As summer holidays come to an end, Keith Hood discusses the inevitable subject of household finances.

Written by Keith Hood.

September looms, when older children ‘fly the nest’ to enrol in universities and younger children’s parents are wincing at the sound of the shoe shop till.

This is just at the time when the holiday credit card bills arrive; but don’t worry you still have 15 weeks to save up for Christmas!

What can you do to improve finances at this time? Well, if you have a mortgage, you may well find that you are paying more than you need to.Santandergave us a timely reminder of this when, despite no increases in Bank of England rate, it increases its standard variable rate by 0.5pc to 4.74pc. They were not the first and I am sure they will not be the last and this latest increase will herald more.

An increase of 0.5pc on a typical mortgage of £100,000 on interest and capital over 25 years would involve an increase of £30 per month (ie £360 pa). One must consider that there are a number of up-front fee free re-mortgage deals around where not only can the increase be avoided but repayments can be reduced. There are interest rates of less than 3pc for a period where your repayments could be reduced by £118 per month from the new higher rate, using the same example.

Now THAT would buy a quite a few pairs of children’s shoes!

However, there are many things to consider, such as the loan to value, income and commitments and credit rating amongst other issues, so you need to consult an Independent Financial Adviser who has access to the whole of market to advise you on such matters. 

 Keith Hood is managing director of Warners Financial Services and can be contacted on 01953 607313 or

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