Why Use a Mortgage Broker in Coventry?

We Aim to Take Your Stress Away

Buying a home can be a stressful experience, which is why home movers and first time buyers in Coventry use a mortgage broker to help make sure their home buying process go as smoothly as possible. It’s comforting for our customers to know they have someone on their side, on hand to answer any enquiries they have.

A mortgage advisor in Coventry will ensure you obtain the cheapest mortgage to suit your needs. We take full responsibility for recommending the most suitable mortgage for you and package your application to the Lender in such a way to give it the best chance of success.

The same applies when you come to remortgage too, we like to know our customers are on the cheapest deal for the entire mortgage term.

When Should I Get Mortgage Advice in Coventry?

If you’re looking at taking out mortgage advice when buying a home, we recommend talking to a mortgage advisor in Coventry. Your committed member of the Moneyman team will be able to help you work out how much your payments will be, as well as how much you may be able to borrow.

That said, different lenders have their own strict lending criteria, so it does help to speak to an expert. If you know what you can afford well in advance of making an application, it may help you avoid any potential future disappointment. 

We aim to ensure all customers are informed about their mortgage application progress so you are fully aware of what is going on. If you have any questions, we are available seven days a week, ready to help you out in any way we can.

Free From Estate Agents, Banks or Building Societies

Mortgage Brokers work for the customer, not the Lender. This is something that is important to remember throughout your process. Our team are firmly in your corner, sometimes having to argue how strong an application may be, in order to ensure it goes through.

Our company process of requesting and checking your proof of income and bank statements ahead of time allows us to try and avoid any hurdles that may arise, hopefully before they can become a factor. 

We also can help you choose the right type of survey for your property, as well as instruct a Solicitor on your behalf to carry out the legal aspects of your transaction. 

Building Customer Relationships

We love to build up customer relationships and assist with future mortgage enquiries, whether as a Buy-to-Let landlord with your portfolio or remortgage when your term ends. This often starts with an affordability assessment and Agreement in Principle prior to even finding a house. 

Once your purchase is complete, a member of our team will keep in regular contact, and we will get in touch once more to discuss your remortgage options. We can then compare the market on your behalf as we did before to help you obtain the best remortgage deal available for your circumstances. 

I’m a Single Homeowner in Coventry, Should I take out Life Insurance?

Even if you are not married and aren’t looking to settle down and have kids at any point in the near future, it is likely that you will still benefit from taking out life insurance in Coventry. No matter your personal circumstances and life choices, if you are a single homeowner, there are still plenty of justifiable reasons to take out life insurance.  

Having a life policy in place can be a big support to your family in dealing with any apparent debts after your passing, such as any remaining mortgage payments that need to be made.

How does life cover affect your mortgage? 

Typically, the purpose of taking out life cover is to cover the costs of any mortgage payment debts. The policy will usually be set up to automatically pay out a lump sum, equivalent to the mortgage cost, in the event that the policy holder (the person with the life cover) passes away whilst still having outstanding monthly mortgage payments.

If you are living with a partner or you have children, the insurance might even be extended into an income boost provided to your dependants, in order to cover any living costs.

The reasoning for that particular extra protection may not be necessary for single cover applicants, but taking out some insurance to cover your mortgage is still worth doing to ensure your payments are securely paid off when you’re gone.

Paying Back The Mortgage Loan Amount

If a single homeowner passed away before their mortgage balance has been paid off, their bank or building society can look to pay off that balance from their late customer’s estate, i.e., their collective belongings (accumulated assets is a term people use for this). This will be something of worth they can sell, like a car.

Quite often when these cases arise, we find that the property will get sold at auction in order to pay off the remaining balance. If the home happens to fall into negative equity, the lender has every right to demand that the difference must be made up by the estate.

As an alternative to this, the lender can demand that the property be sold with any surviving family members not being able to make up any shortfall on the balance. As if this wasn’t bad enough, if the probate process is drawn out (the probate is the period of time where the individual’s estate is handled), the lender can actually continue to add interest charges, increasing the total amount of the balance that needs to be paid. Morally questionable, but unfortunately not illegal.

Taking out life insurance will help protect your family and/or estate from these problems from occurring. 

Speak With One of Our Mortgage & Protection Advisors in Coventry

If you are looking at the options you have for taking out life cover in the future, please get in touch and book yourself in for a free consultation with one of our dedicated protection advisors in Coventry.

