Want to free up cash to enjoy life’s little luxuries?

Life’s for the living. Make the most of it by releasing the equity locked up in your home.

Want to free up the cash tied up in your property so you can enjoy life’s little luxuries?

If you’re looking for a lump sum, or to increase your income to treat yourself and your family then Equity Release could be just what you need.

For many people having thousands tied up in a property but being short of spending money for the little things in life that matter simply doesn’t make sense. What can make sense is finding a way to access your cash without having to sell up and move home.

Talk to us about Equity Release and we can show you various ways to free up your cash as a lump sum or a drawdown income.

Any sum you release is tax free* so it’s all your money and it’s entirely up to you what you do with it.

To be eligible for Equity Release all you need is:

·         Typically to be over 60

·         A property in good condition worth typically at least £70,000. The equity released can be used to repay an outstanding mortgage, or to make repairs or alterations to the property

It’s your money and it’s tax free

• Basically you are mortgaging your house but don’t make any monthly payments

• You still own your home and can live there until you die or have to move into long-term care

• The maximum amount you can borrow depends upon how old you are, the value of your property and the individual lender you borrow from

• Under current legislation you won’t pay tax* on any money you borrow

• Interest is added to the loan every month with the total amount (loan plus interest) usually repaid from the sale of the property when you no longer need it

• If the value of your property goes up over time you may be able to release more equity if you need it

HOWEVER

• Because you don’t make any payments on the loan or loan interest, the longer you live the more the loan amount grows and the less you may have to leave as a legacy – in some cases there may be nothing left

• Releasing cash from your home may reduce your entitlement to state benefits

To find out if you are eligible, talk to us today and put yourself in the picture with a personal Equity Release illustration.

This is a lifetime mortgage. To understand the features and risks, ask for a personalised illustration.

* Any references to taxation are based on our understanding of current legislation and HM Revenue & Customs practice, which can change.

Are you ready to renew your general insurance?

We have all done it. Once your buildings and contents insurance is up and running, it is easy to allow it to renew automatically without a second thought. After all, it is there for peace of mind isn’t it? But the reality is that your buildings and contents insurance needs to be carefully monitored to ensure it is always working best for you and taking into account any new items or any changes to your circumstances.

 

Check your contents and sum assured are up to date

If you have purchased new furniture or a high value item such as jewellery over the last year, then the amount you are covered for may no longer be enough. It is therefore important to check your current list of contents every time you renew. The Association of British Insurers (ABI) recommend that policyholders "update the list each year before renewing insurance to keep the sum insured up to date".

 

Compared to the initial compiling of the list, ensuring it is up to date shouldn’t take long at all. But it is easy to forget buying an item on occasion and protecting the validity of your insurance is crucial in case it comes to claim.

 

Read your documents carefully

It might sound like an unnecessary chore but it is very important. Knowing what items are not covered is crucial when it comes to making a claim. Have your circumstances changed? Do you now need accidental damage or home emergency cover? Would you now prefer to pay annually to save money on premiums?

 

It is also worth noting the premiums, for when policies automatically renew the premiums can increase. This is especially worth checking as insurance premium tax has recently increased, so check your payment plan for the next year is working for you.

 

Shop around

 

Everyone knows that insurers need to be competitive. So shopping around to find a better deal and coming back to your insurer could save you lots of money over the next 12 months. Insurers love giving you the best price to beat their competitors. Also, don’t forget the excess. If you opt for a higher excess it will reduce your premiums, but make sure you are prepared to pay this if you need to make a claim.

 

Don’t become one of the 20% and contact a financial adviser

 

The ABI has recently revealed that at least one out of every five home insurance claims are rejected. Don’t become one of the 20% and check your policy is up to date and fully reflects your situation.

 

If you are unsure as to whether you are correctly covered, talking to a financial adviser can really help. Using your financial adviser is hassle free. Our financial adviser will search for the right level of cover for you, with the security of knowing that you will be covered by insurance with a five star defaqto rating!

Could a ‘Brexit’ affect the mortgage industry?

Referendum. The word on many people’s lips across the nation, as we all weigh up the pros, argue over the cons and get ready to make our vote on whether the UK will remain in the European Union. But how could a potential ‘Brexit’ affect the mortgage industry? It is a question some are beginning to ask, and the answers may come quicker than we think.

