So, they’ve done it again! Cut the base rate! Looks like more to come too this year. We could be at 3% by 2026 (if my own back of a packet calculations are anything to go by). This could do wonders for my house price.

The truth at this point is it doesn’t really directly affect me all that much. I’m one of those smug a*******s who locked in low for long back in 2022. 

But my renewal is up in 2027 and things are certainly moving the right way for that. But there is something else about my house that this news will be good for – how much its worth. 

Low rates, high prices

Here’s how things work (at least in theory). When rates are high(er) there is less money in the system looking for a home. More of it is locked up in savings, or spent paying down expensive debts.

But when rates are low – as was the norm from around 2009 to 2022 – then savers struggle to find a good place to park their cash so as to beat inflation. This leads to an asset price boom.

One of those assets which did particularly well is property – housing.

But for those of us who bought just as this boom was ending, i.e. when rates were soaring upwards, this hasn’t been the story.

House prices, broadly, have barely moved. I can’t be the only homeowner who gets the monthly Zoopla email telling me how much my house is currently worth.

Although how online data is able to tell me that with significant accuracy (Zoopla if you’re reading this please drop me a line!), my home’s value has bobbled up and down around what we paid for it for around three years now.

LISTEN: Mouthy Money podcast on why the bank rate is falling

Property market bonanza

Are we about to have a property market bonanza? Perhaps not. The economy is near enough in the bin. This isn’t making it easier for people to cobble together deposits, moving costs, stamp duty fees and everything else.

But the FCA is looking at easing mortgage criteria which should bring more buyers onto the market.  And the more rates get cut the cheaper mortgages will be and the better this will support house price rises. 

We’ve also actually experienced something of an affordability reversal as workers have seen their wages rises substantially in the past two years, while property prices have stood still.

For my part, we’re not going anywhere for now so the value of the house is sort of irrelevant. The least I can ever hope for is not to be in negative equity. 

Are the heady days of soaring house prices coming back for homeowners? Time will tell. 

The post Base rate cut: excited to see my house price go up appeared first on Mouthy Money.

The Bank of England (BoE) has cut its headline base rate from 4.5% to 4.25%.

The Monetary Policy Committee (MPC) voted five to four in favour of a 0.25% rate cut.

Two members voted to hold the bank rate at its current level, while the final two opted for a bigger 0.5% cut in the base rate. 

The MPC underlined what it sees as significant economy issues ahead for the UK economy as the reason for its cut.

However, in its latest forecast it sees inflation rising to 3.7% by the end of this year. Despite this the MPC has pressed on with cuts as it sees the increase in price rises as a temporary phenomenon. 

Dean Butler, managing director for retail direct at Standard Life, part of Phoenix Group, comments: “This is the second significant move by the MPC in 2025 and maybe not the last following lower than expected March inflation and sluggish economic growth. 

“Uncertainties remain around any inflationary impact of April’s employer National Insurance increase, market uncertainty following the US tariffs and wider geopolitical issues however some forecasters predict a series of rate cuts in the year ahead.”

How it affects households

The BoE base rate underpins the cost of debt in the economy and the rewards that savers get for stowing their cash.

Butler adds: “For borrowers, particularly those on variable rate mortgages or approaching the end of a fixed term, today’s rate cut will come as welcome news. Lower interest rates mean reduced monthly repayments, easing financial pressure for many households. 

“However, with ongoing cost of living challenges still front of mind for many, particularly in the context of April’s bill rises, any savings will likely go towards covering immediate expenses rather than discretionary spending. Those with unsecured borrowing like credit card balances may also benefit, though lenders often pass on cuts more slowly in these areas.”

Mortgage rates take some of their cues from the base rate, but it is not necessarily a clear-cut relationship. Much of the market is already priced in ahead of base rate moves thanks to swap rate market and how lenders plan their business. 

“For savers, however, there’s a more complex picture,” Butler continues. “Cash savers may find returns begin to erode in real terms, particularly if inflation remains above the Bank’s 2% target. 

While it’s important to maintain a level of accessible, cash-based savings for emergencies, those with longer-term goals might consider investing to help make their money work harder.”

LISTEN: Mouthy Money podcast on why the Bank is cutting its base rate

Unclear outlook

The Bank’s rate cut comes against a backdrop of rising economic and geopolitical uncertainty. This is thanks chiefly to US President Donald Trump’s ‘tariff war’ and the consequent chaos this caused in investment markets.

However, the UK Government is today due to announce a free trade deal with the US -the world’s largest economy. In recent days it already published details of a deal with India, the world’s fourth largest economy. 

Susannah Streeter, head of money and markets at investment platform Hargreaves Lansdown explains: “Given that the UK economy is decelerating into a dark tunnel of uncertainty, it comes as little surprise that policymakers have opted for an interest rate cut. Decision makers round the table want to avoid [economic] activity grinding to a complete halt. 

“By cutting borrowing costs, they’re hoping to relieve pressure on businesses, stimulate demand in the economy and shine a light towards a recovery. Inflation may still be above target, but deflationary forces are at work, which could have worrisome consequences for growth and are likely to act as a dampener on price rises.”

This explains the BoE’s more aggressive approach, although it has stood back from slashing the rate by a higher amount for now.

Streeter continues: “A recession rather than stubborn inflation is the ogre to avoid right now. The niggling worry of high pay demands looks set to be fading into the background given that hirings have been scaled back by many firms. There is also the chance that an influx of cheaper Chinese-made goods could infiltrate the retail scene and land in virtual baskets. 

“Cut price giants Shein and Temu have increased ad spending in the UK and other parts of Europe, as the US looks like a much more hostile environment. With worries about inflation evaporating and fears about growth rising, it looks like this rate cut could be followed by at least two – and potentially three – more this year.”

Image courtesy of the Bank of England

The post Bank of England cuts the base rate appeared first on Mouthy Money.

Paying off your mortgage early is an enticing idea. For most homeowners, becoming mortgage-free is the ultimate milestone – and they dream of how to spend the extra cash once their debt is gone.

If you’ve built up a healthy savings pot, it might be tempting to clear your mortgage early and live the rest of your life debt-free. 

But is it always the right move? What should you consider before making that decision? And how do you actually go about it?

Mouthy Money answers those questions – and more – below.

The benefits of paying off your mortgage early

There are plenty of upsides to clearing your mortgage ahead of schedule.

For starters, there’s the peace of mind that comes with knowing your home is fully yours, no matter what life throws at you. If you lose your job or fall ill, you’ll always have a roof over your head.

It also frees up a load of cash that you can put towards other things, such as home improvements, retirement savings or even that holiday you’ve always dreamed of.

Depending on how much you have left on your loan, it could also save you thousands of pounds in interest over the long-term.

For example, let’s say you have a £250,000 mortgage at a 4.5% interest rate over 25 years. That means your monthly repayments would be around £1,390.

If you increase your repayments by just £100 a month (to £1,490) you’d save £21,871 in interest and clear your loan two years and 10 months early.

If you increase your repayments by £200 a month, you’d save £38,458 in interest and shave five years and one month off your mortgage.

Some people prefer to make lump-sum payments, rather than increase their monthly outgoings. But the same principles apply.

Let’s say you received a £10,000 bonus or inheritance and put that money towards the same £250,000 mortgage. In this case, you’d save £19,584 in interest and pay off your loan one year and nine months early.

Great, so I should just go ahead and pay off my loan early?

Not quite. While there are clear advantages to paying off your mortgage, it may not be the best option for everyone.

First, check that your lender allows overpayments and if there are any charges or penalties for doing so.

If you’re on a tracker mortgage linked to Bank of England Base Rate, you can usually overpay as much as you want without charges – but check with your lender first.

However, if you’re locked into a fixed-rate deal, you’ll typically be limited to overpaying 10% of your outstanding balance per year.

So, if you owe £250,000, you can pay off up to £25,000. But if you go over that, you’ll probably have to pay an early repayment charge (ERC) – and they’re not cheap.

On a five-year fixed rate, typically ERCs are 5% of your outstanding balance in year one, 4% in year two, 3% in year three all the way down to 1% in the final year.

So, if you owe £250,000, that’s a whopping £12,500 in year one, £10,000 in year two, tapering down to £2,500 in the final year of your five-year fixed rate.

Therefore, you need to do the sums to work out whether it’s worth your while repaying your loan early.

I don’t have to pay ERCs – should I press ahead?

Even if you don’t have to pay ERCs and have the cash, you need to ask yourself a few additional questions before diving in.

Firstly, do you have enough savings to cover emergencies, such as losing your job or unexpected car or home repairs?

Experts recommend that you have at least three to six months’ worth of living expenses in an easy-access account to cover unexpected expenses. You should prioritise this safety net before overpaying on your mortgage.

Next, ask yourself: am I carrying high-interest debt such as personal loans or credit cards?

If the answer is yes, it usually makes sense to clear those first, as they tend to charge higher rates of interest than your mortgage.

After that, you need to ask yourself whether your money could be working harder elsewhere.

Compare the rate on your mortgage with the rate available on high-interest savings accounts or investing.

As a rule of thumb, if your mortgage rate is higher than the interest you can earn in a savings account, overpaying your mortgage may make sense.

Let’s return to the example above, where you have a £250,000 mortgage on 4.5% over 25 years, and you want to pay £10,000 off your loan in a lump-sum.

For the sake of this example, let’s also assume that you’re a basic rate taxpayer and the best savings account on the market pays 5%.

Paying an extra £10,000 off your mortgage would save you £19,450 in interest and shave one year and nine months off your term.

However, you would still be £3,080 worse off paying £10,000 off your loan than if you’d put it in a 5% savings account, even though your mortgage would be cleared in just 23 years and 3 months.

That’s because over that time your savings would be worth £31,360, which would be more than enough to repay the remaining £28,280 left on your mortgage balance – and leaving you £3,080 spare.

