Repaying the mortgage has to be a priority if you’re struggling financially. Otherwise you’re at risk of losing your home. But a mortgage payment holiday could buy you some precious breathing space if you need it.

What is a mortgage payment holiday?

Even if you have the best mortgage rates, making payments every month can become a financial strain. Taking a mortgage payment holiday is like pressing the pause button on your repayments. This can provide some welcome relief if money is tight.

At the height of the Covid-19 pandemic, the government worked with mortgage lenders to ensure they offered ‘Coronavirus Mortgage Payment Holidays.’ This scheme has now expired, but lenders may still offer a range of options depending on your financial situation and the terms of your mortgage contract.

Image credit: Future Plc

Will a mortgage holiday impact credit score?

A big difference between the government’s coronavirus mortgage payment holiday scheme and any other mortgage payment holidays you arrange with your lender, is that the latter may show up on your credit file and affect your credit score.

‘What usually happens is that lenders will add a ‘flag’ to your account. This will show any arrangement agreed along with the dates and the new temporary payment’, says James Jones, head of consumer affairs at the Experian credit reference agency. When it comes to the damage to your credit score, he says ‘the average hit is 130 points.’

Details of any arrears can stay on your credit file for up to six years. However, ‘you can ask for a ‘notice of correction’ to go on your file, explaining the reason for any missed payments,’ says Jones. ‘Future lenders can then see there was a genuine reason for any mortgage payment holiday. You should do this with all three of the main credit reference agencies, Experian, Equifax and TransUnion.’

Does a mortgage payment holiday come with hidden charges?

Taking a mortgage payment holiday can provide valuable financial breathing space. However, your lender won’t cover the cost as you’ll still need to make up any missed payments, plus interest. It should be considered a short term option. For example, if you’ve been made redundant and are strapped for cash while you’re waiting to start a new job.

Let your lender assess your mortgage payment holiday needs

‘Your lender might temporarily cut your payments, and switch you to paying interest-only for a period. Another option is to extend the length of your mortgage to reduce the monthly payments,’ says Sarah Coles, personal finance analyst at Hargreaves Lansdown.

‘Extending your loan will come at a cost. If you pay your mortgage for longer, you’ll pay more interest overall. However, because it’s spread over a longer period you may find it easier to manage.’

The golden rule is to speak to your lender if you’re concerned. If your lender does not know you’re having problems, it can’t help. If you’ve got a previous track record of making payments on time, and have even built up a financial buffer from overpayments, your lender may allow you to pause or reduce payments for between six and 12 months.

Lenders set their own terms and conditions. Some may insist you’ve had your mortgage for at least a year, as with Halifax. Others may check you haven’t taken a mortgage payment holiday within the last few years (excluding any taken due to Covid-19).

Past overpayments may help you appeal

If you’ve previously overpaid on your mortgage, it’s possible any agreed mortgage holiday may not show up on your credit file. ‘It’s your lender who decides what gets reported on your credit file’, says Jones. ‘It’s worth having a conversation with them to see if they’ll recognise that the account won’t be in arrears.’

Image credit: Future Plc

Additional help from your mortgage lender

Before applying for a mortgage holiday research other options first. Depending on your current deal, your lender may be able to switch you to a fixed cheaper deal to cut monthly payments. Do be aware, though, that you could incur set up fees for this.

If you’re likely to have longer term issues meeting your mortgage payments, some lenders may allow you to extend your mortgage term. This will mean lower, more affordable monthly payments, but in the long term it will cost more. It’s important to check if there are any fees associated with doing this.

Moving to an interest-only arrangement for a period may also be possible. This is where you cover only interest charges, but not capital repayments. You will, however, need to make plans for repaying the capital in the end.

Check insurance policies

If the reason you’re struggling is due to sickness or redundancy, check if you’ve got insurance to cover this.

