Mortgage and Insurance Advisers

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relevant-life-insurance-all-your-questions-answered

Relevant Life Insurance – All Your Questions Answered

There are many insurance policies out there that can protect both us and our loved ones in unforeseeable circumstances, including relevant life insurance. At Weystone Financial, we have comprised a list of the most asked questions regarding relevant life insurance, to help you gain a better understanding of this policy and how it can benefit you. 

Q. How does relevant life insurance work? 

A. Relevant life insurance works as a cost-effective life cover, taken out by a business in an employee’s name. The monthly premiums are paid as a business expense and the insurance policy is often a benefit of employment. Should the employee pass away, the policy is then payable to the family or any financial dependents (such as children and partners). 

Q. Is relevant life different from personal life insurance?

A. Relevant life insurance is different as it is taken out by a business on behalf of an employee, and often included as an employment benefit. Personal life insurance is taken out by an individual for their own benefit and is done so on a personal basis. If a company doesn’t offer relevant life insurance, some people decide to take out a personal policy instead. 

Q. How many relevant life insurance policies can I have?

A. You are allowed to have multiple relevant life insurance policies, as long as their purpose is to provide benefits to the beneficiary’s dependents. You can also take out both personal and relevant life insurance if you wish to do so. It’s worth noting that relevant life insurance policies usually end once you’ve retired or have left that company.

Q. What are the benefits of having relevant life insurance? 

A. There are many benefits of having relevant life insurance as an employee. Relevant life insurance protects your dependents financially, paying out in the event of your death. These policies are also tax efficient for the employers and are a cost-effective way of supporting an employee’s family financially. For this reason, they are particularly beneficial for small businesses. 

Q. What does relevant life insurance cover? 

A. Relevant life insurance, provided by a business, covers an employee’s dependents financially in the event of the employee’s death. Certain life insurance policies can also cover critical illness, providing the employee with financial assistance should they be diagnosed with a terminal illness and become unable to work. However, this decision is up to the discretion of the business. 

Q. When should I invest in relevant life insurance? 

A. As a business, you can invest in relevant life insurance policies for your employees at any stage, regardless of their age or income. As relevant life insurance is tax-deductable, companies big and small can benefit from including this policy in their terms of employment. As an employee, you cannot invest in relevant life insurance but instead should invest in personal life insurance if not provided by the employer. 

Personal life insurance is best taken out at a younger age, as your premiums will be lower. 

For more information on relevant life insurance or personal life insurance policies, please get in touch with us at Weystone Financial.

are-new-homes-mortgages-any-different

Are New Homes Mortgages Any Different?

With new build properties popping up left right and centre across the UK, there is an increased demand for new homes mortgages, leaving many potential homeowners with the question, are new homes mortgages any different? And if so, how? 

At Weystone Financial, we are experts when it comes to new homes mortgages and we understand the expectations both lenders and developers have with new build properties. If you are familiar with the standard homeowner’s loan and would like to learn more about new homes mortgages, allow us to guide you through their differences and what you should expect as a potential new build property owner. 

Difference in Deposit

Recently, some mortgage lenders have started offering 95% mortgages for first-time buyers, reducing the amount needed for a deposit and allowing them to purchase a property much sooner. However, this is often not the case for new build properties. 

Because many lenders view new builds as a risk, they require higher deposits to secure a mortgage. Most lenders will offer 85% maximum, with some only offering up to 75% for new-build flats. So, if you are planning to purchase a new build, chances are you’ll need to save more for the deposit. However, there are government schemes that help with this, so keep an eye out for those. 

Securing a Mortgage Off-Plan

Unlike older homes, you can actually secure a new homes mortgage for an incomplete new build property. If you’re set on a particular house, but the developers haven’t completed construction yet, you can still apply for and successfully secure a mortgage, also referred to as buying off-plan. 

You can even buy off-plan before construction has commenced, giving you more say in the design and build of your new home. However, it is more difficult to secure a mortgage for incomplete new builds. Not only do lenders see these properties as a bigger risk, but most mortgage offers expire within 6-months. If your property isn’t complete within this time, you’ll either have to apply for an extension or for a new mortgage deal entirely. 

