Mortgage Protection Insurance is a term that is used to surround different kinds of cover. The purpose of this cover is to limit financial stress on you and your loved ones from any unforeseen circumstances that may occur.
Below, Malcolm has put together a video highlighting the significance of having the correct insurance in place for your situation. Due to the past events of the coronavirus pandemic, the importance of health and getting insurance is more prominent than ever.
When it comes to protecting you and your family, there is a range of insurances to choose from. Cambridgemoneyman can compare lots of providers and tailor the appropriate policy to your circumstances. Here are the insurance policies that we can offer to you:
One of our experienced Mortgage and Protection Advisors in Cambridge is always at the other end of the phone or email. If you need more information, book your free insurance review today.
Life insurance is there to protect your loved ones financially in the circumstance that you or another joint policy holder pass away. Here at Cambridgemoneyman, we can talk you through all the different types of life cover accessible to you and advise the most suitable plan for you.
This type of policy covers serious illnesses detailed within a policy. Usually, this includes stroke, heart attack, certain types and stages of cancer, and more.
You will find some illnesses will not be covered, this will be detailed within your policy. Furthermore, if you have pre-existing health issues you knew you had before taking out the insurance, it’s unlikely they will be covered. In the policy, the specific illnesses covered and not covered will be stated.
If you fall victim to one of the several specified critical illnesses, the benefit gets paid and pays you whatever the long-term prognosis of that illness. Seeking specialist mortgage advice in Cambridge is key because the type of conditions covered vary from company to company, and this is why this type of insurance cannot be solely price-driven.
Usually, many businesses will offer Life and Critical Illness cover as a combined policy, and the order of pay-out would be dependent on which event happens first, either death or severe illness, the pay-out is made. They could also get written on a single or joint life basis.
Unlike Life and Critical Illness, where the cover pays out a lump sum, Income Protection pays out a monthly sum that acts as a replacement of your wages in the event of you being unfit to work. Furthermore, there are no limitations on the illnesses or injuries covered, except whether they make you unfit to work.
One restriction, however, is the amount you can cover and how quickly the benefit would start to get paid. The policies are underwritten on your health and lifestyle when you applied, just like Life and Critical Illness Cover. When it comes to Income protection, the policies are written on a single life basis.
A menu plan is when you combine your Life Insurance, Critical Insurance, and Income Protection. A discount is added by the providers each time you add a benefit which can make it cost-effective.
Furthermore, a menu plan provides you with a range of cover and benefits that you can mix and match. This allows you to tailor a plan that is appropriate for your needs. Covering yourself and your family is something we strongly advise should the worst happen. Our mortgage advisors in Cambridge can help you with providing more information if you are unsure.
Family Income Benefit is the least common, but can often be useful. In particular, for households with young people. These plans can get taken to Life and/or Critical Illness Cover, and get underwritten in the same way.
Unlike the traditional forms of policy, rather than pay out a lump sum, the cover would pay an annual or monthly income for the remainder of the term of the plan. Therefore, it can replace the payment of the primary worker for several years, dependent upon a particular client’s situation and, because of this, would usually be written on a level or basis, or an index-linked basis designed to keep up with inflation.
You will find that many people have more than one different type of policy, and it wouldn’t be right to think of Mortgage Protection Insurance is something that is not needed because you are thinking the unexpected won’t happen.
Our Mortgage Advisors in Cambridge are here to discuss with you and tailor the type of cover to be the most suitable combination to your family’s priority and budget. To find out more, give us a call or fill out our enquiry form to speak with one of our Dedicated Protection Specialists Advisors in Cambridge today.
A 95% mortgage is as simple as the name would suggest; you are borrowing against 95% of the price of a property, and then you are covering the remaining 5% with your deposit. An example of this is if you looked at buying a property that was worth £150,000 with a 95% mortgage, you would be putting down £7,500 as your deposit and borrow the remaining £142,500 from the lender.
Off the back of the March 2021 Budget, Boris Johnson announced a Mortgage Guarantee Scheme for mortgage lenders, making 95% mortgages more readily available from the bigger high street banks.
This is fantastic news for First-Time Buyers and Home Movers alike, as this scheme will continue running until December 2022. Certain terms and conditions will apply though, which is something your Mortgage Advisor in Cambridge will be able to look at, to see if you qualify.
All our customers who opt to get in touch will receive a free, no-obligation mortgage consultation where one of our dedicated mortgage advisors will be able to make a recommendation on the best possible route for you to take.