If you’re unsure whether you’d be better off repaying your mortgage or saving your money instead, moneysavingexpert.com has a handy calculator you can use.

Investing in the stock market could also offer better long-term gains – typically 5-7% a year after inflation – but it carries risk, and returns aren’t guaranteed.

Whatever your choice, it’s worth speaking with a mortgage broker or financial adviser to get tailored advice. 

LISTEN to the Mouthy Money podcast

I’m going ahead with it. How do I do that?

Most lenders make overpayments pretty straightforward. You can either ask them to increase your monthly direct debit or make one-off payments via your online account or over the phone.

If you prefer a more flexible approach, making lump-sum payments when you get a bonus or extra income might work better for you.

Are there any clever ways I can build up my cash savings to pay off my mortgage early?

There are ways you can increase your monthly repayments without feeling the squeeze.

For example, every time you get a pay rise, put the extra cash straight towards your mortgage. You won’t miss the money – after all, you never had it to begin with.

But as outlined above, you need to ask yourself whether you’d be better saving that money or paying down other debts instead.

There are also apps to help you overpay your mortgage. Accelerate My Mortgage and Sprive, for example, combine cashback and Artificial Intelligence to give you the tools to pay off your mortgage earlier.

Disclaimer: Mouthy Money has not tried either of these apps, so make sure you do your homework before you sign up to anything.

Alternatively, banks like Monzo and Starling offer ‘round-up’ features. If you buy a coffee for £2.60, the app rounds it up to £3 and squirrels away the 40p difference in a separate savings pot. Over time, these small amounts can add up and be used towards overpayments.

The best part is you barely notice it happening – but your mortgage balance certainly will.

Mortgage-free life

Paying off your mortgage early can feel like an incredible achievement, but it’s not a one-size-fits-all decision.

Make sure you’ve got an emergency fund, cleared any expensive debts and considered your long-term goals. Then speak to a mortgage broker to help weigh up your options.

And if you do decide to go for it, congratulations – you’re one step closer to financial freedom.

Photo by RDNE Stock project

The post Home ownership freedom: should you try paying off your mortgage early? appeared first on Mouthy Money.

The Mouthy Money Podcast launched in 2023 to bring a deeper, thoughtful look at the world of personal finance, money, business and a range of other topics.

Since launch, host Edmund Greaves has looked at wide-ranging topics from running a small business to climbing Kilimanjaro; Why private equity is ruining vets to 200% inflation in Argentina; How bitcoin could solve inflation to why financial education matters.

No financial topic is too big or too small for the Mouthy Money podcast.

You can subscribe to the podcast on Spotify, Apple Podcasts or Youtube.

See below for a full list of past and recent episodes.

Would you like to be involved in the podcast? Have you got an interesting money story to tell? Get in touch at editors@mouthymoney.co.uk

Is it time to get health insurance?

The UK depends on the NHS for its healthcare. But is an alternative rising? Hosts Edmund Greaves and Chris Tuite speak with Dr Katie Tryon, chief commercial officer at health insurance firm Vitality about the ins and outs of health insurance as an alternative to the NHS for healthcare needs and the potential financial costs and benefits of a policy.

Available on Spotify, Apple Podcast and YouTube

What does a comfortable retirement really cost?

Host Edmund Greaves and guest Chris Tuite are joined by Cali Sullivan from the Pensions and Lifetime Savings Association (PLSA) for a conversation about retirement living standards. They chat about the PLSA’s latest updates to the minimum, moderate, and comfortable retirement benchmarks and what these really mean for your future. They explores how housing, lifestyle, and personal circumstances can drastically shift retirement planning needs, and why a one-size-fits-all approach doesn’t cut it anymore.

Available on Spotify, Apple Podcast and YouTube

The most common pensions questions answered

Host Edmund Greaves chats with pensions and tax expert Clare Moffat from Royal London to tackle some of the most commonly asked pension questions. From tax relief and contributions to transfers, tax-free cash, retirement income and the state pension system – Claire stresses why getting to grips with your pension and financial planning is key to enjoying a comfortable retirement.

Available on Spotify, Apple Podcast and YouTube

Trapped by inflation? The return of financial repression

 In this episode, hosts Edmund Greaves and Chris Tuite explain the concept of financial repression, a policy that affects savers by forcing them to earn returns below inflation. They explore newly-announced government reforms aimed at creating pension mega funds, illustrate the historical context of financial repression and examine its impact on retirees and savers.

Available on Spotify, Apple Podcast and YouTube

Higher learning, higher earning?

Is a postgraduate degree still worth it? Hosts Edmund Greaves and Chris Tuite discuss the real value of higher education with Rishi Zaveri, co-founder of Lendwise. They unpack the pros and cons of pursuing further education, the financial hurdles students often face, and how Lendwise is changing the game through peer-to-peer education loans. From the power of alumni networks to the role of qualifications in career growth, this episode explores how education – and how we fund it – is evolving.

Available on Spotify, Apple Podcast and YouTube

Could the Bank of England slash the base rate?

The Bank of England is set to cut its base rate, but how low could it go? Edmund Greaves and Chris Tuite look at why rates are coming down, how it could affect personal finances, the economy and the Government’s budget. They also look at the  reasons why it could be good for homeowners and bad for savers.

Available on Spotify, Apple Podcast and YouTube

How to not run out of money in retirement

Edmund Greaves and Chris Tuite are joined by Kevin Hollister, founder of Guiide, for a chat about the realities of retirement planning.

They explore why planning for the future is more important than ever, especially as younger generations face rising housing costs and uncertain financial projections.

Kevin shares how Guiide’s retirement income planning tool is helping individuals take control of their financial futures, from understanding income in retirement needs to navigating the role of home equity in retirement planning.

Available on Spotify, Apple Podcast and YouTube

Saving the Lifetime ISA

Is the Lifetime ISA in trouble? Brian Byrnes, head of personal finance at Moneybox, explains the two big problems the LISA faces, but why we might be hopeful of some reform come Autumn Budget 2025…

The context: the Parliamentary Treasury Select Committee is meeting again today to discuss the future of the Lifetime ISA or ‘LISA’ to decide what to do with the savings product.

Ahead of that we were very pleased to have Brian on to talk to host Edmund Greaves about the LISA.

Brian himself spoke to the committee in February about the case for the LISA. Moneybox, as the UK’s biggest LISA provider is understandably keen to see the product develop and succeed.

Check out the full podcast to get the inside track on the LISA from Brian and Edmund, its benefits and drawbacks – and what might happen in its future.

Available on YouTube, Spotify and Apple Podcasts

Money Remixed

Host Edmund Greaves speaks with authors Mark Wilkinson and Paul Grant about their book Money Remixed. They explore the mindset behind wealth, breaking down societal stigmas, and the link between health and financial success. Sharing personal stories, they highlight the power of discipline and self-awareness, and call for a new, empowering narrative around money.

Available on YouTube, Spotify, Apple podcasts

How modern couples manage their finances 

Join hosts Edmund Greaves and Chris Tuite as they sit down with Charlie Richardson, co-founder and CEO of Lumio, for a discussion on the challenges of managing money in modern relationships. From the evolution of joint accounts to balancing financial independence with shared goals, they unpack the complexities of couples’ finances.

Available on YouTube, Spotify, Apple podcasts

Spring Statement, Stealth Brit ISAs and good news for parents

Edmund Greaves and Chris Tuite unpack the events of Rachel Reeves’s Spring Statement – looking at the troubling economic headwinds, why the Government Budget is so tight and the stealth return of the Brit ISA. Plus, some good news to be had for parents who don’t like doing self assessment tax returns.

Available on Spotify, Apple Podcast and Youtube.

You don’t need to save for a 100 year life

Savers are encouraged by the finance industry to plan for a ‘100 year life’ – but is this just a way for them to charge more fees for longer? Join hosts Edmund Greaves and Chris Tuite as they chat with financial adviser and podcaster Dan Haylett, debunking myths about living a ‘100-year life’ and explore why aligning money with personal values is so important.

Available on Spotify, Apple Podcast and YouTube.

Spring Statement, ISAs and pensions

Edmund Greaves and Chris Tuite, joined by guest Craig Rickman, unpack the upcoming budget and what it means for your wallet. From potential changes to the cash ISA allowance to the impact of welfare cuts on state pensions, they break it all down. Plus, they explore why personal pensions matter more than ever and highlight the need for simpler, more accessible financial products.

Available on Spotify, Apple Podcast and YouTube.

Mouthy Money’s new focus – it’s time to get angry about our money

Join Edmund Greaves and Chris Tuite as they lay out Mouthy Money’s new approach to talking about money. From building wealth to protecting it and enjoying it – Mouthy Money is now dedicated to lifting the lid on why the system works against you and how you can flip it to your advantage to make your money go further – now and into the future

Available on Spotify, Apple Podcast and YouTube.

The Bargain Hunter

Host Edmund Greaves and Chris Tuite welcome financial journalist Kara Gammell to discuss her new book, The Bargain Hunter, exploring the savvy money-saving strategies and the psychology of spending. Kara shares quirky, practical tips to help listeners take control of their finances, proving that small savings add up to big wins. From smart shopping hacks to the surprising benefits of frozen foods, the conversation explores mindful budgeting, reducing waste, and making incremental changes for long-term financial success. They also highlight the importance of pensions and financial security.

Available on Spotify, Apple Podcast and YouTube.

The future of Cash ISAs, inflation and smart investing

In this episode, with speculation around the future of the Cash ISA increasing Chris Tuite sits down with Chris Rudden, Head of Investment Advisory at MoneyFarm, to break down the current ISA landscape. They explore why they are so popular, the hidden risks of inflation, and how government policies shape our savings and investments. Are cash ISAs really the best bet to build wealth, or is there a smarter way to grow your money?

Available on Spotify, Apple Podcast and YouTube.

Are first time buyers back? 

