This article was published on Thu 07 Nov 2024. At the time of publishing, this article was true and accurate, however, over time this may have changed. Some links may no longer work. If you have any concerns about this please contact us

Everyone has money worries and for many, the challenges of the current cost of living crisis have increased these. Money and debt are often seen as a taboo subject but during Talk Money week you can break the stigma, this year’s theme is to Do One Thing that could help improve your financial wellbeing.

Just as you can take action to improve your physical and mental health, you can also take some simple steps to feel more in control of your financial wellbeing too.

Talking openly about money is beneficial to us all and important for our health, wealth and relationships.

For those who are going through financial troubles or have difficulty managing their own money, they will benefit from reaching out for help and advice. Even just talking about money issues could help them feel like a weight has been lifted off their shoulders. If people share their financial problems, they should find it a lot easier to deal with and manage their money.

Building money conversations into our everyday lives also helps us and others build financial confidence and resilience to face whatever the future throws at us.

If we’re prepared financially, we will be able to cope when an income shock or life event occurs.

Research shows that people who talk openly about money:

• make better and less risky financial decisions
• have stronger personal relationships
• help their children form good lifetime money habits
• feel less stressed or anxious and more in control.

Worrying about money can negatively affect your mental health and for those people experiencing mental health problems it makes it harder to manage their finances. Problem debt can also be linked to suicide.

It’s important to start talking about money worries before your situation gets worse. Talking about money will give you the confidence to get help and find out who can best advise you on any problems.

It can give you a great sense of relief to share your problems, so you’re not facing them alone. If you don’t feel ready to talk to someone, write down what you are going through and share it with somebody you can trust. It’s important to seek professional advice as soon as possible and not wait until it’s more difficult to find a solution.

According to the Police Federation’s annual Pay & Morale survey results published in November 2023, 85% of respondents felt that they were ‘worse off’ financially than they were five years ago. Talk money week is an ideal time to review your finances and improve your financial wellbeing.

If you are worried about your finances, the following tips may help improve your financial wellbeing

• Work out your budget – what money do you have coming in, what do you need to pay for and what’s left for paying off debt.
  Use our budget calculator here to help you manage your money.  For more details read our budgeting guide here.
• Set yourself a daily spend limit based on how much disposable cash you have each month.
• Check your bank balance regularly so there are no nasty surprises.  Consider using an app so you can see all your accounts in one place.
• Set up a separate bill account and transfer an amount each month to cover the cost of all your household bills.
• If you’re looking to make savings? Check that you’re not overpaying for your utilities and other bills, where can you make savings, for more information use the link here.
• Look at your general insurance, switching could save you money.
• Set yourself saving goals, saving little and often.
• Review your mortgage
• Check your credit score, using one of the various companies available online including, Experian, Equifax or TransUnion.

For more tips on how to spend less read our guide here.

For more details on debt, read our debt awareness guide here.

As we are now in November most of us will be starting to think about the festive period and for many people the worry of how to fund this time will be a concern.

It may seem tempting to fund the festive period on your credit card, but before you do that think about the long-term effect of credit card debt. Instead of reviewing your budget in January, do it now. In that way, you will know exactly how much you have to spend this year.

For many people the struggle is after the festive period when January pay day seems a long way of and living on credit or going into debt might seem a tempting way to get through. So try to manage your finances now before the festive period starts to avoid the January blues.

Statistics published by the Bank of England estimates that a typical household spends an extra £800 in December, with many people buying gifts much earlier, in October and November, the total cost of the festive period for many families will be higher.

When writing your gift buying list, consider a couple of questions. Do the people you love really need an expensive gift and would they be happy knowing you may have gone into debt to get their present?

Talk to your loved ones about being on a budget and that you are thinking more creatively about their gift or even agree not to buy for each other this year. For most people this relieves the burden of having to reciprocate your expensive gift and can be a relief if they are struggling with their finances too.

Panic buying can be a problem for many of us as we get closer to the festive period, thinking we haven’t brought enough, so stay strong and try to stick to your list.

As well as gifts, the other expense during the festive is food and drink. But for most of us, a lot of this extra food isn’t wanted and when the diets start in January, it often ends up being thrown away. So, before doing your festive food shop, think seriously about the meals you will be making and what you realistically need and then stick to this list when you are in the supermarket. Think about food from 3 perspectives, your bank balance, your health, and the environment.