Mortgage payment protection insurance and income protection are the two policies that should do the job. Both pay a monthly sum, for a maximum time period. Since the pandemic however, fewer policies may now cover redundancy. Mortgage payment protection insurance will typically cover your mortgage payments and usually pay out for around a year. Some policies may last longer and terms and conditions vary.

An income protection policy is designed to cover your mortgage along with other household bills. You usually get a percentage of your salary each month.

Both usually have an initial deferral period, during which time the policy won’t pay out, so you can’t take out a policy and then claim a week later.

Government support

If you’re claiming certain benefits, (including Universal Credit, Income Support or Jobseeker’s Allowance), you may be eligible for government support towards mortgage payments. Visit Gov.uk for information.

This may cover some of the interest on loans of up to £200,000, (or £100,000 if you’re over state pension age). It won’t cover capital repayments, or even guarantee to cover all your interest. The government uses its own interest rate for calculations, currently 2.09%.

‘While standard variable rates differ, they tend to be higher than this, so it might not cover your mortgage,’ warns Sarah Coles. ‘And there are so many hoops to jump through that it can be difficult to qualify. Plus, there is a 39 week wait between when you apply and when you may be able to get help.’

If agreed, this is paid as a loan, which you will need to repay, along with interest, when you sell your home.

Image credit: Future Plc

Help if you are in debt

If debts are mounting you can get free help and advice from organisations including Citizens Advice, National Debtline and StepChange.

It’s also worth using a free benefits calculator to check if you’re claiming everything you’re entitled to. Take a look on Turn2us or Entitledto.

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The Christmas season is in full swing, and lots of us are getting in the festive mood and putting up our trees. Whether you’ve picked a faux tree or gone for a real one, the tree is always the star of the show when it comes to our seasonal decor.

We love keeping our Christmas tree lights on all evening, but it is of course reflected in your utility bills. If you’re wondering ‘Do Christmas tree lights use lots of electricity?’ Crown Pavilions have broken down just how much energy your tree uses.

Image credit: Lights4Fun

Do Christmas tree lights use lots of electricity?

Crown Pavilions has calculated how much it costs to light your Christmas tree. Most of us use two strings of lights, which adds up to 80 watts of energy.

If your lights are left on for 6 hours a day, then 0.08kW x 6 hours will mean a 0.48kW output. As energy prices rise to around 17p per kW, keeping your lights on for 6 hours a day for a whole month costs just £2.48.

This is based on the calculation: 0.48 (output) x 0.17 (cost) x 30 (days) = 2.48. Given that quarter of us in the UK now have two trees, this cost will double for many of us.

Image credit: SoloIgnite

But we think even £4.96 is definitely worth it for a month of twinkly Christmas tree lights. If you were to keep your lights on 24 hours a day for a month, which we wouldn’t advise, the average cost would be around £9.79.

The average UK household lights their tree for 6 hours a day. So based on the ‘output x cost x days’ calculation, the whole of the UK spends a total of £22.3 million lighting their trees throughout December.

In the grand scheme of things, powering Christmas tree lights doesn’t cost lots of money. Particularly when compared with other things we spend money on during the festive season.

Image credit: Future PLC

Tips for keeping energy costs down at Christmas

If you are worried about household bills this Christmas, there are lots of energy-saving tips for the home which can make a big difference.

1. Plug-in timers, at Amazon are a great way to avoid wasting electricity.
2. You could also consider battery-powered lights, to make it easier to keep track of your energy usage.
3. Switching to LED will also help keep costs down.

So next time a relative asks if your lavish Christmas tree display uses lots of electricity, you can tell them that lighting one tree for 6 hours a day in December costs less than a take-out coffee.

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Whether you want superfast download speeds, multiple TV channels or access to the top streaming services, a TV and broadband package is a great way of getting everything you need in one place. But with research suggesting many of us are overpaying by hundreds of pounds a year on current contracts, it’s crucial to check what else is out there.