No matter if you have plans of becoming a first time buyer in Coventry or are already a homeowner, we feel this is something better sorted now than left too late.

A life insurance policy can also mean that if you have any children or grandchildren, they can be left some form of inheritance, regardless of if there is equity in the home.

How to Improve Your Credit Score in Coventry

Credit Score Mortgage Advice in Coventry

The general rule around your credit score is that the higher it is, the higher the chance you have of your mortgage application being successful. In light of this, you may be wondering what you need to do in order to improve your credit score.

First of all, not everyone is guaranteed to be accepted for a mortgage. This is due to the fact that every lender has built their own credit scoring system which results in an applicant needing to demonstrate various things to a range of providers. Therefore, if your application gets declined by one lender, don’t panic, as there are lots of other mortgage lenders who may be lenient with their criteria.

This is where an expert mortgage advisor can help. They can look at your situation and financial background in order to match you to the most appropriate lender. Here at Coventrymoneyman, we always aim to pair you with the right lender the first time around and work hard in overcoming any obstacles that may occur in your situation.

There are a variety of different credit reference agencies in the UK, such as Experian and Equifax. It would be best if you check as many of these agencies as possible in order to have a good idea of your credit score. As well as this, you may find that one of the agencies could be holding incorrect data which means you can see if there is anything incorrect information and will be able to get it rectified.

Below are some helpful ways when it comes to improve your credit rating.

Improving your credit score in Coventry

Avoid unnecessary credit searches

Running a large number of credit searches can have a negative impact on your score. From a lender’s point of view, they will see this as you’re looking to borrow more money from other places which is something that will not work out in your favour.

Be conscientious when it comes to price comparison websites as they do have a reputation for carrying out discreet credit searches on people. If you are looking to apply for a mortgage in the near future, it would be best to avoid applying for any further credit until your mortgage is underway.

Check you are on the voter’s roll

One way to gain lots of points on your credit score is being on the electoral roll as it shows stability which is something a lender favours. It’s important to check all your information like your name is all correct and you’re registered at your current address, not a previous one. You can easily register to be on the electoral roll online.

Don’t run close to your maximum limit

Going over your maximum limit on a credit card each month can harm your credit score. Therefore, using a credit card and paying off the balance in full each month will demonstrate to a lender that you are good at managing your finances. Keep in mind that maxing out your limit or even worse, exceeding an agreed card limit, will not look good from a lender’s perspective.

Check your address history is keyed correctly

A credit score can make it look like you’re living in two places at once, which can be down to a number of things. You may have forgotten to tell one of your credit providers that you have moved to a new house or you may have not spelt your address correctly. This can be an issue if you have lived in a flat as the flat-apartment number can be formatted in many different ways.

Close down any unused credit accounts

Having too many credit cards can also have a negative impact on your score. Therefore, you need to go through the cards and see which ones you don’t use anymore. From this, you will need to get your account closed which can be done by getting in touch with the providers. Initially, this can be a disadvantage, because the credit scorers won’t be able to differentiate whether you close the account or the credit provider. Despite this, it’s a temporary issue that will reap its benefits in the future.

By doing this, you are reducing the risk of falling victim to fraud as you might not be aware that you have lost a card you don’t use often.

Remove financial links to others

In the case where you are financially linked to a family member or ex-partner, their credit actions could also have an impact on your credit score, in particular, if they aren’t the best at handling their money.

The unfortunate case is that you won’t be able to get this financial link removed if the account is still live. In order to detach yourself from this link, you will need to make a request with one of the credit reference agencies. Seeking Specialist Mortgage Advice in Coventry from a mortgage broker can be really beneficial as it can be a challenge removing a family member or an ex-partner, therefore, having an expert by your side to guide you could be the best option.

Credit score

There is a general argument from consumers that credit scoring is an unfair way for lenders to assess applications. The counter-argument from lenders is that it is much cheaper for them to work this way and computers give more consistent outcomes. Regardless of this, it is the most common method in the industry which is why it’s best that you look at utilising these tips to help you with improving your credit score.

One way to increase your chance of your mortgage application being accepted the first time, send an up to date copy of your credit report to your dedicated mortgage advisor in Coventry beforehand. Your advisor wants to know the ins and outs of your finances and this will help towards making the process more straightforward. Furthermore, there are still some smaller lenders in the industry who do not use credit scores, as opposed to going for the older, manual way, but they will have set rules in terms of the amount of defaults and CCJs they will allow.

