Adviser, it pains me to tell someone to take on a credit card, but for some potential home buyers it may be a good idea. If you have no credit history, your credit score is likely to be lower as a lender can’t see how you might manage debt. So, using a credit card sensibly can show a lender how sensible you are.

Using a credit card sensibly means:

• Using no more than 25% of your credit limit
• Pay it off in full each month - don’t fall into the trap of making minimum payments
• Never miss a payment

The longer your payment history is, the better. So, if you have no payment history, it’s a good idea to get started as soon as possible.

A word of caution - If you don’t trust yourself with a credit card, then ignore this tip. I don’t want to create you more issues.  Similarly, if you quickly find yourself not clearing the balance each month, shred the card and focus on clearing the balance.

LoqBox

An alternative to credit cards is LoqBox, which basically is a clever piggy bank designing specifically for both saving or building a credit history. It can also be great for people who unfortunately are looking to ‘rebuild’ their credit score.

You agree a sum to save over a year and they set that much aside in a locked away account. You save your money across the year and the money is then made available to you. Sounds like a savings account, but in reality it’s set up as a 0% loan and your monthly savings are shown as repayments. It is a good way of building up your credit score without getting into debt. For some of you it may be worth investigating.

118 118 Money

This is what I would call a ‘low start’ credit card and not for everyone. It can be useful to build or rebuild your credit score. Most credit cards charge interest or fees on certain transactions, such as cash withdrawals or foreign transactions.

118 118 Money offers a low credit limit card but charges no interest or fees on transactions. Instead you pay a subscription of around £8 to £17 a month, depending on your credit limit. This is great for rebuilding a score, but beware that as your credit score improves, they offer higher limits (and bigger subscription costs) and we believe that this is the time to shop around.

Ben feels he manages his day-to-day money well, so is going to take out a credit card with the sole object of building his credit history.  He’s looking at a card that offers £1,000 of credit. He's going to use it as a fuel card and pay it back every month. He usually spends around £200-£250 a month on fuel.

He’s also saving more than the £4,000 per annum LISA allowance. He’s going to look into LoqBox as well.

Existing debt

If you have significant amounts of debt, you really need to look at clearing what you can. Focus on any high interest debt as it will be the most cost effective to clear first, freeing up money to clear other debt.

There may be debt that you don’t want to repay, such as a car loan. Whilst having a car loan can be a positive in showing you can manage debt, you have to be aware that this will reduce the amount you can borrow for a mortgage.

You should be staying out of your overdraft, especially if it is a regular event. This is because a mortgage lender may conclude that you can’t live within your means and of course it’s just another debt you’ll need to pay.

Loan defaults, missed or late payments will remain on your credit report for at least six years.

You should also look to close any old, inactive credit facilities that you no longer use.

Your spending

When you apply for the mortgage, lenders often like to see 3 to 6 months of bank statements. They are looking to assess how you manage your money and ultimately assess if you could afford the mortgage repayments. Specifically, they are assessing the following:

• Are you regularly going overdrawn?
• Are direct debits being paid regularly?
• Are you living within your means and from your own regular income?

The Bank of Mum and Dad’ (BOMAD) can help you buy a home, but not if it simply shows a lender you can’t live within your own means and need bailing out. The best way to use their help is with building up your deposit.

So when you apply, make sure your bank statements are as ‘tidy’ as they can be.  Lenders aside, it is good for you to have a good understanding of your spending habits, so you know what is affordable and comfortable for you.

If there are outgoings you could cull or reduce, now is the time to do it. Even if it means deleting certain food delivery apps from your phone.

Your job

Keep that job - I mean, if you get offered a promotion at work, take it. Congrats! However, moving to a new employer within a few months of applying for a mortgage could prove disastrous, even if it's for more money.  Lenders might tell you to come back later.

Why? It's not the change of job itself, it's the timing. Lenders are a cautious bunch and are more comfortable lending you money if you have been in your job for a decent amount of time. As a rule of thumb, 3 to 6 months would be seen as an ideal minimum. Specifically, they don’t want you to be in your probation period, when there’s a higher risk that your employer might terminate the contract.

Lenders also tend to get even more concerned if you’ve had a complete career change or decided to go out on your own. Typically for self-employed applicants they really want to see at least two years' accounts. Your income during the first two years may well be lower, which also means they are likely to lend less.  

Your record-keeping

As I have said, lenders are cautious by nature and they will not take your word for anything. This leads to them wanting a whole load of documents to prove everything. There are as follows;

• Proof of income - this may be via 3/6 months’ payslips or 2/3 years accounts or tax returns if self-employed
• Proof of address, such as a council tax bill or a utility bill
• Proof of any bonuses or commission you receive
• Last 3 to 6 months’ bank statements
• Proof of deposit availability
• Proof of ID (passport or photocard driving license)
• A gift letter if you’re getting help with your deposit, stating that the person is gifting you the money and not lending it to you

Summary

Get on top of and build your credit score, make sure that you are clearing as much of your other debt as possible, and manage your spending within your income.

We also touched on the importance of your record keeping and the impact of things as simple as changing jobs. I’ll leave you with my top picks again, but I think I’ll leave the next article for Dan to write. He’s gone through ‘Finding your home’ more than once and more recently than me, but I’ll be back soon and I’ll be reading his thoughts with interest.

Adviser Top Picks - Getting mortgage-ready

1. Be on the electoral roll - Make sure you’re registered on the electoral roll so you're easy to find.
2. Pay your bills and any loan repayments - This is the best way to show lenders you are responsible.
3. Use debt to build your credit score - Use debt with caution, try and build up a positive history of debt repayment.
4. Aim to clear your debt - Existing debt reduces your borrowing capacity. Try and minimise this and clear high interest debt first.
5. Think twice before changing jobs - Think about when you are likely to apply for a mortgage, as this may impact your borrowing ability.
6. Record keeping - Ensure you have everything that a mortgage lender will want to see.

The 1-minute read to get the money news you need.

2020 economic slump

It’s official: the economy shrank by 9.9% last year according to the Office for National Statistics. It’s the biggest annual slump we’ve ever had. The economy did manage to stabilise in the last 3 months of 2020, meaning we’ll probably avoid a double-dip recession.

28 million vulnerable

Half of adults are now considered vulnerable* by the Financial Conduct Authority (FCA) after coronavirus has put people’s lives under extra pressure. Vulnerable adults are those with a lot of debt, low levels of savings, poor health, or who have recently been through difficult life events. 28 million adults are now in this camp - up from 24 million in February 2020.

Bad bosses

1 in 5 workers are going into a workplace to do a job that could be done at home, according to a YouGov poll. 40% of those say their boss insists they show up in person. The Trades Union Congress has also found that many of those workers are under pressure from employers to go into offices.

Holiday refunds

Lastminute.com could be taken to court over its failure to pay out over £1 million worth of holiday refunds. The Competition and Markets Authority (CMA) ordered the company to pay refunds to over 9,000 customers who had trips cancelled due to the pandemic - but 2,600 are still waiting for the cash.

*this article may need a subscription to read

The 1-minute read to get the money news you need.

London loses crown

Amsterdam has overtaken London as Europe’s trading hub, with the City losing business after Brexit. The Dutch capital handled €9.2 billion of trades in January, while London’s trading volumes fell sharply to €8.6 billion. It’s mainly a symbolic moment - the economic impact of the lost business is pretty small.

Banks locked out?

UK banks could be locked out of the EU banking market* leading to higher prices for mortgages, insurance, and other finance. We’re still in talks to sort out a permanent post-Brexit deal for financial services. But Andrew Bailey, the governor of the Bank of England, said there are signs the EU intends to cut the UK off.

Record Christmas

Royal Mail had its busiest Christmas ever, delivering 496 million parcels in the last 3 months of last year. That’s 30% more than the same period in 2019. It struggled to deliver all those parcels on time thanks to disruptions in the run up to Christmas with staff off sick or self isolating.

Don’t book a holiday?

Confusion is mounting over whether summer holidays will be possible. With stricter border measures coming into force to try and keep coronavirus variants out of the country, many are booking breaks in the UK. But Boris Johnson reckons we should hold off, saying it’s too early to know what we’ll be able to do.

The 1-minute read to get the money news you need.

Cladding cash

The government is set to announce billions in extra funding to remove flammable cladding from high rise homes. 3 years on from the Grenfell Tower fire, over 700,000 people are still living in buildings with flammable cladding - and the crisis has left homeowners with huge bills for its removal. Last year, the government pledged £1.6 billion to pay for repairs - but a committee of MPs later estimated that the total cost could run to £15 billion.

Pubs plead for plan

Bars and pubs are clamouring to know when they’ll be able to reopen. The British Beer and Pub Association (BBPA) has warned that thousands of watering holes are deep in debt and could be lost for good, after takings more than halved last year. The government has said it’ll share its plan for reopening the economy on 22nd February.

Marine life makeover

Fancy spider crab for starters? How about megrim fish for main? You might prefer Cornish King crab followed by Cornish sole. Both abundant in our waters, but the vast majority of the catch is exported to Europe. That’s become trickier since Brexit, so the fish are getting shiny new names to help them appeal to British diners.

The 1-minute read to get the money news you need.

Extra testing

Travellers arriving in the UK will need to take two coronavirus tests during their 10-day quarantine. That’s in addition to the negative test they need to show at the other end, before getting on the plane, train, or boat. It’s hoped that the extra rules will help to prevent new variants of the virus from getting into the country.

Lean January

Consumer spending was down 16.3% last month compared to January 2020, according to Barclaycard. The credit card provider said it was the steepest decline in spending since May last year. We spent 73% more on takeaways and online shopping - but it couldn’t make up for not being able to go to pubs or restaurants, or book holidays.

Worse for women?

The economic impact of coronavirus has widened inequalities between men and women, according to a report by a cross-party group of MPs. The report reckons that government support for the economy has helped men more than women. The impacts are down to existing differences - for example, women are more likely to work in shut-down sectors like retail and hospitality, and to have part-time or zero hours contracts.

Gold beef

A London chef has taken flak for his gourmet takeaway sandwiches that cost up to £50 and feature luxury ingredients like rib-eye steak wrapped in edible gold leaf. He’s doing a roaring trade in west London, delivering his creations in a black Mercedes.

Online retailers like Amazon could face a new tax levied by the government to help pay back its coronavirus debts. Amazon’s UK sales soared 51% to almost £20 billion last year thanks to a nationwide online shopping spree. Chancellor Rishi Sunak is considering targeting companies that have done well out of lockdown to help pay for the government support given to hard hit industries.

Borrowing for survival

British businesses are getting deeper into debt just to survive, according to accountancy firm EY. They’re worried it could hold back the UK’s economic recovery, if businesses are forced to focus on making repayments rather than investing in growth. The government has given companies more time to repay state-backed loans in a bid to try and boost those that are struggling.

Boohoo seals deal

Boohoo has agreed a deal to buy Dorothy Perkins, Wallis, and Burton - the final 3 brands from the collapsed Arcadia retail group. The deal includes the shops’ stock, brands and online business, but not the shops. The brands will disappear from the high street and most of the 2,450 staff will face redundancy.

Household “stimulus package”

UK savers have put away £170 billion* in extra cash since the start of the pandemic, according to HSBC economists. People who have kept their income but spent less in lockdown have been able to put a bit more aside. The extra cash is worth 8% of the UK’s pre-pandemic GDP. The big question: how much will we spend, when we can?

The 1-minute read to get the money news you need.

Recovery in sight?

The Bank of England has predicted that after a tough winter, the economy will rebound in spring as the vaccine roll out starts to work its magic. It predicts the economy will shrink by 4.2% in the first 3 months of 2021. The Bank also told high street banks to prepare for negative interest rates. It ruled out cutting interest rates in the short term, but wants to keep it up its sleeve for the future.

Quarantine hotels book up

The government is booking rooms in hotel airports across the country ready to start using them for quarantine on the 15th February. Arrivals from 33 high-risk countries including South Africa and Brazil. They are expecting over 1,000 people a day to arrive and need a hotel room to stay in for the 10-day self isolation.

Energy bills to increase

Energy prices will return to pre-pandemic levels from April, when the price cap will be lifted. The energy regulator Ofgem has confirmed that bills will rise by £96 per year for 11 million customers on default tariffs. People who have a prepayment metre will see an £87 increase.

“I don't know how much I'm supposed to save.”

“At the end of the month, I just don’t have anything left to save.”

“I just don’t earn enough to save”

I have heard many reasons people give for not saving.While there will always be some who genuinely struggle, most people are just not sure where to start.

#4 Building your deposit - Keeping on track and boosting your savings

As we progress into the world of homebuying, we now turn to the less exciting area of savings.

So far, we’ve established that buying a home usually requires a large deposit as well as the other costs set out in Part #2 - Set a target. The resulting total often seems unreachable, especially if you don’t have a plan.

It’s been said “success is a few simple disciplines, practiced every day; while failure is simply a few errors in judgment, repeated every day”. This resonates well with me for many forms of saving, especially saving a larger amount like a house deposit. So the first discipline is to build a plan.

A plan is simply ‘a set of actions that takes you from A to B’, but a good plan is ‘a set of actions that takes you from A to B, where A has been properly assessed and B has been properly defined’.

Note - I also have a definition for a great plan, but for now let’s get a good plan up and running and we can revisit great plans another day.

If you’ve read Part #2 - Set a target you’ve already made a start  by defining B (your target). Well done.  Now let’s define A and create the route to get you from A to B.

The high level plan to saving towards a home buying goal can be summarised like this:

• Get started
• Identify an amount to commit to
• Boost your savings
• Keep motivated

So let’s get started, getting started!

Get started

My first tip is really simple but critical: just start! However, start with a habit and start with a a small amount, so that it's so easy you simply can't say no to yourself.

I don’t care how much you save or even where you save it - it can be a jam jar or a 0% savings account. Let’s be honest, interest rates are so low you’re not missing out on much and you shouldn’t delay getting started. I’m not saying you shouldn’t use the right products and I’ll look at the main ones in a while.

But for now, just get started because:

1. Simply saving something means the target amount is now slightly closer
2. You’ve proved to yourself that you can set aside money - we’ll cover keeping it set aside later
3. Emotionally, you will simply feel better for having done something
4. Psychologically, you have won the first battle. You have put saving towards your home above something else. Don't let that be next week's rent payment though!

If you’ve already started - well done. If you started a while ago and still have it saved, then Multiply salutes you.  If not, don’t worry: start right now and become one of the millions in the UK who are actively saving for a home.

Our example: Previously we met Ben who needed a total of £25,000 to be ready to buy. He’s a little down though because it seems so far off.

I told him "If you want to change something in your life, change something in your life!’  So, he’s put 5 £1 coins from his wallet into an old whisky jar his Dad had.  He’s feeling a bit better and now wants to build on his plan.

Identify an amount to commit to

Right so you’ve started with something small. Did you notice how you did that without thinking about how much you can afford, or assessing your income and outgoings? That was deliberate - just starting is key.

However, to really build your savings you need to budget and follow a savings plan. The process is simple but it takes some time to do it properly:

• Establish your budget
• Estimate your income
• Estimate your outgoings
• Identify excess income
• Commit to saving

Establish your budget

The objective of this exercise is to better understand your spending and commit to specific amounts of spending through the budget period. I’m not talking about saving yet, I’m talking about fully understanding your spending and committing to the budget.

A budget is not a review of your previous income and spending.  A budget is an estimate of your income and outgoings over a set period of time in the future. However, having your previous income and outgoings to hand is helpful and this leads us nicely into timescales.

Many people tend to budget in timescales aligned to their payday frequencies, typically monthly. It seems logical, but I often see these people struggle, or use the credit card, when the less frequent costs come along, e.g. Christmas and birthdays.

For this reason, we recommend you budget over a year and then divide it down to suit your pay frequency. That way, by the end of January, you’ve already got some money aside for next Xmas.

So on a piece of paper or spreadsheet carry out the actions below, understanding that ‘essential’ and ‘commitment’ have two different definitions. A commitment means you are currently committed to paying something, ‘essential’ means you ‘have to pay it’. I’ve given some examples to help. List out your:

1. Your income (this bit is generally the quick bit!).
2. Essential regular monthly (or weekly) commitments (e.g. rent, food, or loan repayments)
3. Less frequent essential commitments (e.g. your TV licence)
4. Non-essential regular monthly (or weekly) commitments (e.g. Netflix, Spotify)
5. Less frequent non-essential commitments (e.g. birthday or Xmas presents)
6. Ad hoc non-essential spending (e.g. your take-out Costa)

Now adjust the above to reflect any specific known changes coming up (e.g and increase in rent or an increase in your Spotify account)*

*Please don’t at this stage try and adjust your spending. We are just trying to understand and live within your current lifestyle. We’ll look at boosting these savings in a bit!

You should also remember that my view of which category an item goes into may be different to yours - It’s your budget not mine, so take control!.  

What you should have established is a plan of your next year’s spending, which should include some short term provision for outgoings later on in the year.  The fact that you have a plan of your spending means you are much more likely to keep to it (or much closer than before!).

Let’s reintroduce Ben. He’s written his list of income and outgoings and tweaked it to guess how it might change next year. He’s surprised himself, his take home pay after tax and pension contributions is £29,500 pa or £2,458 per month, but doesn't think that this will change next year.

His outgoings estimate has come to £26,000 per year, or £2,166 per month.  He’s wondering why he hasn’t got anything left from last year, but guessed it’s just been frittered away because he didn’t have a plan - He’s probably right, but we can’t change the past!

Now he has a plan, he’s established that out of his monthly pay, £1,800 is needed for his regular monthly commitments, but he’ll now put an extra £366 a month aside for the less regular outgoings.

Identify excess income

The objective of the budget exercise is to identify a budget to live within.

However, if you are fortunate enough to have excess income over your spending plan, then you have also just identified the base level of savings you can commit to and an amount that should not impact your current standard of living.

Back to Ben - He’s identified that he can still save £200 a month right away and he’s already wondering if his Dad has a bigger whisky jar!

Commit to saving

So hopefully at this stage, you’ve identified a sum you can save if you stick to your spending plan. If not, and you’re spending everything, don’t worry. You might be able to eke out some savings when we look to boost your savings later on.

So far, apart from putting a few pounds aside in a jam jar, we’ve only carried out a paperwork exercise. We need to turn it into reality - we need to commit.

Here comes the next tip, which echoes the American business tycoon Warren Buffet who once said “Do not save what is left after spending; instead spend what is left after saving”.

In short: don’t wait until the end of the month. Save when you get paid.  “Easier said than done”, I hear you cry. I hear you, but it’s the mindset you need to instill in yourself. That goes not just for home buying, but any goal that requires regular savings and especially larger sums that can seem daunting to achieve.

For example, all too often people defer retirement planning because it’s far off. Then one day it comes along to bite you, and you wish you started earlier.

Remember, all we’ve done is establish a sum that your own figures indicate you can save without impacting your lifestyle and I’m suggesting you decide to save this at the beginning of the month.

Ben gets paid on the 28th of the month, so wants to set up regular savings of £200 a month. He’s a bit concerned about keeping money in the house, so wants to know where he should save it.

Boost your savings

We’ve established a level of saving that you’ve calculated you can afford. Let’s call this your basic savings. This may be a small amount, or nothing at all.

Either way, you can now start to consider the following areas to boost your savings and bring your dream closer to reality.

• Use the right accounts
• Adjust your budget
• Become a smarter spender

Use the right accounts

I said earlier that a jam jar would suffice, but it won't be long before holding notable sums of money in a jam jar is not that safe an option.There are other products that could keep your money safe and maybe even pay you a bit of interest:

• Instant access /Short term notice accounts
• e-Wallets
• Regular savings accounts
• Lifetime ISAs
• Help to Buy ISAs (only for individuals who already them)
• Cash ISAs

Any traditional savings account will do the job and keep your money safe, but you should also consider an e-wallet, such as the easy access savings pot that comes with a Multiply account. The benefit of these is that they keep your money away from the rest of your day-to-day spending. However, the money usually remains completely accessible in the event of an emergency or a bit of over spending (no one's perfect).

If you are happy to commit to a certain amount of money, but not yet ready to lock the funds away, regular savings accounts can do the job and offer slightly higher interest rates than current accounts. The downside is that you’ll need to commit a certain amount each month to benefit from the fixed interest.

Here’s a tip: look into Lifetime ISAs. You can put in up to £4,000 in a tax year and get a government bonus of up to £1,000. If you're buying with someone else and they're also a first-time buyer, you can both do it. This is currently the best boost you can get for your home buying goal. Check you’re eligible first though!

Some people have asked me why I wouldn’t suggest a Stocks & Shares ISA. To be honest they are for medium to long term goals that are at least 5 years away.

Ben’s a first-time buyer, so he’s looking at the Lifetime ISA for his £200 a month savings.

Adjust your budget

Now things start to get a bit tougher. If you want to squeeze out some more savings, something has to give. So let’s start by going back to your budget and see what we can do.

When we created your budget, I suggested that you list out your non-essential regular and less frequent commitments. Revisit them now - is there anything on that list that you are prepared to give up or possibly reduce? Could you live without a Netflix subscription? Lockdown aside, are you really using the gym membership?

I’m not saying that you need to reduce anything, but your own budget may have some answers to where you could save a bit more. Failing that, do you get bored in your spare time? Fancy a second job or taking on some overtime, maybe just whilst you are saving for the deposit?

You’ll know about these savings up front, so you can increase your upfront monthly save!

Become a smarter spender

Now you are on top of your commitments and saving what you can, the next step is to look at the ad hoc non-essential spending. This is where it's hardest to save, but it can give you the biggest wins. One less takeaway, one less coffee, buying a medium rather than the large...all these mini savings add up.

As these are smaller, more ad hoc savings, you probably shouldn’t assume you can always make them every month. Therefore, for this type of savings I recommend you consider using a ‘round ups’ feature in an e-Wallet. You’ll hardly see the money go, but you’ll certainly see your savings start to build.

Ben’s sticking to his budget for now, but will implement roundups via his e-wallet. He doesn’t think he’d miss the money and he can always move some money back if he needed to. If all goes well he’ll look to move the funds over to his new LISA in the future.