Government Schemes

However, it’s not all doom and gloom when it comes to new homes mortgages, in fact, there are plenty of government schemes out there dedicated to helping you secure your dream home. This includes: 

  • Help to Buy Equity Loan
  • London Help to Buy Equity Loan
  • Help to Buy Scotland
  • Help to Buy Wales
  • First Homes 

More and more lenders are working alongside these schemes to help you secure a new homes mortgage. For more information on these schemes and how they can help you, please get in touch with us at Weystone Financial. 

Difference in Choice

Unfortunately, as new build properties are a relatively new introduction to the UK housing market, many lenders are still reluctant to offer new homes mortgages. This means you’ll likely have less choice when it comes to mortgage deals than you would when purchasing an older property. However, with the help of an expert mortgage advisor, we guarantee you can secure the right new homes mortgage deal for your situation. 

Don’t tackle the property market on your own, get in touch with Weystone Financial instead and let us help you secure your dream new build. 

Planning-to-move-home-in-2022-List-right-now-ready-for-the-end-of-the-festive-season

Planning to move home in 2022? List right now ready for the end of the festive season

If you’re looking to sell your home in 2022, get your property listed right now. Placing your home on the market before Boxing Day will give you the best chance of finding a buyer quickly, helping you through one of the busiest times of the year for property searches.

 

If you’re thinking about selling your home and would like some professional advice, get in touch with Weystone Financial today.

 

When is the best time to sell a house? 

 

Surprisingly, the short holiday period from Boxing Day up to the New Year is the most popular time for property searches. So much so that Rightmove have reported an increase in traffic of around 25% during this festive period. 

 

There are an array of different motivations for this, from realising you need more space after having friends and family over, to wanting a fresh start and the desire to do something different.

 

No matter the reason why you are thinking of moving, If you would like more information on this subject, get in touch with Weystone Financial today.

 

Why should I start preparing my home before Christmas? 

 

  1. If you start preparing your property before the holidays, it means that you have the ability to show off your home as a blank canvas. Having Christmas decorations may look lovely to you, but it could put off potential buyers who are trying to envision themselves living there. 
  2. By getting ready earlier, you are putting yourself in a better position to find a buyer for your home and be able to move quickly when you find the house of your dreams
  3. During this time of year and the recent booming property market, there are lots of buyers looking for a new home. At the same time, there are currently a limited number of properties for sale and most sellers will favour offers from someone who currently has their house on the market (and if they have an offer in place – even better!). This is why it’s so important to prepare your home, ready for the big move.

 

How should I prepare to get my property ready for Boxing Day? 

 

Firstly, get a property valuation from a professional, in order to see how much your property is worth. They will also provide marketing tips and advice on how to organise and decorate your property ready for photographs to be taken.

 

Our quick photography tips:

 

  • Clean up and get rid of clutter
  • Use neutral colours in decoration
  • Arrange furniture to make the room feel spacious

 

Once you know how much your property is worth, we’d recommend taking photos of your home prior to putting up your festive decorations. Following this, we would put your property listing live on Boxing Day in order to capitalise on the influx of seasonal buyers.

 

Should I give viewings over the Christmas period? 

 

Some sellers will have their property available to view during the Christmas period, so if you want to be ahead of the game, you could do the same. 

 

The most important thing is that your home is made available online or at estate agents so that people are aware your property is up for sale and can book for a time that is convenient and appropriate. 

 

If you do decide to take viewings once the big day is over, make sure that you clear away any festive decorations and that the home is clean!

 

How can Weystone Financial help? 

Weystone Financial offers award-winning mortgage legal advice and property financing options to individuals and companies across the United Kingdom. Get in touch with our mortgage advisers today to find out how we can help you when it comes to purchasing your new home in the new year!

What-happens-to-my-mortgage-when-I-sell-my-home

What happens to my mortgage when I sell my home?

One of the most common questions we get asked at Weystone Financial is, ‘What happens to my mortgage when I sell my house in the UK?’ and “can I keep my existing mortgage when moving home?”

 

When you move home it’s important to understand what happens to your mortgage: Your legal representative will pay off the remaining mortgage in full. You would then need to start a new mortgage if you are buying a new property.

 

If I already have a mortgage and want to move home, what should I consider? 

