How to get ready for a new year
New Year’s resolutions don’t have to be to do with going to the gym or getting organised - they can be longer term goals that can really make a big difference to you and your family through careful planning.
We found that a quarter of Brits don’t feel like a ‘proper adult’ until they are 60 and over due to financial management 1. But, with some careful planning we think that we could help make a few of life’s milestones such as buying a house or preparing for retirement easier to manage.
Here at The Nottingham we’re committed to helping all of our members, whatever their age, to plan, protect and save. Here are some resolutions that you could think about.
1. Get savvy with savings
Kick off savings
Your 20s are a great time to start a real savings plan and get into a habit, whether you're saving for a rainy day or something in particular. The earlier you start, the longer you have to get used to not spending every penny that you earn. Check out our savings accounts for options such as regular savings accounts and read our how to save fast tips if you’re starting from scratch!
Save for a child
Children’s savings accounts are another type of account to look into for the future of your family if you have children or grandchildren that you’d like to save for. Two of the main accounts that we offer are the Junior ISA, a higher commitment account where the funds are not accessible until the child is 18 and a Robin Hood Young Saver account which is an instant access regular saver.
Read our Junior ISA guide for more information on this account.
2. Get on the property ladder
If you’re thinking that you’d like to get on the property ladder in the imminent future, a Lifetime ISA for property savings could be a way to get you to your savings goal faster as it awards the account holder with a 25% Government bonus for this specific reason, as well as interest on top! You can save up to £4,000 a year into this account and receive up to £1,000 from the Government.
The Lifetime ISA can also be used for retirement savings after you’ve used it to buy your first home. You can save into your Lifetime ISA until the age of 50 and then you can withdraw from this account at age 60 and you’ll receive interest on your money in between age 50 and 60.
Lifetime ISA has moved
The Lifetime ISA is now available with Beehive Money via the app and the website for existing members. Existing online Lifetime ISA customers will now have been migrated from The Nottingham to Beehive Money and they’ll now be a part of a sociable saving community with helpful tools and easy-to-use features. Beehive Money is designed to help you track and manage your savings effortlessly.
If you don’t already have a Nottingham Building Society LISA, download the app to join the VIBee waiting list to be the first to know when new applications are being accepted.
3. Understand mortgages
In January 2019 it was found that the average age of first-time buyers has risen from 31 to 33 during the decade before*. We found that more than one in five (21%) Brits believe that they need to own a house or flat before reaching adult status.
If saving for a house is on the cards then a great New Year’s resolution could be to chat to a mortgage adviser to get to grips with what you need in order to get on the property ladder. Speaking to a mortgage adviser from Mortgage Advice Bureau in branch or online could help you find the right mortgage for you. They’ll search over 90 lenders and hundreds of different mortgage products to find one that suits your circumstances and needs.
If you are already on the property ladder and have been for a while, a remortgage could be on the cards. Remortgaging is the process of taking out a new mortgage on a property you own with a new lender. Alternatively, you could look at a product switch which is a new mortgage from the lender you are currently borrowing from. You could remortgage because your existing deal is ending or you’d like to look for a cheaper mortgage deal. If you are interested in the costs associated with remortgaging, read The ultimate guide to remortgaging costs.
Why not make it your New Year’s resolution to see if you could save money on your mortgage? Either a remortgage or potentially overpayments could save you money.
4. Protect your home
Whether you’re renting and need only contents insurance or you own your home and buildings and contents insurance are both necessary, home insurance is really important. Your New Year’s resolution could be to make sure you have the right level of cover for your home! Check out our ‘Take Your Pick’ home insurance, underwritten by RSA which lets you only cover exactly what you need. Get an online quote today and, qualifying members* of The Nottingham receive £25 cashback.
5. Prepare for the future
Will writing should be something that people of all ages should think about if they own a property, have a child or are married. Our third party partner, APS Legal & Associates are professionals in the will writing sector and can support you in arranging your will and ensuring that your wishes are clearly set out for your family once the time comes that you pass away. Why not make your New Year's resolution to find out more about will writing and when it's right to create a Will?
Dignity Prepaid Funeral Plans
If you are over 50 and haven’t thought about a funeral plan yet, why not? We understand it might not always be top of your future planning list, but in reality, a funeral plan could save your family a lot of money and stress over decisions if you were to pass away. The average cost of a funeral has increased from £2,971 in 2011 to £4,045 in 2018**. If funeral costs continue to rise at the current rate of 4.51% by 2026 they'll reach more than £5,757†.
Did you know that qualifying members of The Nottingham can benefit from a simple Will for £109 and free document storage and £120 cashback on a Dignity Prepaid Funeral Plan too?
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