Keep motivated

This is a huge subject and is the subject of many good books. I’m not a psychologist, I’m a financial planner and whilst I know the value of keeping motivated when it comes to home buying, I’ll leave this to the experts. Suffice to say though, there are a few tips that are worth following to stay motivated.

• Keep thinking about your goal - e.g. keep up to date on house prices in your area
• Keep checking on your current account balance - you’ll find it easier to stay within budget.
• Keep checking on your savings accounts - eWallets with ‘round ups’ are great to see your balance growing.
• Review your budget to see if you can adjust your planned spending.
• If applicable take advantage of the Lifetime ISA - Watching that bonus going in each month really makes you feel good.
• Consider amending your screen saver or home screen to something that is related to your goal!

Summary

Phew...there we go: a deep dive into building up your deposit and boosting your savings. I’m sure I could add lots more to this, but maybe we can revisit this another day in another forum.

Just time for my top tips from this article.

Adviser Top Picks - Building your deposit

1 - “Carpe Diem” - Seize the day; just get started!

2 - Start small, but make it a habit - 21 times regularly repeated typically makes something a habit. Smaller savings make it easier to build this habit.

3 - Budget over a year, not just a pay packet - It will help you pick up all your irregular outgoings and better plan for those events like Christmas.

4 - Pay yourself first!! - I strongly recommend that you set aside your savings when you first get paid, not what you’ve got left at the end of the month.

5 - Take advantage of Lifetime ISA - If you're eligible, take advantage of the government bonus with a LISA.

The 1-minute read to get the money news you need.

Trouble at the ports

The UK and EU are in a fresh round of trade talks, after tension over post-Brexit checks at Northern Irish ports. Goods entering Northern Ireland from mainland Britain have to be checked on entry, because Northern Ireland is still in the EU single market. That’s led to delays - and now threats against the staff carrying out the checks. It’s those threats that have prompted the talks between officials.

Cheaper homes near stations

Price tags on London homes near a tube station have dropped, as buyers rethink the importance of a snappy commute. The shift to remote working during the pandemic has meant 38% of London homebuyers no longer think it’s important to live near the tube, according to an estate agent. The result? A 2% drop in house prices near stations.

We’re Amazon’s favourite

The UK is Amazon’s hottest market right now, with 2020 sales growth here outstripping any other region*. Last year, we spent a total of £19.3 billion on Amazon - that’s £290 for every man, woman, and child. The spending spree saw the company’s revenues soar by 51% in the UK.

Charging to get into gear?

Oil companies should install chargers for electric cars in all of their petrol stations by 2023, according to think tank Bright Blue. Better coverage of charging stations across the network would help to speed up the rollout of electric cars. The report also calls for higher grants to encourage people to buy the more expensive battery-powered cars.

The 1-minute read to get the money news you need.

Ryanair ad banned

Ryanair has taken down a “misleading” advert which encouraged people to book holidays after getting the coronavirus vaccine. Thousands of people complained about the “Jab & Go” ads - and the regulator agreed that they gave a false impression that everyone will get the jab by summer.

Another furlough extension?

Business groups and trades unions have warned Chancellor Rishi Sunak that the economy is too fragile to end furlough in April. They’re calling for an extension to the scheme, warning that unemployment could skyrocket if support is withdrawn too soon. It’s 1 month today until the next Budget, when the Chancellor will set out his tax and spending plans for the year ahead.

Bezos steps down

Amazon’s CEO will step down after record-breaking revenues in the last 3 months of 2020. The tech giant recorded over $100 billion (£73 billion) of sales leading up to Christmas. Bezos has led the company since founding it almost 30 years ago - now he’s going to take on an executive chair role at Amazon while focusing on other passions like the fight against climate change.

The 1-minute read to get the money news you need.

FCA will curb Klarna

Buy-now-pay-later firms will face tighter controls as the Financial Conduct Authority (FCA) steps in to regulate the sector. Last year’s online shopping boom fed a massive rise in schemes like Klarna. But a report by the FCA shows some people are building up unseen debt - and 1 in 10 is already in arrears on other debts. The new regulations will make sure that customers can afford the repayments and are treated fairly.

House prices fall

House prices took a dip in January, for the first time since last summer. Prices fell 0.3% last month according to the index from mortgage lender Halifax. The stamp duty holiday is due to end on 31st March, which means time is running out for buyers to avoid paying stamp duty on the first £500,000 of any home purchase.

Safer online casinos?

Online gambling faces new regulations to make their virtual casinos safer. The Gambling Commission has announced a package of restrictions, including a limit on roulette spin speeds and clear display to show total wins and losses.

“Rethink economic growth”

Countries need to transform their economies if they want to meet their environment commitments, according to a new study backed by the UK government. It urges governments to protect ecosystems, and focus on more than just GDP growth.

Beige gold

Online shops are facing delivery delays due to a shortage of cardboard boxes. 200 million extra parcels were delivered in 2020 - and cardboard providers weren’t ready. The surge in deliveries has led to a global shortage of the pulp that boxes are made from.

The 1-minute read to get the money news you need with expert adviser commentary.

£350bn lost earnings

Children could miss out on £350 billion in lost earnings because of not being in school. The Institute for Fiscal Studies (IFS) says that missing 6 months of school could mean kids earn £40,000 less on average over their lifetimes. It suggests ways for students to catch up including repeating the entire year, tuition during the holidays, and longer school days.

More protection for investors?

MPs are calling for better protections for novice investors*, after some have been burnt by the GameStop saga. Thousands rushed to join the fray after a group of day traders organised over Reddit to drive up the game retailer’s share price. But it soon went into reverse after investment apps prevented people buying further GameStop stocks.

ASOS buys Topshop

Asos has struck a deal to buy Topshop, Topman, and Miss Selfridge for £295 million. We’ll soon see them disappear from the high street though - the online retailer isn’t taking on any of the brands’ 70 stores, which employ 2,500 people.

Christmas credit spree

Shoppers spent a record amount* using buy-now-pay-later (BNPL) schemes over Christmas. The average spend was £211, and in a survey 1 in 3 people said the option to pay later meant they spent more than usual.

No HMRC fines

Not filed your tax return? Don’t panic. HMRC has waived the £100 fine for missing yesterday’s self assessment deadline, as so many people were struggling to meet it. You now have until 28th February to file your self assessment.

The 1-minute read to get the money news you need.

Robinhood wades in

Trading platforms stepped in yesterday to stop traders buying shares in GameStop, causing the stock price to tumble 55%. It’s the latest twist in a saga that saw a group of Reddit day traders take on Wall Street, buying up GameStop’s shares to drive up the price, causing hedge funds to lose billions. Now, Robinhood and Interactive Investor have curtailed the buying spree - and the traders aren’t happy about it.

We’re tightening our belts

Brits are spending less in the third lockdown, with more people on furlough than at any other point since July 2020. Credit and debit card spending is down 35% compared to the start of last year, according to “experimental” data from the Bank of England.

Boohoo’s on a spree

Boohoo is in talks to buy Dorothy Perkins, Burton, and Wallis, 3 brands from the collapsed Arcadia group. It’s only been a few days since the online fashion retailer paid £55 million to buy the online side of Debenhams. Its approach with the Arcadia brands is likely to be the same - keep the websites, shut the shops, and keep only a few of the staff.

Drone airport opening

A pop-up airport in Coventry will showcase drones and flying cars and demo how futuristic ways of getting around can fit into today’s cities. Dubbed Air One, the airport will open in November. It’s had complaints about the term “flying cars” though - apparently they’re actually more like helicopters.

The 1-minute read to get the money news you need.

The GameStop’s here

A 2-million strong group of Redditors have taken on some of the world’s wealthiest hedge fund managers - and it looks like they’re winning. Hedge funds were short selling stocks in struggling US games retailer GameStop, betting that their share price would fall. But day traders in the subreddit r/WallStreetBets decided to act en masse to buy the stocks and drive prices up - losing the hedge funds huge sums while the traders cashed in on small fortunes.

Cottage shortage

A second staycation boom is underway in the UK, with enquiries at one cottage rental company up 300% compared to last year. Now that holidays abroad come with the risk of enforced hotel quarantine, many Brits are booking closer to home for their summer break. But with existing bookings rolled over from 2020 cancellations, accommodation could be in short supply.

EasyJet squeezed

EasyJet saw its revenue fall by 90% in the last 3 months of 2020, with unrelentingly tight restrictions causing a drop in passenger numbers. The budget airline is holding out hope for a rebound once the impact of coronavirus vaccines kicks in. Its own consumer polling says 65% of people plan to make a travel booking in 2021.

£100 contactless limit

We could soon be able to use contactless cards and devices for payments up to £100, after the Financial Conduct Authority mooted plans to raise the limit. However, some are worried that an acceleration towards cashless payments could leave some behind. They want to see cash infrastructure protected for people who rely on notes and coins.

Buying your first home is an exciting time.

You've set your target and started saving up. How hard can it be?

The first steps into anything new are exciting, but the homebuying process can also be complicated and confusing. Let's break it down.

The homebuying process - an overview

Over a short Zoom meeting, Dan tells me that Art Brut once said “it’s a bit complicated”. ‘Who?” I replied.  “You know, the art punk band, Art Brut?”.

It has been a few years but I don’t remember that particular album being about the homebuying process. Dan should also have known I'd be more likely to understand an Metallica or Iron Maiden reference.

Anyway. In some ways, buying a home is fairly simple - you find a property you like, agree a price with the seller, borrow some money, and then buy the home.

Easy. Done.

Well, not quite. Although the high level view seems simple, it becomes more complicated when you start getting into the details. So, while it's a good idea to get to grips with the process, we suggest you try not to get bogged down in minutiae before you even begin.

Knowledge is power, and it will help you to know what is meant to happen and when. It also doesn’t hurt to understand why each step is happening. Personally, I find it comforting to know where I am and where I'm going next.

So, the basics of the homebuying process look like this:

1. Set your target and save up
2. Get a mortgage in principle
3. Find the right property
4. Agree a purchase price
5. Get a mortgage offer
6. Instruct a solicitor
7. Get a survey completed
8. Exchange contracts
9. Complete your purchase

Let’s look at each step in more detail.

Set your target and save up

Well, maybe not this one. We have already covered this in the previous article, and the next one will look at building up your savings.

Get a mortgage in principle

Let’s call it a MIP to save my typing fingers. A MIP is also sometimes called an ‘Agreement in Principle’. It’s a way to firm up your target amount, but it also shows sellers and estate agents that you’re serious.

A MIP is an indication of how much a lender could lend you, based on your income, spending, and debts.

MIPs don’t generally affect your credit score as lenders don't run a full credit check. That comes later. However, the lender is likely to ask credit reference agencies to confirm whether some of the details provided match your credit file.

The MIP doesn't guarantee that you can get a mortgage. It simply gives you an idea of whether that lender would be willing to lend the amount you need.

Timing a MIP can be crucial as I’ll try and explain below.

Firstly, you should be aware that if you've had some money problems in the past, your MIP might give you a figure notably lower than you’d hoped.

The major issues that may impact on what or if a lender will lend to you are:

• A bankruptcy order in the past 6 years
• A County Court Judgment (CCJ) in the past 6 years for debt that you haven't repaid
• Being refused for a mortgage or having a home repossessed in the past 6 years
• Less than 3 months' employment history

Secondly, if you already have debts then this may impact the amount that a lender may agree (in principle) to lend, even if you have every intention of clearing the debt. More details on that here.

If any of these apply to you, it may be prudent to hang fire before charging out to get a MIP. It may be helpful to wait until you have either cleared the debt or simply allowed more time to pass.

Don’t worry if you aren’t 100% certain on this, we’ll be doing a separate post on getting mortgage ready and we’ll cover this again.

Also, if any of the major issues above apply to you, I’d recommend you speak to an independent mortgage adviser before applying for a MIP as they will know what lenders are looking for and which ones you'd be better suited to.

Find the right property

Art Brut and now Voltaire? Pretty high brow stuff. Anyway, Voltaire is famous for saying “the perfect is the enemy of the good”.

Even with an unlimited budget, unless you design and build your own home, it will never be perfect. And most us are not working with an unlimited budget.

It is very important that you are able to separate your wants from your essentials, and your preferences from your deal-breakers.

What are you willing to compromise on?

Is location everything? Are you willing to lose a bedroom to stay in that area?

Just make sure that you are clear on what it is you want from a property.

Agree a purchase price

This can be tricky but you need to try and remain as stoic as you can.

Know what you can afford and do not go beyond that line. If you find a property you love, it can seem like the only one. But if it's outside your budget, take a deep breath and pass - and wait for one you can afford.

Home buying is emotional but don't forget the facts and figures of your financial situation.

Try and do some research into the housing market where and when you are buying. Are properties selling quickly or staying on the market for ages? Use this research to help you when you make an offer. More info on house price data here.

You can see sold prices on the Land Registry but be aware that only the most recent prices will be relevant.

Also, think about how your choice may lead to other costs. For example, you might pay more stamp duty on a more expensive property. If purchasing a new build or a ‘doer-upper’, you might need to spend extra on making it habitable. And if you're like me and paint like a 5 year old, then you'll need to pay a decorator too.

Get a mortgage offer

You’ve got the mortgage in principle, now it's time to turn that into a formal mortgage offer.

This is when you apply for a mortgage against the specific property you want to buy. The lender will check your income, credit history and financial circumstances, and consider whether you can afford the repayments now and in the future.

If you are applying via a mortgage adviser, they should explain the different mortgages available. The main types are:

• Fixed rate - an agreed fixed interest rate for an agreed period which is usually between 2 and 5 years
• Tracker - a mortgage that tracks an agreed rate (usually Bank of England Base Rate) plus an agreed additional amount e.g. Bank of England Base Rate + 1%
• Standard variable - the lender's standard mortgage rate which will change over time
• Discounted variable - The lender's standard variable rate, with an agreed percentage discount for an agreed period

Fixed, trackers and discounted variables usually have higher set up costs and longer exit penalties.

For many people, this is the scariest or most anxious part of the whole process and can lead to some sleepless nights until the offer has been made.

Even when the lender is happy that your personal finances stack up, it doesn’t end there. They then turn to the property itself to make sure they protect their investment.  

The lender will obtain a valuation of the property to make sure its value is broadly in line with what you are paying for it.  Remember, if you cannot make the repayments, they will try to get their money back by selling the property. They need to make sure they could get their money back if they had to repossess and sell the property.

Please be aware that a mortgage valuation is not a survey - it's compulsory and largely for the benefit of the lender.  To understand more about the state of a property, you can order a more complex report. More on this in a bit.

At this point, you should also be considering life or critical illness insurance, which would pay off the mortgage in the event of your death or illness. It may even be a condition of the loan.

Instruct a solicitor

The mortgage offer has come through and the seller is happy. It’s time for the legal eagles to get involved

This is when it can feel like the process moves outside of your control and comes to a screeching halt. There are lots of other people involved who need to get many different things done, which means it rarely goes smoothly.

So what are the solicitors doing in all those hours you wait for them to reply to your emails? Well, they will:

• Complete all of the required legal paperwork needed to complete the transaction
• Request and check the required searches, typically Land Registry, local council, drainage, and environmental checks
• Draft contracts
• Exchange contracts
• Gather the funds from the various sources (e.g. you, the lender, ISA providers)
• Handle the exchange of the money
• Pay any stamp duty bills. Whilst technically you have 14 days after completion to pay the stamp duty to your solicitor, most solicitors require it to be paid to the solicitor before completion
• Register the property in your name with the Land Registry and register the mortgage lenders ‘first charge’* against the property

*A legal charge is used to secure the main mortgage. A lender with a first legal charge over a property has a first call on any funds available from the sale of the property.

If you are purchasing as a couple, it is worth deciding (or at least talking about) how the ownership of the property should be set up. This might seem simple but there are options here.

You can own a property as either ‘joint tenants’ or ‘tenants in common’.

As joint tenants:

• You have equal rights to the whole property
• The property automatically goes to the other owners if you die
• You cannot pass on your ownership of the property in your will

As tenants in common:

• You can own different shares of the property
• The property does not automatically go to the other owners if you die
• You can pass on your share of the property in your will

Get a survey completed

You won't usually need a survey if you're buying a new build, as the house is often still being built. However, I would still recommend a snagging report.

In all other cases, you should consider a more detailed survey report and there are two main options.

• Homebuyers report - This is usually suitable for conventional properties which are less than 50 years old.
• Full structural survey - This is usually used for older or quirkier residences. This survey is much more detailed but is often well worth the expense. It could find serious issues with the property or at least highlight issues that need fixing which may mean you need to renegotiate the purchase price.

Exchange contracts

Now you can relax, the property is going to be yours. This is when the sale becomes legally binding. The seller can not pull out. If you pull out, you can be sued by the seller for any losses.

This is also the painful moment when you have to pay your deposit, which is always a bit scary.

At this stage, you should look into insurance for your new property so that you have it in place when you have completed. Your mortgage lender will probably insist that you have buildings insurance in place at a minimum.

This is also the moment to sort out life or critical illness cover. If you are using a mortgage adviser, then can usually sort this for you.

Complete your purchase

You can complete on the same day that you exchange contracts, or leave a gap of a week or two. If you're buying a new build, you might need wait for the property to be finished.

You will agree a completion date with the seller. If the seller is also buying a new home, you can ended up with the dreaded "chain" where you all complete on the same day.

Once completed, you collect your keys (usually from the developer or estate agent) and can either move in or start doing any work or redecorating.

Summary

So, there it is, an overview of the homebuying process.

It can seem confusing, but take it one step at a time. Don’t worry too far in advance - just make sure you're clear on what you need to do next. For most people reading this, the next step is probably just to keep saving.

Over the coming weeks, we will go into further details regarding each of the steps.

If there is anything you  want covered in detail, just get in touch and let us know at support@multiply.ai.

Adviser top picks

1. Get to grips with the high level process - but don't worry about the details.
2. A mortgage in principle doesn't guarantee you can get a mortgage. It gives you an idea of how much a lender might be willing to lend you.
3. "The perfect is the enemy of the good” and I can almost guarantee that when looking for a home, you will have to compromise on something.
4. Buying as a couple? Agree the legal basis of how you are going to own it.
5. Don’t forget to protect yourself! This could be life insurance or illness cover, but will definitely include home insurance.

The 1-minute read to get the money news you need

Quarantine checks in

Arrivals from high-risk countries including South Africa and Portugal will have to pay to self-isolate in a hotel when they get to the UK. It’s a system already used in Australia and New Zealand, where the virus is well under control. The new measures come as the UK passes the grim milestone of 100,000 deaths from coronavirus.

Home sellers hold off

There are fewer homes for sale so far in 2021, as homeowners hold off from putting their properties on the market. The supply of new homes on the market has fallen 12%* compared to January 2020, according to Zoopla. Would-be sellers are reluctant to risk holding viewings amid high rates of coronavirus.

Renters go rural

Rental prices in UK cities have dropped up to 12% in the last year, while rising in parts of Northern England, according to Rightmove. Renters are swapping inner city life for more space during lockdown. It’s led to a flood of properties for rent in London, Edinburgh, and Manchester.

*this article may need a subscription to read

The 1-minute read to get the money news you need.

New quarantine plans

People arriving in the UK from overseas will have to pay at least £1,500 to quarantine in a hotel, according to plans being finalised today. The government is expected to announce the policy later today. The enforced 10-day quarantine stay would involve self-isolating and eating all meals in the hotel room.

Jobless rate rises

Unemployment hit 5% in the 3 months to November 2020, according to the Office for National Statistics. It means around 1.72 million people are out of work, the highest since 2016. Young people are the most likely to have lost jobs, with a fivefold increase in redundancies compared to 2019.

10% mortgages fall

There are currently just 221 mortgage deals* available to buyers with a 10% deposit, according to Moneyfacts. That’s less than a third of the number this time last year. 2020 saw mortgage lenders withdraw many of their first-time buyer deals. Why? They’re worried about the economic outlook, and buyers not being able to make repayments.

Pets to get jab?

Dogs and cats might need to be vaccinated too, to help curb the spread of the virus. Our furry friends can catch it, and scientists have warned that possible transmission to humans poses a “long-term health risk”.

So, you’ve decided you want to be a homeowner?

I want you to visualise your goal and get excited about it. Sounds strange? There is lots of evidence to support the theory that if you engage in a goal and visualise the actions you need to take, you're far more likely to succeed.

But if you don’t have a realistic goal that sets you up properly for your objective, you'll make it a lot harder for yourself. So let's take a look at how to set a target.

Setting your target - Getting realistic

I have a confession to make: I just might be too old to write this guide alone.

If you read the first article in this series ‘Should I buy?’, you may recall that my wife Michelle and I bought our home back in 1994.

Although the principles are the same, things were a little different back then. Our 3-bed house cost £43,000 and the mortgage covered £40,850 of it (i.e. a 95% loan to value or LTV).

Rising house prices and the impact of the pandemic mean that things have changed and my experiences (while still valid) need to be supplemented with a younger person’s experience.

Lucky for me, I can introduce you all to Dan Lock. Dan is a valued member of the Multiply Advice Team and has extensive financial planning experience. Dan bought his first home back in 2014 and more recently moved in 2018.

His first pointer was that first-time buyers today need to get realistic early on about what they can afford.  This comes down to:

1. How much you can borrow
2. Where you want to live
3. The size of your deposit
4. The extra costs
5. Your emergency fund

Another important factor at this early stage is not to worry about whether the markets are about to go up or down. You're buying a home, not some shares in a FTSE 100 company, and things can change a lot while you're saving up.

How much you can borrow

For most people, the majority of the property is likely to be funded by a mortgage. So, our recommended starting point is to get an estimate of your borrowing capacity.

Once you know this, the other parts are more under your control - for example the size of your deposit.

At this stage you can go by a rough rule of thumb, and get a more accurate figure when you get nearer to buying.

This rule of thumb is to take your gross income (for couples just add them together), deduct the annualised amount of any loan or credit repayments, and then multiply that by 4.5.

For example, Ben earns £40,000 a year before tax. He has a car loan for £300 per month and a credit card with a £50 monthly minimum payment.

