Don't take risks with your home
Did you know, that at any one time, there are 200,000 people in the United Kingdom who are unable to work due to temporary illness and that 1,500,000 are unemployed. Did you also know that there is no government assistance to pay your mortgage until you have been off work for 39 weeks and that, even then, they will only consider paying the interest? Do you think that a lender will be understanding if you don't pay your mortgage for nine months?
How can you protect yourself?
By arranging accident, sickness and unemployment insurance (ASU). ASU usually starts paying out after 30, 60 or 90 days, the deferment period. The longer you delay receiving payment, the cheaper the insurance becomes. You can usually insure yourself for a set period of time,12 - 24 months.
What would happen if your spouse or partner died?
These days, mortgages are often lent on the basis of two people in the family working. Now what would you do if your spouse or partner died for one reason or another? How would you make the mortgage payments? The answer is to arrange a form of life insurance known as mortgage protection. In the event of one person dying during the term of the mortgage, the insurance will repay the mortgage completely. This type of life insurance is arranged on a decreasing basis as your mortgage is reducing in size year by year (this does not happen with an interest only mortgage). You should also consider, however, that the loss of your partner may mean a greater loss of income than the mortgage payment and you may need to insure yourself for a larger amount.
Watters Property Sales & Financial Services is an appointed representative introducer of Mint Financial Services Ltd Which is authorised and regulated by the Financial Services Authority.
Your home may be reposed if you do not keep up repayments on a mortgage or other loan secured on it.
This website is intended for investors over 18 years of age who are resident in the UK only. The website and the information contained therein should not be regarded as an offer or solicitation to conduct investment business in any jurisdiction other than the UK. These pages provide generic information about various aspects of financial services advice that we provide as well as possible areas of clients' financial planning needs. We hope they are helpful to you but they do not, on their own, add up to proper investment advice and we cannot take responsibility for anything you do in reliance on them without further discussion with us. Please do not make a decision based upon the information contained within these pages alone. They are not detailed or comprehensive enough to enable you to make an informed decision which is tailored to your circumstances and needs. Please contact us now for tailored advice.
