Life Insurance is a vague term as it covers much ground; there are several different types of Life Insurance, so this mortgage protection guide will explain to you what it is and why life insurance is essential to take out for any homeowner.
If you’re looking to take out Life Insurance, it’s worth speaking with a Mortgage & Protection Specialist expert in Sunderland. We offer Life Insurance Advice in Sunderland, and we would advise that you take the Free Insurance Consultation that we provide to new/existing customers before making any drastic decisions as it may not match your circumstances.
Particularly if you don’t know what you are doing, there are many different types of life insurance. It can get complicated, and you also need to understand which is the best-suited policy that covers you best and how long the policy lasts.
Life Insurance pays out a lump sum of money in the event of death. The money gets passed down to a family member or friend. In the event of a claim, the person who takes out the cover can choose to either pay out the whole sum insured at once or through regular payments.
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The sum that is paid out changes depending on the type of cover that got taken out. Thankfully with Life Insurance, you can choose how the payout gets distributed. You select your specifics; for example, you may only want the money to get used to cover the remaining debts on the mortgage.
There are lots of various types of Life Insurance policies. It would be wrong to think of Life Insurance as just an “either/or” choice, as many people now have one or more of the different types of cover. Affordability plays a large part, and whilst it would be fantastic to cover yourself for every potential opportunity, that’s not always possible.
Here we have listed the different type of Life Insurance available. However, to find out more, speak with one of our Dedicated Protection Specialists Advisors in Sunderland today.
With Level Term Life Insurance, you will still get a payout. However, you will only get covered for a fixed ‘term’. This policy only pays out if you die within your policies term. They usually run between 5-25 year terms in 5-year increments.
Term Life Insurance is often used to cover a mortgage. People usually take out this policy that’s in line with their mortgage term. Therefore, if you were to die and still have your mortgage to pay off, the policy will pay out the This means that the mortgage payments will not fall to family members or any other name attached to the mortgage.
As a Mortgage Broker in Sunderland, we’ve found that this type of Life Insurance policy is the most popular. You may be asking, “why would you want to take out a policy that decreases in value?”. Well, this policy is targeted at homeowners with repayment mortgages – which is the majority of people. This policy is usually taken out to pay off the outstanding mortgage balance should you die.
The policy’s value mirrors the outstanding balance remaining on your mortgage. As the amount owed on your mortgage decreases, so does the sum insured.
Decreasing Life Insurance is typically taken out alongside other Insurance products depending on personal circumstances. This is why we always recommend speaking to a Mortgage & Protection Specialist in Sunderland, and we can help recommend the most suitable insurance for your needs.
This type of Life Insurance policy will still payout if you die within your fixed term. It works in the opposite way to Decreasing Term Life Policy.
The difference with Increasing Term Life Insurance is that you are covered for increases as your term goes on. It will increase by a fixed amount until your policy term ends.
This type of Life Insurance was introduced to protect the policy’s total value against inflation and is usually in line with the retail price index.
As a Mortgage Broker in Sunderland, we’ve learnt that the Whole of Life Insurance policy is not at the forefront of the insurance market. However, it is still helpful, and it may be the policy that suits you most.
The Whole of Life policy is the cover that lasts your whole life. When you die, the policy that you took will payout. The costs of Whole of Life Insurance will be a little more than a Level Term Life Insurance. However, you are covered for your whole life and not just a fixed term. Assuming that you’ve kept up-to-date with your life insurance payments, your cover will apply for your entire life.
This type of insurance is usually used for family protection and part of inheritance tax planning.
If you are in a relationship/married, you could consider taking out a Joint Life Insurance policy that will payout in the event of one of you dying. You could still have two separate Life Insurance policies if you want to. However, having a Joint Life Insurance policy is often cheaper than taking out two different ones.
This policy works because if one person dies, the policy pays out and then ends. This may seem like a downside to the policy, but if you initially took out the policy to pay off your mortgage, you would still be able to do so as the money will be released after the death of one of the policyholders.
This type of Life Insurance cover may be offered to you by your place of employment. Your company is not obligated to provide Death in Service cover. However, some do as part of their employee benefits package.