95% mortgages are usually accessible by both first time buyers in Cambridge & those who are moving home in Cambridge. Whilst saving for a 5% deposit sounds like a pretty straightforward concept, you’ll still need to have an acceptable credit score and prove that you are able to afford your monthly mortgage repayments, in order to access a 95% mortgage.
A good credit score is essential in the process of obtaining any mortgage, especially a 95% mortgage. Things like paying any current credit commitments on time, ensuring your addresses are updated and checking that you’re on the voters roll, can all help with your credit score.
Affordability is another one that is important to take note of. By giving the lender details of your income and monthly outgoings (things like your bank statements will be necessary for this) and any pre-existing credit commitments, your lender will be able to get a general overview of whether or not you are able to afford this type of mortgage.
Nowadays we see lots of family members helping each other get onto the property ladder, especially parents looking to further their children’s lives. The way this usually happens is by gifting the person looking to find their home, the deposit required.
Known through the industry as the “Bank of Mum & Dad, Gifted Deposits are only intended to be a gift, and not as a loan. The lender will need proof that this has been agreed, before it can be used towards your mortgage.
When looking for a 95% mortgage, you want to make sure you have the right type of mortgage. Each mortgage type works differently, with that choice allowing you to find one that is most appropriate for your personal and financial situation.
Some homeowners and home buyers prefer Fixed Rate or Tracker Mortgages, mortgage types which mean you either keep interest rates at a set amount for the term given or have your interest rates tracking the Bank of England base rates.
Alternatively, you might find that Interest-Only or a Repayment Mortgages are more your style. Interest-Only allows cheaper payments until you need to pay a lump sum at the end (mostly now used for Buy-to-Lets), whereas a Repayment mortgage (a normal mortgage if you’d like) means you’ll be paying interest and capital combined per month.
Seeing as a mortgage is such a large financial outgoing, you need to be prepared and need to be aware. You might find things like higher interest rates, remortgaging difficulties due to less equity and then negative equity all cropping up if you’re not.
There is no need to worry though, as all these can be avoided if you’re savvy enough with your process to begin with. The more deposit you put down for a property, the less risk the lender will see you as.
A larger deposit, of say 10-15%, would not only reduce the rates of interest by a noticeable amount, but would also give the property more equity and reduce the risk of negative equity, thanks in part to you borrowing less against the property.
So, whilst the risks may seem intimidating, planning ahead and saving for a bigger deposit to access something like a 90% or even an 85% mortgage will be a massive help in your mortgage journey and something you’ll be able to reap the rewards from in the future.
The £200 million scheme was introduced in 2014 to offer a boost to anyone from the armed forces who needed help buying a home. Originally intended to end in December 2019, the government made this an enduring policy, as a thank you for their commitment to their service and dedication to the country.
This works by accessing a borrowed deposit that is summed up to half of your annual salary (a maximum of £25,000), without any interest involved, then the deposit can be used to purchase a first home or to move into a new home.
A benefit of the scheme is that you don’t need any current savings to get yourself on the property ladder. The money raised from the loan can partly be used to be put towards your deposit or other costs.
Another advantage that benefits forces personnel is that the majority of lenders will accept the loan towards the deposit for a new home. More relaxed than some other schemes, the Forces Help to Buy loan can be paid back over a period of 10 years, so you don’t have to feel as rushed.
Even if you were unsure that you would have a chance, if you are able to match the criteria (length served, service term left and medical categories), you are eligible to purchase your home using the Armed Forces Help to Buy Scheme.
Navigate through for futher details from the Government site.
From the minute you call up until the completion and beyond, our knowledgeable mortgage advice team in Cambridge has your back. They will make sure you are taken care of and are determined to find you the best option for your circumstances.
For your fast and friendly customer experience, get in touch today and see how we might be able help you with seeking your dream home.
Please note, the Forces Help to Buy is not the same as the standard UK Help to Buy Mortgages in Cambridge.
A credit score is a numerical value that lenders use to determine your affordability for a mortgage, loan, credit card, etc. Although different lenders have different credit scoring models, the credit score that will be listed on your file will usually range from 300-800+.
If you have a credit score above 670, it’s likely that a lender will see no problem lending to you. On the other hand, if your score is less than 670, you may struggle to get the competitive deals that other applicant’s with a higher score are accessing.
As a Mortgage Broker in Cambridge, we deal with specialist cases all of the time. It’s often the case that mortgage applicants come to us after being declined by their bank due to a low credit score or something similar. Our job is to step in and help these struggling customers and their application back on its feet.