Ben could borrow £161,200, calculated as follows:

The annualised debt repayment (car loan plus credit card) is £4,200:

(£300 x 12 = £3,600) + (£50 x 12 = £600) = £4,200

So the calculation is 4.5 x (£40,000 - £4,200) = £161,200

Ideally, you should clear short term debt before buying. In the example above, if Ben were to clear his debt before applying for a mortgage, he would be able to borrow £180,000 - an extra £18,800.

Lenders will usually only lend up to a certain value of a property, known as the maximum loan-to-value (LTV). This percentage has changed a lot over the last year.

Traditionally you needed a 5% deposit as a minimum. Now, most lenders want you to have 10%, although some specialist schemes such as the Help to Buy Scheme make it possible to buy with a 5% deposit.

We typically recommend that people initially aim to own 100% of their home, but I'll dive into the reasons why in a separate article on Help to Buy and other ‘shared ownership’ type schemes.

In our example, if Ben were to clear his debt and borrowed the maximum £180,000, he would  be looking at properties costing around £200,000. Of course, it's always good NOT to borrow the maximum.

Where you want to live

I’m afraid we can't do this bit for you, but we can suggest a process to follow.

Create your ‘wishlist’ on a piece of paper. Divide it into four boxes and in each box list out:

• Types of property
• Locations
• Features wanted
• Features not wanted

If you are struggling to do this, then you can get ideas from a property site like Rightmove or Zoopla.

The next step is to start getting realistic. Against each type, location or feature, mark up whether or not it’s a ‘must have’ or ‘nice to have’, ‘must not have’ or ‘prefer not to have’. Spend some time thinking about this because it may become important when assessing if your goal is realistic.

Finally, you may need to consider if you can’t meet all your objectives, so decide whether location trumps property type or vice versa. My tip is that your gut/initial reaction is generally the right choice, but do justify it to yourself.

Ben decided that he wanted a 2-bed house on the outskirts of Canterbury in Kent. He would be prepared to look within a 10 mile radius, but did not want to look at smaller properties or flats. He must have a driveway or parking for 2 vehicles, would be happy with or without a garage, but doesn't want a large garden.

The size of your deposit

This is relatively simple but can take some time. It’s simple because the size of deposit you need is simply the asking price of a property minus the amount you can borrow.

It’s time consuming because you need to do a lot of research to get a feel for property types and prices in the areas you're interested in. You're probably familiar with property sites such as Zoopla - these are a great place to get a feel for what's available.

Are they affordable? Within reason, everything is potentially affordable, if you are prepared to save for long enough. So, at this point you need to balance whether you are happy to save for longer to get your ideal place, or if you’d prefer to compromise in order to buy sooner.

For most people, this is where they need to start compromising. Again, we can’t do this for you, but hopefully you can use your ‘must have/nice to have’ assessments to help guide you to the right type of place for you.

Ben realised he couldn’t afford near Canterbury (unless he saved until he was 75) but he found an area nearer to Dover that gave him what he was looking for. A 2-bed house with no garage, but with parking for three vehicles and no garden costs around £210,000. His parents have said they'll help him with £10,000. He's decided to clear his debts and save up £20,000, plus the extra costs.

The extra costs

The easiest way to work these out is to use the calculator in the Multiply app, which will do the heavy lifting for you.

As well as your deposit, you'll need to save for:

• Stamp Duty Land Tax in England or Northern Ireland (or the equivalent in Scotland and Wales)
• Mortgage fees
• Legal and conveyancing fees
• Moving costs

Stamp Duty Land tax

This can be a complex area, but for now let's focus on the basics:

• Stamp duty is a tax on buying property, not selling.
• If you're a first-time buyer and you're buying a home costing less than £300,000, you won't pay any stamp duty
• The higher the price, the higher the stamp duty bill
• Until 31st March 2021, no one will pay any stamp duty on any home costing less than £500,000

Use our in-app calculator if you're in doubt.

Mortgage Fees

Mortgage fees vary depending upon the deal you are applying for. Generally you’re looking at around £1,000 to £2,000.

However, lenders do often allow these fees (or part of) to be added to the loan amount. Remember adding it to the loan means you will pay interest on it.

Conveyancing

Conveyancing costs can vary depending upon the area you live, which type of valuation you go for, the results of local searches, or whether you use the mortgage company recommended conveyancer. However, if you budget for £2,000 to £2,500, you should be covered (and hopefully get some change).

Moving costs

Your moving costs can be £0 if you're lucky enough to know the right people, up to £1,500 if you want to just hand everything over to someone else to do it all. We tend to find that if you budget around £1,000, you should be OK.

Ben hadn’t thought about the extra costs! He won't pay any stamp duty, and he's going to look for a mortgage where he can add what he can to the loan. He's decided he needs another £3,000 to cover these extra costs. All done, right? Nearly...

Your emergency fund

When I bought my first home, within 6 months we had to pay for a new boiler and windows. Unlike me, Dan planned in advance and had an emergency fund before he bought.

No one knows if and when an emergency might happen. Although it might mean you need to keep saving a bit longer, good financial planning says never leave yourself too short.

How much do you need? Rarely will two advisers completely agree on this. I’ve seen advisers base recommendations on people’s monthly income, monthly outgoings, net disposable income or just specific monetary amounts.

I like to recommend based upon your expected outgoings. I used to recommend saving enough to cover your costs for 3 to 6 months, but in light of the pandemic I have tended to recommend 6 months. Am I closing the stable door after the horse has bolted? Maybe, but I'm only human too!

Ben has decided that he wants an emergency fund of £2,000 at the point he buys and will look to build this up higher when he has moved in. He now has a savings target of £25,000. He feels in control and reassured that he has considered everything. He knows he still has a lot to learn, but he can start saving straight away with a real vision of where he is going.

Summary

The purpose of this section was to make you think about the type of home you want and where you want it to be, and to be realistic about what’s achievable.

We also introduced some of the extra costs of homebuying and the importance of having an emergency fund. I guess we have got you to the starting line and you now realise that homebuying is a marathon, not a sprint.

In the next article, I’ll build on your knowledge and help you get to grips with the high level process.

The 1-minute read to get the money news you need.

High street buys

Boohoo is set to buy Debenhams for £50 million, in a bid to makeover the online side of the department store. Debenhams went into liquidation in December, and this deal will see the high street icon close its remaining shops. That could mean the loss of up to 12,000 jobs.

More high street buys

The collapsed Arcadia group is up for grabs by another online retailer, Asos. The deal is likely to include the group’s high profile brands like Topshop and Topman. But, like Boohoo, Asos isn’t interested in any of the bricks and mortar stores.

Fewer first-time buyers

There were 13% fewer first-time buyers in 2020, compared to the year before. Sales slumped after the housing market was shut for months - and when it reopened, house prices rose and mortgages were in short supply. Despite the dip, first-time buyers accounted for 50% of overall buyers - the same as in other years.

Minimum payments rise

Some Barclaycard customers will see higher minimum payments from tomorrow. The changes will be tailored to each customer, and are designed to help customers clear their debt faster. At the same time, Barclaycard will scrap the charge for exceeding a credit limit.

“Buying is right and renting is wrong”

“You’re throwing money away when you rent”

“You can’t lose if you buy property”  

Over the years I’ve heard a lot of people assume that buying is always the right thing to do. And every time I need to explain why it’s not quite that simple. Why has it taken me 25 years to decide to write it down? Procrastination I expect, but no excuse now.

Should I buy? - It’s not for everyone

The starting point is to dispel a couple of myths.

Myth 1: You can’t lose.

If you don't carefully plan both buying and running a home you can lose money on property.

Myth 2: Buying is always better than renting

For many people renting is the better option because it can fulfil more of their needs.

I’ve met many people who regret buying a house or believe that they should have at least waited before buying.

I guess it’s only fair to declare my own position and say that my wife (Michelle) and I are homeowners and have been since 1994, which was just before I came into the financial services industry. We went through all the same emotions and thoughts that many of you will be going through now. If we knew back then what we know now, there are a number of things that we would probably have done differently.

The first one was asking ourselves “should we own or rent?”. Both our parents owned, so we just assumed buying was right and didn’t even look at renting as an option.

So buying must be right, right? Wrong, for many reasons. Renting can be right for many people in many scenarios.

Here are the important questions to ask yourself when considering the benefits of renting or buying:

1. Do you want ultimate control over the property itself?
2. Which gives me more flexibility now?
3. Is now the right time to sink savings into a long term commitment?
4. Do you want the responsibility of a large long term debt?
5. Is renting the better option for now?

Knowledge is power, so try not to answer these questions without first giving yourself the information to give a reasoned and balanced response. There are financial and non-financial elements to this, so let's go through each.

Non-financial aspects

I am putting these non-financial aspects first because in my experience they are  often forgotten or glossed over. Even if you just confirm what your instincts were, it's worth going through the process.

Do you want ultimate control over the property itself? Which gives me more flexibility now?

Owning

• Owning your home usually means you can make any changes or improvements you wish.
• If you own your home, as long as you maintain your mortgage payments, no-one can make you move out.
• When relationships break down, owning a home can make things more complicated. If you are buying as a couple, be brutally honest with one another and ask yourselves if you’re both ready. Of course, there’s nothing stopping you saving up while you decide.
• If you are homeowner and not DIY-inclined, then basic redecoration or minor changes to the house might be beyond your ability and you will be incurring the costs of tradesmen.

Trust me, you might not find out how proficient you are (or are not) at DIY until it’s too late. After 26 years Michelle still won’t let me touch a paint brush.

Renting

• Generally, but not exclusively, renting gives you more options over where you live and in what type of property. You might be able to rent in an area you couldn’t afford to buy in.
• Renting is generally easier and offers greater flexibility (and lower costs) when it comes to moving.
• If you’re renting, usually you will need to get permission from the landlord to make changes. This can include simple things like painting a room or putting up a new TV.
• Some landlords don’t allow pets or they might restrict the type of pets. Some might even reject tenants with children.
• If you’re renting and the landlord wants to sell the place, you will most likely need to move out.

Financial aspects

Aside from the impact of taking on a mortgage (which we'll come to later), you need to consider the things that might impact whether or not now is the right time to buy.

Also, it's important to remember that things can go wrong and have an impact on your finances. Let’s delve into these areas.

Is now the right time?

Do you have goals that are more of a priority to you now?  Renting does usually involve paying an upfront bond (or deposit), but it doesn’t involve the same high up-front costs that owning does.

This could mean that you can prioritise other shorter term goals such as a wedding. In short, renting may suit you more now, even if you choose to buy later.

On the flip side, while this is not guaranteed, the past shows us that house prices (and rental costs) have risen over time. The rate of house price growth has historically exceeded both inflation and the interest you can earn  on savings accounts.

So if house prices keep growing, this makes it a good investment doesn’t it?  Well maybe, if you keep hold of it over the longer term.

However, my experience shows that it is an investment where the money is rarely ever accessed yourself.  Owning a home should be seen as buying an illiquid asset that you can only access by  ‘downsizing’ (i.e. selling and buying a cheaper property) or taking out some form of equity release loan.

If you can afford to, our advice is to both repay debts such as a mortgage and also build up other savings, pensions and investments to meet life’s other goals.  

When things go wrong with the property

Owning your home means that if things go wrong then you're on the hook - unless it's covered by insurance or a warrant. The typical examples are leaks and broken down boilers.

Like when you buy a car, many sellers may know things are on their last legs but are crossing their fingers that they sell before they break down completely. We’ll look more into valuations and surveys another day.

If you're a tenant, it’s usually the landlord’s job to fix big problems. These costs can often run into the thousands and tenants are all too pleased not to have to foot the bill.

When I bought my first home, within 6 months we needed a new boiler and windows. We had no emergency fund, so spent a number of weeks wearing extra clothing before eventually taking on an extra loan to get the work done. It's one reason why we recommend building up an emergency fund before buying a home.

When things go wrong with your income

If your income is not secure or you suddenly find yourself with a lower income, then you might be in a better position as a renter.  It is usually easier and cheaper to move somewhere else if you rent.

However, if you own your home and your income is suddenly reduced, you run the risk of losing your home. At the very least, you’ll incur some significant costs if you need to move house.

It's worth noting that banks and building societies won’t resort to forcing house sales in the first instance, but they won't wait forever for their money either.

The mortgage

Most wannabe homeowners need to take on the responsibility of having a large long term debt, i.e. a mortgage. This means taking on the risk that you might lose your home if you don’t keep up repayments.

Mortgages and your emotions

I don’t think you would be human if this didn’t invoke some worry. Michelle and I were worried for a good number of years and this is only natural.

However, if this fear totally paralyses you to the point that you can’t sleep at night or it is negatively affecting other parts of your life, then I would suggest that renting might be better for you.

There is no shame in this. In fact, big respect from me if you recognise this in yourself and decide that renting is best for you.

Mortgages and their impact on where you live

Assuming you are happy to consider borrowing, then you should next be aware that depending on where you want to live, mortgage payments might be more or less expensive than rental costs in the same area.

So while you may be comfortable with a mortgage, you may feel that renting in a nicer place outweighs the potential benefits of owning in a less desirable area.

I’ve seen many people living in the more central areas of London choose to continue renting in the city, rather than buying on the outskirts.

Mortgage impact over the longer term

Even assuming house prices continue to escalate in the long term, there is still no guarantee that you will make money, especially when you add in all the costs of homeownership and the amount of interest you may pay on a mortgage over it’s full term.

I totally understand people who say paying rent every month doesn’t give you anything back. But make sure you also appreciate that a big chunk of a monthly mortgage payment is simply to cover the interest on the loan itself. The amount of capital you pay off in the first few years is minimal.

It’s also very important to remember that interest rates might not always be as low as they are now.

For example, if you secured a 25 year £200,000 mortgage today at a rate of 1.75%, this would cost circa £825 a month. But if rates went up just 3% you'd be shelling out £1,140 a month.

Accessing competitive mortgages

Finally, if you want competitive mortgage rates, you will need to have a larger deposit. Your credit score and the size of your deposit will all impact your mortgage arrangements. More on this in future articles.

As a minimum under the Help to Buy scheme, you will need at least 5% of the value of the home. Saving for a larger deposit should mean lower mortgage payments, but might take longer t in the first place.

Summary

The purpose of this first section of my guide was to make you think long and hard about buying a home and not believe the hype that renting is wrong and owning is the only option in town.

Hopefully, it will make you think hard about what being a homeowner means, considering if it is right for you or if renting is the better option.  

I guess even at this late stage it’s also worth pointing out that even if you decide to rent for now, you can still save money for your future and if your circumstances change, then any savings you built up just puts you further ahead if you decide to buy in the future.

Ultimately, only you can choose what’s right for your circumstances and your budget. There are pros and cons to each aspect and the reality is that things change and over time. The important thing is to make an informed decision.

If decide that you want to become a homeowner, then the next step is working out how much you can afford to borrow and how much you need to save. This is covered in the next article, ‘Setting your target - Getting realistic’.

Bye for now!

Adviser Top Picks - Should I own?

1. Lose the mindset that says you have to buy. You need to make a balanced decision that is right for you.
2. Never let the answer be driven solely by the numbers. The decision to buy is a very personal decision and lies between a mix of what the numbers and the physical and emotional aspects.
3. Don’t buy your home with a primary objective of it being an investment. You are buying a place to live. The reality is that any growth in the property value will most likely be seen by the beneficiaries of your will, unless you choose to ‘downsize’ or take out a loan against the property.
4. Taking on a huge debt is scary. If borrowing large amounts of money scares you, then I'm pleased. It means you are taking it seriously. However, if it scares you to the point that it is affecting other aspects of your life, renting may be the better option for now.

As the year draws to a close…..

December 3rd

Vivek, CEO: “Peter, people want to hear from you. Can you write a blog article for us?”

Me: “Absolutely. Count me in. What’s a blog?”

Simon, COO: “Peter, you’re on mute again!”

Having corrected the situation for the hundredth time, we decided on the title ‘An adviser's guide to first time homebuying’. But I’m still not sure what a blog is.

December 10th

I’m on draft 34.

Me: “Guys, it’s not working, it’s either short and basically meaningless or it goes on for pages and pages. I want to run a series on the home buying process, similar to the debt series we ran earlier on in the year”.

Vivek: “Great idea, go for it. Can you have the first one ready for next week?”

Me: “Yep, no problem”

...damn.

Introduction

So, let’s get the basics over and done with first and answer a few questions.

Who is this guide for?

It may seem obvious, but for clarity this series has been written assuming that you have no real understanding of the homebuying process. You’re likely to be a first-time buyer, but you may or may not have started the homebuying journey. Your credit history might be good, bad or indifferent.

Don’t worry if you don’t know all these terms, we’ll cover them as we go along.

This guide is also aimed at second-time buyers who may have forgotten much of the process (although most don’t forget it in the short term!) or who maybe didn’t really get involved the first time round.

It’s not really aimed at people who are either looking to remortgage, although we will touch upon it in one of the latter articles regarding the ‘mortgage afterlife’.  Similarly, this is not aimed at individuals looking to purchase property as an investment, what we call ‘Buy to Let’.

Who wrote it and why does that matter?

It’s been written by me, Peter, Head of Advice at Multiply.  I’ve been in the financial advice industry since 1995 and seen both good and bad practices in the market.  There are two things that my experience tells me are fundamentally important when it comes to looking after your finances - and they might not be what you expect.

Firstly, regardless of your level of financial acumen, everyone needs reassurance. For some, this may simply be a quick overview of what they’re doing and a “yep, you’re on track, keep going”. Others need hand-holding throughout the process. Many of you will be somewhere in between. What I can assure you is that there is no right or wrong place to be, as long as you are on the right path in the first place.

Secondly, knowledge is power. In the case of homebuying, understanding the process will help you feel in control. Additional ‘adviser tips’  will help you stay on track and feel confident throughout your journey.

As an adviser, I have always found imparting knowledge to people delivers 80% of what you need to take action. The other 20% is the reassurance that an expert is giving you the thumbs up.

Someone recently said to me that they liked me checking what they were doing because it was like having someone check their homework. If they got an ‘A*’ they felt reassured. Even if they got a lower score, they felt confident that I would help them get the knowledge and power they needed to improve their position.

How is the guide structured?

You will find a number of very good guides out there that cover the raw process of homebuying. I have found them useful myself  while investigating how best to build this guide. However, I noted areas that I think are missing. Unless you are a regulated adviser, there are some areas you just can’t touch.

Luckily, I’m a regulated adviser and so is Multiply, so we have free reign (pretty much).

This guide will be split into a number of sections, directly aligned to the home buying process as we see it:

1. Should I own? It’s not for everyone.
2. Setting your target - Getting realistic
3. Get to grips with the high level process - Knowledge is power
4. Building your deposit - Keeping on track and boosting your saving
5. Mortgage readiness - Making yourself attractive to lenders
6. Finding your home - Now the fun begins
7. Mortgage application - Let’s get serious.
8. The viewings - Take a step back
9. Making an offer - Seal the deal!
10. Surveys and conveyancing - The boring stuff
11. Exchange of contracts and getting insurance - Nearly there!
12. Moving day! - It’s more than just moving in.
13. Financial integration - Adjusting to being a homeowner
14. Mortgage Afterlife - Maintaining a good deal and starting to build your wealth

We will release them one at a time, in order, to empower you with the necessary knowledge to buy your own home (if it’s right for you) and give you confidence in what you are doing.

As an adviser, I will point out key areas for your understanding and (where applicable) any actual points of advice.

So, that’s it for now and I look forward to discussing the important question of “Should I own?” in the new year. Until then - although for many of us it will be different this year - enjoy the Christmas break and see you soon in 2021.

Bonus adviser tips

1. Don’t worry if you think your financial knowledge isn't strong. I probably couldn’t do your job either!
2. I said earlier that ‘knowledge is power’ - so don’t feel that you can only read the section that applies to where you are right now.
3. Seek reassurance in what you are doing and never be afraid to ask questions. Use our in-app ‘Ask the Adviser’ feature to get answers from me and the other advisers at Multiply.

We’re so excited to tell you that you can now open a market-leading Lifetime ISA in a few taps through the Multiply app.

A Lifetime ISA could help you buy your home sooner - it’s a must-have for eligible first-time buyers.

It pays a 25% government bonus on everything you save, up to £4,000 per tax year, plus you won’t pay any tax on the interest your savings earn.

We’ve partnered with Unity Mutual to bring you the market-leading Lifetime ISA, which pays 1.5% fixed-rate interest on your balance.

What’s a Lifetime ISA?

A Lifetime ISA (LISA) is an Individual Savings Account that helps you build your house deposit faster. It pays you a 25% government bonus on everything you save, up to £4,000 per tax year.

It’s designed to be used for purchasing your first home, or to use after you turn 60. That means you’ll lose the bonus if you use your Lifetime ISA savings for anything else.

It’s also a tax-efficient way to save, as you won’t pay any tax on the interest your savings earn.

Our recommended Lifetime ISA is the Unity Mutual Lifetime ISA paying 1.5% interest, which is the best rate on the market (true as of March 2021).

Is a Lifetime ISA right for me?

You’re eligible for a Lifetime ISA if you’re aged 18-39 and you’re planning to:

• Buy your first home for under £450,000;
• Take out a mortgage on your home; and
• Leave any funds in the account for at least a year

Or, if your plans change, you can access it penalty-free when you turn 60 and use it as part of your retirement income.

If you'd like help deciding if a Lifetime ISA is right for you, we'd recommend checking out the advice in the Multiply app.

Is it different to a Help to Buy ISA?

Yes - but they’re similar. The Help to Buy ISA is no longer available, although anyone who opened one before November last year can continue saving into it.

The Help to Buy ISA has more restrictions than the Lifetime ISA - you can only put £200 a month in, and outside London you can only use it on a home costing up to £250,000.

It also pays the 25% bonus at the point you buy your home, whereas with the Lifetime ISA the bonus is paid directly into your account each month. That means with the Lifetime ISA you can earn interest on the bonus as well as your savings.

Can I transfer over my existing ISA?

Yes - just head to the Lifetime ISA in the app and hit the "Transfer existing ISA" link. It takes 2 minutes to apply and we'll do the rest.

Why Unity Mutual?