There are hundreds of different TV and broadband deals and they vary widely when it comes to their monthly price, the number of channels they offer, broadband speed, add-ons and extra perks. By taking the time to compare your current deal with other packages, you could save some much-needed cash and end up with a deal that better suits your needs.

The good news is that switching when you’re outside of your minimum-term contract is easier than ever – in many instances, you just need to order a new package and your new provider will take care of the rest.

Best TV and broadband deals December 2021

Best TV and broadband deals on standard broadband

Best TV and broadband deals on fibre broadband

12-month contract; Unlimited downloads

Best TV and superfast broadband deals

*Average UK speed, according to Uswitch

Image credit: Dominic Blackmore

What broadband speed do I need?

Aside from cost, speed is probably the most important thing to look at when deciding which broadband package to go for. In general, the faster the speed the better because it means you can download and stream your favourite content quickly. However, faster broadband speeds are usually more expensive, so if want to keep costs down you should think carefully about what you really need.

First off, it’s worth checking your current broadband speed. The information should be on your latest bill, but if it isn’t you can call your provider to find out. Broadband speed is usually measured in megabits per second (Mbps).

• In most cases, households with one or two people who just use the internet for browsing and social media will only need broadband speed of up to 30Mbps.
• If your house has three or more users who go on the internet at the same time, then a speed of 30 to 60Mbps would be more suitable.
• Those who use the internet heavily for online gaming or streaming films should opt for 60 to 100Mbps.
• Serious gamers or people who work with lots of large files would require 100Mbps or higher.

You could also look at investing in one of our best wifi extenders to boost that signal through your home.

Which TV package is best for me?

Image credit: TI Media

Choosing the right TV package will depend on what you and your family like to watch and what your budget is. It’s worth writing down your favourite shows, what devices you watch them on and whether you watch things that aren’t on regular TV (such as Netflix and YouTube).

You can then think about how much you’re willing to pay – some premium channels like sports and movies can send monthly bills rocketing.

Sky – best all-rounder

Sky offers a variety of TV “packs” containing a collection of channels and on-demand content. The Sky Signature pack comes as standard and includes around 300 channels, Sky BoxSets on-demand and 40 catch-up channels.

You can add on any other packs you like, such as Sky Cinema and Sky Sports. Until recently, Sky required a satellite dish and is one of the more expensive options. It now offers Sky Glass, where technology is built into the TV screen itself. However, it is an expensive option and early reviews have been mixed.

Virgin Media – best for channel choice

Virgin Media offers a wide range of TV packages, including the “big bundle” with over 110 channels, the “bigger bundle” with over 230 channels, a movies bundle and a sports bundle. Its set top box lets you pause and rewind live TV and access on-demand content such as Netflix.

You can pay extra for channels like Sky Sports and BT Sport. It’s one of the most expensive services, however all the TV options are available on 30-day rolling contracts.

BT – best for bundling with broadband and phone

BT is a cheaper option than Sky and Virgin Media, but it’s only available with a BT broadband and phone package. The “starter” package offers 80 Freeview TV and radio channels as well as catch-up TV via the YouView box.

The top package “Max” includes free BT Sport and 50 premium channels, which you can view on the YouView+ Ultra HD box. Bolt-ons include Netflix, Sky Cinema and BT Box Office.

TalkTalk – best for flexibility

TalkTalk is also based around the YouView box, but it’s more flexible than BT because it enables you to add and remove channels on a monthly basis. This can be a great option during sports seasons. TalkTalk is one of the cheaper TV providers out there, but like BT it’s only available as part of a phone and broadband package.

Now TV – best for commitment phobes

Now TV is a cheap way of streaming TV shows without committing yourself to a contract. You can buy one or more “passes” – Entertainment, Sky Cinema, Sky Sports, and hayu – on a rolling monthly basis and watch shows online or via the Now TV stick.

Now has more recently launched Now Broadband, which follows a more traditional package in that you sign up for 12 months. It’s a more affordable alternative to Sky’s premium packages.

Should I get a TV and broadband deal bundle?