Worrying about money can be extremely stressful and may lead to mental health conditions. Police Mutual are here to help. We want to break down the stigma surrounding debt and get people talking about money.

We’ve teamed up with PayPlan*, one of the UK’s leading free debt advice providers, who offer free and confidential advice to anyone in serious financial difficulties.

They’re able to advise you on a range of debt solutions suited to your individual circumstances, helping to protect you and your family with a sustainable way to manage your debt.

Get free and confidential help to combat your debt, call PayPlan* on 0800 197 8433.

*PayPlan is a trading name of Totemic Limited. Totemic Limited is a limited company registered in England, Company Number: 2789854. Registered Office: Kempton House, Dysart Road, PO Box 9562, Grantham, NG31 0EA. Totemic Limited is authorised and regulated by the Financial Conduct Authority. Financial Conduct Authority Number: 681263

This article was published on Thu 01 Aug 2024. At the time of publishing, this article was true and accurate, however, over time this may have changed. Some links may no longer work. If you have any concerns about this please contact us

We understand the cost of day to day living doesn’t leave much at the end of the month, but saving even a small amount now, could mean a lot to you in the future.

Managing your money

Understanding where your money goes each month is key and this is where having a budget can help, allowing you to track income vs expenses.  If you’re not sure where to start don’t worry, read our article on making the most of your money for some helpful information on budgeting.

How much do you need to save?

Basically, whatever you can afford. Some people advise a fixed percentage of your salary, some say you need to have 3-6 months’ worth of salary in savings but that’s not necessarily the best way to look at it.

When it comes to monthly savings, you could work out how much money goes on the essentials in life – rent or mortgage payments, those unavoidable costs such as your washing machine breaking down, or an unexpected car repair. It’s important to consider the different expenses you could face so that you can prepare yourself for the unexpected.

The amount you can afford to save depends on your spare income and you won’t know how much that is until you have worked out your actual budget.

What if it’s not a lot?

Savings can provide a financial back up for life’s uncertainties and it’s surprising how saving small amounts can soon add up. The table below gives you an idea on how your savings could build up.

If you saved…	Year 1	Year 3	Year 5
£10 per month	£120	£360	£600
£30 per month	£360	£1,080	£1,800
£100 per month	£1,200	£3,600	£6,000

Helping you to save

We aim to help the Police family lead a financially healthier and happier life. That’s why we’ve partnered up with No1 CopperPot Credit Union to bring you a range of their savings accounts.

Whatever you’re saving for, joining No1 CopperPot Credit Union allows you to become a regular saver based on manageable amounts of at least £5 per month. Savings can be taken directly from your payroll each month (where available) meaning there’s one less thing to think about.

Important things you need to know:

To be eligible for a Member Account you must be aged 18 or over and a serving or retired Police Officer, Police Staff, Police Special or PCSO.

PMGI Limited trading as Police Mutual acts as an introducer for Number One Police Credit Union Limited who provide a range of savings accounts for members. This introduction is not regulated by the Financial Conduct Authority.

Find out more

This article was published on Mon 19 Feb 2024. At the time of publishing, this article was true and accurate, however, over time this may have changed. Some links may no longer work. If you have any concerns about this please contact us

Not only is Spring the time of year where we look forward to warmer days and lighter evenings, but a time where traditionally we have a good clean and clear out.  And just like your home, your finances could also benefit from a good tidy up every once in a while.

Here are some tips to help you get started on spring cleaning your finances. 

1. Review your current financial situation

Take a look at where you are now with your finances. How much money do you have saved? Do you have any current debts? What are your monthly outgoings? Understanding your current financial situation can help you focus on putting plans in place to spring clean your finances.

Take the opportunity to review your paperwork, clearing out documents you no longer need and ensure you have access to important documents when you need them. If your documents are online make sure you know how to access them. 

2. Review your budget

A budget is a plan that helps you keep track of your finances each month, including what you’re spending your money on, allocating funds for emergencies and seeing how much you could save. Check if your budget still reflects your current circumstances or does it need adjusting?

If you don’t have a budget, then now is a good time to make one. Take a look at our budget tool to help you get started.