There are a few things you should consider before moving home while you have a mortgage:

 

  1. Early redemption penalties – Sometimes moving house isn’t as simple as you think and you may need to pay some fees to be able to leave early. This is a fee you may be charged if you would like to leave the mortgage during the agreed period of the deal. Typically, these penalties are between 2% – 5% of the amount you pay off.
  2. Portable mortgages – A portable mortgage is where you are able to transfer your mortgage balance to a new property, with the same lender, without any penalties. 
  3. Additional borrowing – You may also want to consider whether you will need to borrow more for your new home and how this could affect your mortgage.
  4. Current rate – Is the current rate you have better than any new rate you may get in the open market? It’s most likely that you have some form of deal on your current rate, whether it’s a fixed, discounted variable or tracker rate.
  5. Moving home penalties– It could also be that penalties are applied if you move home whilst you already have a mortgage with your current lender.

 

It’s important to note that most lenders will let you overpay your mortgage to a certain extent without incurring penalties, however these are usually small and relative to the size of the mortgage. Usually, it would be an annual amount up to 10% of the outstanding mortgage debt.

 

This is where a portable mortgage could come in handy!

 

How do I port a mortgage?

If you are able to port your mortgage (which most people are), it will mean that your legal representative will pay off your existing mortgage and give you a new mortgage for your new property. Typically, the same rate as your old mortgage will be applied to your new mortgage by your lender. Your lender will then rebate your redemption penalties and apply the same mortgage rate you had on your old mortgage for the balance of the term left on the rate.

 

Depending on which lender you are with, they may make the porting happen on the same day as the redemption of the mortgage. Other lenders may leave a gap of up to 6 months from the sale of your old home to the purchase of a new home. 

What happens if I want a larger mortgage when moving home?

 

You can move from a less expensive property to a more expensive one, but you might run into a few complications on the way. Some lenders will allow you to borrow additional funds at the same rate as your ported amount. However, the majority of lenders will suggest that the additional funds get placed at a rate that is in their range at the time of making the application for the new mortgage. 

 

Dependent on your current situation you may want to consider changing lenders for one of the following reasons:

 

  1. Your current lender’s rate will become uncompetitive in the future when either one of the rates end.
  2. The lending criteria no longer fit your circumstances,  e.g they won’t lend as much as another lend or refuse to lend on certain types of properties.

 

Should I port my existing mortgage, or pay the redemption penalties? 

 

If you are making a decision between porting your existing mortgage or paying the redemption penalties, you should weigh up your existing ported rate with any new rates that could be available if you pay penalties before you decide to port. Keep in mind that porting might not be in your best interest if your current rates are lower than your existing rate.

 

Have you held your mortgage since before 2009? You should also see if your mortgage has a conventional lenders retention rate or a form of tracker rate for the term of the mortgage. This arrangement is less common in recent years due to the low-interest rates we have all become used to, however, you may find an advantage. 

 

Tracker rate mortgages are not fixed at certain interest rates. They move in line with one of two external rates: Bank of England base rate (BBBR) or London Interbank Offered Rate (LIBOR).

 

If you do have an old tracker rate mortgage, you may want to seriously consider porting your mortgage, assuming you are okay with the risk that interest rates could rise in the future.

Thank you for reading our blog ‘What happens to my mortgage when I sell my house?’. If you would like mortgage advice, get in touch with Weystone Financial today.

the-mortgage-application-process

The mortgage application process

Buying a home can seem chaotic and challenging at times. There are a lot of viewings, checks to go through and that dreaded paperwork that we all hate doing and this is all before the move-in date. To keep you informed and in the know of the processes that have to happen in order for you to move into your dream home, we have written this blog. 

 

If you need to borrow money in order to buy a home, you will need to get your mortgage approved by a lender which can take some time. How long it takes for this application to go through can depend on an array of factors such as checking your credit rating, the results of a mortgage valuation survey and your income and affordability assessment.

 

If you’re looking for mortgage advice in the UK, get in touch with Weystone today.

 

Without further ado, let’s discuss the mortgage application process

How does the mortgage application process take?-  In short

 

You should expect to wait around 2-6 weeks for your mortgage application process approval time. It can take as little as 24 hours, however, this is rare as it involves multiple processors and people. The time can vary a lot, so if in doubt, talk to your mortgage advisor.

 

The mortgage application process

 

Mortgage in Principle 

 

A mortgage in principle is the process in which the lender will make a statement in writing, saying that they are able to lend you a certain amount to purchase your house ‘in principle’.

 

This stage is fairly straightforward and quick, as long as you show all the required documents such as a passport, 3-6 months of bank statements and proof of income. You will also need to have picked out a particular mortgage deal.

 

On your lender’s part, they will ask you for information such as your income, current financial status and will check your credit history, where they will let you know if you have an okay credit score for a mortgage.