House prices

 

Opinion is split on how a Brexit could affect house prices. On one hand, demand has a strong influence on property value in the UK, and a yes vote could indeed cause a decrease in prices as people worry about the possible effects of a Brexit on house prices. An increase in inflation could also be the result of a Brexit, with some experts suggesting this may reduce demand dramatically.

 

But other experts highlight that the UK’s infatuation with property will continue to drive the market. Hidden factors such as the possible reduction in available labour that free movement brings could also stall house building further and push up prices.

Capital investment

 

Much of the house price issue in London comes down to market conditions, which are beginning to see a possible dampening as supply begins to catch up with demand at the high-end of the market. But the core issues show no sign of stopping as more buyers are pushed out of London due to affordability, supply and competition from investors, both foreign and domestic

 

Most experts predict these problems will continue in the Capital over the next few years, whether we are in the EU or not. If anything, a weaker pound could make foreign investment more attractive, a possible side effect given the recent reaction to the referendum build-up.

Consumer confidence

 

Confidence can have a dramatic effect on the market. We all know too well the recent impact a sharp drop in surety can have on lending and finance. Leading up to the referendum, as the media and politicians wrestle to get their voices heard, we may indeed see a change in both borrowing and lending.

 

We have already seen the effects of even speculating on a Brexit, with the pound plummeting against both the euro and the dollar and the stock markets moving in response. This suggests that even talk of leaving the EU could affect how people borrow, buy houses and how much they pay for them. Even if the real effect of a Brexit is minimal, the effect of the vote itself on consumer action could be much larger.
 

Five budget announcements you may have missed

The 2016 budget may have passed by without turning too many heads, but there were some key changes worth noting…

 

Capital Gains Tax

 

The headline rate of Capital Gains Tax (CGT) is to be cut from 28% to 20%. CGT is an annual tax on the gain made from selling an asset (such as a person possession, second home or shares), which has gone up in value. It was also announced that the basic rate of CGT will be cut from the current 18% to 10% at the beginning of the new tax year. The reduction in CGT will not apply to residential property, which means the previous higher rates will still apply to gains from additional property.

 

Lifetime ISA

 

George Osborne announced the introduction of a new Lifetime ISA, to be launched in April 2017. This is to go alongside the Help to Buy ISA, which is available to help those saving for a deposit for a home. But the new Lifetime ISA, or "LISA", can be used to save for retirement as well as a property, without paying tax on the interest earned. The new account is available to those aged 18 to 40 and offers a bonus of 25% on any savings, up to £4,000 a year, deposited before the account holder turns 50.

 

Tax Threshold Increase

 

One of the biggest announcements from the Chancellor was that the higher rate of tax threshold is to be raised to £45,000. This is a move surrounded by political controversy, especially in conjunction with the planned cuts in disability benefits. These changes are expected to save half a million people money, and are to be phased in to increase from £42,385 to £43,000 in 2016 and finally to £45,000 by this time next year.

Stamp Duty

 

As well as confirming the planned 3% stamp duty land tax (SDLT) surcharge on all purchases of additional homes, the government also withdrew the originally planned exemption for those with 15 properties or more. Osborne also announced that purchasers who move before they sell their main residence now have 36 months to sell and reclaim the extra stamp duty paid.

 

Personal Allowance

 

As well as the increase in the higher rate tax threshold, George Osborne announced that the Personal Allowance will increase to £11,500, from £10,600. This is the amount of money you must earn before you start paying income tax. The threshold will rise to £11,000 in 2016, eventually climbing to the new figure by April 2017.

Should you need advice on tax, you should seek advice from an accountant. But if you would like to discuss how some of these changes may affect saving for a house, stamp duty, or anything else relating to mortgages and your home, we are here to help.

 

 

 

 

Are you ready for the buy to let changes?

 

You may or not be aware that as of 1 April 2016 the stamp duty land tax (SDLT) on second homes and buy to let purchases will be increased by 3%. If that wasn’t enough for landlords, the government has also announced that as of April 2017 the tax relief claimed by landlords on their financial costs will be capped at 20%, instead of the higher rate of 45%, which will be phased out over the following years.

Chancellor George Osborne also added that the current ‘wear and tear’ allowance afforded to those letting out furnished property would be scrapped and replaced with relief against the cost of replacing furnishings. With so many changes all within a small time frame, it has created a complicated scenario for many landlords, who may be seeking the financial guidance of an adviser to ensure they make the right decisions.