3. Assess your financial resilience

Reviewing your insurance and protection arrangements is an important aspect to ensure you’re adequately protected in the event of the unexpected. Whether it’s life insurance and critical illness to cover income protection or health cover to ensure both you and your family are protected. If you do have cover in place, then make sure the cover still meets your requirements.

We currently don’t provide Life Insurance or Critical Illness cover, but you can find out more about our discretionary Healthcare Scheme set up for members of the Police family to help with the cost of private medical treatment in the event of an illness.

4. Managing debt

If you have multiple debts, then aim to pay off the debt with the highest interest rate first. For credit card debt, you may be able to transfer to a different card provider that offers a better interest rate or better still a 0% rate, (although often this is for a limited time only and you may get charged a percentage on transfers).

If you’re finding managing multiple debts difficult then a debt consolidation loan could help by consolidating your existing unsecured debt into one monthly payment, which could help you manage and keep track of your finances. 

No1 CopperPot Credit Union provide a debt consolidation loan to members of the Police. You need to be a member of the Credit Union to apply for one of their loans. All No1 CopperPot Credit Union personal loans are subject to affordability and lending criteria and are not regulated. 

If you’re struggling with debt then you can speak to PayPlan, one of the UK’s leading free debt advice providers, who offer free and confidential advice to anyone in serious financial difficulties.

If you refinance any existing debts, you may pay a higher rate of interest or make repayments over a longer term. This means you may pay more interest overall.

5. Check on your savings

If you have a savings account, then check the level of interest your savings are earning and see if you could get a higher rate of interest for the same level of access, to give your savings a boost.

If you don’t need access to your savings in the short or medium term, you could use a savings account that locks them away for a defined period, for usually a better interest rate than an instant access account.

Do you have enough savings to cover you for an unexpected loss of income? Having around 3-6 months’ worth of household and living expenses saved could help ease financial worries if you unexpectedly lost your income. It’s not easy to prioritise saving, but even a small, regular amount saved is beneficial.

If you don’t have one already, then starting a savings plan could be a good way to build this up. Find out more about the range of savings plans from No1 CopperPot Credit Union, where you can save from just £5 a month.

6. Review household bills

We’ve all seen household bills increase, so review your providers to see if you could get better deals on things like your broadband, or energy tariffs. Your car and home insurance is another area where you could shop around to get the best cover available. Find out more about our home and car insurance that’s exclusively available to the Police family.

See if you’re still paying for any contracts like gym memberships, mobile phone contracts or streaming services that you no longer use and cancel any direct debits.

7. Check your credit report

Your credit report is a snapshot of the information that’s on your credit file. And this information is used by companies you already have a credit agreement with, and lenders you apply to, to make decisions about how good a risk you are.

There are several different credit reference agencies, but the main ones are Equifax, Experian and TransUnion. Take a look at your credit report and check for any inaccuracies and amend them. A clean credit report is crucial for favourable financial opportunities.

8. Review your beneficiaries on all accounts to make sure they are up to date

A beneficiary is the person or entity that you legally designate to receive the benefits from your financial products. Another important aspect of financial planning is making sure your beneficiaries are up to date on all of your accounts. This includes things like your pension and insurance policies. If you haven’t reviewed your beneficiaries in a while, now is the time to do it.

9. Planning for retirement

If you’re currently a serving Police Officer then you’ll probably know when you can take your police pension, but what about any private pensions you may have? Check your pension documents to see what age you can access any private pensions and whether your forecasted pension will be enough for you to comfortably live on when you retire. If not, then you could look at increasing your pension contributions. You can check your state pension forecast here.

By following our simple tips, you can get your finances in order this spring. So, what are you waiting for? Get started on your financial spring cleaning today. 

Please note: This article is for general information only and does not constitute advice.

This article was published on Wed 08 Feb 2023. At the time of publishing, this article was true and accurate, however, over time this may have changed. Some links may no longer work. If you have any concerns about this please contact us

Are you struggling to manage your money? Do you wonder where it all goes each month? Then having a budget could help. If you’re not sure where to start don’t worry, we have some helpful information on budgeting right here for you!

It’s estimated that around 34% of Police Officers and Staff in the UK have below average levels of financial awareness*. To help, we think the below guide on budgeting could be a great way to start when trying to stay on top of your finances.