Edmund Greaves and Chris Tuite sit down with Stuart Cheetham, CEO of MPowered, to break down the prospects for first-time buyers as the mortgage market enters an important period. They discuss the recent shifts in stamp duty, the impact of interest rates, and the outlook for first-time buyers. The trio also explores the role of mortgage stress tests and how MPowered is re-imagining the mortgage process to make it more efficient. With insights on the role of brokers and predictions for the future of the market, this episode offers key takeaways for anyone navigating the changing mortgage landscape.

Available on Spotify, Apple Podcast and YouTube.

Is the party over for AI stocks?

Edmund Greaves and Chris Tuite consider the rise of DeepSeek, the AI technology challenging stock prices of US tech giants such as Nvidia and OpenAI, and what it means for global investment markets.

They also break down UK Chancellor Rachel Reeves’s economic growth plans and the challenges facing the Labour Government — from infrastructure investment to bank branch closures—and the balance needed to make the economy grow.

Available on Spotify, Apple Podcast and YouTube

What now for mortgages?

Edmund Greaves and Chris Tuite are joined by Jeni Browne to discuss the year ahead and the unpredictable rates impacting capital markets. They share personal remortgaging experiences and practical advice for borrowers, including tips on two-year and five-year fixed rates and insights into the future of interest rates.

This podcast is for information purposes only and should not be construed as advice. If in doubt, speak to an authorised advice professional.

Available on Spotify, Apple Podcast and YouTube

Why Gen Z and Millennials are turning to social media when making money decisions

Edmund Greaves and Chris Tuite unpack the findings of MRM’s ⁠Young Money Report 2025⁠, shedding light on how 18 to 30-year-olds are navigating their financial futures. They discuss the surprising optimism among young people, the growing influence of social media on money decisions, and the risks posed by scams. Insights from the report highlight a clear call for financial institutions to better engage with this audience. From the rise of financial influencers to the critical need for better education, they explore what’s shaping the new generation’s approach to money and why it matters for the future of finance.

Young Money Report

Available on Spotify, Apple Podcast and YouTube

Divorce Day: the financial implications of ending a marriage

Edmund Greaves and Chris Tuite tackle the tough realities of divorce with Atomos’s Helen Howcroft, breaking down the emotional and financial hurdles that come with ending a marriage. From the significance of ‘Divorce Day’ to busting myths about financial entitlements, they uncover what really happens behind the scenes. Helen shares her professional experiences on navigating the key stages of divorce, managing the emotional rollercoaster, and why expert support is essential.

Available on Spotify, Apple Podcast and YouTube

Why are we losing confidence in our pensions

Edmund Greaves and Chris Tuite tackle the challenges of retirement planning with Andrew Tully from Nucleus. They discuss starting early, the power of compounding, and bridging the pension advice gap. Insights from Nucleus’s confidence index highlight rising public concerns about retirement savings. Plus they talk about the role of financial influencers, skepticism about state pensions, and the need for better education and stable policies to rebuild trust.

Available on Spotify, Apple Podcast and YouTube.

Should millennials be panicked about pensions?

How worried are you about your pension? Edmund Greaves and Chris Tuite explore the tricky world of retirement saving with guest Paul Budgen, co-founder of My Time Pension.

They chat about why pensions can feel so stressful and confusing, and how understanding them doesn’t have to be as scary as it seems. From figuring out what those pension projections really mean to breaking down charges and why they matter, the team covers all the key stuff.

They also talk about how to spread your investments around (because no one likes all their eggs in one basket!) and share tips on navigating tax perks and retirement planning without getting lost in the jargon. Investing and managing your own pension carries risks. If in doubt, seek financial advice.

Available on Spotify, Apple Podcast and YouTube.

How to give your kids the gift of financial freedom this Christmas

Hosts Edmund Greaves and Chris Tuite get into the holiday spirit with guest Cem Eyi, co-founder of The Beanstalk App, an app helping UK families save for their kids’ futures.

They unwrap the magic of children’s savings, from the legacy of the Child Trust Fund to the power of Junior ISAs, while also spilling the beans on holiday spending habits across the UK.

But it’s not all mince pies and mistletoe—they dig into sustainable gifting ideas to help Brits cut down on waste and give gifts with real meaning.

Available on Spotify, Apple Podcast and YouTube.

Generation X has a pension problem

Host Edmund Greaves chats with Mike Ambery, Retirement Savings Director at Standard Life, about the challenges Generation X faces with pensions and retirement savings. Drawing on findings from Standard Life’s latest report, they discuss the pensions savings gap, the role of state pensions and property, and share practical tips to help Gen X boost their retirement prospects.

Available on Spotify, Apple Podcast and YouTube

What if you won the lottery?

Hosts Edmund Greaves and Chris Tuite venture into the glittering world of lottery wins, celebrating the 30th anniversary of the National Lottery. With the help of financial expert Duncan Horner from Amber River Premier, they tackle the dreams and dilemmas that come with sudden, life-changing wealth. From the emotional whirlwind winners experience to the practical steps needed to turn millions into generational security. The trio unpacks the highs of newfound riches and the potential pitfalls, revealing just how important financial planning, budgeting, and education are to keeping that dream alive

Available on Spotify, Apple Podcast and YouTube.

Afin Bank launch and will Bitcoin go to the moon?

Edmund Greaves and Chris Tuite chat about the launch of Afin Bank, a challenger bank designed to support the African diaspora in the UK. Alan Davison, Afin Bank’s Chief Commercial Officer, joins the podcast to explain the bank’s mission to help underserved communities, particularly in getting access to mortgages and other financial services. They explore the unique challenges African immigrants face in the UK, like residency requirements and tricky credit scoring, and how Afin Bank plans to make lending more accessible. They also touch on the bigger picture of challenger banks and the rise of digital currencies like Bitcoin, reflecting on how fast the financial world is changing.

Available on Spotify, Apple Podcast and YouTube.

US Election results, markets and Bitcoin

This week hosts Edmund Greaves and Chris Tuite tackle the financial whirlwind stirred up by Donald Trump’s victory. Is it a golden opportunity for investors, or a recipe for runaway inflation? With insights from Saxo Bank’s Althea Spinozzi, they break down what it could mean for your wallet—from the Bank of England’s next moves to the impact on global markets. They also discuss whether Bitcoin and gold might be your best friends in these turbulent times, or just fool’s gold.

Available on Spotify, Apple Podcast and YouTube.

Mouthy Money 2024 LIVE Part Two: Hot Takes

Budget 20204 Hot Takes: Edmund Greaves and Chris Tuite, are joined by Victor Sacks, owner and IFA at VS Associates and Marlene Outrim, Managing Director and Certified Financial Planner at Uniq Family Wealth immediately after Chancellor Rachel Reeves finished her first Budget to give their live hot takes on what it means for our finances.

Available on Spotify, Apple Podcast and YouTube.

Photo credits: Flickr

Mouthy Money 2024 LIVE Part One: Budget Bingo

Mouthy money editor Edmund Greaves is joined live by Chris Tuite, Head of consumer finance at communications consultancy MRM, to comment along and play Budget Bingo while Chancellor Rachel Reeves delivers her first Budget to Parliament.

Available on Spotify, Apple Podcast and YouTube.

Budget, media speculation and pensions

 This week, Edmund Greaves and Chris team up to tackle some of the hottest topics in personal finance. They chat about the upcoming budget, break down how the media shapes our views, and discuss the tricky decisions the government has to make. The duo also takes a close look at state pension reforms, inheritance tax simplification, and share personal finance tips to keep you ahead. Chris opens up about his own experience with workplace pensions and the challenge of picking the right investment options.

Available on Spotify, Apple Podcast and YouTube

Photo credits:  HM Treasury Flickr 

Tax rumours, scammers and Amazon Prime Day

This week, host Edmund Greaves is joined by colleague Francesca Giacomin to dive into the biggest money stories of the week. From Rachel Reeves’s retreat from a controversial pension tax raids to new rules aimed at protecting you from sneaky text and email scammers, Ed and Francesca share their personal stories dealing with scammers and why these changes could make a big difference for consumers. And don’t miss their chat about Amazon Prime Day, where Ed reveals a clever trick to ensure you’re not overspending online.

Available on Spotify, Apple Podcast and Youtube

Pension pitfalls, tipping truths and bills breakthroughs

The luxury cruise liner Odyssey remains anchored off Northern Ireland after months of delays, turning a planned three-year adventure for pensioners into a maritime soap opera. In this week’s podcast, Edmund Greaves and Chris Tuite discuss whether it’s a smart investment or if the passengers’ retirement savings are just drifting away. They also tackle the controversial subject of tipping—are Brits really stingy abroad? Plus, Ed shares how switching energy providers helped cut his bills and offers tips to save you money.

Available on Spotify , Apple Podcast and Youtube

Two new Government policies NOT in the Budget that could affect your finances

Edmund Greaves welcomes back co-host Chris Tuite from paternity leave to look at two the big Government reforms being forgotten as attention focuses on the upcoming Budget. While everyone’s talking about taxes, Edmund and Chris focus on coming renters’ and workers’ rights reforms. Plus, Chris and Ed debate Junior ISAs or pensions for your kids?

Available on Spotify, Apple Podcast and YouTube

Starlink fixed my broadband blues

Edmund Greaves chats with Debbie Greenfield about how Starlink, Elon Musk’s satellite internet, transformed her slow, frustrating Wi-Fi into a fast, reliable connection. Debbie shares her experience and how it turned things around for her life and work.

Available on Spotify, Apple Podcast and YouTube

Childcare juggling, winter fuel allowance and mortgage market joy

Edmund Greaves catches up with Paul Thomas, MRM’s head of news and content, as the two new dads dive into the costs of childcare. They swap stories about the challenges of navigating this ever-growing expense and even compare how things stack up between Wales and England.