Death in service is usually a lump sum of cash paid out to an employee’s family or a person of their choice if they die. This sum can be up to 5 times their annual salary. There are no specific limitations on what can be done with the employee’s money.
Just because you are a single homeowner doesn’t mean that you should disregard all Life Insurance options.
If you have settled into a new place and are currently living on your own without children or a partner, it’s not unusual for people to forget about life insurance. People also sometimes choose to ignore it, and this is because it doesn’t always apply to single homeowners.
What you should think about, though, is that your circumstances could change in the future, and if they do, then Life Insurance could become an essential thing to have.
Please speak to one of our Mortgage Protection and Insurance Specialist in Sunderland and determine whether taking out Life Insurance as a single homeowner could be beneficial for you.
We want to make sure that you have the right policies in place to allow you to leave your family in the best position possible if you die. Taking Life Insurance will give your family financial certainty and will take a little stress off them in an already difficult time.
As a Mortgage Broker in Sunderland, we know that Life Insurance, no matter the type of cover, is highly beneficial and can put you at ease knowing that your family won’t have to pay for your debt payments.
If you want to find out more about Life Insurance, take up our free Insurance consultation in Sunderland. We will explain the policies available to you and why they could benefit your family’s personal and financial situation in the future.
But don’t just take our word for it, look what our customers have to say about our staff. Just like our mortgage protection and specialist Mizan:
We always ask our customers to review us. We do this because our reviews reflect a complete picture of our service from start to finish and highlight how amazing our team is.
As a Mortgage Broker in Sunderland, we’ve found that Life Insurance is typically taken out in combination with other policies, depending on your situation. The other Insurance options are:
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Any applicants like first-time buyers in Sunderland with a “good” credit score are more likely to get accepted a mortgage. Lenders study your application with a fine-tooth comb to ensure that you can afford to keep up your monthly mortgage payments.
Bear in mind; there’s no guarantee that you can obtain a mortgage. You see every lender has their own different lending criteria, and it’s not very confident that you will match every single one of them.
Each lender has devolved their way of deciding whether you match their criteria or not. You could compare the majority of them, but you also may not. It is your Mortgage Advisors’ job to try and find you a lender who has criteria matches.
Again, they will try and find the best deal for your circumstances. Whether your advisor is from your bank, the lender or a Mortgage Broker in Sunderland like us, they will try their best to match your mortgage needs
Going to a Mortgage Broker will allow you to Speak to a Mortgage Advisor in Sunderland who will try and find you the best deal possible based on your situation. You will always know what is going on and will continually be updated if anything changes or something comes up.
We are a devoted mortgage broker who’s here to help improve your credit score and help secure that perfect mortgage deal.
There are a handful of different credit reference agencies in Sunderland that you can go to; however, the most popular are Experian and Equifax. Before you make a decision. Research each agency as it is a possibility that some of them could be holding incorrect data and it could help you discover any inconsistencies.
Improving your credit score can be challenging, but here are a few more straightforward ways of going about it:
Making multiple credit searches could harm your credit score. Price comparison websites will also damage your score, so be extra careful. We also advise you to not apply for credit during the mortgage process as a lender may look at this and think that you are struggling financially.
It is a good thing in the long term though as it shows that you can pay recurring payments.
Another way to improve your credit score is by registering for the Electoral Roll. In the lender’s eyes, it shows stability which they want to see. When enrolling, you must spell your name correctly and set your address to your current one and not an old one.
If you are not registered, then you definitely should as it’s quick and easy to set up and it could help improve your credit score. Make sure everything is correct.
Maxing out your card each month is bound to reduce your credit score. The lender looks at your credit card statements to check whether you have paid off balances by the due date or not. If you are meeting due dates and have never exceeded overdraft limits.
Then a lender will see that you can manage your finances quite well and it could prove beneficial towards your application.
However, if you don’t manage your finances carefully, then the lender will believe that you don’t take payments seriously, hence making your chances of being accepted by them low.
We sometimes find that people who have moved house have not told their previous credit provider. It means that on their records, you still live in the other property.
So there are two separate addresses/properties linked with your name. Again, make sure you are on top of this as lenders don’t like to see your address history all mixed up.