By keeping track of how much money you have coming in (your income) and how much money you have going out (your spending) you can get a clear picture of your finances and take control of your money.

Please remember, if you are struggling with debt then no matter how big you feel the problem is there is help at hand. We have provided some resources at the end of this article which we believe could be helpful. Our friendly Financial Wellbeing Consultants also frequently visit local stations up and down the UK so take advantage and speak to them!

Why budget?

Budgeting can help you:

• See exactly where your money goes
• Spot overspending or when you’re paying for things you no longer need or use
• Live within your means – you can adjust your spending when necessary
• Work out what you can afford
• Plan for big expenses such as Christmas, holidays and annual bills
• Save when you can for the future

Drawing up a budget

You can create a budget using pen and paper, a spreadsheet or with the help of an online budget planner. We also have our own budget calculator to help you with drawing up your budget following the steps below!

Budgeting can be harder if you or the person you live with has an income that varies – for example, on a zero-hours contract, are self-employed or on certain benefits. Get tips on how to budget if your income goes up and down.

Gather together useful information: Include details of any income you receive (salary, pension, benefit payments and income from savings and investments), as well as household bills, food bills, credit card statements, insurance costs and so on.

Identify all your income: This is money you regularly receive. Work out your total income after tax to see how much you have to spend. If you receive any irregular or unpredictable income such as over-time or gifts from family, think carefully before including it in your budget as you cannot always rely on it. It may be better to put this to one side.

Work out your spending: Make a list of everything you spend. As well as regular spending, this can include occasional spending such as for Christmas, holidays and meals or days out. Work out how much you spend on average and then calculate how much you need to set aside for each relevant occasion. This can vary so you might only set aside a certain amount and stick to this!

Take your spending away from your income: This may result in you having a surplus each month which is great. If not, and your spending is higher than your income, then you should look to take action where possible. 

Ways to increase your income

There are various ways you may be able to boost your income but we understand all these are not options to many of you in the Police, but they may be helpful and appropriate for your family.

• If you’re working, you may be able to increase your hours or pick up some overtime where it suits your schedule. If you’re not working, you may be able to get a part-time job that suits your needs and gives you an income.
• Check you’re claiming any benefits or other financial help you’re entitled to. If you’re on a low income you may be entitled to some form of income support or help with your housing costs. If you care for someone, are in poor health or your household changes (e.g., someone moves out or dies) you may be entitled to other benefits. To find out more about benefits and check your benefit entitlements use one of the government’s benefits calculators.
• If you have a spare room in your home, you may be able to rent this out. You can earn up to £7,500 in rent before you have to pay tax on this money. Find more about the government’s rent a room scheme.

Ways to cut your spending

If you can’t increase your income, you may be able to cut your spending.

• Check your budget for any over or unnecessary spending.
• Divide up your spending into needs and wants. Needs are things you have to pay for such as rent and food, wants are things you could do without at a push. Once you’ve worked out your essential spending (your needs) you can then see how much cash you have left for other things (your wants).

If your circumstances change

It’s a good idea to regularly review your budget as your income and spending patterns can change. You may also find that prices go up which affects how much you are spending in total and what money you have left over.

Your circumstances might change if someone moves in or out of your household, you cut your working hours or stop work altogether, your health deteriorates, you start to receive extra income such as the State Pension or a private pension.

Money saving tips

Here are some tips for saving money on household bills.

• Take advantage of supermarket offers, money-saving vouchers and retail discounts. Find out more on MoneySavingExpert.com.
• If you need help with energy bills visit the energy regulator’s website at ofgem.gov.uk. To find ways to save energy in your home visit gov.uk for details.
• Not everyone has savings but if you do, ensure your savings are earning the best rates of interest by a using price comparison website. For a useful guide on using price comparison websites, see the MoneyHelper.

Useful Resources

• Energy Saving Trust – Tips to save energy
• MoneyHelper – Advice on budgeting
• Which? – Best ways to save money

Support with debt:

• PayPlan^ – Managing Debt
• StepChange – Debt Support
• Citizens Advice – Debt and money

You can find more on budgeting at:

• MoneyHelper
• Money Saving Expert
• Which?