Mortgage Advice in Coventry

Mortgage Payment Holidays | Mortgage Advice in Coventry

Mortgage payment holidays

At the start of the Coronavirus pandemic, the Government gave us the promise that all borrowers would be granted a three-month mortgage payment holiday if deemed necessary. Most lenders followed the Government’s guidelines and did everything in their power to help their borrowers during these hard few months.

We have thought carefully about the likely possibilities for your mortgage over the next few months and are working very closely with all of our lenders to ensure that if any changes occur, we are able to inform you right away and recommend the most ideal option for you to take so that you still feel safe and happy with your mortgage.

We feel like now is a good time to talk about mortgage payment holidays as everyone is asking about them and how they work.

What is a mortgage payment holiday?

A mortgage payment holiday is simply a period where you don’t have to pay your monthly mortgage payments. This is agreed between you as the borrower and your mortgage lender, bank or building society. In this current situation, it should be about three months.

You will still have to make all of these payments. The interest that you defer over the set period will be added on top of your loan amount whilst your capital balance will not decrease. So both your total mortgage amount and the interest on it will increase.

When you feel that you are ready to continue with your mortgage payments, either your monthly payments are recalculated at a slightly higher level or your mortgage term is extended. Lenders tend to prefer in recalculating your repayment as extending your mortgage term could put you past their standard retirement ages.

Some lenders may allow you to pay off a lump sum later on in the year to let you get back to what you were paying monthly before the mortgage payment holiday. Mortgage payment holidays are accessible for borrowers with both residential and Buy to Let mortgages in Coventry. This really helps out landlords as they have some assistance if rental payments are affected.

The Government’s proposal

Here is what the Government has said after the COVID-19 outbreak:

• Mortgage lenders will offer an automatic three-month mortgage payments holiday for borrowers who have been impacted directly or indirectly by COVID-19
• The mortgage payment holiday will apply to customers who are up to date on their payments, not in arrears, and wanting to self-certify that they are impacted by COVID-19
• This means that lenders will not complete an income and expenditure assessment, or an assessment of alternate payment options as ordinarily required under MCOB
• This proposal will allow lenders to be more responsive to customer needs and offer forbearance in a simple way to customers in an environment where the operation of collections teams made be also impacted by COVID-19
• Customers will be made aware that interest will accrue in the holiday period and they will need to make up deferred payments in the future
• Customers who wish to undertake a full assessment of their ability to pay or financial difficulty may still do so.
  
  

How do I apply for a mortgage payment holiday?

Before you go directly to your lender, we recommend that you talk to your Mortgage Advisor in Coventry first. This is because they can look through everything for you and talk you through the options available for you that will benefit you most financially. As a Mortgage Broker in Coventry, we know all about mortgage payment holidays and the dos and don’ts, so get in touch and receive a free mortgage consultation before anything else.

If you want to go directly to your lender and you are up to date with your mortgage payments, not in arrears and have been directly affected by COVID-19, here are the steps you should take:

• The customer would contact the lender and inform them that they are being impacted
  by COVID-19
• The lender would accept these details from the customer and offer an automatic
  three-month mortgage payment holiday
• No evidence is needed for the lender
• The lender makes the customer aware that interest will accrue and will be contacted at the end of the three months to complete an assessment of the customer’s circumstances
• At the end of three months, an arrangement to pay will be agreed with the customer according to their circumstances to recover any shortfall, also ensuring that the mortgage remains affordable and sustainable
• The lender notifies the customer that if they wished to complete a full assessment now, there may be other forbearance options more suitable to the customer.
  
  For more information on how COVID-19 may affect your mortgage, click here.
  
  

Will a mortgage payment holiday impact my credit score?

Yes, it can produce a negative impact on your credit score, but it shouldn’t in this situation. You are applying for a mortgage payment holiday because of a virus so your lender should make sure that it will not do any damage.

Before rushing into this, you will need confirmation that it will not damage your score. To do this, you need to contact your lender directly and ask this question, making a record of the date and time and the name of the person that you spoke to. This way, if anything changes in the future, you have a reference to what was originally said.

Will I still be able to remortgage or take a product transfer with my lender?

The answer to this question has changed over the last couple of days. Even when the virus wasn’t seen as a threat, you could still remortgage and transfer products as usual. Now, everything has changed and lenders are no longer offering any remortgage deals and product transfers. Things have changed so quickly!

