New Year Financial Hints and Tips David Winnard Jan 2023

Submitted by Suzie Fisher 18th Jan 2023



Spring is thankfully not too far away!  David Winnard, Independent Financial Adviser of Thomson Hayton Winkley Financial Services shares some thoughts on how the New Year can be a good time to take a fresh look at your finances.  Here are a few useful financial hints, tips and financial planning ideas you might find interesting or wish to consider.


  1. Interest Rates and Mortgages - The year ahead…..


  • Many people in the UK have Fixed Rate Mortgages which will be coming to an end in the next 12-24 months.

  • This means that if they are planning to re-fix their mortgage at the end of the current deal that the rate of interest and monthly mortgage repayments are likely to be quite a bit higher. 

  • In the months leading up to the expiry of the fixed rate deal, usually lenders allow borrowers to pay off up to 10% of their fixed rate mortgage each year without penalty (although you should check this first with your own lender).

  • Paying money off the mortgage now will mean the increase to the mortgage payment can be kept lower when the fixed rate ends. Even relatively small amounts can make a difference.

  • There is a fair chance that interest rates will peak soon and then stabilise before possibly falling over the coming 18 months and so fixing at a higher rate might not necessarily be the best option.  

  • We have access to an Independent Mortgage Adviser we can refer clients to if you require any advice or assistance prior to the fixed rate ending.


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


  1. Interest Rates and Savings


  • Equally it is now possible to earn much more interest on any savings held in a typical Bank/Building Society Account

  • Many providers are still only paying rates of around 1.00% or lower when it is now possible to earn around 2.5%- 4.0% in various types of account depending on how long you are prepared to save.

  • This can make a real difference – As an example if £10,000 is held in an account earning 1.00% £100 interest would be earned after 1 year whereas £350.00 interest would be earned on an account with a rate of 3.50% .

  • There are also many more savings / investment options available on larger sums held.



  1. Importance of Financial Protection


  • Most people insure their homes and cars but often forget about insuring the most important thing………….  Themselves, as well as their ability to earn income.

  • Financial protection can pay out a lump sum or an income in the unfortunate event of; death, serious illness or long term sickness.

    • As an example - Did you know that in the event of long term sickness an Income Protection Policy could continue to pay a monthly income once any employer sick pay ends?

    • The income could be paid for many years if the sickness means the person cannot return to work.

  • Critical illness cover can pay out a lump sum on diagnosis of one of a list of serious illnesses such as; cancer, heart attack or stroke as well as many others.

  • This lump sum could be used to help repay debt, replace lost income or make adaptations to the home.


*Financial Protection plans typically have no cash in value at any time and cover will cease at the end of the term. If premiums stop, then cover will lapse. Cover is subject to terms and condition and may have exclusions. 



  1. Making a Will 


  • It is very important to make a valid Will to ensure our wishes are fulfilled on death as quickly and efficiently as possible.

  • If you have a Will in place – this is excellent, the important step now is just to make sure that it is kept up to date.


*The Financial Conduct Authority does not regulate wills.


  1. Council Tax February and March Direct Debits


  • Many people pay their Council Tax monthly by direct debit and usually this is paid over 10 months with February and March free.

  • Given the Government are ending the £400 Energy Support Scheme in April for many people– one potential idea could be to redirect some of the February and March Council Tax saving to “top up” energy bills in readiness for next winter.

  • This could mean around £250 - £400 being added to your Gas/Electricity Account to put it into good shape for next winter.



  1. Review Direct Debits and Standing Orders


  • A good idea is to print off a list of your direct debits and standing orders just to check that you are not paying for something you no longer need or want



Please feel free to contact David Winnard or Duncan Fox from Thomson Hayton Winkley Financial Services if you would like further information or have any questions.

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