For more information contact your financial advisor at The Mortgage Pride Ltd on 01782 450050
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The Mortgage Pride Ltd
MONEY MATTERS
June 2020
Seek advice for adverse credit mortgages
Is now the right time to remortgage?
New parents and life insurance
Our front door of advice is always open

After the General Election at the end of last year, the ‘Boris Bounce’ provided some momentum in the housing market. In fact, buyer interest in some parts of the UK saw a dramatic increase. Now, in the midst of the global COVID-19 outbreak, it’s difficult to quantify the likely impact on the residential property market, in the UK, and around the globe.

While there are many factors involved with determining the mood and movement of the property market, few things have a bigger impact than uncertainty. Rest assured we are here to help, if you have any questions about the property sector, mortgages or your protection requirements – please get in touch.

As a mortgage is secured against your home or property, it could be repossessed if you do not

keep up mortgage repayments.

Is now the right time to remortgage?

Following the base rate cut, many mortgage rates have fallen. With competitive products out there, those whose mortgage deal is nearing its end, or borrowers currently on their lender’s standard variable rate, now could be an excellent time to consider your options.
Since the rate cut, over 2,400 mortgage products have been withdrawn from the market, mostly those in the higher loan-to-value range, as lenders face a series of constraints, but the level of choice and competition is still plentiful. The most competitive remortgage rates are at 60% LTV and below.
Expert advice has never been more valuable.

Your home may be repossessed if you do not keep up repayments on your mortgage. You may have to pay an early repayment charge to your existing lender if you remortgage

Seek advice for adverse credit mortgages
Do you find yourself wondering what sort of mortgage you can get, or indeed whether you have any options at all? Although getting a mortgage with bad credit can be difficult - especially if you have defaults, individual voluntary arrangements (IVAs), county court judgments (CCJs), or a bankruptcy in your credit history - it is possible.
A YouGov survey found that nearly six in ten (57%) prospective home buyers, with a missed payment on their credit file within the past three years, would use a mortgage broker.
Advice is essential
It pays to be cautious and seek professional advice from an impartial mortgage adviser as unsuccessful applications can bring down your credit score.
Your home may be repossessed if you do not keep up repayments on your mortgage
Renters: don’t forget income protection

A study from Aviva1 found that, while 36% of UK households live in rented accommodation (up from 31% in 2007) just 3% of them have income protection cover, leaving millions of people vulnerable, don’t let this happen to you.

Short term policies

This type of policy, sometimes referred to as accident, sickness and unemployment insurance (ASU) is designed to pay out a monthly income for one or two years. It covers a percentage of your monthly income to help you pay bills. If you claim on your policy, there is a waiting period before it starts to pay out, you can choose how long you want this to be when you take the policy out. This is usually referred to as the ‘deferred period’ and can be from a few days up to two years. The longer the deferred period, the lower the premiums are likely to be.

Long term policies

These provide a regular income if you are unable to work due to illness or disability (but not if you are made redundant) until you are well enough to return to work, or until you reach the end of the policy term, or die. Here, the premiums are likely to be higher because they cover a wider range of illnesses, including debilitating strokes and heart attacks not usually covered by short-term policies.

As with all insurance policies, conditions and exclusions will apply

New parents and life insurance

Research1has revealed that new parents are spending more than ever preparing for the arrival of their baby. According to the study, the average spend now stands at a sizable £1,645, an increase of more than 18% over the last eight years. Many new parents are thinking about their child’s financial future, with almost 60% opening a savings account for their newborn.

A life changing responsibility

Whilst parents-to-be are focused on the joyful preparations, unfortunately these measures do not always extend to their protection planning. The study highlights a concerning statistic, just over a quarter (27%) of first-time parents have taken out life insurance, leaving a massive 73% without cover.



It seems the vast majority of people aren’t considering what would happen if they could no longer provide for their child. What if your family no longer had access to your income? With a new baby, as will any dependants, it’s essential to ensure that you are financially protected, so that your little one would have a roof over their head if the unexpected were to happen.

 

A top priority

Get in touch, we can help you find the most suitable life insurance policy for your circumstances, giving you peace of mind.
As with all insurance policies, conditions and exclusions will apply

The Mortgage Pride Ltd
Contact us
Email: hello@themortgagepride.co.uk
Website: www.themortgagepride.co.uk
Office: 01782 450050
Address:
Environment House, Werrington Road, Stoke on Trent ST2 9AF