Ep - 31 The High Cost of Convenience

It is crunch time for millions of homeowners whose fixed rate mortgages expire this year.  They face much bigger monthly payments.
After 14 interest rate increases over the last two years, and no sign from the Bank of England that there will be a reduction any time soon, many are fearful they could lose their homes, and may be putting off finding out just how bad the news is. 
It may be scary, but anyone facing having to remortgage cannot start soon enough. And delaying could be catastrophically expensive.
Lenders will allow homebuyers to secure a mortgage interest rate six months before their existing loans expire. 
 Those not familiar with how mortgage payments are calculated may find the new payments, while higher, are not as frightening as they have feared.  
The earliest cut in interest rates is now expected in May and then may only be 0.25%.  10-year bond yields, which are the key influence on mortgage rates,  have risen in recent weeks and the best remortgage rates have been withdrawn. 
But if rates do fall sooner than expected homebuyers should be able to abandon their fixed offer and move to a better deal at no cost.   Of course, it is important to establish the rules of the "insurance" offer when you agree it. 
Starting early also gives you time to fix your household budget and maybe get  £7,500 tax-free help.




 

Please send ideas questions, tips and warnings about rip-offs to Mrs Mean through the contact page on her website: mrsmeanmoneyshow.co.uk or to infomrsmean@gmail.com

Succeeding in your A level exams is vital for the school students wanting to go to university this autumn.  But almost as important, as their studies, is working out how they will afford to live whilst they are at university. 
The government has increased maintenance loans for undergraduates by 2.5% for students going to university this autumn.  This comes after a 2.8% increase last year and two years of rapidly rising living costs.
Parents are not told how much they should contribute towards their children's living costs, but families with an income above £25,000 are on the hook for cash help even though their living costs have risen faster than their incomes.  
The threshold for parental contribution to student living costs has not been increased more than 15 years. 
This means that both parents and their children are likley to have difficulty funding university life.  
So now is the time to start for families to have honest conversations and  to work out how they will manage to fund university life without getting into debt.
   

Please send ideas questions, tips and warnings about rip-offs to Mrs Mean through the contact page on her website: mrsmeanmoneyshow.co.uk or to infomrsmean@gmail.com

Tax returns have been filed so it is now time to find out if there is any money that HMRC owes you, and the quicker you are the more you might get. 
The current tax year ends on April 5 and if you make a claim before then for an allowance you should have then you may be able to backdate the claim to 2019.
And there is lots of money waiting for you to claim it.  
There are 2.1 million couples who are eligible for the married couples' allowance who have not claimed it.  They could be able to claim up to £1,256 and have it in their bank accounts in weeks.  
If you still have to work from home a tax rebate could be waiting for you.  If you need specialist tools or uniform for work then you might be able to get money from the tax office. 
Use your trading, property and savings allowances.   
Rent a Room out and pay no tax on the £7,500 you receive from your tenant. 
Make sure you claim the full  tax relief on any charitable donations and for pension contributions. 
We all need to get what we are due.

Please send ideas questions, tips and warnings about rip-offs to Mrs Mean through the contact page on her website: mrsmeanmoneyshow.co.uk or to infomrsmean@gmail.com

Insurance companies are competting to charge us more.   The average homes' insurance policy already cost 36% more this year than last, before storms Babet, Ciaran and Debi damaged thousands of homes  causing half a billion pounds worth of damage.   And then came the even more powerful  Henk.
While the insurance  companies will find reasons to increase our premiums we all need to make sure we do enough research to stop us being massively overcharged. 
 For two years the companies have been under instructions from the Financial Conduct Authority to treat existing customers fairly, and not to  charge them more than new customers.  
There is lots of evidence that they are not managing to do so yet.   This means that when your policy is due for renewal you need to make sure you are not overcharged.   Start your research early and never allow the company to auto renew. 
Just as important: do not accept their "easy terms."   Making monthly instalments can add 40% to the cost of the policy.  
Do not leave renewal to the last days of your existing policy.  The earlier you commit the cheaper the policy is likely to be.  Twenty-three days before the policy expires is the sweet spot.  
Mrs Mean wants you to be in control of the process and to pay less.

Please send ideas questions, tips and warnings about rip-offs to Mrs Mean through the contact page on her website: mrsmeanmoneyshow.co.uk or to infomrsmean@gmail.com

Banks make billions a year by charging borrowers lots and paying savers little.  Now with mortgage rates coming down as banks compete for customers savers have to be nimble if they are not going to lose out. Now is the time to find out whether you can get a better return on any savings you have. Banks are already reducing the interest they pay on deposits and have long paid little or nothing to customers with easy access to their money.  At the end of 2023 it was reported that £255 billion was sitting in seven million bank accounts that paid no interest at all.  It is time to make sure you do not have one of them. Benefit claimants can open a government-backed Help to Save Account that pays 50p for every £1 they save over four years. 
If you have less than £12,570 in income each year you may be able to earn £18,570 in savings without paying any tax. Meanwhile it is worth starting very small with a penny on day one, two pence on day two and at the end of 366 days you will have £671.61 ready to save more in 2025.

