Did you know that more people in the UK choose to insure their pet than themselves? What would happen if the unthinkable happened and you were no longer able to look after your family. We wouldn't be Money Geeks if we didn't tell you about the risks involved in taking out any type of Mortgage. Thankfully we also have a solution. Unfortunately we cannot stop bad things happening but we can make sure your in a far better position to be able to deal with it.
So you have a nice new home, what next? Many will choose to add a personal touch by filling their property with shiny new things. But what if someone else were to take a liking to these? Could you afford to replace all of the goods in your home? Do you have sufficient money set aside to replace your lounge carpet if a tin of paint is spilled during the decorating process? Is your tablet, phone and wallet covered when you are away from home? We work hard to pay for our possessions, so why not cover them against a number of potential risks?
Life & Critical Illness
Suffering a serious or critical illness is something we genuinely hope doesn’t happen to anyone, but what if, for example, you were the one in every two and a half people who is diagnosed with cancer? How would you afford respite care and treatment? What if you wanted the best treatment money could buy – where would you turn to pay for it? Personal protection can help you to get the right treatment and provide a comfortable convalescence.
It may seem a little obvious, but a financial commitment of the magnitude of a mortgage is going to impact on your monthly affordability; for that reason we will complete a budget planner and assess your income and affordability. What most people tend to ignore, however, is the impact that a loss of income could have on your ability to afford a mortgage. Many people have little or no savings to fall back on and an accident, illness or redundancy would leave you unable to meet your mortgage repayments, thus putting your home at risk of repossession. Even if you could meet your mortgage repayments, you may find it a struggle to afford the monthly expenses.
Nobody wakes up in the morning and thinks “I know, I’ll get a mortgage.” Instead, most of us are drawn in by the promise of a beautiful home for ourselves and our family. What then, would you do if a catastrophic event were to befall your family such as loss of either of the borrowers? Would the surviving borrower be able to maintain the repayments on their own, as well as taking on the additional responsibilities that suddenly come their way? Having the mortgage repaid in one payment certainly would appeal to most joint borrowers or those with families.
Of equal significance is the impact that a critical illness could have on your ability to pay for a mortgage. If you or your partner were to suffer from a heart attack, cancer or a stroke how would you balance paying your mortgage, other financial responsibilities, family responsibilities, work and treatment? It’s likely something would have to give.