This means that borrowers who are coming up to the end of their existing product could be forced to move onto the higher lender variable rates as there are no other lower deals available. So people who act too early could find themselves on a mortgage payment holiday that accrues a high-interest variable rate.

This is why we recommend speaking to us, your expert Mortgage Broker in Coventry. We are here to provide you with open and honest Mortgage Advice in Coventry through these next few tough months for you and your mortgage. In general, it helps if you can arrange your mortgage transfer first then enquire about your mortgage payment holiday.

What are my other options?

There are other options available for you to take to help you meet your monthly mortgage payments over these next few months. Your lender may be generous and offer you a temporary switch over to an interest-only to help you save some money on your monthly payments. This will not add any further to the loan amount by still servicing the interest each month.

On the other hand, you may not need to switch all of your mortgages to interest-only and it may be that putting your mortgage on this basis could give you that extra bit of breathing space that you need.

If you have savings, remortgaging onto an offset basis is another option. You could end up reducing your monthly payments whilst keeping your savings untouched.

An example would be that if someone had a £200,000 loan and savings account with £50,000 in, they would only pay interest on £150,000. This option could massively reduce your monthly mortgage payments.

Other options include a straight remortgage to another lender, working out costs of any repayment charges or simply extending the term of your mortgage. It’s completely up to you and you should choose whatever you think suits you better. This is where a Mortgage Broker in Coventry will come in handy, as they will talk you through all of your options and help you make a choice. They want the best for you and want to make sure that you feel comfortable and secure at all times during these tough few months.

Get in touch with a Mortgage Advisor in Coventry and discuss all of your mortgage options regarding mortgage payment holidays. We love mortgages and we love helping you! Get through these few hard months of mortgage payments with help from your Mortgage Broker in Coventry, Coventrymoneyman.

Mortgage Broker in Coventry

Coronavirus & the Mortgage Market | Mortgage Advice in Coventry

Coronavirus impact on the mortgage market

As you probably guessed, the coronavirus has hit the mortgage market hard. Everything is changing so quickly and sometimes it’s hard to tell what’s actually going on. That’s why we thought that it would be best to calm things down and catch you up with the latest news on the coronavirus and its impact on the mortgage market. Here is a short video from Malcolm, the moneyman himself:

Mortgage Surveyors

Before a lender accepts a mortgage application, the property that their borrower is looking to buy will need a valuation. However, since surveyors and mortgage valuers can’t go and visit the property, lenders have put a pause on processing applications.

Some lenders rely on AVM’s (Automated Valuation Model) for valuations on properties. This means that lenders don’t have to rely on a surveyor or a mortgage valuer to physically go out and do everything in person. The problem with AVM’s is that they can only be used on restricted mortgages and on lower loan-to-values.

Recently, we have seen that lenders have decided to restrict their maximum loan-to-value down to 60%. This means that they are continuing to process these applications but not necessarily ones at higher loan-to-values.

A lender’s view

We have seen that every lender is taking a different viewpoint. All that matters is that we haven’t seen any lenders withdraw a single mortgage offer yet. We estimate that they are just waiting it out and seeing what happens. A change could happen in the coming days, weeks or even months, it’s really hard to say at this point in time.

Furthermore, lenders have decided to extend the periods of their initial mortgage offers from six months up to nine. They are giving the economy and the mortgage market the opportunity to get back on track.

Mortgage payment holidays

We talked about mortgage payment holidays last week in a recent article but we feel like we need to clarify a few things. Firstly, they are not free money, you should only take a payment holiday if you absolutely need to. You should get in touch with your Mortgage Advisor in Coventry who will go through all of your options and check whether you actually need to take one out before you go to your lender.

Lenders are more than likely to just extend the term of your mortgage anyway so it may be best to just hold off for a bit. If you are certain that you will not meet your monthly payments and you want to take a mortgage holiday, then you should get in touch with your lender as soon as possible. Lenders are asking for their borrowers to get in touch through their website rather than them phone up and this is due to the thousands of calls they are receiving every day. You are more likely to get through online too.

Make sure that you check with your lender that taking out a mortgage payment holiday will not damage your credit score or mark any arrears against your account. You must remember to not cancel your direct debit and that you will need to get permission from your lender to take out a mortgage payment holiday.