Please send ideas questions, tips and warnings about rip-offs to Mrs Mean through the contact page on her website: mrsmeanmoneyshow.co.uk or to infomrsmean@gmail.com

We have been battling inflation all year and now retailers are trying to persuade us to spend whatever we have managed to save.
Everywhere we are being offered half price goods and even cheaper.
Before you are tempted you have tocheck whether the price cuts are as good as the stores say, and whether you need what is being offered.
It has been a tough year for retailers but we do not need to help them empty their warehouses of the goods they bought expecting to make big profits.
If you want to shop in the sales do your homework and make sure you are protected from fraudsters.

Please send ideas questions, tips and warnings about rip-offs to Mrs Mean through the contact page on her website: mrsmeanmoneyshow.co.uk or to infomrsmean@gmail.com

New Year is an opportunity to get our finances under control. There is the quiet period after Christmas to review all our accounts and to work out if there is money to be saved.
More people are using cash to give themselves better control of their money.  It is much more difficult to overspend when the cash runs out and we notice every overspend.
It is tougher this year to balance budgets but there are quick wins for all of us if we check our bank accounts and credit cards.   
We also need to check if we are using all the apps and services that we are paying for.  
We have one advantage this New  Year  in that all employees and self employed will be getting a discount on their National Insurance premiums from January 6. Many more will get a pay rise in the New Year.
No budget can be sorted in one session.  Little and often is the way to make progress. 

Please send ideas questions, tips and warnings about rip-offs to Mrs Mean through the contact page on her website: mrsmeanmoneyshow.co.uk or to infomrsmean@gmail.com

Christmas is a tremendous financial strain each year, and it is probably worse this year as interest rates, food prices,  energy bills all challenge household budgets.  We all need to learn how to do more for less.
There are lots of ways of giving presents that cost nothing, and even more ways of raising extra cash in the next few weeks .
Banks are giving away up to £200 to customers who move their current accounts.  It should only take seven days.   Cashback schemes are slower, but can provide money for making a purchase that you always planned. 
Make sure you plan all your spending and that you get the cheapest price. You need to do research and should be proud of getting a good deal.  Nobody wants to be a sucker.
Retailers are as  desperate to sell as we are to find gifts that are good value.   Some people wait until the New Year sales in an attempt to get bargains.  
But less is more when it comes to Christmas.  Time together is worth a lot more than the latest toy or gadget.   Free is good.

Please send ideas questions, tips and warnings about rip-offs to Mrs Mean through the contact page on her website: mrsmeanmoneyshow.co.uk or to infomrsmean@gmail.com

Black Friday is a danger zone for anyone trying to live within their budgets.  Retailers want us to splurge on things we didn't know existed or that we wanted them.  Fraudsters also put in overtime to part us from our money. But if you do your research before the spending-fest there are bargains to be had as retailers battle to persuade us to buy.  
Retail sales have been reduced by bad and good weather and our reluctance to spend when our finances are stressed.
But price reductions are not always clear cut.  Without the Trade Descriptions Act to ensure that false claims about prices cannot be made we are on our own and need to research prices  using websites such as Pricerunner and PriceSpy.  Reviews can guide on what are the best buys.  Fake websites and dodgy emails can part you from your money. The average loss per shopper in the Black Friday and festive shopping season in 2021 was £1,000 per person according to the National Cyber Security Centre. 
Your credit card can protect you from loss.  Even more important is allowing yourself time to assess "bargains." If you are rushed the chances are it is not. 

Please send ideas questions, tips and warnings about rip-offs to Mrs Mean through the contact page on her website: mrsmeanmoneyshow.co.uk or to infomrsmean@gmail.com

Mrs Mean has been listening to your questions and  says you do not have to wait for the Government to provide a giveaway Autumn Statement or Budget.  You can save money on your energy bills straightaway and some two million couples are missing out on tax benefits for being married that could provide more than £1,000 in weeks.
Getting savings rates that are higher than the current inflation rate and making sure you do not pay too much tax is a must for those who have any spare cash. 
Answering listeners questions Mrs Mean also gives advice on avoiding fraud. Trust no one and do not allow yourself to be rushed. 
While lots of parents are facing big bills because they have fallen foul of Child Benefit rules Mrs Mean explains ways of avoiding the penalties and says it is time that the chancellor lifted the threshold that has  penalised parents earning £50,000 since 2013. 

Please send ideas questions, tips and warnings about rip-offs to Mrs Mean through the contact page on her website: mrsmeanmoneyshow.co.uk or to infomrsmean@gmail.com