MORTGAGES
PROTECTION
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- We offer a comprehensive range of products from across the market but not deals that you can only obtain by going direct to a lender.
- You can contact us 24/7, we're always available to help
Why is mortgage protection so important?
Mortgage protection is one of the most important parts of the whole homebuyer process. It’s a way to protect you and your home, to make sure that the house you’ve fallen in love with, and spent so much money on is protected, should the worst happen.
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You’ve always got peace of mind that if an accident occurs or you lost a partner or one of you has a serious illness and becomes unable to work. Mortgage protection is designed so that you don’t have to worry about the house or your finances in these circumstances. It allows you time to focus on more important issues, like recovering and getting well again.
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It’s also important to make sure that it’s set up in the correct way so that you’ll get the most out of it. It’s often overlooked by clients when the main focus is getting the mortgage and the house, but it’s important to ensure that once you’ve got that house, you can afford to stay there if the worst happens.
What would happen if somebody didn’t take mortgage protection?
The worst case scenario would ultimately be that, if they couldn’t afford to pay their mortgage, the lender would repossess the house. If the main income earner is unable to work or dies, then it puts a lot of undue pressure on the remaining person, especially if they have a really high mortgage or have children.
Why do we need life insurance?
Critical illness policies payout whilst you’re still alive. Each provider will have different definitions of what a critical illness is, what is covered and how severe they need to be to pay out on their policy. But in general, a critical illness policy will pay you a tax free lump sum on diagnosis of one of the critical illnesses within the policy definitions, for example, cancer, heart attack or stroke, amongst many others.
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It allows you to have some financial support if you develop a critical illness and need to take some time off work. Depending on the illness, you might need help with bills or specialist care or you might need to adapt your home. Critical illness cover provides a pot of money to give you security to be able to make your own decisions rather than worrying about rushing back into work and potentially putting further strain on your health.
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An important thing about critical illness cover is that the cheapest is not always the best. We’re in a society where everyone wants everything as cheap as possible, but with insurance, the better providers will charge you more.
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Ultimately, it’s better to take less cover than an inferior quality policy, because a policy that will pay you a million pounds is useless if they are so restrictive that they are unlikely to pay out. It’s more beneficial to have a smaller, but definitive payout. If you’ve got a set budget in mind for your insurance cover, then we can design and tailor a protection policy to fit in with your life.
What is income protection?
Income protection is a policy designed to provide a lump sum each month to replace part of your income. Unlike life and critical illness covers, where if you were to be diagnosed or have a claim made or not, you would receive a much larger lump sum, income protection is designed to pay a portion of your monthly salary.
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There are different options available and depending on the level of cover, the income protection payout could last for anywhere from a year to two years from the point of claim. Some income protection policies will actually pay right through to your retirement age.
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With income protection, the monthly payout needs to be in line with what you actually earn because an income protection policy tends to cover 60- 70% of your annual salary. It’s also important to realise that they won’t pay out while you’re receiving any cover from your employer. So if you get three months full pay from work in the event of illness of injury, you would set an income protection to start after three months, so that there are no gaps in income.
What is family income benefit?
Life insurance is really important in securing peace of mind that, if anything happens to you, your loved ones are taken care of. It’s a simple tool and a really simple policy that is designed to protect your family financially, after you die.
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Nobody likes thinking about bad things happening, but life has a way of throwing up circumstances we’re not prepared for and life insurance is something everyone should consider. It is usually the cheapest option out of the different covers available, because statistically it’s the least likely event to happen during the period of your mortgage term.
Do I need critical illness cover and how does this differ to life insurance?
Critical illness policies payout whilst you’re still alive. Each provider will have different definitions of what a critical illness is, what is covered and how severe they need to be to pay out on their policy. But in general, a critical illness policy will pay you a tax free lump sum on diagnosis of one of the critical illnesses within the policy definitions, for example, cancer, heart attack or stroke, amongst many others.
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It allows you to have some financial support if you develop a critical illness and need to take some time off work. Depending on the illness, you might need help with bills or specialist care or you might need to adapt your home. Critical illness cover provides a pot of money to give you security to be able to make your own decisions rather than worrying about rushing back into work and potentially putting further strain on your health.
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An important thing about critical illness cover is that the cheapest is not always the best. We’re in a society where everyone wants everything as cheap as possible, but with insurance, the better providers will charge you more.
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Ultimately, it’s better to take less cover than an inferior quality policy, because a policy that will pay you a million pounds is useless if they are so restrictive that they are unlikely to pay out. It’s more beneficial to have a smaller, but definitive payout. If you’ve got a set budget in mind for your insurance cover, then we can design and tailor a protection policy to fit in with your life.
Can you combine policies?
Yes, and it’s a really beneficial part of protection policies, because you can tailor them to fit your needs. You can have income protection with critical illness and life insurance. You can have just life and critical illness and you can really have any combination you would want.
What about planning for inheritance tax?
We aren’t qualified to give specialist tax advice, so always speak to either an independent financial adviser or an accountant about this subject. In general, the main ways that protection policies and inheritance tax interact are in regards to trusts. This is especially important for couples that aren’t married as if one of you were to pass away without a will, that policy might not necessarily go to one another.
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If you don’t have a will, then the rules of intestacy will apply and a trust is designed to ensure that the money from the life insurance policy or any of the other policies are paid to the right person and the right time.