You can find budget planners at:

• MoneyHelper
• StepChange
• Money Saving Expert

*Source: Experian Data and Police Mutual Database – January 2023

^ PayPlan is a trading name of Totemic Limited. Totemic Limited is a limited company registered in England, Company Number: 2789854. Registered Office: Kempton House, Dysart Road, PO Box 9562, Grantham, NG31 0EA. Totemic Limited is authorised and regulated by the Financial Conduct Authority. Financial Conduct Authority Number: 681263

This article was published on Mon 31 Oct 2022. At the time of publishing, this article was true and accurate, however, over time this may have changed. Some links may no longer work. If you have any concerns about this please contact us

With rising prices in almost every aspect of life, many people are struggling to cope as pressure on household finances continue.

In September 2022 Royal London carried out research, amongst 4,000 UK adults, to explore the changes people have already made to help with the cost of living and how they are coping with the current pressures on their finances.

Key Research Findings

• Approximately a third of adults are already spending money they don’t have, by going either overdrawn (often or occasionally) or borrowing to meet everyday expenses.
• Over 9 in 10 adults (93%) said they are worried about energy bills and almost the same number (89%) are worried about the cost of food.
• Approximately one in six people (16%) said they have already taken on an additional job to help pay for the cost of living crisis*.

For more research findings click here.

Top 10 Tips That Could Help

You may already be making changes to feel more in control of your money, but if not, here are some tips to help you get on top of your finances.

1. Find out where your money’s going

Start by finding out where your money’s being spent. It sounds obvious, but many of us don’t realise exactly how much we’re spending each month – and what we’re spending on – until it’s laid out in front of us.

Keep a spending diary for a month where you write down everything you spend, or track your spending using your phone. Many banks now have features on their mobile apps that you can use to track spending. Monitoring your money can help you build a picture of exactly where it’s going.

2. Go through your statements

Grab your last three bank statements and credit card bills and spend some time going through them, highlighting any areas where you think you’re spending money unnecessarily or spending too much. This could be on anything from a top of the range broadband package that you don’t need, to a mobile phone contract where you’re paying for data you don’t use.

3. Cancel old subscriptions

A number of households are spending £265 a year on subscriptions for goods and services they don’t even use, according to research by Compare The Market**.

This can include gym memberships, phone contracts and video streaming plans like Netflix or Amazon Prime. Even magazine subscriptions of a few pounds a month are money down the drain if you don’t have time to read the magazine! Take a few minutes and cancel any subscriptions you don’t really use to save yourself a bit of cash.

4. Save money on your bills

Switching your energy supplier used to be a good way of saving money on your household bills, but with energy prices soaring, you may be better off staying on the standard tariff with your existing supplier once your fixed rate tariff comes to an end.

You may also be able to save money on your water bills by having a meter if you don’t already have one. It will depend on the size of your home and how much water you use.

5. Break any bad habits

Take a look at your spending and see if there are areas where you’ve fallen into bad money habits, such as buying a coffee or lunch every day. Cutting that takeaway coffee to once or twice a week, or preparing more of your meals at home, will add up to meaningful savings over a year.

6. Draw up a budget

Drawing up a weekly or monthly budget will help you get your finances under control. There are plenty of templates online to get you started, like the MoneyHelper budget planner.

Alternatively, you can also use budgeting apps to plan what you want to spend and keep track of it. There are plenty available, including Money Dashboard and Moneyhub.

We have our own handy budget calculator which you can use to get an idea of your current monthly expenditure. Take a look here.

7. See if you can pay less interest

If you owe money on an expensive credit card, it may be worth considering whether you can transfer the balance to a credit card charging 0% interest. Although these cards are interest free, you will normally be charged a balance transfer fee of up to 3% of the amount you transfer. Because you won’t be charged interest on your balance, more of your money can go to repaying what you owe.

These cards aren’t right for everyone, and it’s important to make sure you can pay off your balance by the time the 0% interest deal runs out. It may also affect your credit score, especially if you do it multiple times.

8. Get help with unmanageable debts

If you are struggling to pay for the essentials, you are using one credit card to pay off another, or your debts are causing you worry, then contact a debt advice charity, such as StepChange. They will be able to give you help with your debts, free of charge. They may also be able to tell you whether you are able to claim any state benefits.