In an effort to curb incentives for housing investment, the government has introduced the changes to "level the playing field" between landlords and first-time buyers. This has caused some controversy within the industry as some feel the changes are unfairly targeting landlords when the housing crisis is also affected by many other factors.

Some landlords are even considering incorporation and setting up a limited company to apply for their mortgages, to ensure their portfolio remains as tax efficient as possible. But this is a complicated area and these changes will affect each landlord differently. That is why talking to us and your accountant, will help prepare you for and deal with the changes.

One in five UK workers lack financial safety net

According to research by provider Scottish Widows, 23% of workers admit that any savings they have would not last longer than a couple of months if they were absent from work through long term illness or injury. Despite this, a surprising number are without any sort of income protection. In fact, of all those asked, less than one in 20 had cover in place to protect their finances if the worst was to happen.

The poll by Scottish Widows asked 5,000 people about their finances, revealing attitudes and general knowledge regarding protection.

More than 4 in 5 people had heard of life insurance, income protection and critical illness, yet just one in 10 have a critical illness policy.

Currently in the UK people are more likely to protect their home than their income, with almost half of those polled saying that they had chosen to take out home insurance.

More startling, 8 out of 10 considered broadband crucial for daily living and 7 in 10 believed mobile phones were also a vital lifestyle choice. But only 4 in 10 saw providing financial security for their family in the event of death as essential, which is a drop from 5 in 10 four years ago.

Despite one in seven of those surveyed saying that they had been affected by critical illness, the UK is still a considerably unprotected nation. That is why providers are working hard to create added-value benefits to their policies to give people the best chance to protect themselves.

Talk of base rate triggers rise in re-mortgages

A report by the Council of Mortgage Lenders (CML) has revealed that the number of homeowners taking out re-mortgage deals increased by a third in June 2015. Talk of a Bank of England base rate rise combined with competitive fixed rate deals, has seen many securing their payments in an effort to pro-actively avoid being affected by any increases.

Nearly 32,000 re-mortgage loans were taken out in June, marking a 3-fold increase from May. According to the CML, June also saw surprisingly low levels of monthly income being used to service mortgage payments, with homeowners paying just 17.9% on repayments, the lowest since 2005. Paul Smee, director general at the CML, said: “It is likely that people are now beginning to feel a rate rise is a realistic prospect and not just a distant theoretical possibility”.

With rates still at an all-time low you may think that your lender’s SVR, or standard variable rate, is the best deal for your mortgage. But some experts have noticed lenders already beginning to increase their rates in preparation for the rise in UK base rate. With the Bank of England Governor Mark Carney saying that the rise was “drawing closer”, now is the ideal time to see if switching to a fixed rate will save you money.

Are You and Your Family Protected?

Are You and Your Family Protected?

No-one wants to think about what will happen when a loved one dies. Everything changes and the last thing you should have to worry about is adding a financial strain to your family. If you have children or any form of debt, it is essential that you have protection in place in case the worst should happen.
 There are a range of protection products available to give you peace of mind that your loved ones will be provided for should you die. There are many different ways to arrange life cover and we can guide you through the options and find the right product for you. Life assurance can ensure that in the event of death your mortgage could be repaid and the costs are not passed on to your family.

It is surprising to learn that little over 30% of households have some form of life assurance in place. This represents just under half of the population who do have household or motor insurance. An increasing number of people are now attracted to cheap comparison sites to find the lowest premium. They can often find that these "off-the-shelf" products do not offer the full protection their family requires after their death and ultimately could leave their family under unnecessary financial pressure.

There a number of life protection products available to suit anyone, all with different benefits that could ease the pressure and offer support if the worst happens. We take the time to ensure we find the best cover for you. We undertake a full review to ensure that you are not only fully covered but also that you are fully covered for the best possible price!

*Please note that you should never cancel an existing policy prior to taking out a new one without fully investigating the generic and individual elements that are covered.

All is not how it seems

Life it seems revolves around money. When we walk around town or browse our local shopping centre we are engulfed by enticing offers aimed at the money in our pocket. Whilst no one can deny it is a great feeling when you pick up a bargain, what do we lose sight of whilst searching for one?

The internet has undoubtedly transformed the way we approach shopping, making browsing for those bargains more convenient but it can also produce a false sense of security. Nowhere is this more apparent than aggregator sites. Seemingly giving you the opportunity to compare the best deals, it is what you aren’t able to compare that should be considered.