Do you have a family member or ex-partner connected to your financial commitments?
You might not even know if you do, but it’s worth checking to be sure because you can’t get the economic association removed if the account is still live. If you are trying to remove any of these links. Then you should contact the credit reference agencies and make a request.
Applicants see credit scoring as being an unfair approach to accessing whether they can get a mortgage or not. Lenders disagree as this method provides a faster, fresher approach to the credit scoring system. It’s also a lot cheaper for them, and it gives always provides a result that they can trust.
If you want to get ahead of the game. You should send an up-to-date copy of your credit report to your Mortgage Advisor in Sunderland. Starting in advance will increase your chances of being accepted the first time. The more that your advisor knows about your financial situation, the better.
Also, there are still some lenders that will want to do the process the old-fashioned way and will prefer a manual approach. They will have specific rules that they stick by about the number of defaults and CCJ’s that they will allow.
When First Time Buyers in Sunderland is looking at purchasing a property, you do not need to go with the Estate Agency Advisor. The Agent may intimate that you may lose the property if you go with someone else, but that is not the case.
The Estate Agents earn extra commission from you when you use their additional services. People do not like being “sold” to so here are some of the tactics to look out for:
There are several other ways you can arrange a mortgage without using the Estate Agent. In this article, we will try to help you decide whom to use for your Mortgage and also how to make sure you are receiving value for your money!
Some people are confident using price comparison websites to get an idea of the rates available. Remember it’s essential to take advice at some point in the process, buying a house is a huge deal, and it’s critical you get it right.
You could arrange a mortgage directly with your Bank. Lots of people used to do this but not so much anymore. People’s trust in the advice they receive from Banks is much less than it used to be.
Some Homebuyers are reluctant to hand over their financial details to an Estate Agent. They are worried that the Vendor might find out what a strong financial position they are in and end up paying too much for the property.
Some Estate Agents May initiate that their Vendor would prefer you to arrange our Mortgage in-house. In any case, this won’t be true – all the Vendor cares about is that you are in a financial position to proceed.
Go and see a Mortgage Broker not connected to the Estate Agent and ask for an Agreement in Principle. You can then provide this document to the Estate Agent to prove you are in a “proceed able” position. You will also get asked to evidence your deposit and ID.
A good Mortgage Broker in Sunderland like us can guide you through the full process of buying a home and give you Open and Honest Mortgage Advice in Sunderland. Contact Us and Take up and offer of a free mortgage consultation and find an Advisor you like and trust, need some reassurance check Our Reviews Page.
If you need to know precisely how much your mortgage payment will be, we recommend you should take out a fixed-rate mortgage. The longer you settle for, the higher the rate becomes.
If you are looking at finding the cheapest possible fixed-rate mortgage, then a two year fixed rate might be right for you. The payments will be low, but on the downside, two years comes around quickly, and it won’t be long before you have to look for a new deal again. However, if interest rates go up in the meantime, then you may be faced with higher payments at renewal.
If you don’t like the hassle of applying for new mortgages all the time, then a five year fixed rate would be better. Your payments would then be stable for a much more extended period. Five year fixed rates are more expensive than two or 3-year deals. A potential negative would be if interest rates fell during the fixed-rate period, then you would not benefit from a reduction in monthly payments.
While two years and five year fixed rates are the most popular, and you can settle for longer. Some Lenders offer seven or 10-year fixed-rate mortgages.
These long term fixed-rate mortgages have never been massively popular in the UK. Perhaps we feel that much can change in a decade and we don’t want to get hooked into a deal we can’t get escape.
If your circumstances change then, it can cost you money to repay your mortgage early. In any case, an Early Repayment Charge (ERC). The ERC gets calculated as a percentage of what you owe. For example, if you settle a £100,000 mortgage early and the early repayment charge is 2%, then you would incur a £2,000 penalty for breaking the contract.
It’s usually a mistake for the customer to think about “beating the system” or predicting what will happen to interest rates in the future. When selecting how long to fix your mortgage for, focus on your situation. For example:
We strongly recommend you also avoid chasing “headline” deals. The lowest rates often come with high arrangement fees which some customers are keen to avoid.
