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December 2024
Christmas Financial Thoughts: Borrowing, Gifting, and Caring
As the holiday season approaches, it is time to enjoy the festive spirit, reflect on the year gone by, and look forward to a brighter 2025. Whether you are planning for Christmas or thinking about your financial future, here are some thoughts and tips to inspire and support you this December.
The Base Rate Drop: What Does It Mean for You?
The Bank of England recently reduced the base rate to 4.75%. This could bring some welcome relief for borrowers, as mortgage rates may start to fall, potentially lowering monthly repayments. However, for savers, it may mean smaller returns on savings accounts.
If you are impacted by these changes, now is a suitable time to review your financial plans. Whether you are borrowing or saving, it is worth exploring your options to make sure your money is working for you.
Flexible Mortgage Solutions for Later Life
Are you reaching the end of an interest-only mortgage and wondering what to do next? You are not alone, and there are new options that might help.
The Payment Term Lifetime Mortgage gives you flexibility to pay interest when you can and defer payments if circumstances change. It is a helpful option for managing costs in a way that suits your income and lifestyle.
Alternatively, the Lifetime Capital and Interest Mortgage lets you borrow over 40+ years, even from age 65. By paying off the loan gradually, you reduce your debt over time and may leave more for loved ones.
These products are not right for everyone, but they show how lenders are responding to the needs of people like you.
The Christmas Gift Dilemma: What Do You Buy?
We all have that person on our gift list who says, “I don’t need anything!” If you are struggling for ideas, why not think creatively? Here are some quirky suggestions:
● A subscription box (e.g., books, coffee, or gardening kits) for something they can enjoy all year.
● A local experience day, such as pottery classes or a guided tour.
● Charity gifts like adopting an animal or planting trees in their name.
● A puzzle or craft set to keep them entertained through the winter.
Sometimes, the best gifts are about time and thought rather than cost. Homemade treats or a handwritten letter can mean more than something expensive.
Shopping Safely Online
Many of us love the convenience of online shopping—it is quick, easy, and avoids the Christmas rush! But it is important to stay safe. Here are a few simple tips:
● Only shop on trusted websites and check the web address carefully.
● Be wary of deals that seem too good to be true—they often are!
● Avoid clicking on links in emails or texts claiming to offer amazing discounts.
● Use a credit card for extra protection when buying online.
A little caution can help you avoid scams and keep the season merry and bright.
Sharing the Festive Spirit
For many, Christmas is about family and friends. But it is also a time to think about those who may not have loved ones nearby. A simple act of kindness—like checking in on a neighbour or inviting someone for a mince pie—can make a big difference.
Looking Ahead to 2025
As we wrap up another year, we want to thank you for being part of the Later Life Property Finance community. We hope your festive season is filled with joy, love, and plenty of laughter.
Here is to a healthy, happy, and prosperous 2025!
Warm wishes,
Iain
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