The saying, ‘if something seems too good to be true it normally is’, is worth considering in this instance. The use of clever marketing and attractive advertising portrays that everyone is an expert, having the required expertise to buy their own home and protection products.  However in many instances this isn’t the case with sites not even providing the information necessary to make an informed choice.

Buying cheap unfortunately does not always mean buying wisely. Cheap can come at a price, a price that normally needs paying at the least convenient of times. It is not uncommon for policies sold through these sites to strip out key areas of cover and include higher excesses payments.

Think before renewing your home insurance and protection products. It shouldn’t be a case of one size fits all; it should be a case of protecting your needs.

 

Guaranteed 50 + Life Cover

As your local Adviser, I would like to tell you about a new life assurance product that I feel you would benefit from.

I am sure you have your home, possessions and car insured, but what about the most important element – you!

No amount of money can ever compensate for the death of a loved one. However, whilst it cannot ease the pain, a guaranteed cash lump sum can help with some of the financial concerns that often arise as a result.

You may not have taken out any life cover in the past because you have been worried about the cost, your medical history or you simply do not want to answer any intrusive or lengthily questionnaires.

With the Guaranteed 50 Plus Life Cover from engage this simply isn’t an issue as it offers:

·         Guaranteed acceptance without a medical

·         No underwriting regardless of any pre-existing conditions

·         Tax-free cash lump sum payable on death

·         Affordable low premiums

If you would like me to carry out a no-obligation review of your life cover arrangenments, please contact us on 01243 261945               

New Website

Well it was probably about time we revamped our website, so welcome to our new site.

The aim was to create a brief outline of Tailored Mortgages and the services we offer, with the intention of attracting potential clients to call us for further advice.

Although much business is transacted "online" these days, we have found that you cannot beat personal advice - either on a face to face basis or over the telephone, to assist people during these times when obtaining a mortgage can be rather restricted!

We aim to give clients a quick answer to their queries and hopefully find a solution for their individual needs.

We look forward to speaking with you soon.

Protection

LIFE INSURANCE REVIEW

Now we are well into the New Year, should you be reviewing your levels of life insurance?

Sadly we had 4 customers who died prematurely last year - fortunately for their families, 3 had taken out life insurance the 4th had not, leaving his family with an unaffordable mortgage debt.

Don't leave it to chance, for a few £'s / month, you could provide this valuable protection.

Please make sure both you, your family and friends are adequately protected.

Call today for a free quote. Tailored Mortgages Ltd 01243 261945

Equity Relase Advice

Let your house look after you ….

Are you worried about the size of your pension?

Do you wish you had more money to allow you to lead the lifestyle you deserve?

Is your house now worth far more than you paid for it?

If so you are a prime candidate for Equity Release when you retire. The experts & the Government expect this to be the next boom market. And the Council of Mortgage Lenders predicts that as many as one in four pensioner homeowners will go down this route.

If you are aged over 55, Equity Release can allow you to access the money tied up in your home as a tax free cash lump sum, a guaranteed income for life, or a combination of both of these. Furthermore, most of these plans require no repayment of the capital until your home is sold after your death or permanently moving out of your home.

The loan can be for any purpose ……….

Financing your future
Home improvements
Medical expenses
New Car
Visiting family
Pay off existing debts
Inheritance tax mitigation
Holidays

Why not enjoy what could be the best years of your life?

Safe Home Income Plans (SHIP) was launched in 1991 to promote safe equity release schemes & protect customers. Member Companies offer important guarantees.

• A guarantee that you can live in your home for as long as you wish.
• A “NO NEGATIVE EQUITY” guarantee, ensuring that you will never owe any more than the value of your property.
• The freedom to MOVE home to another suitable property.
• Fair, Simple & Complete presentation of their plans.
• Independent legal advice from your own choice of solicitors.

We specialise in Equity Release. In addition to offering advice on a range of financial products, we can offer you unbiased advice on whether such a scheme would meet your needs and which is currently the best deal from the whole market.


TYPES OF EQUITY RELEASE

Lifetime Mortgages

You can borrow a % of your property value, dependent on your age and with a lifetime mortgage, you retain ownership of your property. You are not required to make payments to the lender and the interest that is charged is added to the loan.
The original loan together with the accrued interest would be repaid on the sale of the property, the borrower going into long term care or the death of the borrower.

