Mortgage and Insurance Advisers



How Does a Mortgage Work for First-Time Buyers?

As a first time buyer, you will often need to provide at least 5-10% of the mortgage total to secure your mortgage. The more you save for your deposit, the less your monthly repayments will be. You can hire a mortgage advisor to help you through the process, collecting all necessary information and documents you’ll need to successfully apply for a mortgage. You will need a decent credit score to secure a loan, and poor credit history may make this step difficult to achieve. 

It usually takes around two to six weeks for mortgage approval, with some applications taking up to two months or longer.

What Type of Mortgage Is Best for First-Time Buyers?

The most popular choice of mortgage for homebuyers and first-time buyers is a fixed-rate mortgage. For a certain period of time, usually between 2 and 5 years, the interest rate on your mortgage will not change. This provides a first-time buyer with financial stability, as monthly repayments are easier to budget. 

Standard variable rates (SVRs) are a type of mortgage and are often used after a fixed-rate period ends. The interest rate can change with SVRs, decided by the lender, and so repayments will vary from month to month.

How Does Remortgaging Work?

Remortgaging is done for two reasons: 

  1. To borrow money against your property
  2. To get a better mortgage deal

Remortgaging works by switching your current mortgage deal to one with lower interest rates, or one that will lend you more money. Whether you need extra funds for a new car, new kitchen, or for something else, some lenders will agree to the additional cost whilst others may not. If your current mortgage lender is refusing to lend you extra money, it may be worth switching to a different mortgage provider.

Do You Have to Pay Stamp Duty When Remortgaging?

Unless you are planning to transfer the legal title of your property during the remortgaging process, you will not need to pay stamp duty. Whether you’re remortgaging to release equity or to decrease monthly repayments, stamp duty is not payable. You also won’t be required to pay capital gains tax, a tax on the profit of an asset that has increased in value. 

How Much Is Life Insurance?

The cost of life insurance all depends on what you’d like your policy to cover and can also depend on your age, health, occupation, and lifestyle. The older you are or the more health issues you have, the more you’ll have to pay for life insurance. 

Life insurance is often paid monthly, with the UK average between £15 and £30 a month, but these figures change from person to person. The sooner you take out life insurance, the less it will cost.

When Should I Get Life Insurance?

If you have individuals who rely on you for your income, life insurance is a worthwhile investment. Additionally, if you have debt that will be left to your loved ones after death, life insurance policies can take care of that debt for you. 

The younger the better is usually the case with life insurance, the younger you are the less your premiums will be. The earlier you take out life insurance, the more cost effective it will be in the long term.

What Is Income Protection?

Income protection, or income protection insurance, is an insurance policy that protects your income should you become unable to work. The payments will continue until you are either able to return to work or until you reach retirement age. You often receive a percentage of your salary. Income protection insurance is especially beneficial if there are individuals relying on you for your income.

Why Do I Need Income Protection?

Income protection insurance is a policy that will provide you with a monthly salary should you become unable to work. People use income protection policies if they have family members or loved ones who rely on their income, without which they would become financially unstable. Individuals may also take out income protection to protect themselves if they don’t have anyone to rely on financially, should they become unable to work. With life insurance, you can continue to live your lifestyle without worry. 

What Does Critical Illness Cover Include?

Critical illness cover includes any illness that leaves someone unable to work. It can be added to a current life insurance policy and provides you and your loved ones with financial support after a diagnosis. Critical illness cover includes (but isn’t limited to) conditions such as heart attacks, strokes, loss of limbs, cancer, kidney failure, MS and organ failure. 

How Much Is Critical Illness Cover?

Critical illness cover is often an additional policy you can add to life insurance and is therefore relatively cheap to cover. However, if you are looking at critical illness cover as a separate insurance policy, it may be more expensive. 

The cost of critical illness cover also depends on what finances you need covering, your age, occupation and your health. If you have a pre-existing condition, your critical illness cover costs are likely to be higher.

What Home Insurance Do I Need if I Rent My Home?

If you are renting a property, it is the landlord’s responsibility to take out insurance for the physical building (also known as building’s insurance). However, you will most likely need contents insurance to protect your own belongings, as the landlord is not responsible for this policy. 

How to Claim Home Insurance?

To make a home insurance claim, you will need to contact your insurance company with information about the damage or loss to your property. In the case of theft, burglary or other criminal activity, file a police report and use this as evidence for your insurance company. 

Make sure to take photos of the damage or loss, as your insurance provider will ask for visual evidence. In the event of a large claim, your insurance provider will usually send a loss adjuster, observing your property and deciding how the case should proceed. If you are successful with your claim, your insurance provider will pay out the agreed sum.

Still have a question?

get in touch here