We’ve teamed up with PayPlan, one of the UK’s leading free debt advice providers, who offer free and confidential advice to anyone in serious financial difficulties.

9. Check your credit report

Your credit report is a snapshot of the information that’s on your credit file. And this information is used by companies you already have a credit agreement with, and lenders you apply to, to make decisions about how good a risk you are. You have the right – by law – to see a copy of your credit report free of charge. It’s worth doing so you can see the information that lenders you apply to can access. Importantly, if there are any mistakes you can get them corrected.

There are several different credit reference agencies, but the main ones are Equifax, Experian and TransUnion.

10. Check if you’re entitled to state benefits

Billions of pounds of state benefits go unclaimed each year, and you could be missing out. The national charity Turn2us has a free and confidential benefits calculator on its website which can help you work out which means-tested benefits you’re entitled to. It also has a grant search tool and information on grants you may be able to apply for.

Sources:

* Royal London research – Cost of living report – Royal London

** Compare The Market Source – Compare the Market Research

PayPlan is a trading name of Totemic Limited. Totemic Limited is a limited company registered in England, Company Number: 2789854. Registered Office: Kempton House, Dysart Road, PO Box 9562, Grantham, NG31 0EA. Totemic Limited is authorised and regulated by the Financial Conduct Authority. Financial Conduct Authority Number: 681263

This article was published on Mon 31 Oct 2022. At the time of publishing, this article was true and accurate, however, over time this may have changed. Some links may no longer work. If you have any concerns about this please contact us

Price increases and rising inflation continue to put a lot of pressure on household finances. A recent survey by YouGov identified some regular subscriptions and monthly payments that people are looking at cutting back on as part of the cost of living crisis impact[1].

Of the 6 subscription categories, gym memberships were most likely to be stopped completely. 7% of adults surveyed ceased gym subscriptions completely. By comparison, only 1% of adults surveyed stopped their home insurance payments completely.  

In terms of making cutbacks to reduce monthly outgoings, about half of those surveyed didn’t make any cutbacks to their car insurance or home insurance (50% and 56% respectively didn’t make any cutbacks). Only mobile and broadband contracts were higher percentages (64% and 67% of those surveyed didn’t make any cutbacks), where people are likely to be tied into contracts. Only 11% of the adults surveyed didn’t make any cutbacks to their gym membership payments.

Only 4% of respondents made cutbacks through choice not necessity for their car insurance and 3% for home insurance.

When it comes to car and home insurance, only 1% of adults surveyed stopped paying completely for home insurance and only 2% for car insurance. Car insurance is a legal requirement in the UK, but home insurance isn’t. Fortunately, people look to be recognising the extremely high-risk decision of not insuring their home and contents.

Around one in ten adults surveyed looked to reduce their car or home insurance payments by switching (13% for car insurance and 11% for home insurance).

So how do I best review my car and home insurance costs

Firstly, remember that the vast majority of people in this survey made the positive decision to continue with their car insurance and their home insurance. In addition, over half of car and home insurance holders didn’t make any cutbacks to their payments.

If you are looking at making cutbacks, these could be achieved by options such as opting to pay a higher excess in the event of a claim, or not covering home contents for accidental damage.

Some policies allow you to pay monthly instead of a lump sum annual payment for no extra charge. This helps you with your budgeting and can save you money each month if you don’t have to pay any charges to spread your costs over a 12-month period. The Police Mutual Car Insurance and Home Insurance policies allow you to pay monthly for no additional charges.

If you are looking at switching insurance providers or making cutbacks in other ways it is important that you consider your personal needs and the value you want your policy to continue to provide.

Some insurance policies may promote a lower headline cost, but either not include certain elements that you personally would find useful or need, or make you pay extra for elements that you want to make use of.

Examples could include:

• choosing a policy that doesn’t charge to make changes during the policy term (e.g. mileage, address and insured driver changes, provision of duplicate documents, changes to cover levels)
• including a courtesy car so you can remain mobile if your car needs to go in for repairs as a result of a claim
• choosing a policy that includes protection for officers travelling to or from work in their car whilst carrying official kit such as their Police Uniform.

Police Mutual car and home insurance policies don’t charge you to make changes to your policy, whilst car insurance includes courtesy car and Police official kit protection as standard.

So, it pays to look beyond the headline cost and get a policy that works for you and your specific needs.