Plus they tackle the impact of cuts to the winter fuel allowance on pensioners and discuss the news of a £460 increase in the state pension under the triple lock. Finally, they hit Paul’s home turf: the world of mortgages and the current state of the property market.

Available on Spotify, Apple Podcast and YouTube.

Could mutuals be the future of good money?

Mutuals have been around for more than 100 years. Could the unusual structure of such companies be a potential future solution to better financial companies? Edmund Greaves is joined by Stephen McGee, chief executive of Scottish Friendly, to find out more about mutuals and their place in finance in 2024.

Available on Spotify, Apple Podcast and YouTube.

Oasis reunion tickets, winning the lottery and childcare chaos

Chris regales Ed with tales of seeing Oasis at their peak, and how much a ticket will cost for the reunion, and whether this and a Labour Government means Cool Britannia is back.

Plus both consider what they’d do with a £100 million lottery win and appeal for a financial advisor to help them make the most of their (currently) fictional cash, while Ed opines the complexity of getting government help with childcare and an important revelation from Pregnant then Screwed on free childcare hours.

Available on Spotify, Apple Podcast and YouTube.

Photo by Yvette de Wit on Unsplash

How to manage vulnerability and money

Vulnerability is a major issue in financial services. So how can vulnerable people, and the firms that have to help them, get better organised for the issue? Edmund Greaves is joined by Helen Lord, chief executive of the Vulnerability Registration Service to discuss her work and experiences dealing with vulnerability and finance.

Available on Spotify, Apple Podcast and YouTube.

Markets mayhem and expensive hobbies

Chris and Ed look at what’s been happening in markets, and if it matters to normal people. Plus, they both admit to their expensive hobbies, and complain about the railways.

Available on Spotify, Apple Podcast and Youtube.

Loud budgeting, cash stuffing and a big rate decision

Ed and Chris talk big social media money trends including loud budgeting, cash stuffing and doom spending.

The guys also look at this week’s big money story, the interest rate decision from the Bank of England. Both give their potential predictions on what could happen.

Available on: Spotify, Apple Podcast, YouTube

Financial jargon’s worst offenders and how to fix the broken language around retirement

For a special in-studio edition of the Mouthy Money podcast, host Edmund Greaves is joined by James Daley, founder of ratings and consumer group Fairer Finance, and Robert Vaudry, chief customer and investment officer at Wealthtime, to take a deep dive into the world of financial jargon, retirement language and regulatory change coming for financial firms who don’t explain their products in simpler terms.

Available on: Spotify, Apple Podcast, YouTube

Nationwide or Reddit? Where we get our financial information

There’s a problem in the way in which we get our financial information. From Nationwide savings emails to money forums on Reddit – Chris and Ed look at how we obtain financial information, how blurred the rules are, and why the regulator gets it wrong so often.

Available on: Spotify, Apple Podcast, YouTube

One ISA to rule them all

Ed and Chris invite AJ Bell’s Tom Selby on to the pod to talk about potential end to the Brit ISA and the investment platform’s ‘One ISA’ proposal it has submitted to the new Labour Government.

Available on Spotify, Apple Podcast and YouTube.

How do you solve the housing affordability puzzle?

Host Edmund Greaves is joined by Polly Gilbert, co-founder of digital mortgage broker Tembo, to discuss what’s happening in the mortgage market, how to solve the housing affordability puzzle, and why the Lifetime ISA is a good thing.

Available on Spotify, Apple Podcast and YouTube

Labour in charge, prime minister investment scores and bank rates

Chris and Ed look at what happens now Labour is in charge, the prime ministers with the best (and worst) investment returns, and what happens next in the mortgage market.

Available on Spotify, Apple Podcast and YouTube

Photo credits: HM treasury

Where do mortgage rates go from here? Part one of the mortgage takeover special

What is happening in the mortgage market? Where do rates go now the Bank of England is looking to cut its base rate?

Host Edmund Greaves is joined by mortgage expert Roger Morris and John Davison from Perenna to talk about what happens next in the mortgage market, and whether we’ll ever get low rates again.

Listen on Spotify or Apple Podcasts or watch on Youtube

Council tax, land value tax and what Labour does on 5 July

Council tax is the most broken of all the taxes. Ed and Chris dig into why, while Ed waxes lyrical about his favourite solution. Then the guys look at what they think Labour will do come the first day in Government.

Available on Spotify, Apple Podcast and YouTube.

Savers vs spenders, investing gamification and the mortgage takeover

Ed and Chris get to grips with saving vs spending (the Stoics vs the Epicureans of the 21st Century), why the financial regulator is looking at investing gamification and Mouthy Money’s upcoming mortgage takeover.

Available on Spotify, Apple Podcast and YouTube.

What can the Brits learn from Australians about money?

Everyone talks about the Australian pensions system and how much the UK can learn from how much better it is. But what else can we learn from the Aussies about money?

Hope Coumbe, editor of Professional Adviser, catches up with host Edmund Greaves to talk about her experiences as an Australian living in the UK and what the Brits might be able to learn about money from the other side of the world.

Available on Spotify, Apple Podcast and Youtube.

Interest rates, Brit ISAs and beating bill hikes

Mouthy Money editor Edmund Greaves catches up with MRM’s Chris Tuite on weekly money news and personal financial stories including:

Why interest rates are a big deal this week, why the Brit ISA sucks, a tax story that caught our eye, and Ed’s battle of the bills.

Available on Spotify, Apple Podcast and Youtube.

Diary of an SME owner: it’s all just luck

Mouthy Money diary of an SME owner columnist Michael Taggart catches up with host Edmund Greaves on how his business, MDTea, is getting on. With economic clouds growing, Michael talks about what he feels offered by political parties at the General Election, and why so much of success in business and personal finances comes down to luck. 

Available on Spotify, Apple Podcast and YouTube.

Financial repression, perverse tax outcomes and paying for childcare

Mouthy Money bonus episode two: Ed lectures Chris on ‘financial repression’ – the little-known tool that the next Government might use to fix the economy, while Chris bemoans bad taxes and Ed recounts his trouble finding childcare for his son.

The Mouthy Money bonus podcast is cohosted by Edmund Greaves, editor of Mouthy Money and Chris Tuite, head of consumer finance at MRM.

Available on Spotify and Apple Podcast

BONUS: F OFF funds, pension quad locks and ignoring your investments

In the first edition of a new weekly bonus show on the Mouthy Money podcast channel, host Edmund Greaves is joined by Chris Tuite, head of consumer finance at MRM to discuss the week’s most important money news, and what’s going on in their personal financial lives.

This week, Chris and Ed discuss General Election announcements, rainy day funds and not looking at your investments.

Available on Spotify and Apple Podcast.

Tracking down your lost pensions

Have you lost a pension? You might not be the only one. Host Edmund Greaves speaks to head of pensions at Penny, David Henderson, as they discuss a Penny customer who found no less than 11 lost pensions with the app.

Available on Spotify and Apple Podcast.

Figuring out your financial goals

Host Edmund Greaves catches up with friend of the channel Myron Jobson. This week Myron & Ed are diving into how to figure out your financial goals. Both reveal some of their past and future goals, and Myron has a handy little guide to how to set your own.

Available on Spotify and Apple Podcast

Why can’t I hold bitcoin in an ISA?

This week we’re joined by Tom Bailey, head of research at Han ETF. Tom speaks to host Edmund Greaves about the world of ETFs, including gold and other asset classes, now available to investors through the investment vehicle.

He also digs into why normal investors in the UK can’t hold bitcoin ETFs thanks to intransigence from the UK’s financial regulator.

Listen on Spotify and Apple Podcast.

Being chased for energy bill debts by Michael Jackson

This week’s guest is university lecturer and author Dennis Duncan, who recounts a personal story to host Edmund Greaves about how he was hounded for thousands of unpaid energy bills he didn’t owe after his energy provider went bust, and how he beat the debt collectors who were chasing him.

But strangest of all in the tale, is how the debt collectors signed off their threatening letters with a signature that looked suspiciously like that of late pop star Michael Jackson. Dennis explains what happened and how he beat the debt collectors at their own game.

Listen on Spotify and Apple Podcast

Could financial education solve the pensions crisis?

Could financial education solve the pensions crisis? This is the extraordinary possibility which Sarah Marks, chief executive of financial education charity RedSTART suggests this week when she caught up with host Edmund Greaves. Sarah shares the latest findings from RedSTART’s multi-year education study as well as some surprising insights into why we’re in such a collective fix with our retirement savings.

Listen on Spotify and Apple Podcast

Mouthy Money book competitions

Join host Edmund Greaves and Francesca Giacomin for a quick catch-up on recent news and what’s coming up at Mouthy Money. We even let slip the title of our next book giveaway and the name of an exciting upcoming podcast guest! Tune in to catch all the details!

Listen on Spotify and Apple Podcast.

How rich is rich?

Our concept of wealth is a constantly moving barrier. As we earn and save more, the idea that we might now be ‘rich’ seems difficult to comprehend. But how much would really be the level at which money makes us rich?

Join host Edmund Greaves as he’s joined by MRM’s head of consumer finance Chris Tuite, who details the findings of the Money Matters Index report – and puts an exact number on exactly how much money makes us rich, according to us.

Listen on Spotify and Apple Podcast.

Robinhood and the tumultuous retail investing boom

The meme stock boom of the pandemic might be over, but are small-time investors is still thriving? The arrival of US-bases Robinhood in the UK is a timely reminder of just how many options there are for Brits looking to invest their savings.

But with so many options are these firms stable enough to survive, let alone thrive, in tumultuous investment markets?

Mouthy Money podcast host Edmund Greaves is joined by chief executive of Fundscape, Bella Caridade-Ferreira and Chris Tuite, head of consumer finance at MRM, to unpick the investment platform market and why we’re nowhere near a potential saturation point.

Listen on Spotify and Apple Podcast.

Where do interest rates go now?