 

After this point, there is still no guarantee that in the future a lender will choose you, but it is useful to show estate agents to prove that you are a good candidate for the mortgage. As well as this, you will be shown homes that are available for the agreed, but not set in stone, loan. If you do get a mortgage in principle, the pace of the application process may quicken once you have found a property you want to purchase, if you are going with the same lender.

Once you have found your home

 

Once you have found your home, you will then be ready to fill out a mortgage application. This shouldn’t take too long, typically less than one hour. Make sure that you have your finances in order and you have all the documents you need ready for this application.

 

To see if you’re a fit candidate to borrow money, in regards to your reliability to pay the mortgage back, lenders will need to see some evidence.

 

This evidence includes:

 

  • Property Details of your possible new home along with information on the seller’s estate agent and proof of your deposit.
  • Valid ID such as a passport to prove your identity and your current address, such as a utility bill.
  • Three months of bank statements, showing what your current outgoings are, including credit commitments, childcare, utility bills, leisure time, money to savings, pension contributions etc.
  • 3 months of payslips to provide proof of income, including bonus’ and overtime. If you are self-employed, you will need to provide accounts and tax returns to determine what you are eligible for.

 

After your lender reviews the information you have provided, they will carry out a credit check. At this point, they will ask you if they require any further information. If they don’t require anything else, a valuation of the property you are hoping to buy will take place to determine whether it is correctly priced and okay to move forward with the mortgage.

 

A ‘standard valuation’ for the property you would like to buy is taken (which is required by law). The inspection of the property will include looking for any major issues or defects that could affect the value of the property. This standard valuation will then be reviewed by your lender. 

 

Assuming that your lender is happy with the valuation and all other checks, your mortgage application will be approved and your offer will be set in stone.

 

If your lender finds that you have purchased the property at a higher price than it is worth, they will inform you. In this case, you can contact the seller and provide the results of the valuation to discuss whether the price of the property could be reduced. If you don’t care about the price of the property and potentially going into negative equity, you can increase the price of your deposit to make up for the potential loss in value.

Thank you for reading our blog about the mortgage application process. If you’re looking for mortgage and insurance advice, take a look at Weystone today.

how-long-does-a-mortgage-offer-last

How long does a mortgage offer last?

Buying a home can be a long game. This can however be a risk when the housing market is constantly changing and the price of a home can increase in a matter of just a year. “How long does a mortgage offer last” is a question that isn’t usually thought about until you’re in the process of buying a home.

 

It’s always better to be in the know, which is why we’ve decided to write a blog based on the question we often hear, “How long does a mortgage offer last?”.

 

If you’re looking for mortgage advice, talk to Weystone today.

What is a mortgage offer?

 

When you would like to move home and you cannot buy the home in full, you need a way to pay for the home. This is where you will ask to borrow money from a mortgage lender. In this process, the mortgage lender will ask you questions and review your financial situation after which they will give you an offer for the home you wish to move into.

 

How long does a mortgage offer last?

This question all depends on the lender’s criteria but the mortgage offer typically lasts 3-6 months. If you ask your lender, they will give you a start day and an expiration date, alternatively you can find the date on the offer document.

 

What is a Mortgage in Principle?

 

A Mortgage in Principle is what it says on the tin, a mortgage that in belief should go forward. However, a mortgage in principle is not the same as a mortgage offer. A Mortgage in Principle is how much a lender could be willing to give you once you’ve completed the application and you are approved by the provider’s underwriters. A Mortgage in Principle is what you should have in place before you start looking for properties within your price range. A Mortgage in Principle will show estate agents that you’re a serious buyer. Furthermore, it will also let sellers know that you’re likely to be able to afford their property.

 

Please note: A mortgage in principle will not guarantee that you will be offered a mortgage. Your mortgage will only be set in stone once you’ve submitted your full application, at which point you will be declined or accepted. You may be declined for a number of reasons, for example, if certain information was revealed about your credit history.

How to apply for a Mortgage in Principle

 

You will need to provide the lender with basic personal information, like your income and how much you’re willing to borrow. The lender will have certain criteria that you will need to meet, if you meet these criteria, they will provide you with a Mortgage in Principle.

 

How long does a mortgage offer in principle last?

 

Depending on your lender, a Mortgage in Principle will typically last between 2 and 4 months. Due to the fact that Mortgages in Principle do not last long, it’s important that you only request a mortgage in principle when you are fully intending to buy a home in a quick manner.