If you do decide to investigate switching, Police Mutual Insurance policies also allow you to switch from your existing provider to Police Mutual without having to wait until your renewal date.

Check out more about Police Mutual Car Insurance and Home Insurance here.

Car Insurance and Home Insurance is provided by Royal & Sun Alliance Insurance Ltd.

PMGI Limited, trading as Police Mutual is authorised and regulated by the Financial Conduct Authority. Financial Services Register No. 114942. Registered in England & Wales No.1073408. Registered office: Brookfield Court, Selby Road, Leeds, LS25 1NB. For your security, all telephone calls are recorded and may be monitored.

[1] YouGov – Cost of living cutbacks subscriptions and insurance.pdf

This article was published on Thu 30 Jun 2022. At the time of publishing, this article was true and accurate, however, over time this may have changed. Some links may no longer work. If you have any concerns about this please contact us

What is the base rate?

The Bank of England base rate sometimes referred to as ‘base rate’ or ‘interest rate’ is the single most important interest rate in the UK. It influences the interest rate paid to high street banks and the rates that these banks charge people to borrow money or earn on their savings.

Will an increase affect my mortgage repayments?

When, and if, your mortgage repayments are affected by the interest rate change will depend on what type of mortgage you have and if you have a mortgage deal, when your current deal ends.

You could see an immediate change in your mortgage repayments if you have a variable rate tracker mortgage, linked to the Bank of England base rate. If you’re on a standard variable rate mortgage then you’ll probably see an increase in your rate in line with any interest rate rise, but this is determined by your lender. If you’re not sure, check your mortgage terms and conditions.

If you’re on a fixed rate mortgage then your mortgage payments will only change once you reach the end of your current deal.

Work out how an interest rate rise will affect you

First you need to know what mortgage deal you’re on so you can see how this rate rise will affect your finances.

So if you’re a mortgage holder then:

• Dig out the details of your current mortgage
• See how your mortgage rate is calculated and whether it’s linked to the Bank of England base rate
• Check when your current deal ends
• See if there are any penalties if you want to end your current deal early

You can use calculators such as the MoneySavingExpert Calculator to work out the impact of the rate increase on your mortgage payments.

Work out your budget

Can you afford an increase in your mortgage payments? Our Budget calculator can help you see if there are any expenses you might be able to cut back on, to free up some income if your mortgage payments do increase because of the rate rise.

If the type of mortgage you’re on means that your mortgage payments are likely to increase in the future, then you could start building up a savings buffer if you can, to help you afford your mortgage payments.

If you’re worried about your mortgage payments then the first step is to speak to your lender. They want to help you meet your repayment and can discuss what options are available to you.

You could also contact The Citizens Advice Bureau for support and advice.

Make sure you’re on the best deal

If your current deal is coming to an end then you should be looking to see what mortgage deals are available. It’s important to get the right mortgage that meets your needs and budget and a mortgage advisor can help. They can search the mortgage markets to find the right deal for you – doing the hard work for you.

The mortgage markets are constantly changing, so even if you’ve got some time left on your current deal then it might be worth speaking to an advisor to see if you’re still on the best deal for you. Remember, you may have to pay an early repayment charge to your existing lender if you remortgage.

Fee-Free Mortgage Advice Service

If you’re looking for mortgage advice, then the Fee-Free Mortgage Advice Service provided by Tenet Mortgage Solutions Ltd could help. Their expert mortgage advisors have independent access to the mortgage market and will guide you through the process from enquiry to completion.

A mortgage is a loan secured against your home. Your home may be repossessed if you do not keep up repayments on your mortgage. You may have to pay an early repayment charge to your existing lender if you remortgage.

Important things you should know:

PMGI Limited, trading as Police Mutual acts as an intermediary for the purposes of introducing its customers to Tenet Mortgage Solutions Limited, part of Tenet. You will not receive advice or any recommendation from Police Mutual. Such services will be provided by Tenet Mortgage Solutions Limited who will provide Police Mutual with information about the services you have received. Police Mutual will receive 18.6% of any lender procuration fee from Tenet Mortgage Solutions Limited in connection with the provision of mortgage broking services.

