Whole of Market Mortgage Advice

Are you considering making mortgage overpayments? Here’s what to consider. If you can afford it, there are many advantages to overpaying your mortgage, such as: - Becoming a step closer to being mortgage-free - Reducing the amount of interest you owe - Lowering your loan-to-value ratio (LTV). However, before you make overpayments it’s vital to check the following: - Is there an early repayment charge (ERC)? Many lenders allow borrowers to pay off 10% of the mortgage balance each year without a fee, but you must double check the terms of your deal. - Do you have other debts that you should settle first? - Would it be more beneficial to place your extra cash elsewhere, such as a savings or pension pot? Your home may be repossessed if you do not keep up repayments on your mortgage

Home insurance premiums are rising, due to construction costs and claims linked to extreme weather. According to recent data, the average cost of a combined buildings and contents insurance policy increased 8.5% in the past year. Premiums remain highest in Northern Ireland and London, while they are cheapest in the North East. Property size also affects cost significantly, with policies for larger homes often more than double those for smaller properties. Rebuild costs The increase in premiums reflects rising rebuild costs. Material shortages, higher labour costs and inflation have all pushed up the cost of construction. Changes to environmental and building regulations have also added complexity and expense to home repairs and rebuilds. In areas affected by storms or flooding, claims have become more frequent and costly, prompting insurers to raise premiums to cover the increasing risk. Time to review It’s worth reviewing your existing policy to check whether it reflects the current cost of rebuilding your home, as the amount covered under an outdated policy may fall short of the true cost of rebuilding today. Why not contact us for an insurance review today. As with all insurance policies, conditions and exclusions will apply. Sources: https://www.yourmoney.com/insurance/home-insurance-premiums-rise-due-to-rebuild-costs/ https://www.actioninsurancerepair.co.uk/blog/the-impact-of-rising-construction-costs-on-property-insurance-claims https://www.checkatrade.com/blog/cost-guides/rebuild-house-cost/

One in ten divorcees have forgotten to remove their former partner as a beneficiary on their life insurance policy according to research by Legal & General. The research also says just 7% of couples discussed life insurance during separation, while only 6% formally waived rights to joint cover. Failing to update financial arrangements can lead to costly errors, including ex-partners inheriting unintended assets. The research noted just 11% of divorcees reviewed their Wills, only 4% took out critical illness cover and 3% took out income protection policies post-divorce. It’s really important for anyone going through a separation to be fully aware of the financial implications of divorce and to consider who they want to benefit from any life insurance. As with all insurance policies, conditions and exclusions will apply. Source: https://www.yourmoney.com/insurance/a-tenth-of-divorcees-have-forgotten-to-remove-former-spouse-as-life-insurance-beneficiary/

More than two million UK mortgage holders would be facing financial distress if their income suddenly stopped. That’s the key finding from a recent study by LifeSearch & Homeowners Alliance, which found 36% of mortgage holders – roughly 2.34 million people – have no financial protection such as life insurance, income protection or critical illness cover. While two-thirds of respondents said they had discussed mortgage protection with advisers, lenders or family, only 16% had taken out an income protection policy. Almost half those surveyed said they would struggle with mortgage payments within six months if they lost their income. One in five said they would face difficulties in two months. Taking action The study highlights a worrying gap between intention and action. While many mortgage holders have spoken to someone about taking out protection cover, far fewer have actually taken steps to put insurance in place – leaving themselves and their homes vulnerable to life’s unexpected events. Paula Higgins of the Homeowners Alliance said, “Without a safety net like income protection, a sudden illness or job loss could lead to devastating consequences.” Your home may be repossessed if you do not keep up repayments on your mortgage. As with all insurance policies, conditions and exclusions will apply. Source: https://www.propertyreporter.co.uk/over-2m-uk-mortgage-holders-are-one-paycheck-away-from-crisis.html

According to Moneyfacts, the number of low-deposit mortgages available at 90% and 95% loan-to-value (LTV) has reached its highest level since 2008, with 1,287 products on offer at the time of writing. In April, there were over 400 deals at 95% LTV and over 800 deals at 90% LTV, signalling growing lending support for buyers with smaller deposits. The number of mortgages available for those with larger deposits also improved, up from 778 in March to 797 in April. Noting the number of 95% LTV deals represents just 6% of all deals available to borrowers across fixed and variable mortgages, Moneyfacts’ Rachel Springall called the increase “a healthy step in the right direction”. Your home may be repossessed if you do not keep up repayments on your mortgage. Source: https://www.yourmoney.com/mortgages/options-for-low-deposit-mortgages-hit-17-year-high/