Buying Moving Maintaining
Personal Finance Matters
Mortages and Insurance
I need a mortgage. Where do I start?
There are many different types of mortgages available, repayment, interest only, sterling, foreign currency, buy to let, etc from a wide variety of lenders - including banks and building societies. Some mortgage loan applications can even be made over the phone or via the Internet. It is even possible to apply for a homeowner loan that is secured on your home if you are trying to fund a home extension.
With so much choice you may feel that you need to seek some expert advice and use an IFA to make your mortgage loan application. All financial representatives are bound by law to give the best advice for your needs when you make a mortgage loan application. They must operate within the terms of the Financial Services Act (FSA) whether independent or tied.
Please note that for legal reasons (we are not registered to give such information) here at uk-home-information we are unable to suggest any particular mortgages, however there are many websites that allow you to compare mortgages.
We have a maximum mortgage calculator and stamp duty calculator available for you to use, these will give you some idea of the typical maximum loan available and how much stamp duty (land tax) you will have to pay. We also have some information about house repossessions.
Mortgage Protection Insurance
A mortgage protection insurance (also called a mortgage payment protection policy; accident, sickness and unemployment insurance; or given such titles as Paymentcare or Paymentcover) protects your mortgage in case you can’t work and is something you can’t really afford to ignore. You never know what life has in store for you, somebody has a heart attack every two minutes in the UK and one in three of us will get cancer at some point in our lives, so none of us are invincible and most home owners in the UK need life cover or life insurance of some sort.
So how do you go about protecting your mortgage payments? On the surface, mortgage protection insurance looks simple. Your lender will more than likely offer you a mortgage protection insurance policy, also sometimes known as accident, sickness and unemployment cover. It’s a one-size-fits-all policy that doesn’t take account of your age, gender or occupation, and it will pay your mortgage and its' associated costs, such as home insurance, for 12 months if you lose your job, suffer an illness or accident that stops you working.
But there’s nothing simple about mortgage protection insurance. To start with, your lender may not offer the best mortgage protection insurance cover. The average cost of mortgage protection insurance from lenders is £6 a month for £100 of benefit, but you can buy mortgage protection insurance from Top Quote UK starting from as little as £3.50 per £100 of cover per month. For more details please visit our Accident, Sickness and Unemployment insurance page.
When you move into your new house you need to consider insurance, there are two main forms of cover you should think about, buildings and contents. Home Cover Insurance provides home, building, and home contents Insurance.
Basically, buildings insurance covers the bricks and mortar, ie the general structure of the property (the walls, roof etc) and will include most permanent items that are fixed to the property, such as kitchen units and fitted bedrooms. Contents insurance, on the other hand, deals with movable household items such as furniture and personal belongings and may cover items such as frozen food in your freezer, bicycles etc.
Please note that the answers to the questions below are general. You should always read your policy document or ask your broker or insurer to check that the your insurance covers your situation.
House Buyers Guide
We have put together a brief guide to buying a house in the UK. We hope that you find this useful.
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