If you were aware of what a portable mortgage is it means that you can move the mortgage from one property to another without penalty. In any case, this can come in handy if you are planning on moving home in Sunderland and you are in the middle of a fixed rate deal because you may be able to avoid an early repayment charge.
Most high street mortgages that get offered are portable. A portable mortgage is an option. However, not all mortgages are portable. If you are with a specialist Lender, then you may not have the opportunity to port. The most natural solution to finding this out would be to call your Lender and enquire.
When porting is obtainable, some customers choose not to follow this road. It could be that your Lender will not lend you the extra money that will allow you to move to a new house. Additional funds offered might also be different rate to ones on the current deal. In any case, depending on the current agreement and existing deals available, we suggest that it is best to pay the early repayments charge and swap to a different Lender.
A sub-account is created and added onto the mortgage should it be ported and additional monies end up being on a different deal to the original one. In any case, this means that only one mortgage gets set up and one direct debit, but two different interest apply.
Sub-Accounts can be quite tricky products that can overlap with each other to get these back aligned at some point will mean one of the sub-accounts will have to drift onto the Lenders standard variable rate for some time.
For First Time Buyers in Sunderland hurdles in mortgage, acquisition is something often faced by lots of customers, and they are not impossible to deal with either. Here is a list of 5 common problems people may encounter when looking to obtain a mortgage in Sunderland.
Childcare fees are not a reason per se for a mortgage to be turned down, rather they tend to reduce the amount a mortgage can offer.
One thing that needs to be noticed is that when parents or guardians return to work and pay for childcare, they have to monthly dedicate hundreds of pounds. Lenders take them as a liability similar to car loans.
If childcare fees are not to be paid, and still the income is low, the guardian or parents might still not get as much amount as other applicants. However, this benefits by being considered as tax credits.
If you seek mortgage advice in Sunderland, you will come to know that such lenders exist who don’t count childcare fees as outgoing funds, resulting in higher chances of mortgage acquisition.
If things don’t work out in a relationship and you decide to go for separation or divorce, things tend to get tough when it comes to your monthly mortgage repayments.
Normally we get these three questions when people seek mortgage advice in Sunderland:
The answer to all of the above can be yes, but you will need expert Mortgage Advice in Sunderland. If you end up receiving maintenance, this can sometimes get used as part of the assessable income for a mortgage.
You would be happy to know that almost all types of benefit incomes are considered as incomes and include pension or eligibility for pension, disability benefits, working tax credits, and child tax credit.
To take advantage of such opportunities, all you need is to seek out mortgage advice in Sunderland and you will be good to go.
This one comes up a lot, but it is usually easy enough. Some Lenders need you to have been in work continuously for a certain period, but others don’t. You can even get a mortgage if this is your first job. If you are due to start a new career soon, then you may be able to get a mortgage if you have a signed contract and job offer letter.
Gaps in employment can be a problem with some Lenders. Probationary periods tend to be ok, in any case.
Anit-Money Laundering precautions are pretty strict these days. All Lenders will need you to evidence your deposit, and you will get asked to prove where the money came from. Your Solicitor and the Estate Agent you are buying from may ask you for this too.
Cash is a big no-no. Any significant cash deposits into your Bank will question, and your application may get rejected.
It is possible, in fact, regular, for some or all of the deposit to come from a gift. The person gifting you the money will need to confirm in writing that it is a gift, not a loan.
All the content provided above is for reference purposes only, and does not constitute mortgage advice.
Unsecured credit and consolidation are not things to be taken lightly. We recommend you contact us and speak to one of our experienced Mortgage Advisor in Sunderland and review all possible options before finalising the process.
When looking at the bigger picture, you will usually pay back more by integrating unused credit into your mortgage. Although your monthly payments will most likely be lower, and this is the main aim for most people.
It is essential to realize that you are also taking the risk of securing debt against your home. If payments are not kept up to speed. Then you’re putting yourself in the situation where your home will be repossessed. It is not the same scenario as just missing payments on loans or credit cards.
For many years, obtaining credit has sometimes been too easy as it is much faster for people to borrow money than save up. But it is a tough situation because while some people have invested Home Improvements in Sunderland. Which will be raising the value of their property, the debt which they have obtained will be still accumulating interest. Not everyone can qualify for zero percent credit card transfers.