Speak to a Mortgage Advisor in Coventry

We know that everything is getting a little too much and becoming very stressful. That’s why your Mortgage Broker in Coventry, Coventrymoneyman is here to help. We want this to all blow over and for the mortgage market to resume as much as you do.

We can’t change anything though, so we got to get through this together. Your Specialist Mortgage Advisor in Coventry is available to answer all of your mortgage questions 7 days a week. We can check whether you need to take out a mortgage payment holiday or give you advice on anything mortgage that you are concerned about. We hope that we hear from you soon!

This article was originally published on 30/03/2020 and as of the 20/05/2020 the property market has now resumed and this information has become outdated. Everything was 100% accurate at the date that this article was published.

Mortgage Broker in Coventry

How Could The Coronavirus Affect Your Mortgage In Coventry?

Coronavirus and your mortgage in Coventry

Before reading any further, stop panicking! We are here to help if you need any help with anything mortgage-related through this stressful time. Just know that we are still 100% committed to providing you with the exact same fast & friendly mortgage advice service that you are used to.

We are here to provide you with the help and guidance you need to get you through your mortgage problems during his tough time. Here are some things that we are going to go over in this article:

• Mortgage Advice in Coventry over the phone
• Progressing with your mortgage application
• The Bank of England rate reduction and how this affects you
• Concerns about not being able to pay for your existing mortgage
• The mortgage industries reaction to the coronavirus
• Should you pull out of your purchase?
• What to do if your Remortgage is due
  

Mortgage Advice in Coventry over the phone

Our mortgage advice service is exactly the same. Nothing has changed from our advisors’ end either, everything is still done over the phone. Our excellent service will remain as it was prior to the coronavirus outbreak.

Remember, if you get in touch, you will receive a free, no-obligation Mortgage Consultation. A Mortgage Advisor in Coventry is available from 7 days a week.

Processing your mortgage application

Again, nothing has changed our team of hardworking advisors are working at the same pace as they always do, aiming to deliver you with fast and friendly Mortgage Advice in Coventry as usual.

Bank of England rate reduction

When the Bank of England dropped its rates, lenders decided to also decrease their standard variable rates. If you are thinking of buying your first home in Coventry then this is a prime opportunity to get the ball rolling. The interest rates are down to the lowest that we have seen in a long time!

Concerned about your existing mortgage?

If you get the coronavirus, you will have to take sick leave, potentially affecting you meeting your recurring payments. Surprisingly, mortgage lenders can be very understanding in hard times like these and could agree on a mortgage repayment holiday to help you out.

Meeting your payments being Self Employed in Coventry could be quite challenging, you can always give us a call and we can talk you through your options.

Mortgage industry reaction to coronavirus

The interest rates have dropped, lenders are not looking likely to raise them back up; there has never been a better time to contact your expert Mortgage Broker in Coventry. If you are a First Time Buyer in Coventry, Self Employed or Moving Home, you should capitalise on these rates as there hasn’t been an opportunity like this in a long time.

Should I pull out of my purchase?

At the moment, we are advising that everyone sticks with their purchase if they are 100% sure that they will be able to afford it. On the other hand, if you are having doubts that you will or you are concerned about losing your job, you may need to consider pulling out of your payment. You are not committed to completing your purchase until the contracts are exchanged so you have time to think about your options or speak to a Mortgage Advisor in Coventry first.

My remortgage is due – should I switch lender or stay with my current one?

At the moment, nothing has changed. Speak with your Mortgage Broker in Coventry and we will advise you on what to do once we have assessed your requirements.

Nothing has changed on our end. We still recommend that you speak with your Mortgage Advisor in Coventry who will advise you accordingly once they have assessed your requirements. We are able to do this for you, get in touch with your Mortgage Broker in Coventry today, we can’t wait to hear from you!

Mortgage Broker in Coventry

Income Protection Insurance Advice in Coventry

Insurance Advice in Coventry

Income Protection Insurance is designed to pay out a monthly benefit if you are unable to work due to illness or accident. The applicant can decide along with the help of their Advisor how much cover to take out. Also how long they are prepared to wait before they are entitled to put a claim in.

Income Protection insurance can be expensive compared to life cover. As you are far more likely to be unable to work due to illness than die. The monthly benefit continues to be paid out until you return to work unless you have selected the “Budget” version of the policy. This typically only pays out for 24 months but is much cheaper.