 Find out more

PMGI Limited, trading as Police Mutual is authorised and regulated by the Financial Conduct Authority. Financial Services Register No. 114942. Registered in England & Wales No.1073408. Registered office: Brookfield Court, Selby Road, Leeds, LS25 1NB. For your security, all telephone calls are recorded and may be monitored.

This article was published on Thu 25 Mar 2021. At the time of publishing, this article was true and accurate, however, over time this may have changed. Some links may no longer work. If you have any concerns about this please contact us

Money worries are not just a financial problem they can cause relationships problems, people to lose homes and families to break down. People from all walks of life can end up in debt for many different reasons, divorce, redundancy, ill health, bereavement. It’s not always easy to talk about money worries but if you’re struggling financially it’s important to take action and this debt awareness week is an ideal time to do this.

Debt awareness week was first launched in 2014 by the debt advice charity StepChange.  If you’re worrying about money there are things that you can do to get your finances back on track.

For help on how to spend less click here to read our guide.

Below are some tips on how to improve your financial wellbeing:

• Take stock – where do you owe money and what are the interest rates.
• Work out your budget – what money do you have coming in, what do you need to pay for and what’s left for paying off debt. Use our budget calculator here to help you manage your money. Set yourself a daily spend limit based on how much disposable cash you have each month.
• If you’re looking to make savings – check that you’re not overpaying for your bills and utilities, where can you make savings, for more information use the link here.
• Set up a separate bill account – transfer an amount each month to cover the cost of all your household bills. This will give you greater control over your finances and ensure you do not make late payments.
• Set yourself saving goals – saving regularly could provide you with a financial buffer for any unexpected bills or be used to save for short term purchases or long term aspirations.
• Check your bank balance – regularly, so there are no nasty surprises. Consider using an app so you can see all your accounts in one place.
• Switch your current account – banks will often pay you to switch accounts use the link here for more information. Check the benefits of your current account before switching accounts.
• Could you save money by switching your insurer? – why not see if Police Mutual could save you money on Car insurance here or Home insurance here.
• Check your credit score – using one of the various companies available online including, Experian, Equifax or CallCredit. For more details on the impact of your credit profile click here to read our guide.

Understanding your debts and how much you’re paying back is important. No debt problems are unsolvable and the earlier you deal with them the easier they are to deal with.

Be aware of how you spend your money. Stick to the golden rule of borrowing: don’t go into debt for something that will last for less time than the amount borrowed takes to pay back.

Do I have a debt problem?

• I find myself using my credit card for essential purchases, like food and bills and the card balance is not cleared at the end of the month
• I’m constantly worried about managing my money
• I’m behind on my mortgage and can’t catch back up
• I am struggling to manage even the minimum payments on my credit card
• I’m being contacted about unpaid bills or missed payments
• I’m relying on quick fix short-term loans
• I’m borrowing from friends or family

Impact of debt on your mental health

Worrying about money can negatively affect your mental health and for those people experiencing mental health problems it makes it harder to manage their finances.  According to the Money and Health Police institute report ‘a silent killer’ problem debt can also be linked to suicide.

According to the Police Federation’s annual Pay & Morale survey results published in November 2020 around a third of respondents worried about the state of their personal finances either every day or almost every day.

It’s important to start talking about money worries before your situation gets worse. Talking about money will give you the confidence to get help and find out who can best advise you on any problems.  It can give you a great sense of relief to share your problems, so you’re not facing them alone. It’s important to seek professional advice as soon as possible and not wait until it’s more difficult to find a solution.

Getting help

If you would like to talk to someone about debt, the following organisations are there for you:

We’ve teamed up with PayPlan, one of the UK’s leading free debt advice providers, who offer free and confidential advice to anyone in serious financial difficulties.

They’re able to advise you on a range of debt solutions suited to your individual circumstances, helping to protect you and your family with a sustainable way to manage your debt.

Get free and confidential help to combat your debt, call PayPlan on 0800 197 8433.  If you don’t want to talk on the phone, it is also possible to email them.

StepChange is a debt advice charity providing full debt help service across the UK.  Online support is also available.

Citizens Advice provide a full debt and consumer advice service, many bureaux have specialist caseworks to deal with any type of debt.

National Debtline is a charity that provides free and independent debt advice. It also has resources to help people deal with their debts. Advice is available over the phone, online and via webchat.