Before consolidating credit it is wise to do a budget planner to help you see where your money is going each month. There may be some luxuries that can benefit you in the long run. If you put aside for a while, such as takeaways and expensive coffees.
A personal loan could be an answer to consolidate your credit. A loan will at least have a set end date unlike credit cards, and due to a personal loan typically being taken out over a shorter period would mean that you pay back less interest.
Family members would also be worth speaking to as an alternative option. This can be an embarrassing predicament for someone to reach out and ask for help with financial issues but is often one of the more comfortable options.
If these options have already been utilized that a debt consolidation mortgage may be the right way to go. With it being a way for you to reduce your monthly payments if you are struggling to save.
Property inflation has overtaken wage increases over the years. For most people being able to afford a suitable property. They will need to buy with someone else because there are then two incomes for Lenders to take account of when calculating your maximum mortgage amount. Having someone to share costs with. You need to consider some risks to consider, and here are some situations we have come across in the past.
From our experience, some Lenders allow a maximum of four people jointly to co-own a property. In the event of one borrower stopping their contributions to mortgage payments. Any joint owners have a legal right to stay in their home unless a court rule otherwise.
Therefore, you need to be very choosy about whom you want to purchase a property. If you are going to increase the mortgage at a later date, all borrowers need to consent. It’s crucial that you make long term plans about what might happen down the line should you end up wanting different things.
Generally, married couples or those in civil partnerships opt for Joint tenancy. If either applicant were to perish, then the property passes to the other owner. If you have taken out Mortgage Life Insurance in Sunderland, then the mortgage would be repaid at that point also. You will need the consent of the other applicant if you want to sell or Remortgage in Sunderland, in the future.
Tenants in common sometimes get chosen by relatives or friends that buy together. You will still jointly own the property, but you don’t have to do so in equal shares. The method works well if one party is making a more significant financial input than the other. If you are a tenant in common, you can choose to act individually. For example, you can sell or give away your share of the property to someone else.
All mortgage borrowers are jointly and severally liable for mortgage payments. If one of the parties stops paying, then the other/others will have to make up the shortfall to prevent the mortgage from falling into arrears. Arrears on a mortgage may stop you from getting another mortgage in the future. Think of it like this: you don’t own 50% of a property, you own 100% of it jointly.
Removing someone from a mortgage can be very difficult. Lenders will need to be confident that you can afford the mortgage payments on your own before they permit this. No one who buys a home with a partner does so with the intention of things not working out. A mortgage is a massive financial commitment, though, and making changes to it later is not always easy.
Even if you can demonstrate that you have been able to maintain mortgage payments since your ex moved out does not guarantee that a Lender will agree to your request to put the mortgage into your sole name. Lenders like the idea that there are two people to pursue in the event of arrears occurring.
To remove someone, they will carry out a brand-new affordability assessment. Precisely in the same way as they would at the point of purchase if the Lender declines the request you. You should contact a Mortgage Advisor in Sunderland to see if other Lenders would agree to your request to transfer the mortgage into your name. It can be worth talking to family members to see if they can help you out.
They can do so by replacing your ex on your mortgage or by gifting you a lump sum to reduce the amount owed.
If you and your partner split up and you leave the family home, then you remain responsible for mortgage payments with them. A typical case even if you agree with your ex that they will make all the payments. If you are sending your partner money each month, you should keep an eye on your credit report to ensure they are paying the mortgage.
If they default, then it will impact your score. If you get connected to an old mortgage, then the payments for that will be considered if you subsequently want to buy a new home of your own. That will mean Lenders might not lend you as much as you would like. Buying a home with anyone is a risk, so you need to go into it with your eyes open.
It’s always better to agree on what would happen to the house should things not work while you are all still getting along well!
The relaxation of lockdown has begun, although things are going to be a very different place for a long time. During the lockdown, we know for a fact that mortgage applications got held up. However, things are taking a positive turn, and we see some fantastic mortgage/ remortgage deals. Interest rates have never been this low in over 20 years.
Whether you are a first time buyer in Sunderland who was in the process of starting a mortgage or a current homeowner hallway through moving home in Sunderland, now is the perfect time to bring you guys up to speed.