We recommend the Unity Mutual LISA because this account currently pays 1.5% annual interest, which is the highest rate you’ll find anywhere (true as of December 2020)

They offer a Stocks & Shares LISA which looks and feels like a Cash LISA. Your interest payments are guaranteed and your capital is not at risk. This means that this account is no riskier than keeping your money in cash, but offers a better return than the best Cash LISA.

Unity Mutual is authorised and regulated by the FCA. Any money you save into this Lifetime ISA is protected by the FSCS scheme, without the usual cap of £85,000.

Founded in the UK in 1810, Unity Mutual has over 309,000 members across 121 branches nationwide. Being a mutual means that they are owned by their members and customers, not by shareholders.

How does unlimited FSCS protection work?

You might be used to seeing a FSCS limit of £85,000. Unity Mutual isn’t a bank or building society, so FSCS protection works a little differently for this Lifetime ISA, which offers unlimited protection without the usual cap.

Although this LISA behaves like a cash product (in that your interest payments are guaranteed and your capital is not at risk), the FSCS categorises it as a long-term insurance product.

That means you’d be covered for 100% of your claim with no upper limit, in the unlikely event that Unity Mutual went bust and you needed to get your money back.

What happens to the interest rate after 6th April 2022?

The interest rate is guaranteed at 1.5% until 5th April 2022.

Unity Mutual reviews the interest rate once a year, in March. Based on how the stock market has performed, they’ll decide what happens to the interest rate. Sadly, we can’t predict the outcome of that review!

What happens when I want to buy a home?

When you come to buy a home, the money in your Lifetime ISA is paid directly to your solicitor or conveyancer.

Just give us a shout once you’ve instructed a solicitor, and we’ll get the ball rolling. If you’re not sure when that’s meant to happen, check out the timeline in your app.

To use the bonus for your home, you’ll need to take out a mortgage and you must have had your Lifetime ISA open for at least 12 months.

Ready?

You can open a Lifetime ISA in a few taps through the Multiply app. If you have any questions, give us a shout at support@multiply.ai.

Vivek Madlani, CEO and cofounder.

We’re living in an age where technology is making many of our everyday experiences simpler, safer, and more convenient. Soon you’ll be able to ride in an autonomous, self driving car that will pick you up and safely drop you off at your desired destination.

As part of this shift, a new type of financial experience is evolving - one that we call Autonomous Finance.

Over the last few decades we’ve seen a lot of traditional in-person activities such as opening a bank account transformed into simple, delightful app experiences. Most of the high street banks now have apps that can serve most of the banking needs of their customers.

A lot of work that has taken place has been around laying the infrastructure for these digital experiences - such as identifying customers and moving money electronically. We call this the “infrastructure layer” of finance and it involves areas such as open banking and automated identity verification. As this infrastructure has evolved, financial regulators have become increasingly open to the use of more sophisticated technology in finance". This has been driving the “every company is a fintech” trend popularised by some.

Here, in the UK, this means we can now set up a bank account in as little as 24 clicks or an investment ISA in less than 20 steps. Essentially, once we decide that we want to save, invest or transfer, making it happen has never been easier.

But how do we make those decisions in the first place? The step before - figuring out what to do with your money - still involves a lot of friction. How much to save or invest? Which accounts are best, and when should I make my moves?

Multiply exists to answer these questions. Technology can now make decisions where once human beings were required.

We’re seeing a lot of this in the utilities space already. It is now common to switch energy suppliers via your current account rather than by going direct or through a price comparison site. It is only a matter of time before this extends to other types of products. Advancements in technology will help fill gaps in people’s skill, will, or time to help them make financial decisions, like which funds are best for them, or the ins and out of different tax wrappers.

The end point of this is Autonomous Finance: a person’s money is moved to the right products at precisely the right time automatically in line with what they want and what they need.

Autonomous finance is where the progress that has been made with infrastructure is combined with the progress made in computer decision making and artificial intelligence. It provides a customer experience that figures out what to do, and then does it for you.

In the UK there is already a name for this financial intelligence: regulated financial advice. Multiply has spent the last 4 years building technology to automatically generate, risk manage and scale financial advice to as many people as possible.

We’ve solved the decision making part of Autonomous Finance. And with the launch of Multiply Accounts, we’re solving the infrastructure part too.

As an experience, customers will tell us their desired futures, information about how much they spend, how much they work, their goals (such as buying a home), and that’s it. After that our product works out whether they should be saving, investing, purchasing life insurance, or whatever is required to hit their goals. We tell our users the specific products that they can automatically set up and send funds to. Our users then only need to tell us when something changes - if they get married, for example - whilst we automatically help them achieve their goals.

The results of this are profound.

The default setting in personal finance is bad. Most people don’t make the best use of the products available to them. They miss out on optimal returns for what they’ve earned. Very rarely are their finances aligned with the future that they want, and the majority of people don’t have the time, experience or knowledge to plug the gap.

Autonomous finance will change this - by moving money to the right accounts in the right amounts at the right time, optimised finances will no longer be a luxury.

This is our vision at Multiply - to make the default setting for finance great, for everyone.

House prices have been  in the news a lot lately, as the property market reacts to the coronavirus pandemic and the economic aftermath.

But there’s more to the story than pound signs and percentages. Let’s take a look behind the headlines to help you navigate house price hype as a first-time buyer.

How to read the headlines

Next time you see a news story about house prices, make sure you check which house price index the data comes from.

FYI: if you read the Multiply Minute, you’ll always see a source alongside the figures.

If it’s from a lender:

Mortgage providers like Halifax or Nationwide produce an index based on the mortgage deals they’ve approved.

They don’t always reflect the market as a whole, and can be skewed depending on what type of mortgages that lender specialises in.

For example, Nationwide does a lot of first-time buyer mortgages which means its data may be biased to the more affordable end of the property market.

If it’s from a property website:

Rightmove has an index based on average asking prices. Asking prices tell you about how sellers are feeling - if they’re feeling optimistic then asking prices are higher. But it doesn’t tell you the actual prices that are agreed with the buyers.

If it's from the government:

The official UK House Price Index (UK HPI) uses data from the Land Registry. Ir's the most reliable, as it uses real purchase price data from property sales. It’s published monthly, but there’s a lag of six weeks.

One downside is that this index may also include transactions that are not at market values, for example property being passed at discounts to family members.

Here's a quick summary of the four different indices we've mentioned.

The big “but”

Like everything else in life, house price data has been disrupted by coronavirus.

Accurately tracking shifts in house prices relies on having plenty of information available about recent house purchases. That’s not easy at the moment.

The property market all but shut down for several months, and the number of transactions is only just starting to pick up again.

With fewer property transactions, all house prices indices are less reliable than usual.  The last UK HPI report was published on 20 May and has been suspended altogether since then.

That means there’s less certainty than usual, and all predictions should be read with an element of caution.

What it means for you

So you're reading the news and you understand the data. What do you do with the intel?

If you’re ready to buy now:

It’s useful to be armed with information about house price trends. A significant drop in house prices might mean that you can expand your search to new areas, for example, or even have a nosey at places with an extra bedroom.

When it comes to making an offer and negotiating with the seller, a knowledge of the market can help you avoid paying over the odds, and maybe even get a bit of a discount.

If you’re less than six months from buying:

You should keep one eye on the market while you keep saving. A drop in house prices could mean that an opportunity comes up sooner than you expected.

Set up alerts from property websites such as Zoopla and Rightmove to keep tabs.

If you’re more than six months from buying:

It’s best to ignore what the property market is doing and focus on your plan. Things might change fast, so try not to get distracted by current trends and fluctuations.

The best thing you can do is keep saving and following your financial plan to get mortgage-ready.

Habits are powerful. Research shows that up to around 40% of our day-to-day behaviour is driven by subconscious habits that we probably don’t even realise we have.

There’s also data to suggest that a savings habit is a powerful way to increase your chances of hitting your goals.

This report found that people who make a habit of saving regularly are twice as likely to hit their savings goals, compared with those who save sporadically.

What this means for you

Establish a habit of saving regularly towards your goal. Set up a weekly transfer into your Multiply savings pot and we’ll do the rest.

It doesn’t have to be much - the important thing is to do it regularly.

Later on, once you’ve told us more about yourself we’ll be able to give you personalised advice. That’s when we’ll go deep into the numbers to work out when you’ll be able to buy a home, and how much you need to save to make it happen.

What to do next

Right now, the only thing you need to do is set up that savings habit. You'll see a pink card - click that to get started. We’ll guide you through the rest.

You’re going to do great, great things. You just need to start.

If you’re hoping to buy your first home any time soon, you’re probably trying to work out what impact coronavirus has on your plans.

The Multiply advice team has been working on it too. Here's our take on the current outlook for first-time buyers.

The headlines

The situation is not simple; it’s a mixed bag of both positives and negatives, as well as some uncertainties that are hard to predict.

Your plans to buy a home will be influenced by three key factors:

1. Your own personal financial situation
2. What the banks do
3. What happens to house prices

Your financial situation

This is all about the money you’re earning and how much you have in savings and investments.

• Negative: Lots of people have already seen their income reduced. Unemployment could go higher and wages may decrease. You can usually get a mortgage for up to five times your household income. If your income is affected, it might mean you can’t borrow as much as you originally planned to.
• Negative: People whose incomes are affected are more likely to be eating into deposit savings to fund day-to-day living. If you’re living off savings at the moment, it could push back your target date for buying your home.
• Neither: Most first-time buyers have their deposit savings in cash savings accounts, so haven't been as affected by stock market falls. You might be getting a reduced interest rate on your savings account, but it's nowhere near as drastic as the volatility we've seen in the stock market.

What the banks do

This affects how big a mortgage you’ll be able to get, and at what rate.

• Positive: Bank of England interest rates are very low at the moment and are generally expected to stay there for the foreseeable future. This is in order to stimulate the economy. There is a connection between these rates and the mortgage rates offered to borrowers, so you can expect mortgage rates to be low for a long period of time.
• Negative: Banks are more likely to lose money from businesses going bust and failing to repay their loans. That might mean they reduce the risk they take with any new lending. If so, we’ll see banks getting stricter with mortgage assessments and asking for higher deposits (Nationwide is already doing this).
• Could be either: Some lenders are working through a backlog of applications and may not currently be open to new mortgage applicants. You might have to wait a bit longer before applying.
• Negative: If you’ve been furloughed, some banks might not take the furlough pay into account for your mortgage application. The bank might also ask that you wait until your longer term employment status is better understood before applying.

What house prices do

House prices are driven by supply and demand, which is tricky to predict. But here goes:

• Negative: In the short term, people may be less likely or willing to sell their homes, so this could reduce the short term supply of typical first-time buyer properties significantly. This could actually push house prices up if the demand stays strong. This would be deemed a ‘sellers market’.
• Positive: On the other hand, in the short to medium term, if people are less keen to buy then house prices may fall due to a drop in demand. Existing homeowners who cannot defer selling might then be forced to accept a lower price. This would be deemed a ‘buyers market’.

What to do about it

The only thing we know for certain is that the short term future of the property market is uncertain.

We will be following all the latest developments for first-time homebuyers, and we’ll keep you in the loop with our opinions as new information comes to light.

In the meantime, it's important that you monitor your finances and keep to your plan. You should also regularly check in to make sure that you’re getting the most up to date advice.

The lockdown is easing very slightly this week, and that includes the housing market. For hundreds of thousands of people whose plans to move house have been hold, things just got interesting.

What's changed?

The property market has been at a near-total standstill since March. The government released instructions telling people not to move house, whether they were buying or renting.

Viewings and valuations were banned, estate agents were closed, and mortgage lenders were pulling up the drawbridge.

From Wednesday 13th May, the government has released advice to say that we can proceed with caution, as long as everyone follows the new rules.

Estate agents, removals companies, conveyancers, surveyors, and other essential people involved the homebuying process have also returned to work while following social distancing guidelines.

Although restrictions are being eased, the mortgage market might take a little longer. Many providers shut up shop at the start of the crisis. Your broker or lender will be able to tell you more about what deals are available to you.

What you CAN do

Viewings

If you're in the market to buy a place, you can now go to viewings, provided you follow social distancing. That means the seller will probably leave the property while you're looking around, and the estate agent should stay two metres away.

The estate agent and seller should be aware of the new rules and should be enforcing the guidance to keep you safe. This includes opening all the doors and windows, and cleaning all surfaces between viewings.

When you book viewings, the estate agent will be able to tell you what they're doing to follow the guidelines.

Government advice also states that while you're viewing properties you should avoid touching surfaces, wash your hands regularly, and bring your own hand sanitiser.

If possible, you should try and avoid using public transport when you travel to the viewing.

Offers

You can make an offer on a property as normal. However, you should be aware that there's a risk of delays if someone in the chain starts showing symptoms and needs to self-isolate.

Surveys and searches

Conveyancers and solicitors should be able to carry out searches online as normal, so the legal bit of the homebuying process shouldn't be affected.

Surveyors and other tradespeople can also go into the property as long as they and the seller both follow social distancing guidelines.

Moving house

Everyone might need to be a bit more flexible with dates and arrangements for completing and moving. If someone gets ill, you might have to delay moving into your new home.

Removal companies are going back to work, and you should book your van as early as possible. You should do as much of your own packing as you can, and clean your boxes and bags before the removal people pick them up.

You can't offer them a cup of tea while they're loading your stuff into the van. It'll feel weird, but it's for the best.

It might also be a good idea to have your new home professionally cleaned before you move in, even if it's a new build.

What you CAN'T do

If you or anyone in your household has tested positive, is showing symptoms, or is self-isolating, you shouldn't go to viewings or move house.

If you're vulnerable or shielding, or live with someone who is, government advice says you should consider personal circumstances carefully before deciding to move.

No sellers or estate agents should be holding open viewings. You should make an appointment to view a property, and no one else should be there while you are.

And remember: no tea. Not during viewings, while moving house, or even after the removals guy has lugged your sofa through your new front door. Keep that kettle switched off.

Got questions?

Yeah, us too. This is new to us all. If you want the full rundown, you can read the full government advice on moving house here.

The future is still pretty uncertain, and lockdown restrictions could tighten up again in the future. Bear this in mind before you decide whether to dive back into buying a home.

If you have any other questions about buying a home or your financial plan generally during these strange times, you can get in touch at support@multiply.ai.

We've partnered with Mojo, a leading mortgage broker that can give you a free mortgage in principle.

We haven’t shared any of your personal details, so they’ll ask a few questions of their own.

Ready to get your mortgage in principle? Continue to Mojo.

Or, you can find more info about Mojo here.

What's a mortgage in principle?

Getting a mortgage in principle (MIP) is the first step in the mortgage process. It should give you a good idea of how much you’ll be able to borrow and at what rate.

If you're doing viewings, go with a MIP in your back pocket to show sellers you’re serious.

A MIP is sometimes also known as a DIP (decision in principle) or AIP (agreement in principle).

It isn’t a binding agreement and it doesn't guarantee that the lender will give you a mortgage offer, but you're not tied to it either. It's generally valid for 90 days.

Some brokers, including Mojo, run a ‘soft’ check to confirm your personal information - this doesn't affect your credit score. Others may run a ‘hard’ check - this is a full credit check and leaves a footprint, which other lenders can see.

The process

You can either get a mortgage in principle via a broker, like Mojo, or from the lender directly.

The process starts with a few questions. They'll assess your affordability and estimate how much you'll be able to borrow.

You'll get an official document with this info - that's your mortgage in principle.

How much you can borrow

The amount you can borrow is generally:

• Up to five times your annual income.
• Up to 95% of the property value.

They'll also want to check you'll be able to make the monthly repayments.

You'll need to show that your income covers fixed outgoings such as travel and food, as well as your anticipated bills once you're a homeowner.

What's next?

You can get a free mortgage in principle from Mojo here.

Use this as a guide for viewings and making offers. You'll still need to make a mortgage application for real once you've found your home and had an offer accepted.

There are times when nothing can change the fact that you can't make your debt payments. It can feel as though no matter what you do, your debt isn't budging and there's no let up in sight.

So what can you do when an affordable payment plan is no longer an option? In this article we asked Multiply's Head of Advice, Peter, to give us a run down of the final things you can do when dealing with debt.

First things first

"As you read through the options below, they seem a little daunting to say the least. The thing is debt can have serious implications for your health if you don't get it sorted. What is important is you and your family. Worrying about your credit rating and your ability to borrow in the future is small fry."

Your health must be your priority throughout the process of dealing with your debt. Financial stress can impact your mental and physical health.

The NHS have some guidance on how to cope with money worries, but they are not the only resource out there. All the debt charities listed below give some great advice on this important topic too.

The reality is that going down one of these routes actually takes a big weight off your shoulders. It can be a real positive. If you find yourself in this situation please seek out all the help you need. People who've been there say they feel a massive sense of relief after seeking help.

What are the options?

Debt Management Plan (DMP)

If you are in Scotland, you may see this referred to as a Debt Payment Programme (DPP).

This is an informal agreement between you and your creditors for paying back your non-priority debts. In Debt Series #3 we spoke about the two main debt types: credit cards, loans and store cards.

Most DMPs are managed by a DMP provider who deals with your creditors for you. This means you don't speak to them as soon as they take over.

Finding a DMP provider

"Firstly you need to find  a DMP provider. There are lots of companies out there offering different services, including charities. If they are offering a service that involves handling your money they should be authorised by the FCA. I would generally recommend one of the free charity-based providers"

When you are looking for a provider it's worth bearing in mind three things:

• How quickly do you need to get things sorted? Some of the charities have huge case loads so are not always able to help as quickly.
• What are they actually charging you? Charities are free, but typically receive payments from the creditors. Some providers appear cheap but hide costs in the small print. Others seem expensive, but may be able to work out better deals with your creditors.
• You can cancel your Debt Management Plan at any time.

How does it work?

Once you have found your DMP provider, they will speak to your creditors and negotiate with them on your behalf. It doesn't matter how many individual debts you have, a DMP will allow you to pay them back in one affordable monthly payment.

This payment is paid to your DMP provider and they are responsible for dividing it between your creditors. Presume your DMP provider reviews your plan each year to see if the agreed payment needs to change.

Some creditors insist on a note of the DMP being put onto your credit file. This can affect your ability to borrow money in the future.

Debt Relief Order (DRO)

"If you have less that £20,000 in debt, with no assets and savings and a low disposable income then this is an option."

Although this is a legal solution, you don't need to appear in court. However, you do need to pay a £90 charge to set it up.

How does it work?

A DRO freezes the interest and payments on the debt included in your DRO for a period of up to 12 months. During this time your creditors can’t force you to pay off the debts.

When the DRO ends, most of your debts will be written off. It will however have an affect on your credit rating. Creditors and Lenders will be able to see that you have struggled to keep on top of your repayments.

If your situation changes during the year you need to advise the official receiver. When your DRO was set up you will have received an advice. This advice will contain all the details of the official receiver and who to contact in the event that your circumstances change.

Word of caution

It is really important that you make sure all the details in the application are correct. If they are not it could result in one of three things happening:

• Cancellation of the DRO
• Issuance of criminal charges against you which could result in a fine and / or imprisonment
• Issuance of a debt relief restrictions order. This come with serious consequences and repercussions that can affect your life for a considerable time afterwards

Before applying, during the application process and when you have a DRO, you need to be squeaky clean. In short, nothing short of absolute honesty and integrity is required throughout the whole process.

Administration Order (AO)

"An administration order is a legally binding repayment plan. Both you and your creditors must stick to it."

In general this is suitable for someone who has some disposable income and doesn't want to talk to their creditors. Before you can apply you must meet two conditions:

• Have two or more debts totalling less than £5,000
• Have an unpaid court judgement against you

If you don’t meet the conditions and you think this is right for you. There are a couple of things you can do.

• You can wait for one of your creditors to take court action against you. As soon as judgement is entered you can apply for an AO
• You can negotiate with your creditors or apply for a charitable grant to pay off part of it to reduce the debt to below £5,000.

How does it work?

There is no upfront fee for setting up an AO but the courts will keep 10% of your repayments to cover costs.

The court will assess all of your debts and your income. They will work out an affordable repayment plan for up to three years. Although creditors can ask to be kept out of the AO, the court will make the final decision.

Like with every debt solution there are additional caveats, extras and warnings. The most important ones to note here are:

• It's advisable to leave out anything to do with rent or mortgage arrears
• You can apply for a composition order that means anything owing after three years will automatically be written off

What's the impact?

You need to be aware of the main repercussions of an AO:

• You could be forced to sell larger possessions, such as a car, to pay for your AO
• Your credit rating will be affected
• There is a chance it could affect your job. It is worth checking the terms and conditions of your employment or professional codes of practice

Individual Voluntary Arrangement (IVA)

"Although these can offer the flexibility you need, they can also be expensive. The people you need to set them up charge a lot for the services they provide. So make sure this is not only what you need but also what you can afford."

This is another form of legal repayment plan between you and your creditors. An IVA is suitable for someone who has a regular income and can afford to make repayments, but doesn't want to talk to their creditors.

You can get an IVA if you have two or more debts totalling less than £10,000, but it can be expensive so this is normally seen as the minimum. A typical IVA costs between £4,000 and £5,000 over it's lifetime.

If you own a home or a business an IVA can be a better solution to bankruptcy.

Finding an insolvency practitioner

An IVA must be set up by a qualified person, called an insolvency practitioner, which is typically a lawyer or an accountant. You can find one on the government website.

Although you can use a debt management practitioner, it can mean incurring additional charges.

How does it work?

The insolvency practitioner guides you through the stages of the IVA process. Their primary goal is to help you negotiate an affordable repayment plan. They are also responsible for dealing with your creditors throughout the life of the IVA.

When the repayment plan becomes legally binding you will be required to make a single payment every month to the insolvency practitioner. They will deduct their fees and distribute the money to your creditors.

The arrangement typically lasts for 5 to 6 years. Any debt outstanding at the end of the process is normally written off.

What's the impact?

You need to be aware of the main repercussions of an IVA:

• You may have to remortgage your home if your home has equity
• Your credit rating will be is affected which will affect your access to finance
• You may have to sell any expensive items, such as cars
• Check the terms and conditions of your job. Certain industries have strict guidelines which may affect your employment

Bankruptcy

"Bankruptcy is generally the last resort when it comes to a debt solution. Even though this is an option, it is not one to take lightly."