Remortgagers are facing a big question now that rates look set to start falling as inflation eases. In the latest edition of the Mouthy Money podcast, contributing editor Paul Thomas chats to Perry Graves, mortgage broker at Tembo Money to find out what people should do.

Listen on Spotify and Apple Podcast.

Myron & Ed – Spring Budget 2024 and end of the tax year

Host Edmund Greaves and ii financial expert Myron Jobson are back to dissect Jeremy Hunt’s Spring Budget 2024, highlighting the key announcements and what they mean for our finances. Plus, Myron explains last-minute tax year considerations, including capital gains tax changes and more.

Listen on Spotify and Apple Podcast

The true cost of climbing Kilimanjaro

Mouthy Money podcast host Edmund Greaves recounts his recent experience climbing Kilimanjaro for charity, following on from his article about the costs involved with planning a trek up Africa’s highest mountain.

From vaccines to M-Pesa, acclimatising to the gear for summiting – there’s a multitude of money aspects to think of before you climb.

Joined by Argentine-American bitcoin educator and friend of the podcast Trevor Schrock.

Listen on Spotify or Apple Podcast

Review: The Everything Token by Steve Kaczynski and Scott Duke Kominers

Crypto and non-fungible tokens (NFTs) have been on a wild ride in the past few years.

Edmund Greaves and Francesca Giacomin review a new book, ‘The Everything Token’ by Steve Kaczynski and Scott Duke Kominers which delves into the world of NFT technology. Mouthy Money is giving away one of three copies, find out more how to win one by listening in.

Listen on Spotify or Apple Podcast

Cash is dying. Should we save it?

Cash is dying out as a form of payment. But is it worth saving? Host Edmund Greaves talks to Martin Quinn from the Payment Choice Alliance on why cash matters, and why it might be making a comeback as a payment option.

Listen on Spotify or Apple Podcast

Look at the state of the mortgage market

Are you remortgaging this year? The home loan market is a minefield at the moment. Host Edmund Greaves catches up with colleague and mortgage aficionado Paul Thomas on how we got to the current situation and what anyone who is looking to remortgage should consider right now.

Listen on Spotify or Apple Podcast

Myron & Ed: Budget preview – the tax measures to watch out for

In this month’s Myron & Ed team up, the guys preview the upcoming Budget in March, including what they THINK will be in the Budget, what they WANT and the controversial tax Ed would like to see in his wildest dreams…

Listen on Spotify or Apple Podcast

Beware the cowboy will writers

You’ve heard of cowboy builders, but did you know cowboy will writers were a thing? Join host Edmund Greaves as he uncovers the scourge of dodgy will writing with Sarah Manuel of professional body STEP, to find out how a bad will could cost you thousands.

Listen on Spotify or Apple Podcast

Six key trends in finance

Could AI solve the advice gap? This is one of six key trends highlighted by fintech entrepreneur Anthony Morrow, who joins host Edmund Greaves to discuss major changes coming for financial services and consumers this year.

Listen on Spotify or Apple Podcast

Could bitcoin solve the world’s inflation problems?

With rampant inflation, should we consider a return to the gold standard? Or is the future of money shaped by innovative financial technologies like bitcoin? Host Edmund Greaves digs into how bitcoin works with bitcoin educator Trevor Schrock, and whether it could change how the world’s financial system works.

Listen on Spotify or Apple Podcast

Myron & Ed: Mortgage rates, the cost of Kilimanjaro and New Year’s resolutions

In episode two of Myron & Ed’s monthly money podcast Edmund Greaves, editor of Mouthy Money, and Myron Jobson, personal finance expert at interactive investor dig what’s happening to mortgage rates, the real cost of climbing Kilimanjaro, and important New Year’s financial resolutions.

Listen on Spotify or Apple Podcast

Is Blue Monday real?

Is Blue Monday a real thing, or just a concoction to encourage people to buy holidays? Edmund Greaves chats to MRM’s Chris Tuite to look at ‘Blue Monday’s’ origins and questionable motives – but ponders whether it might actually be worthwhile despite the PR spin.

Listen on Spotify or Apple Podcast

How Argentina lives with 200% inflation

Mouthy Money editor Edmund Greaves is joined by Argentine-American bitcoin educator Trevor Schrock to get to grips with what living with 200%+ inflation is like in Argentina, and whether bitcoin could one day be the solution to the problem.

Listen on Spotify or Apple Podcast

Why financial education matters – part two

Join Edmund Greaves for a thought-provoking discussion with Sarah Marks, CEO of RedSTART Educate in the second part of our series on why financial education matters.

In this episode, Ed and Sarah delve into the landscape of financial education, examining the importance of providing individuals with essential financial literacy skills.

Listen on Spotify or Apple Podcast

Ed and Myron: our financial lives and the Autumn Statement 2023

We’re very excited this week to launch a brand new collaboration on the Mouthy Money podcast. Editor Edmund Greaves and interactive investor personal finance expert Myron Jobson have teamed up to create a brand new series of longer-form podcasts on the Mouthy Money podcast channel.

In the first edition, Myron and Ed dig into their own backgrounds to consider some of the things that have shaped their money lives, including hardworking mums, becoming dads and the lessons they’ve learned from their own mistakes and experiences with money.

They also round up some of the big news from November’s Autumn Statement and how this could affect your money in 2024. Stay tuned and subscribe to our podcast channels to hear more from them in the coming months!

Listen on Spotify or Apple Podcast

Why financial education matters – part one

Editor Edmund Greaves chats with financial journalist and children’s book author Sonia Rach to explore the importance of starting early with kids, who learn financial habits as early as age seven.

Listen on Spotify or Apple Podcast

The Young Money report

Welcome to Episode 10 of the Mini Money Podcast! Join our host, editor Edmund Greaves, alongside our guest, Chris Tuite, MRM Director and Head of Consumer Finance.

In this episode, we explore the recently released ‘The Young Money Report,’ an MRM report in collaboration with Mouthy Money.

Gain valuable insights as Ed and Chris discuss key findings and explore how industry experts reacted to the findings.

Listen on Spotify or Apple Podcast

Diary of an SME owner

Episode 9 of Mini Money Podcast, featuring the small business owner and Mouthy Money columnist Michael Taggart.

We dive into Michael’s personal finance background and his journey to running his own small business MDTea.

Plus we find out what he’d do if he won the lottery, and what he’d do as Chancellor for the day.

Listen on Spotify or Apple Podcast

The problem with vets

‘The Problem with Vets’ delves into the soaring expenses of veterinary care.

Join us as we dissect the CMA’s investigation and unravel the complex connection between pet owners, private equity, and your furry friend’s well-being.

Listen on Spotify or Apple Podcast

Emergency funds

Francesca and Edmund tackle the essentials of personal finance amid some unexpected background drilling noise.

It’s not your typical podcast interference; we’re just “drilling down” on the money matters!

They’ll guide you through building an emergency fund, spill the beans on surprising inflation trends, and share the top Money Blogs of the Week from Mouthy Money.

Listen on Spotify or Apple Podcast

Financial goals

Join Francesca and Ed in the latest episode of the Mini Money Podcast for an engaging discussion: Francesca and Ed define the financial term of the week, “portfolio,” and delve into its significance in personal finance.

Ed answers essential questions about financial goal setting, risk assessment, tax considerations, asset allocation, and the role of financial advisors in portfolio management. Discover two thought-provoking blogs from Mouthy Money: “How to make money from retail deal arbitrage” by Nick Daws and “Project Mbappe: what are the true costs of making your child a sport star?” by Barnaby Sargent Megicks.

Stay updated with the latest financial news highlights courtesy of Ed. Don’t miss out on this informative episode! Tune in to gain valuable insights into managing your finances effectively. Remember to like, subscribe, and hit the notification bell to stay updated with the Mini Money Podcast.

Listen on Spotify or Apple Podcast

Rising interest rates

Join Francesca, your host, and our Mouthy Money Editor, Edmund Greaves, as they dive into the fascinating world of finance and money management.

In this episode, we start with our “Word of the Week,” where we demystify the term “interest rates.” Ed shares his insights and answers some burning questions, including how interest rates vary among UK savings accounts.

Get ready for some valuable tips on leveraging rising interest rates for your investments and understanding the impact of inflation on your savings and investments.

But that’s not all! We also discuss the latest Mouthy Money blog articles, including an exciting opportunity to get your will written for free in October. Trust us; you won’t want to miss this important financial advice.

And in our “Must Know Money News” segment, Ed delves into the hot topic of Inheritance tax abolition, asking whether it will truly save the richest £1 million. As always, Ed provides his expert insights to help you navigate the complex world of finance. Be sure to check out the full articles on the Mouthy Money website for even more in-depth information.

Listen on Spotify or Apple Podcast

The Money Mole

Welcome to another exciting episode of the Mini Money Podcast!

Join your host, Francesca, and Mouthy Money Editor Ed Greaves as they dive into the world of personal finance and introduce the enigmatic Money Mole!

In this lively episode, they kick things off with the Word of the Week: “liability.” Ever wondered how personal liabilities impact your financial journey? They’ve got the answers!

Listen on Spotify or Apple Podcast

Pension Awareness Week

In this episode, we celebrate Pension Awareness Week by delving into the world of pensions with our financial expert, Ed, and host Francesca.

Discover the ins and outs of pensions, types of pension plans, government’s role, and much more. Ed answers key questions, offering valuable insights and tips for better financial planning.

Listen on Spotify or Apple Podcast

Intro to Mini Money

Welcome to the Mini Money Podcast, your weekly financial knowledge boost! Are you tired of feeling lost in the financial jargon jungle?

Look no further! Join us every week as we dive into the world of money and make it simple for you. In each episode, we’ll take a deep dive into a different financial word or concept, breaking it down into plain and understandable terms that anyone can grasp.

Whether you’re a seasoned investor or just starting on your financial journey, we’ve got you covered. But that’s not all!

We’ll also keep you in the loop with the latest financial blogs of the week, offering insights and tips to help you make informed decisions about your money.