There are lots of different reasons why you could have a low credit score. The most common reason that we come across is that the applicant is the subject of a county court judgement (also known as a CCJ). If you fail to repay a loan/borrowed money, it’s likely that you will get a CCJ.
A CCJ can leave a harmful dint on your credit file for 6 years or more, so we strongly advise that you make sure that you pay off your debt before applying for credit. It will undoubtedly pop up on your file and the lender will start asking questions.
Failing to stick to credit agreements can be bad too. Failing to keep up with your mobile phone contract payments will even cause damage to your file. Sometimes the little things can cause damage too, for example, dipping into your overdraft every month could cause a long term negative effect. Even using price comparison websites can sometimes impact your score.
These are just a few things that could negatively impact your credit rating, there are lots of other reasons to why you could have bad credit, however, our job is to help you improve your score so you get the chance to move into your dream home!
There are multiple ways to improve your score to try and get you up into that next bracket that lenders will be looking for. Don’t give up just because you have a low score, it’s still possible to secure a mortgage in some cases!
Trying to improve your credit score can be a difficult task, but with the help of this handy guide, you may just be able to level it up a notch.
We must warn you that every lender has their own lending criteria so your score may impact what deals you can access. This also means that just because you have a great score doesn’t mean that you’ll match every deal, it’s sometimes down to personal circumstances. At the end of the day, it’s all up to your lender and their criteria.
Every time that you go directly to a lender and their in-house mortgage advisor puts you through for a deal, they will perform a soft or hard credit search on you, and this search will leave an imprint on your credit file. If for any reason, your application is declined, the credit search performed could have a negative impact on your credit score. Multiple searches may lower your chances of getting accepted for a mortgage in the future.
This is where a mortgage broker in Cambridge will come in handy. Here at Cambridgemoneyman, we aim to get it right the first time, which means that we will take a look at your credit score and only approach lenders that hold criteria we know that you will pass.
Applying for credit can sometimes backfire on you, especially if you don’t have a reason for doing so. If you can pay back the credit that you’ve borrowed, it may look good on your application, however, flip the situation on its head, and your credit score could end up in trouble if you fail to meet the credit payment deadline.
During your mortgage application, we strongly advise that you hold off applying for credit. In some cases, you may be able to get away with it, but in other scenarios, lenders may believe that you are struggling for money. They could think that you are putting it towards your deposit or using it to aid your mortgage payments.
Here’s a nice and easy way to improve your credit score; make sure that you are registered on the voter’s/electoral roll. Being registered on the roll shows that you are who you say you are. All you need to do is go to the government’s electoral roll page, it’s easy to get registered from there. This could be a great way to boost your score!
You must provide accurate information when registering on the voter’s/electoral roll, so make sure that everything is filled out correctly. You will need to use your current living address, not your previous address.
During the mortgage application process, we always recommend that you check that all of your accounts and details are linked with your current address. This won’t affect you as much if you are a first time Buyer in Cambridge and this is your first application.
However, if you are moving home in Cambridge from rented accommodation and you still have your parents address linked with any of your accounts, your lender will pick up on it straight away. This is why it’s important to change your addresses and make sure that they’re up-to-date before applying. Being linked to a wrong address could impact your credit score.
If you go down the broker route, your Mortgage Advisor in Cambridge will help you out with this step. They will make sure that everything is updated with you to ensure that you have the best chance possible of being accepted for a mortgage.
Maxing out your credit card(s) each month will heavily impact your credit score. Your lender will like it if you can pay off your credit card balance each month as it shows that you can manage your money.
If a lender can see that you are exceeding credit card limits and always dipping into your overdraft, they may think that you don’t take your finances seriously. This could threaten your ability to get accepted by them.
If you are still financially linked to an ex-partner or family member, your credit score could be getting harmed without you even knowing. If the account is still active and live, you won’t be able to remove your links. The only way to remove your link is if you get in touch with the credit reference agencies and make a request.
Depending on the lender and how strict their lending criteria is, they may be lenient and allow some wiggle room. If there are some personal reasons involved, your lender may be considerate and factor them into your application, it’s entirely up to them what they do.
A mortgage broker in Cambridge like us will always be transparent with you and factor in every bit of detail. Even if you have a score that is on the lower end of the spectrum, our hardworking team of mortgage advisors in Cambridge are still determined to try and secure you a deal that will suit you.
We have access to specialist mortgage deals through our huge panel of lenders; we are sure that we will find one that matches your mortgage needs. If you need further assistance or Credit Score mortgage advice in Cambridge, feel free to book your free mortgage appointment to speak with one of our mortgage advisors in Cambridge.