A mortgage is quite simply, a loan that is secured against a property. The lender has a ‘legal charge’ which is registered against the property and this gives them additional rights should you (the borrower) default on the loan. For example if you are unable to make your monthly payments on the mortgage then the lender has the right to apply to the court to repossess the property (if all else has failed) and sell it to recover the amount that you owe against the mortgage.
We hope that it never comes down to this and as well as giving you advice on your mortgage, we will be able to explain to you how to protect yourself against any unforeseen circumstances.
Life cover is designed to repay the mortgage in the event of the death of a borrower and Critical Illness cover is designed to repay the mortgage on the diagnosis of one of a specified number of illnesses. The benefits speak for themselves. How would you be able to pay your mortgage payments if you had to give up your job due to ill health and you did not have any cover? What would happen to your partner if the main bread earner died? Could they keep up the mortgage payments if you did not have any life cover?
It is also worth considering Mortgage Payment Protection Cover which is designed to help you make your monthly mortgage payments if you were unable to work through illness or being made redundant.
We will be able to provide you with a full breakdown in costs and give advice to help you decide which types of cover will be beneficial to you.