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Probate is where a will is actioned by a solicitor after someone dies, which can take multiple months. Having a trust put in place takes the proceeds of that policy outside the client’s estate for inheritance tax purposes so it can be paid without probate needing to be settled and it can be paid much quicker. If the policy itself is large, but you didn’t have a trust in place, it would naturally pay into the estate and you could then potentially have an inheritance tax liability bill. By having a trust in place it doesn’t fall subject to inheritance tax.
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You can put policies in place like a whole of life policy, which is designed to pay out upon death to settle any inheritance tax bill.
Your home/property may be repossessed if you do not keep up repayments on your mortgage.
Some Buy-To-Let Mortgages are not regulated by the Financial Conduct Authority.
How much should I budget?
Whatever you can afford on a monthly basis. Each client’s income and expenditure is going to be completely different. Some will be able to afford more cover and others won’t be able to afford cover for everything. What’s really important is gauging what’s the most important level of cover for each individual.
It’s difficult to put an exact figure on how much you should budget, but as Mortgage Brokers, we will present different quotes offering different levels of cover, so that it remains affordable. Smokers have naturally higher premiums and ultimately someone with a larger mortgage should expect to budget more, as there is a bigger debt that needs to be protected. Budgeting between 5-10% percent of your monthly mortgage payment is probably a realistic amount to get an adequate level of cover.
What is business protection?
There are two main policies that could be taken out by a Limited Company Director. Relevant life insurance is usually used to protect the shares owned by a person, especially if you’re in partnership with another individual. This would pay out a lump sum to the business to ensure that the family of the person that’s passed away can be remunerated from the business for their shares so that the shares don’t fall to the family to then get passed away.
The other one is key person insurance, which is if you have an especially valuable worker that would be very hard to replace, you can take out a life policy that would pay out on their death to the business to help cover the costs of recruitment or training.
Your home/property may be repossessed if you do not keep up repayments on your mortgage.
Some Buy-To-Let Mortgages are not regulated by the Financial Conduct Authority.
Happy Clients
Sharmila Rumpa2024-05-28Excellent and professional service, wanted to call out Bhavna Gover especially, she helped me to sort out a Ltd Company buy to let mortgage. She's very thorough in her work. Please ask for Bhavna if you need a mortgage in future, she will be happy to help for sure.
Kash Anis2024-05-23We approached Mortgage matchmakers regarding to get an options as we alreday tried few brokers before.Mohit introduced Bhavna which helped us out through out our journey.We felt it was difficult as our situation was bit tricky, but Bhavna worked out the best resoultion and sort this out. We have no words to say thank you, as it was amazing support from Bhavna and got the mortgage offer. Bhavna was fantastic,friendly and very passionate person, she is very professional Mortgage Advisor. Once again I would like to say Thanks so much for helping through out my journey to get mortgage for my new house.
Larushhh O2024-05-18It was a pleasure working with Paul over the last few months with my remortgage. He took away the stress of remortgaging with his professionalism and patience till the deal was finalised. I highly recommend him as a broker. Thanks for your support and help once again.
Aromes Bienmaison2024-05-15Paul was very helpful and provided a great guidance throughout the whole process
Shalaka2024-05-14We couldn't have asked for a better mortgage advisor! Mohit has been an absolute asset, always there when we had a question, and believe me, we had plenty! Being first-time buyers, his guidance was invaluable. What we appreciated most was his honesty and the fact that he never made us feel rushed into any decision. We're still in the process, but we already feel confident with his support. Totally recommend him to anyone in need of mortgage advice!
Dinesh Johnson2024-05-13Mohit was simply brilliant and helped us to understand all the options available in the market and choosing the best and importantly the right product for our need. Mohit is very efficient, he goes out of his way to help his clients and keep his client’s interest at top of his priorities. He was very professional and knowledgeable, would certainly don’t think twice to get his service in the future. I would highly recommend him to anyone who needs advice and support in sorting their mortgages. Thank you soo much Mohit for your hard work and support in sorting our both residential and BTL mortgages! Tharaka & Dinesh
Bagya P2024-04-30If anyone looking for hassle-free mortgage process, then I would suggest to discuss with Mohit. Mohit explained the process more in detail, assessed the situation very well and gave perfect suggestions to get the process done. Also, he closely connected with Solicitor and made the whole process easy. Additionally, I would like to thank Bhavana for her exceptional work. She tried many options to get the better deal from different Vendors. She explained all my queries on time and appreciate her professionalism. Thanks a lot once again Mohit and Bhavana for all your support.
Oliver Harris2024-04-24Mohit was a great help with finding my first mortgage. He talked through all options clearly and found the best deal to suit my needs. I'd thoroughly recommend using his services.
Veronica Ihonor2024-03-03The team was very professional with spontaneous delivery in line with agreement. Well done guys
Ogechi Eke2024-01-14If you’re looking for a professional mortgage broker who actually goes above and beyond his role then look no further. Ankur Daru is your main man. He is extremely helpful and knowledgeable. Even when the interest rate dropped for my lender, without prompting, he sent me an updated deed. There are so much more I could write but I’ll sum him up in a few words: Professional, knowledgeable and helpful. Thank you for securing the deal for me Ankur! I look forward to the next one! Ogechi