The big advantage of Income Protection Insurance is that unlike Critical Illness Cover it pays out for whatever is preventing you from working. Unlike Critical Illness which is just a list of specified illnesses.

This type of policy is very popular amongst the self-employed and also employed applicants who do not benefit from generous Employer sick pay schemes.

Our income protection insurance advice service

It’s very important to us that all of our customers are given an equal opportunity to take insurance our through ourselves.  We wouldn’t be doing our job right if we didn’t mention it! 

We offer all of our customers a free, no-obligation protection review where we’ll have a look at any existing policies you have in place and assess their suitability.  We’ll then recommend which products, including critical illness and income protection that meet your needs.  If required, we’ll then tailor the plan to match your available monthly budget.

Mortgage Broker in Coventry

Critical Illness Insurance Advice in Coventry

Insurance Advice in Coventry

Critical Illness Insurance pays out a lump sum if you are diagnosed with one of the conditions on the policy such as cancer, heart attack or stroke. Sometimes insurers receive criticism for declining claims when someone is very ill but with an illness not covered on their policy but most major providers actually payout over 90% of claims.

If claims are denied it can also be because the claimant did not disclose an underlying medical condition they have when they took the policy out.

In the event of a claim the lump sum is paid out irrespective of whether the claimant returns to work or not, the key thing is whether the illness they had matched the definition on their policy.

The claimant can use the lump sum they receive for any purpose they wish. Be this to repay their mortgage, pay for medical care or make modifications to their home.

Different insurers cover different illnesses on their policies and it’s wise to take advice prior to selecting a policy. This will ensure that you end up with one that is suitable for your needs. Critical Illness Insurance is much more expensive than life cover because the chances of you making a claim are far higher.

Your chances of surviving the types of conditions covered are far higher than they were 30 years ago. However, if you are unfortunate enough to contract one of them then there are often financial consequences. Hence the popularity of the cover, especially for applicants who have mortgages or children to think about.

Our critical illness insurance advice service

It’s very important to us that all of our customers are given an equal opportunity to take insurance our through ourselves.  We wouldn’t be doing our job right if we didn’t mention it! 

We offer all of our customers a free, no-obligation protection review where we’ll have a look at any existing policies you have in place and assess their suitability.  We’ll then recommend which products, including critical illness and income protection that meet your needs.  If required, we’ll then tailor the plan to match your available monthly budget.

Mortgage Broker in Coventry

Life Insurance Advice in Coventry

Insurance Advice in Coventry

Here is some information about the most popular types:

• Whole of Life Insurance
• Term Assurance
• Family Income Benefit
• Joint Life Insurance
• Death in Service
  

Whole of life insurance

Whole of life insurance does not have an end date, therefore, providing premiums are being met the policy will payout. Generally speaking, this type of insurance is used for family protection and also as part of inheritance tax planning. 

Term assurance

Term assurance is the most popular type of family insurance used to cover a mortgage. 

Our Advisors will recommend the sum assured and term of the policy, usually to run in line with your new mortgage.   The providing that all premiums are maintained, the sum assured will be paid out if you were to die during the term. 

There are various types of Term Assurance available, such as decreasing and increasing cover.  As part of our personal protection review, the most suitable policy for your needs will be recommended. 

Family income benefit

This is another version of Term Assurance, where instead of the sum assured being paid as a lump sum on death, it’s paid as an agreed monthly payment.  This is very good for families looking to insure an income. 

A good advisor, will usually recommend a mixture of insurance types tailor made to match your personal and family requirements. 

Joint life insurance

If you are part of a couple, you could consider taking out a single life policy that will payout in the event of one of you dying.

This can be cheaper than paying the premiums on two separate policies, but bear in mind that joint policies only payout on the first death, after that the cover ends. 

If you had two separate policies, the second policy would remain in force even after a claim had been made on the first.

Death in service

Many companies offer their employees family a lump sum payment if the staff member dies while they are employed by the firm.

Although this doesn’t mean the death has to be at the workplace or in any way related to the job done.

This cover will most likely end as soon as you leave the company.

Our insurance advice service

It’s very important to us that all of our customers are given an equal opportunity to take insurance our through ourselves.  We wouldn’t be doing our job right if we didn’t mention it! 