 

When is the appropriate time to apply for a mortgage?

 

Once you have your Mortgage in Principle, have found a home you like and your offer has been accepted on the property, you can then apply for the mortgage.

 

What if I have gone past the expiry date of the offer set out in my Mortgage in Principle?

 

Sometimes it can take a while to find a house perfect for you or the buying process can take longer than you expected. In this case, you can ask your mortgage provider for an extension. You should always let your provider know about the extension as soon as possible.

 

How to reapply for a Mortgage in Principle

 

There could be many reasons why you cannot purchase property before your Mortgage in Principle expires. It could stem from an array of delays such as delays in construction when a new build property is not ready to move into, or it may be personal delays on your behalf.

 

In this case, all you can do is reapply and you will have to proceed to go through all of the checks that you went through previously. As long as your circumstances haven’t changed in a negative way, you are likely to be accepted again.

Thank you for reading our blog ‘How long does a mortgage offer last?’. If you’re in need of some mortgage advice, get in touch with Weystone today.

critical-illness-cover-guide

Critical Illness Cover Guide

Hopefully, you or a family member will never need critical illness cover, but here at Weystone Financial, we want to make sure you are informed. Weystone Financial has been helping individuals and families find the best critical illness cover for them for many years. If you have any further questions about critical illness cover then contact us on 01264849179. Our team will help you find the right critical illness cover for you. You can contact us by email at info@weystone.co.uk.

 

What Is Critical Illness Cover?

Critical illness cover is a form of insurance that pays out a tax-free lump sum if you are diagnosed with a medical condition or illness, specified in the terms of the policy. This is different from life insurance, which pays money to your family or people you name if you pass away. This can be used at any time to support you and your family. This may include lost income while you are recovering, health-related costs and monthly expenses. You can spend the money how you wish.

 

Why Do I Need a Critical Illness Cover?

If you were to be diagnosed with a critical illness, it would unquestionably have a major impact on your life, so this allows you to focus on your health concerns, rather than financial pressures. Having a lump sum to fall back on could also mean that you would not need to return to work as quickly, allowing you sufficient time to properly recover, or it could even provide a lump sum to repay your mortgage early.

 

Will My Condition Be Covered in Critical Illness Cover?

It’s important to find a cover that suits your needs, some providers have different illnesses they cover. Some policies may not cover all the illnesses you might expect. We always recommend reading every part of the policy to ensure that it suits your needs, we offer a tailored service to help you with this. Some insurance companies include more than 60 ailments, conditions and injuries. However, even if your illness is on the list, whether you get a pay-out could all depend on how severe or permanent the condition. Some forms of cancer, for example, are not included because they are easily treatable and not seen as a significant threat. Some companies won’t pay a claim for cancer until it has reached a specified stage. Similarly, a mild stroke or mild heart attack could be excluded on the basis of severity.

 

How Much Will It Cost?

There are many factors to take into consideration, your health, whether or not you smoke, and your age will be some of the factors that will go towards calculating the premium. All insurers offer different levels of cover and premiums. We recommend that it really is worth seeking professional advice. If you stop paying for the premiums then the cover will stop. Furthermore, there is no cash-in value to critical illness cover if you don’t use it. As critical illness cover depends on how healthy you are, the premiums will increase as you get older and unhealthier, as the likelihood of your making a claim rises. You can bring down the cost of cover by changing your lifestyle

 

When Will It Payout?

You will receive a payout the sum assured on diagnosis of a specified critical illness, the resulting payout can then be used to help make your life better at what would undoubtedly be a difficult time. Choosing the most appropriate level of cover, type of policy and provider can be difficult, and therefore taking professional financial advice can be massively important.

 

Be Honest

We always recommend that when you are setting up the critical illness cover that you be fully transparent with your situation. This will boost your chances of a successful claim, make sure you fill in your application carefully and accurately, answer all questions in detail – especially the medical questions. Claims often get refused because the policyholder did not disclose all the relevant health information.

 

How Can Weystone Financial Help?

If you are looking for critical illness cover and a team who are trustworthy and provide professional advice to guide you every step of the way, then look no further than Weystone Financial. If you would like to discuss critical illness cover with a specialist, call today on 01264849179. Our team will help you find the right critical illness cover for you. You can contact us by email on info@weystone.co.uk.