Taking a DIY approach to finances might not always save you cash

PROFESSIONAL HELP COULD PAY OFF IN THE LONG TERM

WHEN it comes to personal finances, do you always sort out everything yourself, or do you sometimes get a helping hand from professionals?

There can be pros and cons to taking a DIY approach.

On the plus side, you may save yourself some money, but in some cases it can pay off in the longer term to get the help of a professional.

Karen Barrett, CEO and founder of Unbiased, a platform that connects people with independent financial advisers, says that while it’s good to be proactive with your finances: “It’s important to recognise the DIY approach isn’t always in your best interest, and can come at great cost.”

She highlights tax returns, for example, adding that some areas where tax relief could be claimed may be overlooked if you handle it all yourself.

“Or perhaps you even get it wrong, which can result in penalties. So it’s not just costing you time, but actual money,” Karen adds.

For those who want to do it themselves, HM Revenue and Customs has a range of support online, including an app, YouTube videos and help sheets.

“Mortgages are another area where expert advice can be extremely valuable and save you money,” says Karen.

According to figures from trade association UK Finance, around 1.5 million homeowners are on fixed-rate mortgages due to end this year. Many homeowners will be remortgaging on to much higher rates than those they have previously been used to paying.

There may be steps some homeowners could take to improve their position, such as keeping an eye on movements in the Bank of England base rate, and “best-buy” mortgage tables online.

Homeowners with savings may also want to consider whether it could be worth paying down some of their mortgage debt, which may potentially put them in a lower loanto-value (LTV) bracket and enable access to lower rates. Individual circumstances will vary, so the decision will need carefully weighing up.

Professionals might also save you time and money when searching for suitable insurance options.

According to the Association of British Insurers, the average price paid for a combined buildings and contents home insurance policy jumped by 19%, or £59, annually in the fourth quarter of 2023.

The British Insurance Brokers’ Association has a directory of specialist providers on its website to help people in flood-risk areas to find cover.

It also has a useful travel insurance directory for people with medical conditions. Getting advice about your retirement can also help you to make the right choices for your circumstances.

The Government-backed MoneyHelper website has a retirement adviser directory on its website.

People aged 50 and over can also get impartial guidance from the free governmentbacked Pension Wise service. Visit moneyhelper.org.uk to find out more, or call free on 0800 011 3797 to explore your options.

‘‘ Specialists help people living in flood risk areas to find the right insurance