All of the TV providers mentioned above offer broadband and TV bundles. A bundle is convenient because it means you only have one supplier, one contract and one bill to deal with. What’s more, some bundles come with discounts and additional perks, such as cashback or a free laptop.

‘A TV and broadband bundle could work out cheaper than taking out a separate subscription for each, but this may not always be the case, so it pays to compare prices and packages online by using an on-site filter tailored to your requirements and budget,’ says Holly Niblett, head of digital at comparethemarket.com.

The downside of a broadband and TV bundle is you could end up paying for things you don’t actually use, such as TV channels you don’t watch, or sacrificing broadband speed so you can afford a premium movie package.

‘TV and broadband bundles are great if you want to watch live TV and sports, but if you don’t it might be better to buy standalone broadband and then add a streaming service like Netflix,’ says Rory Stoves, spokesperson for Uswitch.

‘Alternatively, you might want to get a superfast broadband connection with, say, TalkTalk and have Sky as your TV provider. Don’t be afraid to mix and match.’

Only looking for bundles could also mean you miss out on some of the less well-known standalone providers like Zen Internet and Hyperoptic, who were recently voted the fastest broadband providers in a survey by Broadband Genie.

Can I get TV and broadband without a phone line?

Image credit: Jon Day

If you want broadband from one of the main providers but don’t want a phone line, your only real option is to go with Virgin Media. Its fibre network is separate from BT’s, so it can bring a broadband connection into your home directly.

Having said that, Virgin Media sometimes charges more for a broadband package without line rental than it does for one with line rental, so it could prove cheaper to just get a landline and not use it. Additionally, all of Virgin Media’s broadband and TV bundles include line rental – as do the bundles from all the other TV and broadband package providers – and if you split them out you could end up paying more.

The only other way of getting broadband and TV without a phone line is to get mobile broadband, however the current 4G network is only fast enough for basic online activities. You’d need to live somewhere with a strong 5G signal to use streaming services like Netflix.

Can I switch at any time? What are the restrictions?

It is possible to switch TV and broadband deals before the end of your contract, but you’ll probably have to pay a hefty exit fee. Some providers make customers pay off all the remaining months of the contract at once, plus the cost of any equipment they supplied, which could amount to well over £100.

An exception to this is you’re suffering from extremely slow broadband speeds. All of the main providers are bound by Ofcom regulations, which state that customers have the right to cancel their broadband contract without charge if their broadband speeds drop below their provider’s minimum level.

How do I know if I’m out of my broadband and TV contract?

Image credit: Lizzie Orme

New rules that came into effect in February 2020 make it easier to know when your TV and broadband deal is coming to an end. Providers have to send their customers an alert between 10 and 40 days before their contract ends showing the contract end date, how much you’ll pay after the contract ends and the best deals and prices available to new customers.

If you’re already out of contract, you’ll be sent a reminder every year about the provider’s new deals. However, you don’t have to wait for the reminder before switching – you can leave straightaway if you’ve found a better deal.

How can I reduce my bill with an existing broadband/TV supplier?

If you’re happy with your existing supplier’s service but think it’s too expensive, it’s always worth phoning them up and trying to haggle a better deal.

You’re more likely to have success if you negotiate towards the end of your contract when your provider knows there’s a real chance you could leave. Checking what other deals are out there will help you to determine a realistic price to aim for.

You might need to try several times before your provider reduces the price. And even if they refuse to budge, there could be free extras like a faster broadband speed or additional TV channels up for grabs.

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No one wants to think about their home being damaged or their possessions being stolen, but unfortunately bad things happen to the best of us. This is where home insurance can help.

Home insurance is a type of insurance policy that covers losses and damages to your home. It’s a really important product to own because it ensures you aren’t left out of pocket should the worst happen.

There are three main types of home insurance: buildings insurance, contents insurance and combined buildings and contents insurance.