There are three reasons that a bankruptcy order can be made:

• If you can't pay back your debt
• If you owe more than £5,000, one or more of your creditors can start proceedings in court
• If you have broken the terms of your IVA

If you are making the application yourself, make sure Bankruptcy is right for you. Citizens Advice have a helpful checklist online that will guide you through this process.

How does it work?

If you are eligible for a fee of £680 and the submission of an online form, you can go bankrupt. This means that all your assets, less a small amount of 'exempt goods' are distributed amongst your creditors.

Bankruptcy is a legal status which typically lasts for 12-months. After this time it allows you to make a fresh start free of debt. Although it does cover most forms of debt, it doesn't cover everything.

There may be other restrictions that apply for up to 15 years and you may have to continue to make some payments for up to three years.

What's the impact?

"The biggest impact will be on your life. The lasting effects of bankruptcy go way beyond the first year."

You need to be aware of the main repercussions of bankruptcy:

• You could lose your home even if you are in rental accommodation
• Your bankruptcy will be publicised in the newspaper
• Your credit rating will be is affected for six years, meaning access to finance becomes difficult
• Most of your possessions will be sold unless they are exempt goods: household items, clothes, and things you need to do your job, that are valued at less than £2,000
• Check the terms an conditions of your job. If you hold certain positions or you work in a certain industry your job may be affected.

The final word

"The final debt solutions are emotional, difficult and complex. This overview is intended to give you the headlines, but the devil is in the detail. It is for this reason that I strongly recommend that you talk to a debt specialist."

There is a vast amount of help out there online, but getting one on one help is essential to make sure you choose the right solution for you. There are three great organisations offering free services that Peter recommends as a starting point:

• StepChange
• Citizens Advice
• National Debtline

If you're in a situation that requires one of these solutions, we understand it must be very hard for you right now. So we thought we would end on a few wise words from Peter.

"These are serious decisions you have to make, and often when you are at your lowest. Rest assured, there is nothing to be afraid of. Getting your financial situation sorted will reduce the time spent worrying and get rid of those difficult letters and emails from creditors. The history books show us that often people rise to their greatest achievements after a time of financial difficulty. Walt Disney was one such man, and look at what he achieved."

If you have any questions, please get in touch at support@multiply.ai.

If you're on top of your budget and you're aware of the help that's on offer, it's time to take a closer look at the different types of debt and how to deal with them.

Your aim is simple: negotiate an affordable repayment plan.

"Start talking to the people and companies you owe money to. Leverage all the help the government has provided and more if possible. The earlier you pick up the phone the better as it is in their interest to help you too. They usually have a team to help with a range of relief options and flexible payment terms to suit a range of circumstances."

Before you pick up the phone you'll need to work out two things: what you owe and what you can afford to repay.

There are two main categories of debt; priority debt and other debt.

It's a priority debt if:

• You could lose your home, property, or access to services if you don't keep up with repayments
• It's anything legal or to do with the government and you could go to prison

Dealing with priority debts

Once you have identified your priority debts, get going on resolving these first.

HMRC

"Money you owe to the government is your number one priority."

If you owe tax and are unable to pay HMRC you need to try and set up an affordable tax payment plan. Arranging a repayment plan depends on the amount you owe and whether you have online access to the government gateway:

• If you owe less than £10,000 you might be able to do this online
• If you owe more than £10,000 or you can't apply online contact the Self Assessment Payment Helpline

Eligibility is also dependent on whether or not you have any other payment plans with HMRC.

The payment plan is designed to spread the cost of your latest Self Assessment bill. You can choose the amount you pay upfront and how much you pay each month. Interest is payable and currently charged at 2.60%.

If you’re self-employed

You can also delay your payment on account (which would ordinarily be due in July 2020) until 31 January 2021. Only delay if you really need to - if you've got the money, you should make the payment.

Rent and mortgage arrears

"Getting into arrears when it comes to your home is really worrying. If you don't act quickly and pay back what you owe, you can end up losing your home. Fortunately the government have announced some short term plans that help."

Here are the key steps to take:

1. Firstly, speak to your mortgage provider or landlord and negotiate a repayment holiday or a new repayment plan.
2. Check to see what benefits you are eligible for. If you are already receiving benefits, check to see if you are getting the right amount.
3. Consider asking for a proportion of any benefits you get to be paid directly towards the arrears.

Selling and switching

Switching to a cheaper mortgage deal and selling the property are both options you need to consider when you are dealing with mortgage debt.

Both will be trickier to do right now, although virtual valuations are starting to make it easier. Either way, if you are thinking about it, we recommend you talk to a mortgage adviser first.

Other priority debt

These arise when you fall behind on bills that could result in you losing utility services or property (for example an electricity bill). They could also, in extreme circumstances, result in court proceedings (for example child maintenance and council tax).

These unpaid payments are called arrears. When you build up a balance that you owe, it attracts interest and non payment fees. If you do find yourself in this situation, pick up the phone and negotiate a repayment plan that you can afford.

Other Debt

Payday loans

"Because these loans attract such a high rate of interest, it's important to deal with them sooner rather than later. After you have sorted out all your priority debt these ones usually top the list of the other debts you need to deal with."

When you took out the loan you agreed the lender could collect regular repayments from your bank account on a set date. If you don’t have enough in your  account on the agreed date, the lender can try again and charge you for the late payment.

If you are you are having issues paying back the loan, the lender may offer you longer to pay. They can do this in one of two ways; extending the time to pay or rolling the loan over. A rollover results in a new agreement for the repayment of the original loan.

Warning

If there is a better alternative to using or extending these loans, take it. Extending or rolling over will result in you repaying even more money to the lender in interest and fees or other charges.

"As a rule, I recommend you avoid these types of loans. But if you do need to use them revisit the reason why. Was it just bad luck or could you have avoided it through better planning, for example, better budgeting or building an emergency fund."

Credit cards, store cards, online credit and catalogues

This type of debt is unsecured, which means they can not take anything away from you. It's not a criminal offence not to pay, but that doesn't mean that you won't end up in court.

You need to figure out which are the most expensive ones and pay those off first. Where you can, try to pay off more than the minimum to clear the debt faster.

The other trick is to reduce the rates by using balance transfers to a lower interest credit card. It won't reduce the debt, but it will reduce the amount you have to pay back in interest.

When all else fails, negotiating a repayment plan is your best option. Non payment of this debt will have an impact on your credit score so it's worth remembering, a deferred payment is better than a missed one.

Warning

Even if someone else has run up the debt, you'll be responsible for paying it. If you have given someone a card on your account, you will need to get them to stop spending too.

Friends and Family

"Repaying debt to family and friends is personal. There are no hard and fast rules here, this one is much more about you relationship and we can't advise you on that. The one thing I would say is be open an honest about your situation."

From a really practical point of view this debt does not affect your credit score and in many cases does not attract interest either.

If at all possible and with agreement, it would make sense to try and pay back your other debts first. That said, it doesn't mean it's not a priority. It depends on who you have borrowed it from and their own circumstances.

Help from friends and family

Your family and friends could also be a source of help. Nearly a third of people need financial help from their friends and family at some stage.  While it's not easy to ask, this is an important lifeline that can see you through difficult times.

If things don't go to plan

If you have offered to make repayments but it has been rejected it makes sense to follow these two simple steps:

1. Keep records of your repayment offer including dates, times and the person you spoke to
2. Save the amount you offered to pay into a separate account and don't spend it

This could help you if legal action is taken down the line.

A final thought

If you cannot afford to repay all of your debts and you still need help, Peter recommends talking to a debt specialist. Your first port of call should be one of the free advice options such as StepChange or Citizens Advice.

The final article is one we hope you'll never need: what happens as a last resort in dealing with debt.

As a final note: be kind to yourself. You've already taken an enormous step in facing up to your debt, and there is plenty of help out there. If you have any questions, please get in touch at support@multiply.ai.

The Financial Conduct Authority (FCA) has introduced a lot of new measures to help people who are struggling to keep up with debt repauments. Let's look at what help is available and what to watch out for.

All the measures that have been introduced are there to provide temporary support. It's worth spending a little time to figure out if these are the right moves for you as they could end up costing you more in the long run.

If you haven't nailed your budget and cut out any unnecessary spending, check out the first article and tackle that stuff first.

How to access help

Don't just stop making payments.

In all instances you need to contact your provider. With such a high demand it can be tough getting through by phone.

Your lender's website is always a great starting point. It will detail what they are doing, any terms and conditions, and in many cases you can also apply online.

Personal loans & credit cards

You can freeze or reduce repayments for up to three months. The period will last from the time you agree the details with your lender. Luckily, this will not affect your credit score.

If you’re still having trouble making payments after the end of your three month break, you can speak to your credit card company about further help.

This doesn't just apply to personal loans and credit cards. Store cards, catalogue debt, guarantor loans, logbook loans and home collected credit are also covered buy these measures.

Overdrafts

Up to £500 is now interest free. People with existing overdrafts on personal current accounts will benefit from the new measures.

If you're after a new overdraft or a a bigger overdraft (subject to checks and affordability), you'll be able to get the same deal.

Mortgages

A three month mortgage holiday or reduced payment period is available to all homeowners. The holiday period will be calculated from the time you reach an agreement with your lender.

If you take a mortgage holiday or reduce your payments for three months due to coronavirus, it wont affect your credit score

An additional mortgage holiday can potentially be negotiated if you’re still having trouble making payments at the end of the three months.

Don't forget, interest will still be charged but it will be added to the mortgage balance.

Other credit

Proposals for a number of other types of credit are still being negotiated. these include:

• High-cost short-term credit (including payday loans) - 10 month freeze
• Motor (Car) Finance - Up to a three month freeze
• Buy Now Pay Later - Up to a three month freeze
• Rent to Own - Up to a three month freeze
• Pawnbroking - Up to a three month freeze

If approved, these measures are expected to come into force on 27 April 2020, so keep an eye out for those.

What's next?

In our next article we'll look at the different types of debt and how to tackle them. If you have any suggestions for topics that you would like to see us cover during these times please contact us at support@multiply.ai.

It's hard to get through the day without seeing debt and coronavirus in the same headline. Extraordinary circumstances call for a different approach to getting and staying debt free.

According to Peter, our Head of Advice, the principles are still the same. "Firstly the focus must be on living within your means and secondly you must stick to it. This is sound advice in any situation, even in the middle of a pandemic."

We asked Peter for his top tips for getting on top of your debt in a pandemic (or any time for that matter) and here's what he told us:

Top Tip #1: make a budget

Start with a budget, to help you avoid getting into any more debt. This is the hardest part. In short you need to stop spending what you haven't got. This means listing out all of your income and outgoings.

Words of wisdom from Peter:

"This is where most people go wrong. This must be done over a year, not a month if not it will be a useless exercise. Why? Because it wont capture the 'irregular regular' outgoings, for example holidays, birthdays, Christmas, annual insurance policies etc".

Work out your net disposable income (income minus outgoings) by month and over the year, to see if you have any cash to spare. A yearly budget makes it easier to allow for big costs like summer holidays and Christmas. If you're running short, getting a grip early is really important. That's where Peter's second top tip comes in.

Top Tip #2: cut your spend

Start looking at what you can give up. Have a look at your memberships and subscriptions: newspapers, magazines, Netflix, Spotify, Amazon, clubs, and gym membership. Do you really need them?

Separate the "nice to haves" from the essentials. Once you have established what the nice to haves are, you can take your first action: cancel them.

Now look at the other stuff, what else can you cut back on? Small changes add up and can make a big difference.

Top Tip #3: reduce the interest

Next, give yourself a bit of breathing space by reducing the interest you're paying on your debt. Credit card transfers and overdrafts to replace credit cards are two of the most common ways to do this.

Pick up the phone and talk to your lenders. There are lots of things they can do, especially now. So don't be afraid to talk to them and explain your situation in order to find out what they can do to help.

Top Tip #4: admit the problem

This is controversial but in Peter's own words, "don't be afraid to admit you have a problem". Burying your head in the sand won't make it go away.

Throughout his career Peter has seen people do some crazy things even to protect a 'credit score'. He has seen people get into more debt by paying the minimum required, only to find out their credit score was getting lower and lower because of the amount of debt accruing in the first place.

Taking the first step is always the hardest, but there's plenty of help out there.

In the next article we'll take a look at what help is available and how to go about getting it. In the meantime, you can send any questions to support@multiply.ai.

Coronavirus has put the property market on ice for the foreseeable future. 85% of Multipliers who plan to buy a home say the current situation is affecting their plans.

In the long term, there's no reason why the pandemic should call a halt to your home owning ambitions. However, in the short term it might throw a spanner in the works.

Can I still buy a home?

Although the government has asked us not to move house, you are still allowed to buy property. However, many people are delaying their plans.

People who are self-isolating or shielding, and can't leave the house at all, should put all plans to move house on hold.

Owners are (technically) allowed to put their property on the market...but they're not meant to hold viewings. That means many would-be sellers have withdrawn their properties from the market.

If you haven't already found the place you want, you'll have to do viewings remotely via video call rather than seeing it in person.

Can I get a mortgage?

It's not an easy time to apply for a mortgage. Some providers, like Nationwide, have stopped lending to anyone with less than a 25% deposit, and a few have withdrawn all their mortgages from the market entirely.

If you've already submitted your application, lenders have said they'll offer an extension on the offer to give you time to complete. So if you have a mortgage offer, you should speak to your broker or lender to find out what their policy is.

If your income has changed, this might affect your ability to borrow as much as you'd like. Generally, mortgage providers will lend you up to five times your total annual income, to make sure you'll be able to afford your repayments.

What if I'm saving less?

1 in 3 Multipliers who are saving up to buy a home say their income and savings are taking a hit at the moment.

If you're not able to save as much as you planned to, you might need to keep saving for longer or adjust your expectations of what property you can buy, and when. You can use our property calculator to work this out.

Some people are using their savings to live on at the moment. Unless you have no other options, try not to touch money that's living in a Help to Buy ISA, Lifetime ISA, or invested in stocks and shares. Turn to any easy-access money in current or savings accounts first.

If you're struggling, there is help available. There are some tips here about how to get stable and keep saving if you can.

What will happen to prices?

The property market looks very uncertain for this year. Nationwide, which publishes the biggest report of property prices, has said it will be hard to gauge market values because fewer sales are taking place.

Property firm Knight Frank also says that there will be significantly fewer transactions this year. It predicts a price drop of around 3% in 2020, meaning homes will be cheaper by the end of the year. That's assuming the economy shrinks by 4% - which is only a guesstimate at this point.

Knight Frank also predicts that property values will recover once the crisis has passed and the market starts up again. It expects price growth in 2021, but for now the future is still uncertain.

Any other questions?

The Multiply team is here to support you and help you continue making progress towards your goals during this tricky time.

If you have any other questions or need help with your plan, you can give us a shout at support@multiply.ai.

Covid-19 is worrying, full stop.  Companies and livelihoods look precarious and there is a lot going on to try and lessen the impact. There is however, no getting away from the facts. The FTSE has posted it's largest quarterly fall in more than three decades and the end still looks a long way off.

People are naturally worried about the value of their pensions and investments. Many investors out there have only known the most recent (and longest) bull market in history. It started in March 2009 and it has just come to an abrupt and unpredictable end.

It is worrying, we get it, so we thought we would have a look at some wise words from a seasoned pro. Love him or hate him, Warren Buffet is arguably the greatest investor of all time. When he speaks, people listen. So what words of wisdom can he offer in these tough times?

Focus on what matters

"Games are won by players who focus on the playing field – not by those whose eyes are glued to the scoreboard."

The key takeaway:

Stock markets swing widely and react to the smallest events as well as the big ones. They can overreact to current events in ways that often seem dramatic. This affects fund values and pensions as well as the underlying stocks.

Try not to get caught up in the short-term craziness. There is no need to panic sell., stick to your investment plan and trust the research. History has taught us that markets often get it wrong and they do bounce back.

Prepare for the long game

“Over the long term, the stock market news will be good. In the 20th century, the United States endured two world wars and other traumatic and expensive military conflicts; the Depression; a dozen or so recessions and financial panics; oil shocks; a fly epidemic; and the resignation of a disgraced president. Yet the Dow rose from 66 to 11,497.”

The key takeaway:

Investing is a long term strategy. Looking at your position on a day to day basis might be interesting and, at the moment, slightly scary. Affording your lifestyle over the long term isn't a matter of short term movements.  It's about getting a plan in place and sticking to it.

Be patient

“Successful Investing takes time, discipline and patience. No matter how great the talent or effort, some things just take time: You can’t produce a baby in one month by getting nine women pregnant.”

The key takeaway:

Patience is probably the biggest mindset shift. In a world where short-termism has become the new norm, it's worth taking a step back. Some things just can't be rushed, and saving and investing for a lifetime of happiness and security is one of those things.

After all, good things come to those that wait. This isn't about the short term swings, however bad they are, this is about the next 50 years.

Know yourself

"A low-cost fund is the most sensible equity investment for the great majority of investors."

The key takeaway:

We all think we are a little bit of 'Warren' deep down, but in reality the vast majority of us are (in his own words) 'know nothing' investors. We don't have armies of analysts at our disposal, nor are there enough hours in the day to do the research. When it comes to being a pro it really is a  particular type of person that does it and does it well.

For all these reasons even the master himself advises the use of funds. Luckily for you, at Multiply, that's just one of the many things that we advise you on. Not only does your plan look after your security, pension and protection it also looks after your investment fund recommendations. If you keep your info current, the advice will be too.

The final word

It's really tough out there for a whole host of reasons. Covid-19 will pass and we will come through it. Whilst we are in the thick of it, the tendency is to only focus on cash savings, but in reality investments in stock and shares have historically been a good bet. There is no reason to believe that won't happen again.

If you remember one thing from this period, it's the need to develop your marathon mentality. Remind yourself that you are in this for the long haul.

Using Multiply can really help you get on top of your finances. Financial resilience and protection have always been a key feature of what we do, but it will also bring you closer to realising your goals through smart investment advice.

Keep dreaming, keep planning and keep safe.

Mortgage providers are now offering temporary "holidays" from making payments for anyone whose income has been affected by the coronavirus pandemic.

Should you take a break from your mortgage? It might sound like a no-brainer, but some people could be better off not taking this particular holiday. Let's dive into why.

How it works

A mortgage payment holiday is an agreement with your lender. It gives you a bit of breathing space by letting you stop or reduce your payments for up to three months.

Your credit score won't be affected by taking a mortgage holiday and you won't have to pay any extra fees or charges.

Your mortgage will continue to accrue interest throughout, making your total mortgage debt higher overall. However, this is added to the total - you won't have to pay it back immediately.

After the payment holiday ends, you might have pay more each month to make up the lost repayments. Or, your mortgage term might be extended with the missed payments added on.

Is it right for you?

If you're facing a struggle to pay your mortgage, a payment holiday could be a good short term solution.

However, it's important to remember that your debt will continue to increase while you're not paying. Several lenders have spoken out publicly about the risk to customers of taking a mortgage holiday that they don't really need.

If you're worried about your finances, there are lots of options you can consider before asking for a payment holiday.

Your first step should be to check what cash you have available to fall back on. It's cheaper in the long run to use your savings to keep making payments, if you can. This is what emergency savings are for.

You can also speak to your lender about what other help they can offer you, such as reduced monthly payments or an interest-only arrangement.

If you're on a variable or tracker rate mortgage, remember that your payments will be cheaper now thanks to the lower base rate. You'll save around £40 per month, per £100,000 of your mortgage balance.

How to apply

If you do want a mortgage holiday, you should get in touch with your lender and agree it with them. You can't just cancel your Direct Debit.

Some lenders have warned that payment holidays won't take effect until the month after you apply. So if you think you need one, it's better to apply sooner rather than later.

Many mortgage providers are overwhelmed with calls at the moment, so apply online if you can.

You won't need to prove to your lender that you're struggling. However, they'll do a quick check to make sure a payment holiday won't make your mortgage unaffordable later on.

To be eligible you need to be up to date with your payments. Anyone who's already behind will probably be offered alternative options.

Any help for renters?

It isn't just homeowners who have bills to pay. The government has announced some measures to help tenants who are worried about making rent during the crisis.

Landlords will now have to serve three months' notice if they want you to move out, instead of  two.

The government has also said that if renters are struggling to pay, they should speak to their landlord about putting a rent payment scheme in place.

Questions?

If you're not sure what to do, either with your mortgage or your finances generally, there are people out there to speak to. Turn to your lender as your first port of call - they will be able to suggest measures to help you cope.

Our team is also on hand for any questions to do with your plan. Get in touch at support@multiply.ai and we'll do our best to help.

Most of us don't have enough stashed away to weather the tough times, especially one like this.

Building up an emergency fund is a challenge even in good times, but right now it's harder still. So a different approach is needed. It's time to try and set aside whatever cash you can now to help you through the coming weeks and months.

Looking after those pennies has never been more important. So what can you do about it?

Get to grips with your income

If your monthly income is likely to change, try to understand how much, and for how long. This will help you figure out the impact it will have on your budget. There are lots of calculators out there, but we have included one here to get you started.

If you can afford to set aside any one-offs or extras, such as bonus or commission payments, it can be a lifeline in troubled times.

Break open the piggy bank

Many people have small balances in places like PayPal, piggy-banks, or premium bonds. These can all be valuable sources when it comes to adding money to your emergency fund; so add it to the pot.

Check your credit cards

Let's hope you don't need to use them. But just in case you do, keep a mental note of the credit you have access to. If you have more than one card, use the one with the lowest interest rate first.

Get tough with your spending habits

Cutting back where you can is always a great idea, and now more than ever. Do you really need all those subscriptions right now? Are you getting the best deals on your utilities and insurance? What about your credit cards, is there an opportunity to switch to something cheaper?

These small savings add up, so go through it with a fine tooth comb. Most of us have areas we can cut back on temporarily, just remember to set aside any savings you make.

Review your investments

This is a tough one, as cutting back on pensions and investments is not normally advisable. But extreme times might call for extreme measures.