We offer all of our customers a free, no-obligation protection review where we’ll have a look at any existing policies you have in place and assess their suitability. We’ll then recommend which products, including critical illness and income protection that meet your needs.  If required, we’ll then tailor the plan to match your available monthly budget. 

Insurance Advisor in Coventry

What Is Mortgage Protection Insurance?

Mortgage protection explained

Mortgage Protection Insurance is a term used to encompass various different types of cover designed to protect borrowers from events which could severely impact upon their ability to maintain mortgage payments. There are different variations but when connected to a mortgage they are all there to provide peace of mind and usually fall into the following categories:

• Life Cover
• Critical Illness Insurance
• Income Protection
• Accident, Sickness, Unemployment (ASU) Cover
• Family Income Benefit
  

Life cover

As a rule, if the policyholder dies within the term, then the sum assured should be enough to pay off the outstanding mortgage balance and ensure the borrower’s dependents aren’t left with a debt they might not otherwise be able to manage. Our advisors are able to run through all the different types of life cover and recommend the most suitable plan for you.

Critical illness insurance

There’s an argument that says that life cover is taken for the benefit of other people – i.e. your dependents – because sadly you won’t be around to see any benefit yourself. However, these days, thanks to improvements in the sort of medical treatment available, many people now survive conditions which once might have been fatal. Nevertheless, whilst undergoing what may be lengthy spells of treatment and recovery, it could have a marked effect on your ability to meet your financial commitments. This has led to the development of Critical Illness Insurance.

Critical Illness Insurance works in a similar way to Life Assurance, in that it is usually taken for a specific term of years and can have different options such as level/increasing etc. It is designed to pay out a lump sum and, like Life cover, for borrowers, it is typically taken on a decreasing term basis in line with the reduction of your mortgage balance. The key is that the benefit is paid if you fall victim to one of a number of specified critical illnesses, and pays out whatever the long term prognosis of that illness. The type of illnesses covered vary from company to company, that’s what this type of insurance cannot be solely price-driven and advice is recommended.

In practice many companies will offer Life and Critical Illness Critical cover as a combined policy and would usually payout on the “first event” i.e. whatever happens first – either death or a serious illness – the pay-out is made. They can also be written on a single or joint life basis.

Income protection

Whereas Life and Critical Illness cover pay out a lump sum, “Income Protection” pays out a monthly sum designed to replace your wages in the event of you being unfit to work. Unlike Critical Illness cover, there are no restrictions on the illnesses or injuries covered, the only factor being whether they make you unfit to work. There are however restrictions on how much you can cover and how quickly benefits would start to be paid.

Like Life and Critical Illness cover, these policies are underwritten based on your health and lifestyle at the time you apply. All income protection policies are written on a single life basis.

Accident, sickness, unemployment (ASU) cover

Similar in many ways to Income Protection these policies also cover you should you be made unemployed. Benefits are usually linked to your mortgage and other costs (rather than necessarily your wages) and would usually be paid one month “in arrears” after a successful claim.  These policies are only underwritten at the time of a claim rather than at the outset, which can sometimes mean there can be some confusion/delay as to whether a claim would actually be met. They are clearly a useful safety net if you are made long-term unemployed but be sure to check the details of how/when any unemployment benefits would be paid out, as it may be that you would have returned to work before any monies become due.

Family income benefit

Probably the least common of the “mortgage protection” type policies but can often be valuable – particularly for those with young families. These plans can be taken to cover Life and/or Critical Illness and are underwritten on the application in the same way as mentioned above. However, unlike the traditional forms of policy, rather than pay out a lump sum, the cover would pay an annual or monthly income for the remainder of the term of the plan. Thus it can replace the income of the main breadwinner for a number of years, dependent upon a particular client’s circumstances and, because of this would usually be written on a level or basis, or an index-linked basis designed to keep up with inflation.

Summary

There’s an old adage that says you can never have too much insurance. Certainly, many people have one or more of the different types of policy and it would be wrong to think of Mortgage Protection Insurance as just an “either/or” choice. However, in the real world, affordability plays a massive part, so whilst it would be fantastic to cover yourself for every potential opportunity, a good Mortgage Advisor in Coventry will sit down with you and tailor the type of cover to be the most suitable combination to your family’s priority and budget.

If you do take more than one type of policy, however, your advisor in Coventry would usually place all the cover with one provider. This is to save you the additional policy administration charges which individual policies carry but which are reduced when bringing all the policies under one plan.

Mortgage Advice in Coventry