If you are negotiating a new mortgage rate on your property, your lender will most likely insist on you having adequate buildings insurance in place. Tenants don’t usually need buildings insurance, but contents insurance is very useful since rented accommodation is often vulnerable to theft.

Whichever product you choose, it’s really important to shop around for the best deal and ensure you buy the right amount of cover.

Image credit: Future PLC/ Polly Eltes

A brief introduction to home insurance

Essentially, home insurance pays for damages and losses that occur to your home and its belongings. Depending on the actual policy you take out, it can cover damage to the actual structure of the building – perhaps because of a fire, storm or flood. It can also cover damages and losses to everything inside the building – for instance if you’ve been the victim of theft. 

As we’ve mentioned, there are three main types of home insurance:

• Buildings insurance covers damage to the actual structure of your property – for example, its roof, walls and windows – as well as permanent fixtures and fittings like your fitted kitchen, bath and toilets. Most policies will pay to repair damage caused by fire, storms and floods, burst pipes, theft, falling trees, vandalism and subsidence. It doesn’t typically cover damage caused by general wear and tear, neglect, poor DIY, pest infestations, damp and condensation, or frost damage.
• Contents insurance covers nearly everything you have inside your home from loss or damage. This could be caused by events such as theft, fire, storms or flooding, leaking water or oil, explosions, falling trees, vandalism and earthquakes.  Contents are typically defined as things you would take with you if you moved home – so, your TV, computer, jewellery, clothes, kitchen equipment, furniture, carpets and curtains.
• Combined buildings and contents insurance gives you cover across both your property’s structure and the belongings inside.

How to get a good deal on home insurance

1. Never auto-renew

Add a note to your diary or set an alarm on your phone the month before your policy is due to expire. That’s because letting your policy auto-renew means you’ll likely pay the same rate… and miss out on potential savings or perks such as cashback or free gifts.

From 1 January 2022, new legislation from insurance regulators the Financial Conduct Authority bans home (and car) insurance providers from charging a customer more for the same policy at renewal than they would for a ‘new’ customer signing up to the same cover.

Known in the industry as ‘price-walking’ this practice essentially penalised customers for their loyalty.

And while this new policy is good new, that doesn’t necessarily mean you’ll still be getting the best deal, so you should always shop around.

2. Assess your cover

Check how much insurance cove you currently get and ask yourself if the contents of your home is really worth that. The more cover you need, the more expensive it will be, so it might be worth reassessing your inventory, especially if the kids have moved out or you’ve had a big declutter.

That said, don’t undervalue your belongings, either. Should the worst happen, you may not be able to afford to replace them.

3. Use more than one comparison site…

Put your details into multiple sites, such as GoCompare and Confused.com, to find the best deal.

4. And quotes direct from the insurer

Some insurers – including – can’t be found on price comparison sites. That doesn’t mean they’re not offering great deals, so check them out separately.

5. Check for cashback deals and incentives

Sites such as Quidco and TopCashback will offer a lump-sum or percentage cashback when you take out an insurance policy with certain providers. This can often be in the tens of pounds if not £100+. Payouts can take a while though, and are not always guaranteed, so if it’s not a good deal without the cashback, don’t bother.

Is home insurance mandatory?

Taking out home insurance isn’t a legal requirement, however if you have a mortgage your lender will probably make it a condition of the loan that you have buildings insurance in place. Even if you own your home outright, you should seriously consider taking out buildings insurance. Property repairs can be extremely costly and the bill could stretch to hundreds of thousands of pounds should your house be destroyed in a fire.

Renters don’t need to worry about buildings insurance because it’s the landlord’s responsibility to insure the property. However, both renters and homeowners should consider taking out contents insurance. Replacing all your contents following a fire, theft or flood could really set you back financially – far more so than if you paid an insurance premium each year.

‘When considering whether to purchase home insurance you should ask yourself, “Can I afford to cover myself and my home financially if something were to go wrong?” If the answer is no, it’s best to side with caution and insure your property. It’s usually the largest and most expensive asset you will own,’ says Mark Gordon, CEO of Compare By Review, a comparison site which ranks providers based on the quality of their service and products.