If you need to cut back, only do what is necessary to make life easier. Make sure you set a reminder to reinstate them when the clouds lift. As with the rest, plough any savings you make from the reductions back into your emergency fund.

Take a break

There is a lot of help out there. Mortgage lenders are obliged to give a 3-month payment holiday, and lenders and utility companies also providing payment holidays to those that are impacted. The key here is to speak to them if your payments are likely to be impacted.

Get help if you need it

The government has announced some pretty extraordinary measures to help us through this pandemic. Check out what support you are entitled to and make sure you are claiming it. Keep your emergency fund topped up with any back payment you get and any residual income.

Then what?

It's really tough out there but even a small saving of £250 can significantly reduce the risk that a family will miss paying bills.

Whatever you have managed to pull together into your emergency fund will help top up or subsidise your income. It will provide you with a financial cushion to see you through the coming weeks and months, if and when you need it.

At Multiply, we've made some changes to the financial advice we give, to try and help our users make the best decisions for them during these challenging times. We will be writing to tell you about those in the coming days. Most importantly through all of this keep safe, be kind and look after yourself.

April.

Not because it's the celebration of First Contact Day which marks the pivotal day in 2063 when humans first made contact with the Vulcans, but because it's the end of the UK tax year. Slightly less exciting for all you trekkies out there, but important nonetheless.

What is a tax year?

The UK tax year is different from the calendar year. It runs from the 6th April to the 5th April in the following year. So for 2019 / 2020 the tax year started on the 6th April 2019 and finishes on the 5th April 2020.

Why is it so important?

It's important for a whole lot of reasons, especially if you are self employed. It is also the end date on which your annual P60 (a record of the income you have earned and the tax you have paid) is calculated. It is also the the final day on which you can make the most of your personal tax allowances.

Your Multiply plan already takes your ISA and pension allowances into account, but just to recap the  important ones to know are:

1. Individual savings accounts (ISAs). Recently we published a handy guide to the ISA options out there and your allowances. You can read this here. If you have any spare cash lying around (after taking care of your emergency fund) make sure you're using your allowances. It's a top tax-efficient way to save.
2. Pensions contributions. The government tops up your pension contributions in the form of tax relief. But there's a cap. The cap is your gross annual income, or £40,000 - whichever is lower. Saving as much as you can into your pension makes the most of your income now, and also means you'll have more to enjoy after you retire.
3. Capital gains. This is the profit you make on selling or disposing of an asset, like a second home. It currently stands at £12,000 and is expected to rise to £12,300 in the new tax year. It is important to note that all individuals have the allowance, and there is scope for transferring assets between married partners in order to reduce your tax bill.

So what now?

Things are really uncertain out there, and you may be living on your emergency fund, but this is about controlling what you can. Looking after your own financial future has never been more important.

If you can take some time away from the chaos over the coming days, have a look at your allowances and make sure you have made the most of them for the current financial year.

Not sure where to start? Check your plan. Your plan takes your ISA and pension allowances into account, so take your recommendation actions to optimise your money automatically. Keep it up to date and you will always have unbiased, suitable advice at your fingertips.

There are not enough words, analysis, opinions or memes to describe the current situation. As we sit and wonder what's going on, and try and make sense of it all there are some things we can all learn from the Covid-19 pandemic.

Stuff happens when you least expect it to and we all need to be prepared.

Introducing: your emergency fund

An emergency fund is there to give you access to enough money to see you through 3-6 months if you stop getting paid.

We are currently experiencing unprecedented times. Sadly many will see their income stopped over the coming weeks and months. But it's not just Covid-19 that will cause this to happen. Redundancy and taking time out to care for a loved one are far more usual. All of a sudden anyone of us can find ourselves with bills to pay and no way in which we can pay them.

So what should you do about it?

Start saving. Put money aside every month to build up your own emergency fund, rainy day fund, s**t happens fund, or whatever else you want to call it.

In total you should stash away enough cash to be able to survive without income for three months.

We typically advise that you keep one months income in your current account and an additional two months in a savings account.

Your plan will show you the specific accounts we recommend for you, and the amounts to put into each.

Is it too late?

The impact of Covid-19 is expected to last a long time. There are plenty of opinions out there, but the truth of the matter is that these are uncharted waters and there is no magic ball that will tell us what happens next.

But, it's never too late to start getting into good financial habits so saving now is still a good idea.

Social distancing is no fun, but we can all take the opportunity to learn new things, form better habits, and be kind to ourselves and each other. We're hoping you're keeping safe and looking after yourself.

The coronavirus pandemic isn’t just a big public health issue. It’s also the biggest thing to hit the world’s economy since the financial crash in 2008.

The virus, and countries’ attempts to contain and delay it, have big knock-on impacts that are likely to affect everyone's personal finances sooner or later. But there are steps you can take to increase your resilience.

Build emergency savings

Your emergency fund recommendation is always right near the top of your personal financial plan, and there’s a very good reason for that. However rainy the day gets, it’s good to have a cash cushion to fall back on.

You should aim to have enough saved up to tide you over for three to six months if you didn’t have any other income.

If you’ve not yet started building your emergency fund, your first step is to get cracking as soon as you can. Your emergency fund should always live in easy-access accounts; follow your plan to see which accounts we recommend for you.

Get covered

You’re entitled to sick pay if you’re off work, but the statutory payment is just £94.25 a week so it doesn’t go very far. There are some workers who aren’t covered by statutory sick pay at all.

One option is Accident, Sickness and Unemployment (ASU) insurance, which is a type of income protection designed for short term illness, like coronavirus. ASU kicks in if you can’t work, and pays you a proportion of your income for up to 12 months.

Alternatively you can adopt a longer term plan, using your emergency fund to get you through the short term with an income protection policy in place to cover you for any longer term needs.

Check your plan to find out how our longer term approach would look for you.

Look at life insurance

This is about to get heavy for a moment. Although the mortality rate of COVID-19 is low, this isn’t a bad time to pause and reflect on what you’d leave behind if the worst was to happen.

Anyone with a mortgage, or who has a partner or children, will see a life insurance recommendation in their plan. This is designed to make sure no one has to struggle with payments that you’re not around to make.

Everyone also has a recommendation to make a will and a Lasting Power of Attorney. It’s never a bad idea just to get these sorted.

Keep a cool head

For those who have money invested in stocks and shares: the best thing you can do is take a deep breath and stay focused on your long term goals.

As long as you have enough money in cash to cover your short term essentials, there’s no need to panic. You should be able to hold for the long term and wait for the markets to recover.

A properly diversified portfolio, which is appropriate for your risk level, should also help to protect the value of your investments in a downturn.

Take a look at this chart showing the last few weeks.

The green line is one of the funds recommended by Multiply, containing a mix of equities and government and corporate bonds from different countries. The red line is a typical fund invested only in UK shares.

Source: Trustnet.com

If you see an investment recommendation in your plan, it will always advise you to invest an affordable amount into funds which suit your needs.

What to do if you’re not ready

Everything’s happening very fast. But there are steps you can take if you’re feeling unprepared.

First, review your budget to see if you can cut back on spending. If you have income at the moment, save as much as you can.

The government has already announced some financial assistance for people affected by the epidemic. Keep yourself informed of your rights as the situation develops.

If you are already affected, make sure you claim for any state benefits you might be due, such as sick pay.

If you have a mortgage and you’re worried about making payments, you can speak to your bank about the possibility of a mortgage holiday.

If you’re renting, speak to your landlord as the government has also announced that it will legislate to make sure people are protected from eviction.

Keep well

From all of us at Multiply (currently going slightly stir-crazy working from home) we hope you're keeping well.

We hope you find your plan useful to help you build resilience in these challenging times. You can give us a shout at support@multiply.ai if you have any questions.

On Wednesday, chancellor Rishi Sunak unveiled this government's first Budget. The Budget is where the government lays out its plans for spending, tax, and borrowing for the year ahead.

You'd be forgiven for thinking you'd fallen asleep and woken up in a parallel universe with Labour at the helm. Featuring some big spending plans that will require plenty of government borrowing, this was not a typical Budget for a Conservative government.

The Conservative party made plenty of promises in their election manifesto last year (even before coronavirus hit) and now they're spending to deliver on those promises. There's a £30 billion fiscal stimulus to mitigate against the impacts of coronavirus and £100 billion increase in public service spending.

Journalists and economists are busy consuming the detail buried in the 125 page document. We thought we'd focus on the key points from the budget that affect you and your plan, whether you're looking to buy a home, grow your money, or just get on top of your finances.

Interest rate cut of 0.5% to 0.25%

We know, this wasn't technically part of the budget but it is part of a much wider response as alluded to on page 37 of the budget. In response to supporting those with COVID-19 they say 'HM Treasury will continue to work closely with the Bank of England to coordinate the response of the UK authorities to ensure it is as effective as possible'.

This is great news for home buyers as it may reduce the cost of your mortgage, although those changes sometimes take a while to feed through. It's not so good for those with savings and investments as the returns are likely to be lower.

Even though a large fiscal stimulus and a rate cut should have shored up the stock markets, the wider concerns around a global recession have sent them spiralling down again today. Don't forget though, investing is a marathon not a sprint and performance should always be measured over the longer term.

Annual National Insurance saving of £104

With a typical employee saving around £104 and a typical self-employed person around £78 in 2020-21 this is a winner for everyone.

You could go out and splash out on a dinner for two, or some gadget you have had you eye on for a while, or you can just let it be eaten up by day to day life. Alternatively, you could invest your £8.65 away each month and watch that money grow.

Junior ISAs and Child Trust Fund allowance increased to £9,000

This has more than doubled, which is a massive increase and great for anyone who wants a tax efficient way to invest for their children's future.

£9.5 billion for the Affordable Homes Programme

More good news for home buyers, this extra investment is aimed at helping people get onto the housing ladder. The funding will support the creation of more homes across the country and expectations are that it will increase availability in the shared ownership space.

What next?

There is obviously way more to the Budget than savings on NICs, a doubling of the Junior ISA allowance and a cash injection for the affordable homes programme.

It detailed a spending spree aimed at improving the economic outlook for the UK. Infrastructure, R&D, the environment and the NHS all did well, but they weren't alone. For those wanting to read the full report, we have included the link here.

There is debate over whether or not this truly delivers 'levelling up' along with a whole host of other issues. Most of us are back seat chancellors with strong opinions so we suspect those debates will rage for a while yet.

If the personal finance landscape wasn't confusing before, it certainly is now. There is so much information out there on what, when and how to invest, how to buy a home, and the best ways to save.

We recommend checking in with your Multiply plan. We do all the hard work under the watchful eye of the regulators so you can rest assured that you money is working for you.

We are always keeping a watchful eye on what savings products are currently being offered to come up with new best buy lists for our users. While for most of out there this is as dry as a cream cracker with no butter, our research team claims it reminds them of freshly baked croissants with jam.

All of our selections require a minimum initial deposit of £1. Yep, this list of great savings and investment products is totally accessible as long as you have a quid to spare.

Let’s have a look at the top picks for March:

If you’d like to delve a little deeper and understand how we choose the savings accounts we recommend, take a look at our blog.

If you retired tomorrow £168.60 (rising to £175.20 in April) is the maximum basic pension you'd get from the government each week. Let's face it: it's not a lot of money. Most people can't (or don't want to) rely on this as their sole source of income in the future. After all, it's hard to imagine silver surfing your way around the world on such a tight budget.

Multiply's handy ‘in app’ pension calculator is a great way to start looking at what you need to do to afford your epic second childhood.

So let's talk pensions.

The headline is that pensions are a great tax-efficient way of saving for your future, with all schemes currently qualifying for relief up to your highest rate of income tax. This means that some of the money that you would have paid in tax to the government goes into your pension pot instead.

There are three main types of pension: State Pension, Defined Benefit, and Defined Contribution.

State Pension

This is what you'll get from the government when you reach State Pension age.  It should be simple, but it's not. The amount you get is dependent on a whole range of factors including age, gender, and your National Insurance record.

The criteria are constantly changing so it's worth keeping this link in your favourites to make sure you're up to date.

In order to qualify for the minimum you need to have made at least 10 years of National Insurance contributions. In order to get your equivalent of the £168.60 in the future you will need to be credited with 35 years of contributions.

If you have worked overseas things get more complicated, but the link we referred to earlier also provides guidance on this too.

Finding out the status of your State Pension has never been easier as the government has included a handy tool in its website which you can access here.

Defined Benefit

Defined benefit pensions are generally provided by your employer and are often perceived as the gold standard. They are all but extinct (following a change in regulation in the 1980's) so many of you are unlikely to have come across them, but a few companies still offer them even today.

The core feature of these pensions is when you retire, the amount of money you receive is based on your salary and the number of years you worked for the company.

These can be valuable pensions, and if you are lucky enough to have one the general wisdom is to hold onto it. That said there are still some perfectly valid reasons that may make you want to transfer them ranging from performance to flexibility to inheritance considerations. But any decisions should not be taken lightly. For all transfer values over £30,000, you will need to consult with and obtain sign-off from a regulated Independent Financial Adviser.

Defined Contribution

Defined contribution pensions are the most common ones around. You can get one via your employer or you can set it up yourself. Essentially you are saving for your own future either through through a company or off your own back. When you save through your employer, they generally make a monthly contribution too, so some free cash to boot. The cash that is saved is then distributed in a whole range of investments ranging from cash to government backed bond to stocks and shares and property.

These pensions often offer great flexibility. The amount of money you receive when you retire is a combination of how much has been saved into the pension and the performance of the pension investments over time.

Is that all there is?

No, of course not, that would be way too easy. You also need to be aware that:

• Most pensions come with strict rules around the age that you can access them.
• It's important to balance your short, medium and long term goals and save for all stages of life's journey.
• You need to get to grips with the nitty-gritty of your pension, especially how much you can take out and when, and those all important consequences of the decisions you make such as a lower income at retirement.

This can all be a little overwhelming, especially when there are so many different types of defined benefit and contribution schemes. The good news is that information is not in short supply.

Pensions are not just about the product; that's only part of it. There is so much more to setting yourself on the right path to your second childhood.

Focus on the big picture

Everyone is unique, so there are some decisions and actions only you can do when you are saving for your future. We have listed our top tips below.

1. Establish what savings, investments and other assets you have already got. Pensions might not be your only source of retirement income.
2. Understand when and what lifestyle you want when you retire and how much you will need to fund that. If you are planning to spend half of your year in sunnier climes, then you need to consider that as part of your plan.
3. Be willing to start small if that's all you can afford at the time. Some people get scared when they see a big number they need to put away each month. But doing something is always better than doing nothing.
4. Regularly review your savings and investment plan. Life changes and so should your plan, so check in every now and again to make sure it still works for you.
5. When in doubt seek out specialist advice. Independent regulated financial advice has never been so accessible...

The TL;DR

Pensions are a brilliant way to give yourself an income in the future. They are a valuable addition to a much wider savings and investment plan, but it's not a case of one size fits all. Once you have done the fun part of thinking about what you want, Multiply can help you with the heavy lifting. It helps you get on the right path so when you finally hang up those spurs you can kick back and enjoy.

Although you shouldn't let the tax tail wag the investment dog the tax year is coming to an end, so there's even more incentive to get started as those allowances for the current year won't be around for much longer.

Most of us are missing the opportunity to make the most of our hard earned cash (and tick a few additional items off our bucket list). But making the most of your money isn't actually that hard: all you have to do is put the right amounts in all the right accounts. You'll see savings and investment recommendations as part of your personal financial plan.

The challenge is that there's an overwhelming choice of savings and investment products out there. It isn't easy to understand what they all do or what the differences are and the language is often inaccessible. And having too much choice makes it all the more tempting to pull an ostrich move and bury your head in the sand.

Not so fast. Over the coming weeks we'll be running a series of articles to demystify investment terms and make sure you're fully on board with your plan recommendations. Today we're talking ISAs.

Let's start with the basics. An ISA is an Individual Savings Account for UK residents. From the age of 16 you can save up to £20,000 a year in a cash ISA, but when you hit 18 a new range of options opens up.

So here are the six main types of ISAs.

Cash ISA

This is a really simple one. Essentially it's like having cash in an interesting-earning bank account, but your interest is protected from the tax man.

The good & the bad

A low-risk way to save for a holiday or a new bathroom - so all your short term needs and a few of those cheeky wants too.

On the flip side, the returns are not great and accounting for inflation you could end up losing money in real terms.

Help to Buy ISA

The deadline for opening a Help to Buy ISA was 30th November 2019. For those of you who have one, good job on getting a 25% uplift from the government. The good news is, you can continue to use this to save towards your first home.

Stocks & Shares ISA

This is a great way to invest in stocks and shares, funds, and bonds with different risk profiles to suit all but the most cautious amongst us. In addition you can do it without worrying about the tax implications. Yes, you did read that right, no income or capital gains tax for these bad boys.

The good & the bad

These are suited to the medium and long term, so anything you are looking to do beyond five years. Feel like taking a sabbatical, or sending your kid to uni? This may be a great way to make it happen.

It's worth noting that recent studies have shown that those who maxed out on their ISAs between 1999 and 2019, got over £47,000 more than those who invested in a Cash ISA. They could have brought themselves a Model 3 Tesla with that and had money left over for a luxury 2-week holiday in the Maldives.

Be warned though: stock markets are not a one-way street and they go down as well as up, much like the housing market. So there's always some risk in investing, but historically they have performed well over the long term.

Lifetime ISA

These are ideal for the medium and long term tax-savvy investor. They cater for a whole range of risk types as they invest in everything from cash to stocks and shares. But the best thing about these is that the government will add a bonus of up to 25% of anything you put in. Your contributions are capped at £4,000 per year and there are strict limits around age.

The good & the bad

Amazing if you are buying your first house or are saving for your silver surfer years. If can you see yourself in your 60's wearing a bandanna cruising round Europe on your brand new Harley, this may be a great way to make that happen

The bad thing about them is the conditions. It's only for those looking to get on the property ladder or save for their later years.

Innovative Finance ISA

These are the baby of the ISA family and have only been around a little while. They match people who have money with people who need it, and put it in a convenient tax-free wrapper. Much like the stocks and shares ISA, these are for your medium to long term goals.

The good & the bad

The potential return on these is much higher than traditional savings accounts or ISAs. But they also come with more risk as you are investing in new businesses or individuals. So unless you are willing to spin the wheel and put it all on black, you should only consider these for a portion of your investment.

Junior ISAs

These are for parents with kids under 18. Like all ISAs, these are tax free but it's really just a way of putting money aside for your kids. The current annual allowance is £4,368 per child and parents can save this amount in addition to their £20,000 personal allowance.

The good & the bad

It gives your kids a great start, but beware they and they alone can access this when they are 18. So if your little darlings get a windfall like that you would want to make sure they don't blow it all on sex, drugs, and rock and roll.

The TL;DR

ISAs are a tax efficient way for saving for anything from your short term desires to your long term needs. They can generate some pretty impressive returns if you are willing to take some risk. On top of that, the government even gives you cash of up to £1,000 per year with certain products.

Even after this simple explanation, there are still so many things to think about; who to use, how much, how long, performance, conditions and overlaps with over investments.

So rather than get choice paralysis your best bet is to get some truly independent financial advice to find out how to use ISAs. With the end of the tax year fast approaching, timing is everything. To make the most of your personal allowance for the current year you need to get your skates on as there is less than a month to go. Luckily, you're just a few taps away from your very own personal financial plan. Go get it!

We are constantly on the lookout for the best savings products on the market and regularly come up with new best buy lists for our users. While it’s not quite the Official Singles Top 100 Chart, our research team claims it reminds them of the smell of freshly baked bread in the morning.

Let’s have a look at last month’s top accounts. The research team isn’t particularly surprised with the selection. The names below have been the consistent top account providers for a while now. What triggered our update was the withdrawal of Ford Money’s instant access account.

Instant access accounts

First up, here's our top three instant access cash savings accounts.

Instant access cash ISAs

Now onto the Individual Savings Accounts. Read on to see our team's top picks of instant access cash ISAs.

If you’d like to go down the rabbit hole (pun fully intended) of how we choose the savings accounts we recommend, take a look at our blog.

Remember, your personal financial plan contains specific product recommendations to help you hit your savings goals. Check it out to find out what our team recommends just for you.

Let's be honest: the odds of winning the lottery or inheriting millions from a long lost Auntie Mabel are very slim. If you want financial certainty, it's up to you to get better at making the most of your money.

The very mention of getting into good money habits makes a lot of peoples eyes glaze over but they're your best chance of achieving peace of mind. So if you lie in bed dreaming of taking a career break, buying your own home, or retiring early, listen up. We have picked the top four financial habits to get into that can help you make those dreams a reality.

A note on habits

Firstly though, let's talk about forming habits. Most of us have bad ones - and not just when it comes to money. Breaking bad habits isn't easy - as as anyone can tell you who has made a new years resolution to get fit and eat healthy only to find themselves at the end of January with their knee in a support on the couch eating pizza binge watching Netflix.

Your best chance at successfully breaking old bad habits and forming good ones is to start small. If you want to take the big bang approach, you might it helpful to get support from a professional who can guide and help you achieve the right financial future for you.

Step 1: Spend less than you make and avoid debt

It doesn't matter if your income is big or small, if you spend more than you earn you will need to borrow money just to fund your lifestyle. Once you have borrowed that money, you will start paying interest, so your monthly expenses go up and so begins a vicious circle.

With average UK household debt (that's credit cards and loans) standing at an eye watering £15,400, it has never been more important to take charge of that spending as there is only ever one winner in that scenario - and it's certainly not you.

Make a budget, stick to it, and avoid unnecessary debt. Without this simple foundational habit you'll need to work harder for your money instead of getting your money working for you.

Step 2: Plan for the unexpected

Christopher Walken summed it up when he said "At its best, life is completely unpredictable". Having an emergency fund and insurance to see you through difficult times seems to make sense, and yet most of us still seem to fly by the seat of our pants.

Start putting money aside for those tough times, take out income insurance, and stop worrying about the what-ifs.

Step 3: Make your money work for you

With spare cash comes opportunity - and not just for new stuff. This is where you start turning your dreams into realities, from buying a home to saving for a once-in-a-lifetime holiday or funding your children's education, the possibilities are endless.