Plus, we’ll bring you up-to-date with any other relevant financial news that you need to know. Stay informed, stay empowered, and stay financially savvy with the Mini Money Podcast. Subscribe now, and let’s make finance easy and fun together!

Listen on Spotify or Apple Podcast

The post The Mouthy Money Podcast appeared first on Mouthy Money.

The UK economy is navigating a delicate balance of inflation, wage growth, and interest rates, with significant implications for households.

Inflation, the rate at which prices increase, dropped to 2.6% in March 2025, down from 2.8% in February, driven by cheaper petrol and slower rises in leisure costs. However, this respite may be short-lived.

The Bank of England projects inflation could climb to 3.7% between July and September 2025, spurred by higher energy prices, water bills, and bus fares. Analysts warn it may reach 4% over the Summer, with utility bills up 6.4% and water bills soaring 26%.

Global trade tensions, including potential US tariffs, could further inflate prices. Despite this, inflation is expected to drift back toward the Bank’s 2% target by late 2027.

Wages are currently outstripping inflation, providing some relief. From November 2024 to January 2025, average pay (excluding bonuses) rose by 5.9%, delivering a real wage increase of 3.2% after inflation adjustments.

Private sector pay grew faster than public sector earnings, but a softening job market, with declining employment and fewer job adverts, raises concerns.

Public sector pay rises of 5.5% without productivity improvements could drive inflation higher, as private wages often follow suit.

The planned increase in employer National Insurance Contributions (NICs) and the minimum wage in April 2025 may push businesses to raise prices or cut jobs, adding pressure to household budgets.

Interest rates, set by the Bank of England, have fallen three times since August 2024, from 5.25% to 4.5% by February 2025, to bolster growth while taming inflation. Rates were held at 4.5% in March, but with inflation expected to rise, the Bank is proceeding cautiously.

Markets now forecast up to four rate cuts in 2025, potentially lowering rates to 3.5%, especially if global trade issues weaken the economy.

Lower rates reduce borrowing costs, directly benefiting homeowners on tracker mortgages, whose payments adjust with the base rate.

The prospect of further rate cuts has sparked talk of a potential mortgage price war. Lenders, facing intense competition, are already cutting fixed-rate deals to attract borrowers.

In early 2025, two-year fixed mortgage rates dipped below 4% at some high street banks, with five-year fixes not far behind.

More from Edmund Greaves

This trend could accelerate as rates fall, with smaller lenders and building societies likely to offer aggressive deals to gain market share.

For the 80% of homeowners on fixed-rate mortgages, many of whom face renewals in 2025, this could mean lower repayments.

However, borrowers must weigh up their options, as lenders may withdraw offers if inflation spikes unexpectedly.

Households should prepare for higher costs in 2025, with rising utility and water bills squeezing budgets. Savers may see returns diminish as inflation erodes the value of cash and savings rates.

With wages growing but economic uncertainty looming, managing debt and securing affordable mortgage deals will be key to financial stability.

Photo credits: Pexels

The post Inflation down and wages up: could mortgages and interest rates be next? appeared first on Mouthy Money.

Financial advice has a reputation for being largely inaccessible to young people. But do you even need it with a wealth of financial information available online? Mouthy Money investigates.

In an era of rising living costs, shifting job markets, and economic uncertainty, the question of whether young people – those under 45 – should seek financial advice is more relevant than ever.

For many in the UK, money management is a DIY business, with budgeting apps and online forums stepping in where traditional guidance once stood.

Yet, as financial decisions grow more complex and consequential, the case for getting professional financial advice does grow.

This feature explores what financial advice entails, when it’s worth seeking, its potential drawbacks, and the persistent “advice gap” that leaves many young Brits underserved.

What is financial advice?

Financial advice is a professional service aimed at helping individuals manage their long-term wealth more effectively.

Delivered by qualified, regulated financial advisers, it goes beyond generic tips or casual suggestions from friends.

Advisers assess your personal circumstances such as your income, debts, goals, and risk tolerance and provide tailored recommendations. These might include investment strategies, pension planning, mortgage options, or tax-efficient savings schemes such as ISAs.

In the UK, financial advisers must be regulated by the Financial Conduct Authority (FCA), ensuring they meet strict standards of competence and ethics. If you meet an adviser, they should be listed on the FCA’s register.

Advice can be ‘independent,’ covering the full market, or ‘restricted’, focusing on specific products or providers.

For young people, who may be navigating their first big financial milestones, this bespoke guidance can clarify a maze of options, whether that’s buying a home, starting a business, or planning for retirement decades away.

Mouthy Money spoke to a professional financial planner to get some insights into when a young person might need advice.

Katrania Lowers, a financial planner at Colmore Partners, explains: “Financial advice for young people is often misunderstood as something you only need ‘when you’re older’ or ‘when you’re rich’.

“But the reality is, the earlier you get clarity, the more control you have – especially at key moments like receiving an inheritance, coming into significant income, or starting a business.

“These are important points where the wrong move can be costly, and the right one can set you up for long-term security.”

Ask our experts your money questions

When should young people get financial advice?

For many under-45s, financial advice might seem like a luxury reserved for the wealthy or older generations.

Yet, certain life events and circumstances make it not just useful, but essential. Here are some key situations where seeking advice can pay off:

1. Inheritance

Receiving a lump sum, whether from a grandparent’s estate or a family windfall, can be overwhelming.

A 30-year-old inheriting £50,000 might wonder whether to invest it, pay off student loans, or save for a house deposit. But Lowers points out that mistakes are often made by young people who leave it too late to seek advice on inheritance.

Lowers explains: “People often think advice should come after the money lands. But in reality, the most powerful advice happens beforehand – when there’s time to understand the responsibilities that come with wealth, not just when it finally lands in their lap.

“Inheriting assets can be emotionally and financially complex, and without guidance, people risk making poor decisions or missing important planning steps – especially around tax, investing, or preserving family wealth.”

An adviser can map out tax implications (like inheritance tax thresholds) and suggest growth-oriented options, ensuring the money works harder over time.

Lowers adds: “Inheritance is seldom just about the money. It’s about stewardship. If someone doesn’t feel confident or equipped when they become a custodian of family assets, it can lead to stress, guilt, or worse – mismanagement.

“Getting advice early gives young people the language, tools and mindset to make thoughtful choices when the time comes; and having access to the wider family planner, who they already know and trust, means there’s already a sounding board in place when those imminent decisions need to be made.”

2. Business success

Young entrepreneurs are a growing force in the UK, with start-ups thriving in tech, creative industries, and beyond.

A 35-year-old who’s turned a side hustle into a £500,000-a-year business faces unique challenges: managing cash flow, structuring investments, or planning an exit strategy.

Financial advice can help balance personal wealth with business growth, while navigating tax reliefs such as Entrepreneurs’ Relief.

This can also be relevant for someone who isn’t necessarily an entrepreneur, but maybe joined a very successful business at an early stage and received some remuneration in the form of shares in the business.

3. Employment success

High earners – think City bankers, tech professionals, or NHS consultants in their early 40s – often juggle hefty salaries with big responsibilities.

A parent earning over £100,000 can face significant tax hurdles, especially given that marginal tax rates soar above this income level.

They might need advice on maximising pension contributions, mitigating income tax, or diversifying investments beyond a workplace scheme.

4. Other milestones

Life doesn’t wait for middle age. Buying a home, starting a family, or even planning a career break can benefit from expert input.

Financial advice doesn’t just cover investments and pensions. Mortgage advisers and insurance brokers are both services that young people can call on at key moments in their lives.

The former are one of the most popular routes when it comes to finding a mortgage for buying a home.

The latter can provide key help when someone is considering life insurance, income protection and other insurance options.

Lowers agrees with this sentiment: “Advice for young people doesn’t always have to be formal or product-led. Often, it’s about education or even just a safe space to ask ‘basic’ questions.

“For most young people, especially those still building their financial base, the right kind of advice might look more like a gentle steer – helping them understand pensions; why protection is important when they take out a mortgage, start a family or get a job; or how to use their money as a tool rather than something that disappears every month.”

In short, financial advice isn’t just for the grey-haired.

Whenever money gets complicated – or the stakes get high – young people stand to gain from a professional steer.

The drawbacks of financial advice

Despite its benefits, financial advice isn’t a silver bullet, and for many under-45s, it comes with major hurdles that make it less appealing.

Here’s why it might not always fit:

Cost: Advice doesn’t come cheap. Fees can range from £75 to £250 per hour, with comprehensive plans costing £500 to £2,000 upfront.

Ongoing advice might carry a percentage charge – typically 0.5% to 1% of your assets annually.

For a 32-year-old with £20,000 in savings, paying £200 a year might feel disproportionate, especially when free resources exist. However, doing it DIY does come with its own risks as you’ll be making decisions without personalised input from a professional.

Minimum net worth barriers: Many advisers target clients with significant wealth – say, £100,000 in investable assets – leaving younger people with modest portfolios out in the cold.

A 25-year-old with £5,000 in a Stocks and Shares ISA will struggle to find an adviser willing to take them on, as the fees wouldn’t justify the time spent.

This exclusivity can make advice feel elitist, rather than accessible.

Trust and complexity: Some young people hesitate because they don’t trust advisers (memories of mis-selling scandals such as PPI linger) or find the process intimidating.

Others worry about being pushed into products they don’t need, such as costly insurance policies.

And for the digitally savvy, the rise of robo-advisers – cheaper, algorithm-driven alternatives – can seem a more appealing fix than face-to-face meetings.

These drawbacks highlight a tension: while advice can be transformative, its structure often caters to older, wealthier clients, not the cash-strapped or early-career crowd.

The advice gap

This mismatch feeds into a broader issue known as the “advice gap”. This is the divide between those who need financial guidance and those who can access it.

