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MORTGAGES
A mortgage is used
for house or property purchase. A loan is given against the security of the
property and interest is payable until the loan is repaid. Mortgages can be
interest only or repayment. An interest only mortgage relies on a repayment
from an ISA, endowment or pension and interest is paid on the full amount
of the loan until repayment. With a repayment mortgage, the monthly
payments are part interest, part repayment of capital.
We provide mortgage
and re-mortgage advice. Installed into our office we have a computer based
mortgage information service which covers the whole of the marketplace -
building societies, banks, mortgage corporations and insurance companies.
This is of considerable advantage to you, letting you choose from the many
hundreds of mortgages in the marketplace. Also within the same system we
can arrange re-mortgages, whereby you can change your mortgage lender to a
more competitive lender with improved rates.
Mortgage providers
will normally insist on some form of life insurance
to effect the repayment in the event of the death of the borrower ( or one
of the borrowers in the case of a joint mortgage). This will be in the form
of term assurance for interest only mortgages
and decreasing term assurance for repayment
mortgages.
Redundancy,
accident and sickness insurance
These are sometimes combined
in a single policy to provide protection for your mortgage payments, by
replacing income lost through redundancy, as a result of suffering an
accident, or being off work due to sickness.
Policies for
protecting mortgage and related payments can usually be taken out any time.
There will be a 'waiting time' which you can choose, before the benefit
commences and payment of benefits will sometimes be restricted to a period
of 12 months in the case of redundancy and 36 months in the event of
accident or sickness. The advantage of this type of cover is that it
provides you with peace of mind, ensuring that your mortgage payments can
be met for a known period of time.
For long term peace
of mind you can effect a policy to replace a proportion of your income in
the event of sickness or accident. This is known as Permanent
Health Insurance.
Any payments made
under the above policies will normally be free of tax. However, the
provision of such insurance may affect your eligibility for certain State
benefits.
WARNING:- Your home may be repossessed
if you do not keep up repayments on your mortgage.
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