The Government has announced new guidelines in regards to the property market to get it functioning again as we gradually come out of lockdown. This is positive news.
To summarise this week’s position:
We would like to point out that all of the above relaxations are subject to additional specific health and safety guidelines and social distancing.
In terms of mortgages at the moment:
We understand that things take time, we’re a long way before everything can get back to ‘normal,’ but rest assured you’re in a great opportunity if you are currently looking for a mortgage/ remortgage deal. Our Mortgage Advisors in Sunderland can help search thousands of deals tailored to your financial circumstances.
Here at Sunderlandmoneyman we are seeing more customers interested in Remortgage for Home Improvements in Sunderland. They realise that it is easy to sort out and may increase your monthly mortgage payments by £100 – £200, this mainly applies to homeowners wanting to start a family or expand their current one.
Once you got in touch and got a few details from you, you will get put through to one of our fantastic Mortgage Advisors in Sunderland, who will provide nothing but help and support throughout the whole of the mortgage progress. Our goal is to find you an excellent mortgage deal!
Some point if your lives your current mortgage deal is coming to an end, or you’re in need to borrow some extra money?
Then you should consider to Remortgage in Sunderland, too many people make the same mistake leaving it far too late and end up lapsing into their Lender’s Standard Variable Rate. If this has happened to you, chances are you are paying way more than you need to be doing on your mortgage payments each month.
Relying on your current Lender offering you a new deal, you will be missing out on potentially lower rates elsewhere. Lenders love it when customers don’t shop around! They do not reward loyalty as a rule. They even offer better deals to new customers than their existing borrowers.
If you switch online without speaking to someone, this is an Execution Only mortgage. That means you do not benefit from the consumer protection you would have got by taking advice. Again, Lenders love this because if it turns out, you received the wrong product, you have no grounds to complain since you picked it yourself. I have always felt that customers should always seek advice when their remortgage is due.
Some customers are still on low rate tracker deals that they have had for years and years. Even so, it’s always worth having a look to see what is out there, especially if you are concerned that interest rates might go up if you feel like that you can always take out a Fixed Rate Remortgage.
If you feel your home would benefit from some upgrading, then it is possible to Remortgage in Sunderland for Home Improvements. Investing in your home can be an excellent investment. Some improvements, such as extensions or loft conversions, can put a value on your home. Kitchens and bathrooms can look tired after a few years, and you can increase your mortgage to pay for cosmetic alterations as well as structural work.
If the amount you need to borrow is significant, then the Lender will reserve the right to ask you for estimates for the works you intend to have carried out. You don’t necessarily have to use the Contractor that provided the view to do the actual tasks.
Some people borrow for Home Improvements even if they know their home may not go up in value. If you have decided you are already in your “forever home,” and if you can afford it, there’s nothing wrong with borrowing for this purpose at all.
You can borrow extra funds for most legal purposes, examples of this would be:
You can raise capital on your property when you remortgage in Sunderland for almost any legitimate reason. It could be for large consumer purchases, gifts to help family members, to purchase a Buy to Let property or for Debt Consolidation.
Remember, you will pay interest on a Remortgage for many years usually, so it’s essential you borrow for the right reasons.
When you add unsecured debt to your mortgage, you may end up paying back more interest overall, and a mortgage term tends to be much longer than that of a personal loan (although it doesn’t have to be).
That doesn’t sit comfortably with everyone as you are under the risk of repossession if you cannot afford your mortgage in the future.
You will need to know the interest rates that apply to the debts that you are considering rolling into your mortgage. If you have 0% credit cards, then adding these to your mortgage will start attracting interest.
You should consider all options before deciding to consolidate debts, such as asking family members for assistance if possible and reducing as much non-essential expenditure as possible.
Once you have considered all the above and decided a Debt Consolidation Remortgage advice in Sunderland could be right for you, then it’s vital you speak with a Mortgage Advisor in. The Advisor will take responsibility for the recommended remortgage and help you with your application.
Often, consolidating debts into your mortgage leads to a reduction in your monthly outgoing. Some customers end up reducing their payments by hundreds of pounds.