Step 4: You will get older, so invest in it

One day you're 25, energetic and invincible and your life is ahead of you, and the next you are a silver surfer with grand kids and a bucket list. It's really hard to imagine getting older, so much so that companies are generating wrinkly avatars of our older selves to help us to connect with who we will be in the future. But here's the thing: none of us are getting any younger.

The problem is that unless you start young and put money aside for your old age, it will very hard to kick back when you want to most. So think pensions: workplace pensions, SIPPs, company pensions, personal pensions, stakeholder pensions and state pensions.

The TL;DR

There are no get rich quick schemes (in spite of what some might tell you). If you really want to dodge life's curveballs, hit your goals, and have the peace of mind that comes with it, then forming good financial habits is your best option. Your free Multiply plan helps you access the FCA-regulated advice you need, when you need it.

We don't need to tell you life changes, so make sure your financial plan changes with it. One of the best habits you can form is to check in each month to keep your plan up to date. We recommend checking in right after you get paid. We can hear your eyes rolling in your head, but all it costs is 2 minutes of your time, so you can do it while you're queueing for a coffee. What are you waiting for?

No one likes trawling small print for details so let’s cut to the chase on how Multiply makes money.

It’s free to generate a Multiply financial plan. All of the information in it, including product suggestions, is also totally free to access.

If we recommend a product

If we recommend a product such as the Unity Mutual Lifetime ISA, we won’t receive a fee if you decide to open it.

It’s against Financial Conduct Authority (FCA) rules for Multiply to collect a fee from an investment platform or pension product provider for recommending their product.

This is so we’re not tempted to recommend a product or investment that isn’t suitable for you. We think it’s a really good rule; it keeps your money safe and ensures you can trust our advice.

If you decide for yourself

If you decide for yourself that you’d like to open a product such as the Unity Mutual Lifetime ISA, without a specific recommendation from us, we will receive a fee.

If you already have a Lifetime ISA, and you're considering transferring it to Unity Mutual, we can't give you a recommendation either way. We don’t know enough about your current Lifetime ISA to advise you on whether to transfer.

If you take out a mortgage via Mojo Mortgages

If you decide to get a mortgage in principle and then take out a mortgage via Mojo Mortgages, we will receive a fee.

If you invest with Multiply

If you decide to open any investment accounts through Multiply, you’ll pay £1 a month to use the service.

This is a flat fee that covers the Multiply investment accounts available through the app: the Stocks & Shares ISA and the General Investment Account.

If you invest through Multiply, you’ll also pay an annual 0.3% platform fee.

Individual funds also charge annual fees, which vary between 0.43% and 0.73%.

House prices have hit the headlines recently, with the market enjoying a strong few months of growth.

According to data provided by Halifax, house prices went up 4.1% between January 2019 and January 2020, with quarterly growth of 2.3%.

The Halifax House Price Index is the UK's longest running monthly house price series with data covering the whole country going back to January 1983.

Halifax have also said that “a number of important market indicators continue to show signs of improvement”, so their view is that we could look forward to continued growth within the UK housing market this year.

Prices in different places

The above graph shows the housing market for the UK as a whole. But what about specific areas? The table below shows monthly change in each region for November 2019.

The national growth highlighted above is more current information. This is the latest regional data we were able to find, but it's best used to get a sense of the current trends in different areas of the country.

Stay tuned

Our financial advice team never stops scanning the market to keep your financial plan full of the latest rates and top pick accounts. Look out for even more juicy insights from the team over the next few weeks.

It isn't always easy to get on the same page with your partner about money. But it’s really important for the success of a relationship.

Whether you’re long-term life partners or you recently started dating, it’s always good to talk about money, from long-term goals to daily spending habits.

Take the quiz, tot up your answers, then send to your beau. Compare answers to find out if your joint finances are destined to live happily ever after or if your money nags are red flags.

Your car breaks down, the roof leaks, or some other emergency happens. You say:

A. No problem. My emergency fund will cover this.

B. I’m a bit stressed, but I can borrow to pay for this.

C. Things always go wrong for me. I’ve budgeted for this.

D. This is a mess. Ah well, I’m sure it’ll all work out.

Someone gives you £20,000 out of the blue. Your first thought is:

A. Sweet. I can add a chunk to my savings

B. Who’s going to hit the shops with me?

C. How can I invest this money wisely?

D. What charities should I donate this money to?

You’d describe your financial records as:

A. Organised. I regularly check that they’re up to date.

B. I can't remember the last time I kept a statement.

C. Precise. I use a spreadsheet to track everything.

D. A work in progress. I organise them when I have time.

When it comes to credit cards:

A. I almost always pay off the entire balance due each month.

B. My balance keeps getting steadily worse and worse.

C. I have a couple of cards that I use only in emergencies.

D. I probably have more debt than I should but I don't let it get to me.

Right now, your pension looks:

A. Good! I’m making regular contributions and it’ll give me a healthy income when I retire.

B. Non-existent.

C. On track. I'm on target to reach my retirement goal.

D. Irrelevant. Why worry about that today? It’s years away.

Your result

Mostly As:

You’re a Saver. You regularly set aside money, and make a point to build a cash cushion for a rainy day. You will bring financial balance to any significant other by encouraging them to save - just remember to also have fun with your money once in a while.

Mostly Bs:

You’re a Spender. You spend pretty much everything you earn (and possibly more than you earn), or often buy things that you can't really afford. Partnering with a Saver or a Planner is ideal as they can teach you to enjoy the finer things in life without living beyond your means.

Mostly Cs:

You’re a Planner. You only like to spend your money on items or activities that are pre-calculated or planned in advance. You tend to get along with Savers and other Planners. Dating a Spender or Dreamer could bring about conflicts in a relationship if you don't let loose from time to time.

Mostly Ds:

You’re a Dreamer. You have a lot of big dreams, hopes and aspirations, but no practical financial plans about how to reach your goals. It’s a good idea to find a love match with a Saver or a Planer to keep you grounded in reality.

Borrowing money to buy a house is cheaper now than it was last year. Low mortgage rates are good news for first-time buyers, making it more affordable to get on the property ladder.

The latest Moneyfacts Mortgage Treasury Report shows that interest rates have fallen since last year.

For a 95% loan-to-value mortgage (which means that you only need a 5% deposit), the average two year fixed rate has decreased 0.19% since February 2019, and is now just 3.25%.

Top two year fixed-rate deals

Averages are all well and good but let’s have a look at what Multiply's top picks of the best two year fixed-rate deals on the market. The figures below are based on a £237,500 repayment mortgage for a first time buyer.

*based on a first-time buyer with a repayment mortgage of £237,500.

Top five year fixed-rate deals

The average five year fixed-rate mortgage is now 3.56%, down 0.26% from last year. Here's our top picks from the market, if you're looking to fix for five years.

Again, these figures are based on a first-time buyer taking out a £237,500 repayment mortgage.

*based on a first-time buyer with a repayment mortgage of £237,500.

Stay tuned

This is just a sneak peek of the in-depth research our financial advice team does to keep your financial plan full of the latest rates and top pick accounts. Look out for even more juicy insights from the team over the next few weeks.

The source for the above mortgage rates is Moneysupermarket.

Most people seek out financial advice at a time of big change in their lives.

If you’re having a baby, for example, or moving to a new country, or even getting cut off from the family finances. Or, you know, all three at once, and under the prying eyes of the papers and the public.

Whatever you think of Meghan and Harry’s decision to take a step back from royal life, it’s fair to say their finances are going to look very different now that they’re not going to be taxpayer-funded.

So, what recommendations does our financial advice team have to offer the Sussex Royals, after #Megxit?

Pay off debt

They now owe the Queen an eye-watering £2.4 million for the recent revamp to their UK home, Frogmore Cottage. It’s always a good idea to try and clear any high-interest debt as a priority, although as this is a loan from friends and (royal) family, the interest might not be racking up too quickly.

Build an emergency fund

You could argue that the couple have already had their fair share of emergencies. But they’ve said publicly that their goal is to be financially independent, and that means having some spare cash in the bank for curveball costs or rainy days.

Given that, along with his brother, Harry inherited the bulk of the £13m fortune left by their mother Princess Diana, and Meghan reportedly earned $50,000 (£38,300) per episode of Suits, they’re probably covered on this front.

Still, if they don’t already have a piggy bank, they should get on that as a priority. And when we say piggy bank, we mean an easy-access savings account. Our top picks? The Cynergy Bank Online Easy Access, Marcus by Goldman Sachs, or Saga Easy Access.

Get life insurance

Meghan and Harry are new parents, and they need to consider what will happen to little Archie if they’re not around. Life insurance would pay out to Archie, plus any other dependents, if they were to die within the insurance term, which would ideally be until he turns 21.

We’d recommend Family Income Benefit (FIB) which pays out in regular instalments, meaning Archie wouldn’t have to pay tax on the income or worry about managing a lump sum. A £60,000 FIB policy to cover Archie until adulthood would set the Sussex Royals back £58.61 per month.

Goal: career change

Meghan already has a profession, but Harry’s going to need to look into a career change. Changing jobs often involves retraining to equip yourself with new skills, and that can be expensive. Some people also need extra savings to tide them over between jobs.

We’d recommend that Harry adds a savings goal to work towards a career change. Whether that’s saving up to take an acting course so he can join his wife, or getting the money together to launch the family business of selling Sussex Royal-branded merch, we wish him well.

Goal: buy a home

They may already have a UK home at Frogmore Cottage, but real estate in Canada isn’t cheap. The royals might need a bit of help working out how much they need to put aside to get themselves onto the property ladder over there.

They should also check out their credit score in case they need to take out a mortgage. Some people turn to parents for help with getting a deposit together, but was that agreed as part of the Megxit deal? We’re not privy to that information. Whatever their specific circumstances, we’d recommend they add a property goal to start saving up for that special somewhere.

*This is not actual financial advice, and makes several assumptions about Meghan and Harry’s circumstances, including their tax status. If you’d like a financial plan of your own, get yourself onto the Multiply app.

We ask for a lot of information in order to build your financial plan. Let's talk about why.

Financial advice is what’s known as a “regulated financial service” so to be able to provide advice, Multiply is regulated by the Financial Conduct Authority. What does that mean? Essentially we have to comply with all the regulation that has been put in place to protect you.

It can seem like a lot, we get it, but your answers enable us to do two main things:

1. Make sure you are a real person and that you're legit

There are a lot of bad people out there doing a lot of bad things and it's not just in the movies. From simple localised theft to global networks involved in human trafficking and terrorist networks, financial crime is a pandemic that touches most people's lives.

To do our bit to prevent this, we have to verify the identities of all our customers, which is where you come in. You need to provide us with some information to help us verify you’re a real person and that nobody is impersonating you or your family. It’s no different to providing ID to open a bank account.

We take this stuff seriously. We have read, digested, and cogitated lots of information to make it as simple as possible for you. But, if you like detail The Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations is the holy grail.

2. Deliver advice that's personal to you

Sometimes it's pretty obvious why we'd need a piece of info. Your income is a classic example. The amount of money you've got coming in each month helps us calculate what mortgage you could get, recommend the ideal amount to save each month, and more.

Some questions, like which savings account you currently have, might seem a bit more random. But we only ask for the info we need to give you financial advice.

For example: we'll assess your current savings accounts to check whether we can recommend one that might help you hit your goal quicker, such as a Lifetime ISA.

Everyone is different. Financial advice can be super valuable, but the wrong advice could hold you back. Multiply takes steps to make sure we don't do that.

Want the long read? The FCA Handbook provides a lot more information.

What we do with your info

Firstly, we handle it all in accordance with our Privacy Policy. Just so you know.

We also keep data in our databases anonymised, so that even people working at Multiply don't get to see your real name unless there's a need for them to know that.

For example, we show your real name to team members if you email us to ask a question. But even if they know your name they still can't link that to your personal info like your salary or address - that stays under wraps.

But we also turn a list of facts into your personalised financial plan. The Multiply advice engine crunches all the numbers you give us, and works out everything you should be doing with your money to get you closer to your goals.

Still got questions? We're all ears. Drop us a line at support@multiply.ai.

How are you with savings? Are you the one in four UK adults that has none? Or maybe the one in ten that spend more than they earn on the regular. We might be good at a few things, like football, occasionally, but the rest of the world seems to have us beat for saving that hard-earned cash. Instead of being jealous of how those in other parts of the world save, we thought we’d try to learn from them. After all, imitation is the greatest form of international flattery.

Check out how other countries hoard their yen, euros, and pesos for saving inspiration:

China: Strong savers

To put into context just how strong: China was top of the world-saving charts back in 2017 when its gross national savings (individual, government and business savings) was a tidy 48.3% of its gross domestic product (GDP). China may have slipped to 3rd place for 2019 (behind Singapore and Suriname) but they still have strong saving habits.

The key? An ingrained habit of saving even more than the recommended amount. Back in 2014 China’s household savings rate was 37% of their disposable income, where most budgeting practices recommend 20% of income for savings.

Germany: Cash over credit

While a lot of countries are increasingly shunning physical cash in favour of contactless transactions, Germany consistently bucks this trend. So much so that they regularly use one of the world’s most valuable currency denominations, the 500 euro note.

Using cash over card makes it much easier to keep track of your spending and has a knock-on effect with savings.

Japan: Cash waaay over credit

The Japanese revere cash even more than the Germans. And this extends to the physicality of it as much as what it can buy you. All denominations, large and small, are treated with respect and kept clean and in top condition. Much of this is tied to an overall culture of cleanliness but it has an important bearing on spending. If you treat moolah with respect you are a lot less likely to spend it unwisely.

Mexico: Spot me

Like going to the gym, saving is one of those things that is hard to start and even harder to maintain. That’s where doing it with a group can help. The Mexicans call it: “Tanda”, and it is a savings pool system. All participants pay an agreed-upon amount into the pool per month and the pooled cash is given to a different participant each round.

A big benefit of this over a savings account is that it keeps the money further out of reach. Plus, depending on how big the ‘Tanda’ is it can end in a pretty big payday at the end of it.

For sure. Everyone knows that interest on debt is bad and interest on savings is good but compound interest could take your money to a whole different level. So buckle in and we’ll break down what it is and how it can take you and your money places.

What is compound interest?

Google it and the top result will tell you some stuff about the initial principle, accumulated interest, so on and so forth. To explain it with a bit less jargon, compound interest is your interest on savings earning more interest. So the longer you save, the more your money builds up or...compounds.

An example to make things clearer

Based on a simple amount to make the maths easier. If you saved £1,000 in an account with a 10% interest rate, by the end of the year you’d have £1,100, including £100 of interest. If you saved the whole amount for another year your interest would be £110 by the end of it. The following year? £121 and so on. Think of it like a money snowball rolling downhill. If you leave it as is, it’ll continue to grow with the momentum of time.

The snowball effect increases if the interest is pair more frequently. So if your savings get paid interest twice or four times a year, the total amount of interest across the whole year will be higher. Why? Because interest is being paid on the interest that builds in those smaller periods.

Why is it worth your time?

Time is actually a key part of why compound interest is so powerful when it comes to your money. The rolling effect of the interest means that the earlier you start saving the bigger the money snowball gets.

To put it into real money context: if you started saving £100 a month at 30 years old and carried on until you were 60, with a 10% interest rate, you’d end up with a sum of £217,132.11. But if you started saving that same £100 a month at 20 years old instead, stopped when you were 30 and left the money in the account until you turned 60, you’d have…. £367,090.06. All due to the rolling effect of compound interest. Time, patience and a whole lot of compound interest can make saving for 10 years more profitable than saving for 30.

Get it? Then what are ya waiting for? Get saving already.

Different people do different things with their savings. Some people are investment wizards, others choose to stash it under their mattress. For those of us who are in between the two, or maybe just want to keep our cash split between the memory foam and somewhere that works harder for our money, there’s the ISA.

What is an ISA?

Skip straight to the juice (the ISA types) if you already know what this is. For those that don’t, the term ISA stands for ‘Individual savings account’. They let you save tax-free into a cash savings or investment account to watch your money grow.

You can get one from banks, building societies, insurers, asset managers and National Savings and Investments (NS&I).

What are the different types of ISA?

Money is the means that connects you to your big goals. Those aren’t any old goals so you shouldn’t accept your hard-earned cash going into any old ISA. Knowing the different types means you’ll be able to get the most from your money.

Cash ISA

Pretty much the same as a regular savings account but there is a £20,000 limit on the amount you can put into it each tax year and you don’t pay any tax on the interest from your savings. There are typically three different types of cash ISA that may suit your needs depending on how flexible you are with accessing your money:

Fixed-rate ISA: As the name suggests you’ll agree to have an interest rate that is fixed for a period of time, but in exchange, your money will be locked away. The longer the term, the higher rate of interest you’ll be rewarded with.

Instant cash ISA: You can put into and take your cash out of this one whenever you want (some accounts might put limits on this though). The flexibility means you’ll get a variable interest rate on your savings that could be lower.

Regular savings cash ISA: You get a fixed rate of interest with this one within a set time but you’ll have to put in an agreed-upon amount every month. You can put in up to £1,666 every month without going over the £20,000 per year limit.

Stocks and shares ISA

This one is an investment account, where all capital gains and income are protected from tax. For 2020 the limit is anything up to £20,000, but you would have to deduct any amount that you might have paid into a cash ISA. You can either have your account managed for you or take the investment bull by the horns and choose where you invest your money. The latter will possibly still include a fee to the provider.

Your investment experience, how much you can afford to lose and your attitude towards risk should be carefully considered before you pick your investments as there’s a chance you’ll get back less than you put in.

Innovative finance ISA

This option is sometimes called ‘IfISA’ and includes peer-to-peer loans. What’s that? Well, it matches investors (that’s you) with borrowers who don’t or can’t get a bank loan. Usually, this is businesses, individuals or property investors. The borrower offers a rate of interest on repayments and in general the higher the interest rate the bigger the investment risk.

Lifetime ISA

One for the big long-term goals. It’s government-backed and aimed at first-time homebuyers or those saving for retirement. You can choose between cash or stocks and shares options for this one and put aside up to £4,000 a year which counts towards your £20,000 ISA allowance.

The government pays a 25% bonus on top of anything you save into it, up to £1,000 a year. The government top-up is paid into your Lifetime ISA account each month.

Using it for retirement? You can pay into it until you’re 50 and withdraw it when you hit 60.

Like pineapple on pizza, you’ll either love or hate packaged bank accounts. They’re regular current accounts that come with a whole host of extras. They usually have a monthly fee, but the savviest bank account hunter can usually turn that monthly Direct Debit into a big ol’ saving. How? Play the benefits of the account, like breakdown cover and travel insurance, just right. Keep the below in mind if you’re looking to save with the perfect package:

Double-check it’s good value

Think of that monthly fee as a lump sum. Multiply it by 12 to get the annual cost and then work out if you can nab those add-ons for cheaper else. Bear in mind that the insurance policies included in these packages like are usually high-end, so keep an eye out for standard cover that still does everything you want it to.

Does the total save you more money than going to different suppliers? Go for it. If not, opt for a fee-free bank account and get what you need elsewhere.

Go joint account profit

With a joint account, you pay one monthly fee but both account holders get all the benefits. That means you can double up on the value. Just be aware that combining finances means your partner’s credit score could affect yours and vice versa.

Does it cover everything?

This is more a general insurance point: make sure the policy you’re getting covers you for what you need. If you hit the ski slopes every year but winter sports isn’t covered, the expensive addition may wipe out your saving. Be sure to shop around for a package that is right for your needs.

Switch up your rewards

Happy with your existing cover or just plain don’t need those insurance extras? Go for an account that more than makes up for it with other rewards. Some offer high-interest rates on small amounts of cash, switching bonuses of £100 or more, and 0% overdrafts. Check out the bank accounts guide on Money Saving Expert for the full breakdown.

Doing a bit of research into your current or future packaged bank account can take a little bit of effort but can result in a big saving in the long run.

It may sound like a magic trick or the sales pitch for a pyramid scheme but in reality, it is one of the most popular savings methods knocking around. Are you someone that struggles to save pennies or pounds? We feel you. The 1p Savings Challenge does too and counters the whole ‘I’ve got nada to spare’ by just getting you to save small amounts that increase daily.

How does it work?

Simply. Each day you save what you saved the day before, plus a penny more. Starting with 1p, then 2p, then 3p and so on right up until the end of December when you’ll save £3.66 (the leap year means you’ll have one extra day to save).

It starts from January 1st, but no worries if you’ve jumped on board a bit later. Add the missed amount to the pot or start your first day a bit later. Later is better than never.

How can I take part?

There are a few ways to get going on the 1p Savings Challenge, depending on how you like to save:

Old school coins in a jar: The easiest/traditional way is to put your loose change in a piggy bank or sealed jar. The only downfall to this option is as the amount climbs towards the end of the year you’ll need more and more change if you’re keeping an eye on it by increasing numerical order.

New school automatic withdrawal from your bank: There are banks like Monzo that let you automatically transfer increasing amounts of money using the free web service IFTTT (If This Then That). A bit of software that connects apps to trigger pre-programmed functions (like auto-calculating how many pennies you need to save for the challenge). Check out how you can do it through Monzo.

The other school of manual transfers: With online banking, you could log in and transfer the growing daily amount to a savings account. Although this might take quite a bit of commitment to keep going for a whole year…

Worried you’ll forget a day or won’t know how much you’re supposed to be saving? Money Saving Expert has a snazzy little bingo-esque cheat sheet that lets you tick off the correct amount by day as you go.

Make the challenge work for you

Oof. January is a toughie. All those pressies to others (and yourself) can leave the first month of the year looking like a daunting prospect for putting any cash aside. It’s also usually best to pay off any debts before you start saving. If in doubt, check our app to see if we recommend you to repay debts, build your emergency fund, or save. Good to go? Here are some ways you can tweak the challenge:

Start later in the year: As previously mentioned, even starting a little later can build up a healthy pot by December.

Flip it, reverse it: If you’re on solid financial footing at the beginning of the year (we are jealous), start by saving £3.66 in January and work your way back. It’ll give you more breathing room in December when you’ll be saving pennies.

Go weekly or monthly: It is against the spirit of the challenge, but an alternative way to save the same amount is to work out what it would be for a week on week or a monthly sum. Not quite as exciting as the daily challenge but saving is saving...