For young people, the gap is stark. A 2023 FCA survey found only 8% of UK adults under 45 had sought regulated financial advice in the past year, compared to 20% of over-55s. Cost, awareness, and a lack of tailored services were cited as key barriers.

The implications are serious. Without advice, young people risk under-saving for retirement (exacerbating the UK’s pension crisis), mismanaging windfalls, or missing out on tax breaks.

Lowers says the real challenge is access: “Many don’t know where to go or assume they can’t afford it – which feeds into the advice gap. If we want to change that, we need to make financial advice or guidance more accessible, more flexible, and more in tune with the reality of someone navigating first-time milestones, not just six-figure portfolios.

“Financial coaching is becoming more and more popular, and I can see why. It offers guidance in which AUM doesn’t matter and the ability to meet minimum initial or ongoing fees isn’t even a consideration – it appeals to the wider population, including younger people. Whilst it isn’t advice, I do believe this will start to bridge some sort of gap.”

The rise of ‘finfluencers’ on TikTok and Instagram – some offering dubious tips – further muddies the waters, filling the void with unregulated noise.

So, what’s being done? The UK Government and regulators are stepping up. The FCA’s 2022 Consumer Duty rules push advisers to prioritise clients’ needs, making services more transparent and outcome focused.

Meanwhile, the Money and Pensions Service (MaPS), a Government-backed body, offers free guidance through Moneyhelper, targeting younger audiences with tools such as pension calculators and debt advice.

Innovations such as ‘simplified advice’ are also growing. In 2024, the FCA proposed lighter-touch models – think low-cost, digital-first advice for basic needs such as ISAs or small investments.

Firms including Wealthify and Nutmeg already offer ‘robo-advice’ at a fraction of traditional upfront fees.

Yet, progress is slow. Closing the gap requires more advisers but the UK has just 28,000, down 10% since 2015.

Better financial education in schools, and a cultural shift to see advice as a young person’s tool, not a retiree’s privilege.

To seek or not to seek?

For young people under 45, financial advice isn’t a one-size-fits-all solution. If you’re navigating a windfall, scaling a business, or earning big, it can be a game-changer, offering clarity and long-term security.

But for those with tighter budgets or simpler needs, the costs and barriers might outweigh the perks – especially when digital tools and free resources abound.

The advice gap remains a sticking point, and while regulators and the Government are chipping away at it, young Brits must weigh their options carefully.

Ultimately, the decision hinges on your circumstances, goals, and willingness to invest in your financial future. In a world of uncertainty, a little expert help might just be the edge you need – or a cost you can skip until the stakes rise higher.

Photo credits: Pexels

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This was not a full Budget. Chancellor Rachel Reeves reiterated her commitment to one major fiscal event annually, but it included significant policy shifts affecting public finances, welfare, and defence. 

Rachel Reeves has ruled out tax rises for now, but a number of tweaks and buried items in the Government’s documents suggest more could be on the horizon.

Below is a detailed breakdown of the key points and their implications for UK households and taxpayers.

Rachel Reeves downbeat economy

The Office for Budget Responsibility (OBR) revised its 2025 GDP growth forecast from 2% to 1%, citing global trade tensions, including new 25% US tariffs on cars and parts, and a slower domestic recovery. 

Inflation is projected at 2.8% in 2025, with the Bank of England maintaining interest rates at 4.5%. Longer-term forecasts show slight improvement, with growth rising to 1.9% in 2026 and averaging 1.7-1.8% through 2029. 

The OBR estimates real household disposable income could increase by £500 annually by 2029-30, compared to the previous government’s final Budget, assuming tax thresholds are adjusted.

Public sector net borrowing is expected to fall from £112 billion in 2025-26 to £58 billion by 2029-30, reflecting tighter fiscal control. 

However, the OBR notes this trajectory leaves limited room for economic shocks, with debt peaking at 96.8% of GDP in 2027-28 before declining slightly.

Fiscal discipline 

Rachel Reeves adhered to her fiscal rules: balancing day-to-day spending with revenue and managing debt levels. 

Without adjustments, the budget would have faced a £4.1 billion deficit by 2027-28. Instead, measures secure a £6 billion surplus in 2027-28, rising to £9.9 billion by 2029-30. 

This ‘headroom’ is narrow, with the OBR warning it could vanish if growth falters further or external pressures mount.

Welfare cuts

Welfare spending faced significant reductions. From April 2026, new claimants of health-related Universal Credit will receive £50 weekly instead of £97, with payments frozen until 2030. Under-22s will be ineligible for this element. 

Existing claimants retain £97 weekly until 2030, though a severe conditions top-up is planned. 

The standard Universal Credit allowance will rise from £92 to £106 weekly by 2029-30, a £14 increase over five years. These changes are projected to reduce welfare spending by £3.2 billion annually by 2029-30. 

Analysis suggests three million households could lose £1,720 yearly on average, pushing 250,000 people, including 50,000 children, into relative poverty. 

Reeves allocated £1 billion for employment support, aiming to offset cuts by boosting workforce participation.

Rachel Reeves leaves taxes unchanged, for now

No new tax rises were announced, aligning with Reeves’ pledge to avoid mid-year hikes. 

However, measures from the Autumn Budget persist: employer National Insurance rises from 13.8% to 15% in April 2025, and personal tax thresholds remain frozen until 2028-29. 

This fiscal drag will increase the tax burden, with revenue projected at 37.7% of GDP by 2029-30, a post-war high. 

Late payment penalties for self-assessment tax will double to 10% from April 2026, raising an estimated £200 million annually.

In the follow up documents from the Government on the Spring Statement, the Government confirmed it was making rules around late filing of self assessment tax returns harsher, with bigger penalties for late filing.

It also announced that parents who face paying the High Income Child Benefit Charge will no longer have to file a self assessment but instead will be able to use a digital service that repays their child benefit through PAYE. 

Finally, the Government announced it is looking at reforms to the ISA allowance and whether it can be better used to promote private investors and UK growth.

Ask our experts your money questions

Household impact

For households, the Spring Statement offers little immediate relief. Mortgage holders face sustained pressure with interest rates at 4.5% and renters see no respite from rising costs as welfare support tightens. 

The £500 projected rise in disposable income by 2029-30 hinges on future growth and tax adjustments, offering a distant prospect rather than immediate help. 

Low-income families, particularly those on benefits, will feel the welfare cuts most acutely, with the Resolution Foundation estimating a 2% drop in real income for the poorest fifth of households by 2027.

The 2025 Spring Statement prioritises fiscal stability over bold intervention, trimming welfare and boosting defence while holding the tax line. 

For UK households, it’s a lean outlook. Slower growth, tighter benefits and no quick fixes. 

Reeves is betting on long-term discipline paying off, but with global risks looming, the margin for error is slim.

Photo courtesy of HM Treasury Flickr

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Picture the scene: you’ve found the perfect home, secured your mortgage offer and it looks like everything is on-track to move in before the end of March, as you’d hoped.

Then things grind to a halt. The property chain you’re in is gummed up, paperwork has gone missing and your solicitor seems to have vanished.

It suddenly dawns on you – you won’t complete before 31 March. You’re frustrated. You’re angry.

Why? Because it means that you’ll miss the looming Stamp Duty deadline and potentially have to pay thousands more in tax.

If that sounds familiar, you’re not alone. 

74,000 buyers, including 25,000 first-time buyers (FTB), could miss the deadline, facing a collective tax hit of up to £142 million, according to property directory Rightmove.

That’s because, from 1 April, a temporary increase in the nil-rate band – the threshold below which no stamp duty is paid – will expire after nearly two years.

From 1 April, FTBs will start paying tax from £300,000, instead of £425,000. Anything between £300,000 and £500,000 will be taxed at 5%.

That means a FTB purchasing a home at the national average (£268,087, according to the Land Registry) will continue to pay nothing. 

However, a FTB in London purchasing a £450,000 property will see their tax bill jump from £1,250 to £7,500.

It’s not just FTBs who will be hit. 

From 1 April, home movers will start paying tax from £125,000, rather than £250,000, as it is now. They’ll then pay 2% on the portion between £125,001 and £250,000, and 5% on amounts up to £925,000.

If you’re a buyer, missing that deadline will be incredibly frustrating. But is it a disaster? Maybe not. 

Granted, you’ll have to find the extra tax up front, which may mean having to raid your savings or, in some cases, delay your purchase.

But if interest rates fall over the next 12 months, as expected, you may be no worse off over the long run.

The current consensus is that the Bank of England will cut interest rates from 4.5% now to around 4% by the end of the year. Some experts believe they could fall to as low as 3.5%. That’s one percentage point less than they are now.

While mortgage rates aren’t directly tied to the base rate (they’re influenced by swap rates and global markets), a lower base rate often leads to cheaper mortgages over time.

And if mortgage rates fall enough, you could actually save more over time than you lose in upfront tax.

Mortgage numbers crunched

To show you what I mean, let’s imagine two scenarios: buying now with lower tax or waiting a year and paying higher tax, but securing a mortgage rate that’s one percentage point lower. Both properties are in England. 

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Scenario one: buy before the stamp duty deadline

• Purchase price: £268,087 (the current national average).
• Mortgage: five year-fixed rate at 90% loan-to-value (LTV), 5.4% interest rate (the current average at this tier). 30-year mortgage term.
• Stamp duty: £904.35.
• Five-year total cost (stamp duty plus five years’ worth of mortgage payments): £82,195.47.

Scenario two: wait a year

• Purchase price: £276,129 (same property but assumes prices have grown 3% in that year).
• Mortgage: 90% LTV at 5.4% for the year you spend in your old property, then 4.4% for the next four in your new property. 30-year mortgage term.
• Stamp duty: £3,404.
• Five-year total cost: £80,796.69.

Despite paying more stamp duty, you’d be nearly £1,399 better off over five years if you’d waited because lower mortgage rates have cancelled out the extra tax.