Key advantages:

You retain ownership of your property
Cash raised can be used as you wish
No monthly payments
You are guaranteed lifetime occupancy
Any remaining equity in the property when the property is sold is available to you or your beneficiaries

Key Disadvantages:

You can only raise a relatively low proportion of your property value
The debt could roll up quickly and erode your equity
You have no control over the roll up of interest
Moving home may be difficult
Increases in capital or income may affect your rights to state benefits

Home Reversion Plans

With a home reversion plan, you sell part or all of your property to a home reversion provider in exchange for a cash lump sum or an income. Your interest in protected by the formation of a lifetime lease, which will guarantee you occupancy of your home for life. When you die or go into long term care, the provider sells the property.

Key advantages:

Cash raised can be used as you wish
No monthly payments are required
You are guaranteed lifetime occupancy
On a part reversion scheme, some equity in the property will be retained, which would be available to you or your beneficiaries
The future position is certain as there is no rolled up interest.

Key Disadvantages:

You would lose ownership of all or part of your property
You lose the right to any future growth in the part of the property sold
The cash or income raised will not represent the true value of the part of the property sold
If you die soon are taking out this arrangement, the deal would have been very expensive
Moving home may be difficult
Increases in capital or income may affect your rights to state benefits

NEW SHOP

Tailored Mortgages are pleased to announce the opening of their new office in
Rose Green Village.

EQUITY RELEASE BUILDINGS / CONTENTS INSURANCE

LIFE INSURANCE CRITICAL ILLNESS COVER

INCOME REPLACEMENT POLICIES DEBT ADVICE

RESIDENTIAL MORTGAGES FOR PURCHASE AND REMORTGAGE

BUY TO LET MORTGAGES

Please feel free to “pop in” for a chat to discuss your situation and obtain free quotations or call us on 01243 261945. Our opening hours are as follows:

Monday 9.00am – 5.30pm
Tuesday 9.00am – 4.00pm
Wednesday 9.00am – 1.00pm
Thursday 9.00am – 4.00pm
Friday 9.00am – 5.30pm
Saturday 10.00am – 12.30pm
Sunday Closed

DEBT ADVICE

As a mortgage broker, we traditionally see a surge in enquiries from clients looking to “remortgage”, or apply for a secured loan to consolidate debt accumulated during the previous year and over Xmas.

Unfortunately, although many people would still like to go down this route, with falling house prices and the tightening of credit supply, it is likely that this consolidation option will not be available.

This will leave many with mounting debts and combined with rising unemployment and / or reduced working hours, they will no longer be able to afford the monthly payments.

Do you need our help? - If you are struggling to meet all your credit commitments, you are not alone. According to statistics produced in July 2008, the number of people seeking advice on debt problems is over 6,000 every day.

Don’t bury your head in the sand – There will be a solution. The worst thing you can do when you know you have a problem, is to do nothing. Worrying about which bill to pay first and constantly trying to balance the monthly budget causes stress and anxiety. It is essential that you act quickly to ensure that you can benefit form the best solution for you.

We can help! – By contacting us, we can arrange an initial meeting to discuss your situation and a financial program can be put together to make life more manageable. Our regulated advisers can give help and support you in balancing your monthly budget. Crucially, allowing you to live whilst creating a programme to repay your financial commitments. Solutions are individually tailored to your specific needs.

Remember our advice is completely FREE OF CHARGE and we will happily explain to you which options are open to you and discuss the pros and cons of each. We can then look at one of the following:

Debt Management Individual Voluntary Arrangement Bankruptcy

To find the most suitable and affordable solution for you.

For a free confidential, personal chat, please call us today on 01243 261945

A summary of our key services

A summary of our key services…


Advising and arranging residential mortgages for Home Purchase or Remortgage – As an Independent mortgage broker, we have whole of market access to all available deals, so why not let us do all the hard work and make sure your next mortgage is the very best that is available – and we charge NO broker fees.

Advising and arranging Buy to Let mortgages for both Purchase and Remortgage – we provide a full advice service to assist both new landlords looking to purchase their first property, through to the experienced landlord with a substantial portfolio. With the fast changing market place, our service can be invaluable to ensure you obtain the right mortgage.

Equity Release – let us explain to you the various options that are available and help you to decide whether such a scheme would meet your needs. We can then review the whole market to see who is offering the best deal for your individual circumstances.