You’ve inherited or otherwise come into a lump sum of money and your one big question is: how much inheritance tax will I have to pay?

The simple answer is none. And this applies to 99% of inheritance cases. In the event that there’s tax to pay on inheritance, this will be paid before it reaches you.

What should I do with my inheritance or lump sum?

If you don’t have any tax to pay on any inheritance, your next big question will probably be: what is the best plan for my money? We’d recommend getting professional advice to help, or trying our app. Not up for either of those? Well here is a standardised process you could follow.

The suggestions are for £50,000 but it could be applied for a smaller or larger amount.

Unsure what some of these terms mean? We’ve got you covered:

High-interest debt: This is a loan repayment where the interest you’re paying back is above the national average. For 2018-19 this was 2.5%.

Tax: If you’re self-employed this is the amount of income tax you pay on your profit, not your overall income. Take a look at the Money Advice Service guide if you’re unsure if and how much you should be paying.

Cash ISA: A product that allows you to earn tax-free interest on your savings.

Placing an order on Amazon is remarkably complicated.

Between the moment you click on “Buy Now", and the moment you receive a package at your front door, a million things happen. Your intent has to be securely communicated to Amazon’s servers. Your payment details, encrypted using a bunch of complicated mathematics, have to be processed, the transaction authorised and money moved from your account. Your order has to be sent to the right warehouse, prepared and dispatched to your address. The postal system or courier has to see that parcel through to you.

If anything, this description massively simplifies the process. The infrastructure required to do this is intricate, needing the collaboration of many entities working on your behalf.

All of this is hidden from you. The only thing you need to focus on is what you want, and how you want to get it.

Finance, as it stands today, is very different.

Understanding what you want is only the start. Let’s take a goal that is most common to Multiply customers: buying their own home.

First, you have to save a deposit. You need to know how much, and keep an eye on the market in case that changes. You need to understand the best savings vehicles for putting aside your money, and be alert to any teaser interested rates dropping to a very low level after the first year.

You then have to understand mortgages: how they work, how much you are able to borrow (based on your income, your partner’s income, whether you can get family support). You have to understand the timescales involved with these.

Then, you need to fit this into your lifestyle. When is the perfect time for you to actually buy a house? When should you start looking? Given the economic situation, maybe you should actually wait a few years?

If you’re self employed then tough luck, because everything just became ten times harder.

What does the future of finance look like?

It looks like not having to worry about every detail yourself. It looks much more like the experience of online shopping today, than it does spending hours each night reading newspaper finance columns written by people who bought their houses 40 years ago, scouring mortgage apps to find the best deal, and maintaining an increasingly complicated spreadsheet to manage your savings.

Something to make really clear: the future of finance is not about ceding all control, any more than online shopping is about artificial intelligence automatically ordering our Christmas presents for us.

We’ll still make decisions, but they’ll be the kinds of decisions only we can make. Decisions around what’s important to us, what we want to do with our lives and how we want to balance our different hopes and dreams based on whats possible.
We won’t be constantly having to pick between the best savings accounts, choose the best time to remortgage, or transfer money manually into our investments, any more than we have to think about encrypting our bank details when we buy a product online. These things will be automatic.

At Multiply, we call a product that delivers this an Operating System for Finance. It’s what we’re building. It’s autonomous, it takes care of the things that you don’t want to take care of yourself, and it translates the things you want to do into the underlying system of savings, investments, mortgages and other financial products.

Mike Curtis is co-founder and CTO of Multiply. You can reach him here.

Financial advice is a regulated financial service, so as an adviser Multiply is regulated by the Financial Conduct Authority.

That regulation means we need to verify your identity in order to open your Multiply account.

This check will not affect your credit rating and only you'll be able to see it on your credit report - it's not visible to lenders.

The Multiply account

The account you open with Multiply enables you to access personal financial advice. We'll ask you some questions, crunch the numbers, and give you our recommendations.

It also comes with an instant access pot, which is a basic e-money account. It's provided by Modulr, who are FCA-regulated just like us.

This pot allows you to open other accounts such as ISAs with Multiply, and move money into them.

It's not a bank account and it won't affect your credit rating.

The ID check

You’ll need to provide us with some information to help us verify you’re a real person and that nobody is impersonating you or your family. It’s no different to providing ID to open a bank account.

We use a third-party service called Onfido to carry out this identity check. Both Multiply and Onfido use secure systems to protect your information.

We’ll only use this information to check your identity, and we’ll remove it from our systems when we no longer need it.

If you’d like to know more, you can find all the details in our Privacy Policy.

Money is a means that matters. When you under-invest in yourself, you may as well be saying you aren't worth it. When you go all in, you're free to become way more.

It’s why we’ve built a mobile app that multiplies self-worth... not just net worth. Our advisers have put everything they know about money into our AI tech. And our AI tech delivers everything it knows to you. Anyone* can create a plan because we decided to make it free.

Multiply isn’t a spending tracker or a budgeting app. It’s not a bank and it’s not just another “robo-advisor”.

It’s everything you ought to be doing with your money.

We created Multiply to inspire everyone to have an honest relationship with their money and make better decisions. And now we’ve decided to give Multiply a new face and a new voice that fits even better with that mission.

Our brand personality

We wanted to give the Multiply app a distinctive personality because finances are, well, personal. And even though the advice is automated, the app sounds anything but. We chose a way of speaking to help motivate you to stick to your plan and make more of yourself.

Provocative: Expect some tough love with our tongue firmly in our cheek. Finances can sometimes be yawn-worthy and all of us are guilty of switching off when we really need to be switched on. So we dialled up the daring to keep things interesting.

Upfront: Multiply is less about making a quick buck and more about the long run, and we’ll never try and hide that. The new brand uses simple language that’s always clear and transparent; no small print, no hidden details and no jargon.

Human: Finance can be heavy business so we promise always to talk like a real person and start with why your plan matters to you, rather than jumping straight into the heavy detail.

The Rabbits: You’ll be seeing a fair few more of these little guys. Why? We’re in the business of multiplying and, well, rabbits get it. The Multiply rabbits don’t represent you or Multiply, but they help articulate the benefits of using Multiply. They’re also cute - and let’s face it, there’s nothing wrong with that!

What’s next for Multiply?

Over 2019 we’ve put the Multiply app into the hands of over 10,000 people, launched our full advice service and overhauled the app design and brand. Next year it’s all about helping our users get the most of their Multiply plan, week in and week out. Download the latest version of Multiply to check out our new brand and let us know what you think.

*For UK residents between 18 and 50. Other restrictions may apply depending on personal circumstances.

A message from our CEO.

I’m excited to announce that all Multiply personalised plans have been upgraded and could now include investment and pension product recommendations from platforms such as Interactive Investor and Cavendish Online.

To see if your plan includes any of these new products you’ll need to add in a few more details. The amount of extra information will depend on your circumstances. One essential addition will be the confirmation of your name. This is to prevent financial crime and make sure no one is impersonating you — it should only take a few minutes to complete. Once you’re done you’ll have access to a new complete financial picture.

The app update includes:

• Advice on whether you should be investing (and how much)
• Specific platform and fund recommendations for investments and pensions
• Advice on what level of investment risk is appropriate for you

The update is all part of our effort to close the financial advice gap (millions of people who aren’t able to afford essential help with their finances) and level the playing field. Everyone deserves a chance to increase their worth, and not just those who can afford to pay an adviser.

I hope the app updates will help you feel even more confident with your finances and make your money work harder for you. After all, you work hard for it.

I’d love to know what you think about the app so we can continue to make it even better for you. Good or bad, send your thoughts to support@multiply.ai.

Thanks,

Vivek Madlani, Multiply co-founder and CEO

So many apps, chatbots and neon bank cards, such little time and money. Fintech companies have revolutionised the way we interact with our finances. They all come with promises to make or save us cash but beyond the quirky adverts and heavy use of emojis is everything as good as it seems?

Digital money management

Remember appointments with bank managers? The back and forth of setting up a current account? Cheques? Ten years ago they were the norm and now digital-first start-ups have taken the rulebook and shredded it. To the point the big banks are looking to the new kids for inspiration.

The way we deal with our money has become an increasingly digital experience. Mostly for the better, in my opinion.

Revolut implies disruption in its name and embodies it in its service. A bank that delivers an all-digital experience for maximum convenience. They do things banks don’t do, like allowing you to open a current account in minutes. They also send instant notifications about transactions direct to your phone.

Transferwise hit the headlines when they launched with a very visual mission to clean up the banking system. They saw an opportunity to call the banks out on their unfair exchange rates for sending money abroad. For those of us who rarely make international transfers the discrepancy was a nuisance but for people who sent cash around the world every day? They felt it. Transferwise changed the game by providing ‘the real’ or mid-market exchange rate for customer’s transactions. The mid-market rate sounds special but it isn’t. It’s the one banks and money transfer services use for themselves but don’t pass on to their customers.

The benefits of these money management services are numerous but they aren’t without their potential pitfalls.

Things to remember:

Banks can sometimes run into trouble. Whether it’s because of internal naughtiness or uncontrollable external influences (like an economic crash), ultimately their customers bear the brunt of any failures. To counter this, the Financial Services Compensation Scheme (FSCS) was set up in 2001. If your bank goes bust the scheme will protect you for up to £85,000.

But be warned, Revolut and Transferwise aren’t covered by the FSCS, so if anything goes wrong with these new businesses you can’t claim through the scheme.* Make sure you know exactly what happens if a bank or financial service provider goes bust by sending an email to their customer support.

Wealth management

Investing money used to be a pretty long and drawn out process. Usually reserved for people who had a lot of cash to invest in the first place. Face-to-face meetings would be justified considering the capital at stake but it meant the cost of this level of service was out of reach of most ordinary people. Enter the new wealth management players.

Websites like Nutmeg and Wealthify have made investing easy, convenient and accessible by automating it. It’s known as “robo-advice”, because they use computers to do some of the work investment managers used to, like collecting sign-up information from customers. The investment management lacks the personal touch but makes up for it by being cheaper and simple to use.

Both Nutmeg and Wealthify operate on a platform of convenience where you have to do very little. In fact you only have to choose how much you want to invest and how risky you want your investments to be. The riskier you go the more you may stand to gain but, as with all investing, the more you may stand to lose.

Convenience can come at a cost.

Things to remember:

You know those ‘you might like’ sections on a clothing website? They make automated recommendations based on your purchase history or info you’ve given. A great service that is accessible to all who use it. But it’s not the same as getting a personal shopper though, right?

Now imagine if a website with a ‘you might like’ section claimed its automated recommendations were substantially cheaper than a personal shopper. Technically it is true but the comparison isn’t fair because they’re offering a totally different level of service. This is effectively what some robo-advisers do.

Companies which offer automated advice like Wealthify and Nutmeg pit their fees against old school face-to-face investment managers. This comparison will always make the robo’s fees look great value — but robo’s are offering a far more basic type of wealth management. With a robo-adviser you won’t get:

- Hands-on holistic service

- Advice tailored to your specific circumstances

- A comprehensive guide through your whole investing lifetime

All of the above is part of the — understandably more expensive — service offered by a face-to-face investment manager.

A more like-for-like comparison is Vanguard’s LifeStrategy, which features premade portfolios that its customers can choose to invest in. Vanguard’s fee is 0.22%; cheaper than Nutmeg’s 0.45%. A sweet incentive for a bit more decision making.

The moral of the story is, make sure you know what kind of service you’re getting and be wary of marketing comparisons.

Cryptocurrency

Most of us know a friend of a friend who made some (or a lot) of money off of the Bitcoin boom. And some of us will know that person who invested more than they could afford just as the bust hit the headlines.

Crypto is for some the most glamourous “fintech fad”, let’s face it what’s not attractive about the possibility of becoming an overnight millionaire? Everyone wants to get rich quick but there are some big things to bear in mind if your considering joining the crypto train.

Things to remember:

Cryptocurrency has made and lost people money. Even though some people say the crash was an anomaly — it could happen again and has proven that no currency is immune to changing market conditions.

If you’ve never invested before or are still newbie there are much less volatile investment products to think about before hand. Not least making use of the tax-efficient Stocks and Shares ISAs around.

Last point: you might have heard that the technology behind most cryptocurrencies is called blockchain. If you haven’t heard of it, you can think of blockchain like a very public record of every transaction ever recorded or monitored for currencies like Bitcoin. Surprisingly the current costs of transferring money with this technology is actually more expensive than banks.

Award-winning technology

Not a product or service, but sometimes used as a way of describing both. If you’ve ever come across an investment service describing their use of the ‘Markowitz Portfolio Theory’, dig deeper. Saying this strategy is ‘Nobel prize winning technology’ makes for great marketing but it is putting a creative spin on an industry standard investing model. The model means the investor tries to take the least amount of market risk to get the most return.

There are positives and negatives to all financial products and services. Companies promoting their offerings will tell you the good stuff but we’ll help you understand risks and costs to make sure you have the most informed view on how to best use your money.

Do you have any experience with these products and services? Head over to our Facebook group and tell us.

Subscribe to our newsletter, the Multiply Minute, to get stories like this direct to your inbox every weekday.

Otherwise known as a “rainy day fund”, an emergency fund is your go to pot of cash for the unexpected costs in life. In less than four minutes this blog will tell you what an emergency fund is, if you need one, and how you can build yours up.

What do you use an emergency fund for?

Washing machine goes rumble boom, that weirdly coloured roof leak comes back, or you hurt a limb doing that sport you love. Clear cut emergencies. But sometimes what falls into that category can differ from person to person. So we created a list of what else your emergency fund could be used for:

• Car repairs
• House repairs
• An unexpected medical bill, e.g. emergency dental treatment
• Paying for the basics if you lose your job
• Paying your bills if you can’t work for health reasons

Do you need an emergency fund?

Could you pay for the above from your monthly salary and still take care of your essential outgoings? If the answer is no, then you should consider putting money aside to cover any expenses you don’t see coming.

Reasons not to save for an emergency fund

There are a couple of reasons an emergency fund might not be right for you. These include if you:

• Have more urgent costs to cover like debts with high interest charges (credit card bills or pay day loans)
• Don’t earn enough to put any money aside or your income doesn’t cover your expenses

How much should I save for an emergency fund?

In an ideal world your fund would cover your essential expenses (rent, bills and food) for at least three months. This amount varies from person to person though, as more than that might be needed if you have a partner or children that depend on your income.

How do I save for my emergency fund?

Saving can be hard. Even more so when hitting your target doesn’t end with getting your hands on that thing you’ve always wanted. Financial peace of mind is the motivation here but if that isn’t enough we’ve got a few tips that may help.

Keep it in a separate account: Avoid temptation by keeping your savings far from your more active current account. If you put it in an easy access ISA you could even earn interest on the money.

Set up a standing order: Move the money for your emergency savings into your separate account as soon as you get paid. Setting up a standing order means you’ll have put it aside before you’ve had a chance to miss it.

More help with your finances

Unless you have any debts, setting up an emergency fund is one of the first steps we recommend on our app. It gives you a firm financial footing to get control of the rest of your money. Want more pointers? Check out our app for financial guidance tailored to you or talk about emergency funds in our Facebook group.

Yes, yep, definitely. But you probably want a bit more explanation than that. So let’s get into why it’s worth it.

You give, Gov gives

Pensions are designed to help you save for retirement. The Government introduced auto-enrolment to help everyone save more. It basically means that if you’re employed your employer has to enrol you in to a pension scheme.* You’ll automatically be contributing 5% from your gross (before tax) salary every month and your employer will be contributing 3% of your gross salary too.

To sweeten the deal, the Government adds to your contribution with a percentage of “tax relief”. The amount you receive depends on your income tax bracket. If you’re a basic rate taxpayer you get a tax top-up of 25% on your pension contributions, up to an annual limit.

Your pension provider automatically claims this contribution on your behalf and adds it to your pension. If you’re a higher rate taxpayer or an additional rate taxpayer, you can claim extra tax relief through your tax return.

The alternative

You might be considering opting out of your work pension. Everyone has a right to do this and rely on their state pension instead. This currently stands at £168.60** per week but this may be less by the time you retire.

Why we recommend sticking with your work pension

Retirement may feel like a lifetime away, but don’t miss out on the government contributions that can see your pension pot grow.

Compound interest: Starting to contribute to your pension early, definitely pays off and that’s because of the effect of compounding. Say you contributed £1000 to your pension over a year and its value went up by 4% you’d have £1040. If it increases by 4% again next year, the increase is on the whole £1040, not just the initial contribution. It may seem like a small amount at first but it adds up to a big pot after years of contributions.

Putting more in: The 25% the government gives you in tax relief for every £1 you save for your pension is free money. There’s a minimum amount you have to put in as part of auto-enrolment but bear in mind the more you put in the more the government will put in. A good reason to pay extra into your pension if you can. Want to work out how much extra you should be saving? Find out with the handy pension calculator in our app.

The state pension isn’t enough: The Government knows the state pension probably won’t be enough for people to live on in later life. This is why auto-enrolment started and why the amount the government asks us to put in keeps rising. The easiest way to work out if the current state pension (£168 per week) would be enough for you is to ask yourself if you could live off this amount now.

* Earning more than £10,000pa

** The full value of the New State Pension

The value of pensions and investments and the income they produce can fall as well as rise. Capital at risk.

Multiply AI is authorised and regulated by the Financial Conduct Authority.

If you decide to set up a product or account we recommend the provider may pay us a fee for sending them your business. This is how Multiply generates enough money to help us keep your financial plan free.

The amount we get paid by the provider never affects what products you’re shown in the plan. But we thought you might be interested to find out what factors or criteria do come into the equation when we select our products.

So what’s important in a savings account?

Our product research team, Jan and Stephen, think through what’s important to customers in a savings account. These principles help us choose providers based on what you care about:

Price: Everyone wants to get the most for their money and choosing a savings account is no different, we make sure our recommendations take into account the interest rate you’ll get paid.

Ease of set up: It’s 2019, which means you shouldn’t need to take heaps of documents to a local branch to set up a savings account. That’s why we only recommend savings providers that are online and easy to set up.

Accessibility: Some cash savings products are only available to certain groups of people, like a provider’s existing customers. To make sure our recommendations are suitable for the majority of people, we filter out providers with these kinds of restrictions.

Flexibility: We think the financial products you buy should fit with your life. So we screen out products that aren’t flexible, for example we wouldn’t recommend ISAs that don’t accept incoming transfers.

Security: Whether it’s a rainy day fund or a deposit on a new home, you need to know your savings are safe. That’s why we only recommend products that are secure and held risk-free. All the accounts we recommend are FSCS protected which means the money you put in them is protected up to £85,000.

And how do you decide what type of account is suitable for me?

The type of savings account you need will differ based on your circumstances or goal. For example, if you’ve used your entire ISA allowance for the year, Multiply wouldn’t recommend you open another one. Equally if we’ve recommended you build up an emergency fund, we would always recommend an account that was instant access, i.e. carries no penalties for withdrawing early if you need to.

The types of accounts we currently recommend are:

Instant access savings accounts

Instant access Cash ISAs

How do you keep your recommendations up-to-date?

We reassess our top list of providers every four weeks. On top of this we always make updates when:

• The Bank of England base rate changes.
• There’s a new product on the market or a product provider collapses.
• There’s a big regulatory change that might have an effect on interest rates.

If you have any feedback or thoughts, let us know by reaching out in the closed community Facebook group or tweeting us @MultiplyAI

Even though parents told us to “mind your own”, let’s face it, most of us are fascinated by other people's finances. And cards on the table, I don’t think we should feel guilty about it.  

How are we supposed to make better financial decisions or understand our worth if we hold up a vow of silence on anything with a pound sign in front of it? Money secrecy sucks, and in my opinion it holds most of us back while benefiting very few.

Since working for Multiply I’ve learnt a lot about finance and it’s definitely made me more conscious of how I manage my money. So I thought I’d share with you how I run things, as a small crusade against money secrecy.

To set the scene a bit, I’m 26 and I live with my partner in a two-bedroom rented flat in Dalston, London. We’re getting married in October so that’s been our major savings goal. We’re not particularly bothered about buying a house right now and even if we were there’s no way we’d be able to buy in the area we live, so homeownership has been pushed back a few years. Neither of us have any debt (outside of student loan) but we do use 0% credit cards for larger purchases from time-to-time (flights, furniture etc).

Each month I split my salary into three (pretty much equal) parts, a third on my half of rent, bills and essentials, a third into savings and investments and a third for “living” aka gym membership, Urban Outfitters orders and nights out.

“Essentials”

Our rent and bills are unsurprisingly expensive but to be honest the convenience of living a seven minute cycle from work makes up for it - I'll let you Google the average rent in Dalston rather than shamefully admit it here. We usually spend about £40-50 a week on the food shop which covers toiletries and cleaning supplies too. Bills combined are about £50 a month and the only other shared essential expense is new stuff for the flat.

“Savings and investments”

Let’s start with my pension. I won't try to dress this up as anything other than a shameless plug, but go and use the Multiply pension calculator. I’d bet most people reading this aren’t contributing enough and the calculator is a wicked way to work out what you should be putting aside. I recently increased my contribution to around 10% of my salary, but that might not be best for everyone. What you need to contribute will vary based on your age, the size of any existing pensions, the age you want to retire and the income you think you’ll need.

We’ve just reached our savings goal for the wedding but I’ve decided to keep up my monthly contributions even though we’re not aiming for anything specific. I set up a direct debit to a cash ISA so I don’t really miss the money because it’s only ever in my current account for about 24 hours. On top of savings I put a small amount into a Stocks and Shares ISA each month. I don't have a huge appetite for risk but I also felt conscious about protecting my money from inflation, so figured a small amount each month is good to get started with.

“Living”

So the biggest of big money tips is move your essentials and your savings out your account before you start spending on the sexy stuff. When you stop looking at your entire take home salary as disposable, you’re on a home run. Even if you need to dip into savings for the first few months, getting the money out of sight and out of mind actually gives you the freedom to spend without guilt with what's left.

So there’s a whistle-stop tour of my money, if you’d like to share yours and help start the conversation on money, drop me an email on support@multiply.ai.