How much home insurance coverage do I need?

It’s really important to figure out how much buildings and/or contents insurance you need so you don’t end up paying for any shortfall. Buildings insurance should cover the cost of rebuilding your property. This is usually less your home’s market value, which includes the price of the land. The ABI has a helpful calculator that provides a rough idea of your home’s rebuild cost.

Contents insurance should cover the cost of replacing all your possessions by buying new items. There are several online guides that help you to work out the value of your possessions. Confused.com has a contents calculator that adds up the value of all the items in your house, room by room.

Most contents insurance policies have an overall limit that applies to valuables like art and jewellery, as well as a limit for each high-value item. The limit per item is usually around £1,500. However, some policies offer over £10,000. It’s important to check these limits are enough to cover your valuables.

‘Your total value needs to be as close to exact as possible, so it’s worth spending the time checking how much a replacement of each item on your list would be,’ says Mark. ‘In most cases, the value of an item is the amount it would cost to replace it today. Which, in some cases, is unlikely to be the same amount you paid for it.’

Which home insurance company is the best in the UK?

Lots of companies offer home insurance so it’s worth taking your time researching the market before applying. Some of the top-rated companies include John Lewis Finance, Saga, LV= and Direct Line. They offer high (or even unlimited) levels of buildings and contents insurance and provide good customer service, according to surveys by Bought by Many.

Some companies target specific types of property or segments of the population. NFU Mutual caters to homes in rural areas. Covea offers very high levels of cover for expensive and non-standard home contents like golf clubs and cycling gear. And Endsleigh is a specialist students’ contents insurance provider.

Image credit: Polly Eltes

What should I expect to pay house insurance on average?

A combined buildings and contents insurance policy costs £313 a year on average, according to figures from the ABI. A buildings-only insurance policy is roughly £254 a year. And a contents-only insurance policy is around £129 a year.

Remember that these are only averages. The actual premium you pay will depend on things like the size and type of your property, where it’s located and how much your possessions are worth. We’ve taken a closer look into home insurance costs, so you can get a better picture of what to expect.

Why is my home insurance so high?

Insurers take into account a wide range of factors when calculating the price of insurance. They will look at where you live to assess whether there are flood risks or higher rates of crime. They will also take into account the size and age of your property. Larger houses attract higher premiums, as do very old or listed buildings. Non-standard building materials could also raise your premium because they could cost more to source and repair.

Factors specific to you will also affect the price. If you’ve made claims in the past this will most likely increase your premium. And if you leave your house unoccupied for long stretches of time, this could also cost more.

Sometimes there are external influences, too. Severe weather and a rise in the overall number of claims insurers receive could cause them to hike premiums for all their customers.

Image credit: Future Publishing Plc./ Brent Darby

How can I reduce my home insurance?

When your home insurance policy is coming up for renewal it’s a good idea to check the prices of other, comparable products. You might be able to save money by switching to another insurer. But remember it’s important to buy the right cover as opposed to just the cheapest.

• If you need buildings and contents insurance, then taking out a combined policy could work out cheaper than having two policies with separate providers. Although this isn’t always the case. Paying your premium annually is nearly always less expensive than paying for it monthly.
• It’s worth checking that you aren’t over-insuring yourself. Make sure you use online calculators to get an accurate figure for your home’s rebuild cost and the value of your contents. Equally, make sure you aren’t paying for any extras you don’t need. If you live in a top floor flat, for example, you won’t need excessive garden cover.
• Other ways to reduce premiums include building up a no-claims discount. Try installing a burglar alarm and smoke alarms, fitting the best home security system you can afford and joining the Neighbourhood Watch scheme.
• A final way of reducing your premium is to pay a higher excess. Policies have a fixed compulsory excess as well as a voluntary excess which you can set yourself. Bear in mind that the higher the excess, the more it will cost you if you make a claim.

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