Life Insurance – Critical Illness Cover – Income Replacement Policies – Accident & Sickness Policies – Redundancy Cover… A full advice service is offered to help you protect yourself and your family adequately. We will make sure you have the best policies to protect the areas that are important to you. We will prioritise your needs to ensure you have sufficient protection whilst still adhering to your budget.

Buildings / Contents Insurance – In this highly competitive market, this is certainly worth reviewing on renewal each year. With access to some extremely attractive rates, we feel certain we can beat your existing quote and provide you with excellent levels of cover.

Debt Advice – An unfortunate fact and an area that will certainly be more needed over the coming months. We can give general advice on how to deal with creditors, or provide you with more specific advice on Debt Management, Individual Arrangements or even Personal Bankruptcy.

CREDIT CRUNCH _ NOW CREDIT CRISIS !!!

At some point over the last couple of weeks, the media seem to have changed the name of the financial news from Credit Crunch to Credit Crisis!

I feel certain that we are all getting a little tired of the constant daily reminders of the problems in the financial sector and although I would not wish to belittle the seriousness of the problems, would like to hear some good news occasionally!

I thought I would let you know how the mortgage market is from a Brokers perspective…

The good news – for residential mortgages to purchase property with a deposit of 25% - mortgages are still freely available at reasonable rates – maybe not as good as the “tracker” rates that were available last year at less than Bank Base Rate, but with the recent reduction in the Base Rate, these should be considered as good rates now!

For remortgages that are less than 75% of the property value, again, there are some sensible deals available – with free valuations, free legal costs and in some cases No arrangement fees. In this area, I currently favour the Lifetime trackers that are competitively priced.

For purchases and remortgages at higher loan to values, up to 90%, there are still plenty of deals available, albeit at slightly higher rates. Lenders are being more cautious (as they should be with property prices decreasing) and client’s that have experienced past credit problems will find this more difficult (although not always impossible).

Now to the bad news - With regards to borrowing more than 90% of the value of a property – this area of the market has been totally decimated – and at the time of writing, there are only a couple of lenders that lend at this level. Even in these cases, borrowing would be restricted to a maximum of 95% of the property value and it is likely the remaining lenders will soon retreat.

With the recent news of the “Banks Bailout”, we are yet to see lenders offering better products and relaxing their criteria, but by the time you read this, it could all have changed again…..

2.3 trillion protection gap

According to various sources, we are seriously under insured, with only 25% of males and 17% of females insuring their own lives!

Tailored Mortgages not only offer independent mortgage advice, but also offer advice and recommendations for various insurance products to help keep you in your home if the unexpected happens.

The loss of a partner, a serious illness, redundancy - how would you manage financially? Could you cope and maintain your current lifestyle and continue to raise your family?

Many people have life cover to protect their mortgage, but what about the other every day expenses? Utility bills, Council Tax, Food, Travel, Car Expenses, Childcare…the list could go on.

Life Insurance and other protection products are there to help provide financial peace of mind when it’s needed most. They are designed to provide you with a cash lump sum or a monthly benefit and depending on the products chosen can help you to:

Maintain your standard of living

Pay your monthly bills and meet your daily living costs

Pay off your debts

Afford to stay in your family home rather than having to downsize

Premiums are based on your age, gender, lifestyle and current health – it is usually considerably cheaper than most people think.

Even if you set up an insurance policy when you purchased your home, this would be worth looking at again. Personal circumstances change and insurance should be reviewed on a regular basis as part of your financial planning. Over the last few years policies have become more comprehensive and with more providers offering more products, prices have become more competitive – you might find you could save money.

Please don’t delay, contact us TODAY to discuss your individual requirements and see how little it could cost YOU for peace of mind.

Online instant quotes are available from our website – www.tailoredmortgages.co.uk

Why use a mortgage broker?

I find it very strange that all mortgages are not arranged via an independent mortgage broker.

Whether you are buying a property for the first time, moving home or looking to remortgage, the same options are open to you when arranging your mortgage.

Go to your own Bank or Building Society, stay with your existing lender, use the services of an independent broker, utilise the services of an Estate Agent, search the internet and apply direct.

From the options above, the only way that you will ensure that you obtain the best deal is to use an independent mortgage broker.

"He would say that", I hear you clamour, "only interested in increasing his own business".

It is an actual fact though and generally, those that do not use an independent broker, go elsewhere because they have been bullied by an Estate Agent (your offer will look much better if we arrange your mortgage!), you cannot be bothered and use your own Bank or stay with your existing lender, or you think you know better than a qualified advisor and arrange the mortgage yourself!