Now let’s try another example, but this time we’ll assume that you’re a home mover purchasing a £450,000 property.

Scenario one: buy before stamp duty deadline

• Purchase price: £450,000
• Mortgage: five year-fixed rate at 90% loan-to-value (LTV), 5.4% interest rate. 30-year mortgage term.
• Stamp duty: £10,000
• Five-year total cost (including stamp duty and mortgage payments): £146,451.98

Scenario two: wait a year

• Purchase price: £463,500 (same property, but assumes prices have grown 3% in that year)
• Mortgage: 90% LTV at 5.4% for the year you spend in your old property, then 4.4% for the next four in your new property. 30-year mortgage term.
• Stamp duty: £113,175 (£3,175 more)
• Five-year total cost (stamp duty and five years’ mortgage repayments): £142,407.63

In this example, you’d be more than £4,044 better off over five years, despite your higher tax bill, thanks to the lower mortgage rate you have secured on your new property.

In fact, your new mortgage rate would only need to be 0.66 percentage points lower than your current one to cancel out the effect of higher taxes.  

Clearly, the examples above are just illustrations, and they rely on certain assumptions about property values, house price growth and mortgage rates.

We can’t be sure, for example, that house prices will only increase 3% this year, although that’s what Halifax, the nation’s biggest mortgage lender, believes. 

Similarly, we can’t be sure mortgage rates will fall by one percentage point over the next year – or at all. 

I’ve also ignored FTBs in my calculations. There are two reasons for this: firstly, they will continue to pay nothing for purchases under £300,000, which should cover FTBs in most of the country outside London. 

And second, I would need to make some additional assumptions about rents for the second scenario. This would make like-for-like comparisons difficult.

But what I hope I have shown is that while it would be (incredibly) frustrating to miss the stamp duty deadline, it isn’t necessarily the end of the world. 

That’s not to say that you shouldn’t try to complete by 31 March if you can, as your savings will be even greater over the five years, especially if mortgage rates fall.

Therefore, you should make sure you are flexible, have all your paperwork to hand and are willing to badger your lender, broker and solicitor if necessary.

But if it’s looking increasingly likely that you’ll miss the deadline, don’t stress about it. Over the long-term, the impact may be far smaller than it seems today.

Photo credits: Pexels

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Can you feel it? That is the sensation of the world slipping through your fingers.

The Great Financial Crisis, the housing crisis, Brexit, Covid, the cost-of-living crisis, the energy crisis. Any I forgot? It feels as if no matter what we do, we are all just keeping our heads above water.

If, like me, you came of age in the fire and brimstone of the Great Financial Crisis you might well wonder, has everything afterwards been just a total con?

You might have been a student during the turbulent Covid years, now condemned to massive student debt thinking, thinking where exactly did that get me?

Or you could be a parent who gets valuable child benefits while simultaneously being taxed to high heaven, thinking, can’t I just keep more of my own money? 

Maybe you’re the child of a baby boomer, watching them sitting on their pile of cash and home like Smaug and his gold, taking cruises and buying Range Rovers with your ‘inheritance’. 

Perhaps you feel you’ve worked hard to get to where you are today, but you’re crushed by the anxiety of what to do with it now you’ve got it. Least of all you want the Government pinching half of it for its mad pet projects.

And what about a 20-30-something who wants a family, but is locked out of the housing market by decades of bad policy from every political persuasion, vested interest and NIMBY psychopaths of your worst nightmares?

We all have a bone to pick with the system.

Dead-end job prospects. Stagnant pay. £15 olive oil. The Government taking half your money to pay people a ‘state’ ‘pension’ from a fictional ‘fund’ based on lies, damned lies and statistics. Fiddling while Rome burns.

The list of things that have arrived in the 21^st century to truly Screw…Us…Over…is growing by the day. 

We here at Mouthy Money are no longer going to take these affronts lying down anymore.

I’m not gonna leave you alone. I want you to get MAD! I don’t want you to protest. I don’t want you to riot – I don’t want you to write to your congressman, because I wouldn’t know what to tell you to write.

I don’t know what to do about the depression and the inflation and the Russians and the crime in the street. All I know is that first you’ve got to get mad. (shouting) You’ve got to say: ‘I’m a human being, god-dammit! My life has value!’ – Peter Finch in Network (1976).

So, from today, we’re tightening our focus. For those who want to build financial independence, we’re here to help you get rich, or die trying.*

And for those who have already built it, we’re here to help you decide how to protect well-earned wealth and spend it (and not be scared of ashamed of doing so either).

Why we’ve ended up here

Mouthy Money has been around since 2016, focused on telling people’s personal financial stories. We launched a podcast in October 2023, which has gone from strength to strength in the past year.

Increasingly though, and as Chris Tuite joined me as co-host, it has become clear that what really matters to us, and our audience, is that no one is looking out for our long-term financial health. 

Sure, financial firms do what they can. But Government institutions pay lip service, give and take small-time benefits, allowances or bonuses. Tax this, give that. It’s not enough.

The truth is no matter what your situation, there are tools there to help you get wealthier. To live the life you actually want to lead.

The system as it exists is not designed to screw you. What screws you is all the vested interests that come for their slice along the way. It’s time to stop those interests from winning.

From a high street bank that gives you a measly interest rate, to the insurer that hikes your premium without fail every year, or the private equity enterprise behind the vet that bills you for every penny any time your dog has a sniffle – we’ve had enough.

Mouthy Money is not here to break the system open. But we are now here to show you how to win against it and how to work with the companies that actually want to help you. And we might even try to change it for the better while we’re at it. 

Mouthy Money’s new manifesto

Mouthy Money is a money blog dedicated to speaking up about the importance of long-term wealth – how to build it; how to protect it; how to enjoy it.

We want to focus on real money issues and tackle the stigma around the importance of wealth and how people can achieve it responsibly and sustainably, by using the system as it exists to their benefit and promoting change from within.

Our mission is to provide essential information to readers: to help better inform and offer them the power to choose the right path for their own wealth growth, preservation and enjoyment.

We are a team of financial journalists with a deep pool of expertise and experience, from investing to pensions, mortgages, budgeting and more.

We’re very excited for this new chapter in our journey. Get in touch at editors@mouthymoney.co.uk if you’d like to be a part of it.

*When we say make you rich, we mean responsibly over time using legal methods. Don’t go getting any ideas!

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Today I’m highlighting quite a traditional way of making extra money, but none the worse for that.

If you have a spare room (or rooms) in your home that you don’t mind letting out, you can generate a steady income by doing so. 

Even better, you can earn up to £7,500 a year (gross) tax-free under the government’s long-running Rent a Room Scheme. 

The Rent a Room Scheme

Anyone with space in their own home is allowed to use this scheme. You can let a single room or an entire floor.

You don’t even have to be the home-owner yourself. If you’re a tenant, you can sub-let a room, as long as your lease allows you to do this.

There are some restrictions, though. Most importantly, the accommodation must be furnished and it must be within your main residence. And you can’t claim under the scheme for self-contained flats even if they are in your own home.

• In addition, if you have a mortgage you will need permission from your mortgage provider. You should also request permission from your home insurance provider.

Money matters

If your gross rental income is under the £7,500 annual limit you don’t have to take any other action and can keep all the money tax-free. 

You don’t even have to tell the taxman unless you fill in a self-assessment form already (in that case you’ll need to enter the rental income on your return but won’t have to pay any tax on it).

One important thing to note is that the £7,500 a year tax-free allowance is for total rental income. You aren’t allowed to deduct any expenses from this, e.g. repairs or redecoration.

If you earn over £7,500 a year from renting you have two choices. One is that you can keep the first £7,500 tax tree under the Rent a Room scheme and pay tax at your highest marginal rate on the balance above this (that’s 20% for basic rate taxpayers, 40% for higher rate and 45% for additional rate – different rates apply in Scotland). This will probably be the best option for most people.

Alternatively, you can opt out of the scheme altogether. In that case you will be treated like any other small business. You will be taxed on your entire rental income, but allowed to deduct all reasonable expenses before tax is charged on what is left. This will be advantageous if you have major property-related expenses to cover. 

You can choose which option will be best for you each year, so it’s important to keep detailed financial records. More information can be found on the official government website.

Short term letting

If you don’t want a permanent – or semi-permanent – lodger, another option that has become hugely popular in recent years is short-term letting to budget travellers and people who prefer a more personal alternative to hotels.

At the forefront of this trend has been Airbnb. This site lets you offer anything from a sofa in your living room to your whole house. You can set your own rent, and decide which would-be guests you want to accept.

In most cases Airbnb charges you 3% of whatever you charge your guests (they also charge guests a service fee of around 14%). You get paid via Airbnb approximately 24 hours after your guest checks in. You can see more details about Airbnb fees and charges here.

Income from Airbnb rentals can also be claimed under the Rent a Room scheme, so long as you meet the general requirements mentioned above. This applies even if you rent out your whole house for a short period, as long as it clearly remains your main residence.

Short-term letting can obviously work well in holiday areas, but it can be done elsewhere too. For example, my sister Annie lives near Oxford and sometimes offers accommodation in her home through Airbnb to visiting academics and people coming to business meetings and conferences in the city.

There are other, similar options to Airbnb you may like to check out as well. They include Vrbo, Homestay, Booking, and more. They all operate a bit differently and offer a different range of accommodation and services (e.g. Vrbo is specifically for holiday rentals).

Closing thoughts

If your circumstances allow it, letting a room in your home can be a great way of making some extra cash. It will provide you with a regular, ongoing source of income, which could prove a lifeline in these financially challenging times. And you can choose between getting a full-time lodger or offering short-term lets. The latter is likely to entail a bit more work but may suit some people better.

As always, if you have any comments about this article, please do leave them below.

Nick Daws writes for Pounds and Sense, a UK personal finance blog aimed especially (though not exclusively) at over-fifties.

Photo by SHOP SLO® on Unsplash

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