Brits need to plan ahead

Significant life-changes affect all people at some stage in their life, yet people in the UK suffer financially from not planning ahead for what life may throw at them, according to one bank.

A survey conducted by Abbey over the last two years has shown that 15 million people suffered financially because of being unprepared for things such as having children or planning a wedding.

In the last two years 16 per cent of people moved home, meaning that they may have reduced expenditure by getting a cheaper mortgage.

The report states that 62 per cent of people encountered something that changed their life, while one in three of those said that it was totally unexpected.

Abbey's money saving tip is to plan for the future by ensuring finances are in order.

Nici Audhlam-Gardiner, head of mortgages at Abbey, said: "Sometime big things hit us from out of the blue, so it's important to make sure your finances are in shape and able to withstand whatever life throws at you.

"Making sure you have sufficient protection to cover job loss or illness when you have a big commitment such as a mortgage is one way of being prepared."

Another survey from the bank recently showed that half the population do not regularly review their mortgage, meaning that they may be able to find a cheaper mortgage elsewhere.