Banks and Building Societies should actually receive very few "direct" applications - without shopping around, how can you possibly know you are receiving a good rate?! This method is for the VERY lazy!

Estate Agents must surely have a conflict of interests? They are morally obliged to act for the seller of the property. Furthermore, in most cases, you will find that although they advertise their services as "independent", they do not use all lenders and therefore you will never know if you have received the very best deal. Under the Estate Agent's Act, they are not allowed to insist you use their mortgage advisor - this is ILLEGAL. Do NOT be bullied!

The people that try to arrange their mortgage direct are the strangest of all the above! I would agree that there is an enormous amount of information available on the internet, but who would want to spend all that time researching something, when a qualified broker will do that free of charge?

There are several other reasons why using an independent broker is the only sensible way to proceed:

Not all lenders deal directly with the general public - some will only accept mortgage applications via an authorised mortgage broker.

Many more mortgage products are available via a mortgage broker. Lenders would prefer to do ALL their business via mortgage brokers as this reduces their costs. For this reason, many lenders offer incentivised products via brokers to give customers a reason to choose this method of application.

When searching online, it is almost impossible to compare products on a like for like basis - lenders have different variable rates - valuation fees / arrangement fees / legal fees vary from one lender to another - exit fees are different - reversion rates are different - the ability to port the mortgage if you move varies - the rules regarding further advances varies - the list goes on and on and on.....

I rest my case - why would anyone not use an independent mortgage broker, when it does not have to cost them any money at all!

Life Insurance

Why take out Life Insurance or Critical Illness?

The importance of life insurance or critical illness benefit may vary at the different stages of your life.

As a minor (under 18 years of age), you will have no financial commitments and few responsibilities. Protection insurance is not appropriate at this stage.

As you grow older you will progress through the stages of life – first job, moving out of the family home, living with a partner, buying a house, having children, buying a bigger house etc.etc..

Your requirement for life insurance and critical illness benefit will increase with added responsibility. It would be important for any debt (loans or mortgages) to be repaid on your untimely death and also to provide any loved ones left behind with sufficient money to continue living to an acceptable standard. Without sufficient insurance, the family home may have to be sold, with further upheaval at an already traumatic time.

Furthermore, you may suffer a critical illness that meant that you were unable to continuing earning the same amount of money that you have become accustomed to earning. Without protecting yourself adequately, you may have to sell your home and your life style may change to an unacceptable standard.

The cost of Life insurance and Critical Illness benefit will vary according to your age, whether you smoke, your medical history etc.etc… There is one factor that is certain though – the younger you are when you commence the insurance, the cheaper it will be, with many policies guaranteeing not to increase the premiums as you become older.

So act now as you never know what might happen tomorrow………..


Life Insurance Facts

Life insurance would be used to ensure that on your death, a lump sum is paid to either a specified beneficiary or to your estate.

This may be taken with a view to repay a debt, mortgage or loan and / or to provide a lump sum to enable your loved ones to maintain their current lifestyle after the inevitable loss of income.

Life insurance can be arranged on either a sole name basis or on a joint basis with another person.

Life insurance can also be arranged on either a “level term” basis, where the amount insured remains the same during the term of the insurance, or on a “decreasing term” basis, where the amount insured reduces over the term of the insurance – this would typically be used to protect a repayment mortgage.

There are further options that can be chosen on application:

“Waiver of Premium” this would “pay” your premiums in the event you were unable to work due to accident or illness.

“Increasing benefit” is an option that would allow you to increase the level of cover in the future, resulting in an increase in premium.


Critical Illness Benefit Facts

Critical Illness benefit pays out a tax free lump sum on the diagnosis of any one of a number of serious illnesses that would vary from one insurance company to another.
In general, they would include:

· Cancer
· Stroke
· Heart Attack
· Kidney failure
· Multiple Sclerosis
· Rheumatoid Arthritis

It can be used to repay a debt (mortgage or loan) or replace income during a lengthy period of illness.

The benefit does not have to repaid even if you make a full recovery and return to work!

Be aware of the high statistics in relation to being diagnosed with a critical illness:

1 in 3 men aged 30 will have a stroke, cancer or heart attack before their 65th birthday!

1 in 5 women aged 30 will have a stroke, cancer or heart attack before their 65th birthday!