Why you shouldn’t put off getting insurance cover

Friday, 12th June, 2020
insurance cover

We know that there are many people out there who are happy to take their chances when it comes to buying personal insurance cover.

Of those people, there will be some who, having not taken out personal insurance cover, will have lived to a ripe old age without illness – and who would have felt a sense of achievement at having not spent the money on personal insurance over their lifetime.

And that really is a great thing. After all, who really wants to commit to the cost of monthly personal insurance premiums. If car insurance was not legally required, then it, too, would become optional like life insurance, critical illness cover and income protection.

Sadly, however, there is no way of truly knowing what lies ahead (who could have predicted a global pandemic in 2020, for instance!). And, as a result, the difference between taking out personal insurance and not taking out personal insurance comes down to gambling.

Take these two recent examples, both of which relate to two of our existing clients.

Both are true.

1. Life insurance

Client A took out a joint life insurance policy several years ago. Only 18 months ago they increased their mortgage liabilities – but declined to increase the level of insurance cover due to competing priorities. Sadly, at the beginning of the year, her partner suffered a stroke, is awaiting heart surgery and cannot work. They’ve also recently had their first baby. The client very recently contacted us to arrange more comprehensive life cover for their partner – but it’s too late.

Had he taken out the cover before the event it would have been a different story.

2. Critical illness cover

Only recently, Client B, a fit and healthy person in his early twenties, was diagnosed with testicular cancer. As a client of ours, he received £135,000 from a critical illness policy we arranged a few years ago. Without that policy, he would not have been able to claim for anything.

Both examples demonstrate how people can be affected – both positively and negatively – by personal insurance decisions. As a Guildford insurance broker, we see both sides on a regular basis.

Personal insurance carries a cost for a service we hope you never have to use. But if you do have to make a claim – and are able to make a claim – then at least financial worries will be something you can put to the back of your mind whilst you tackle concerns relating to your health.

Complete Cover – Complete Mortgages’ insurance division – understands the challenges around insurance and our team of personal insurance experts are here to help. Contact us on 01483 238280 or email info@complete-mortgages.co.uk to discuss your personal insurance requirements or to get a personal insurance quote.

The benefits of using a mortgage adviser

Tuesday, 13th August, 2019
mortgage broker

It was refreshing to see a piece in the Express, recently, which revealed how a third of homeowners who didn’t use a mortgage adviser had no form of protection.

Refreshing not from an ‘I told you so’ perspective of a mortgage broker, but refreshing to see the benefits of using mortgage brokers being put forward by a national newspaper.

However, it was the fact that this particular article drew attention to an important – if subtle – benefit of using a broker when applying for a mortgage, which is that not only should good mortgage brokers strive to get their customers the very best mortgage deals, but also ensure that they are protected, too.

The article, which focused on research by Legal & General Mortgage Club, revealed how 34% of homeowners that did not use a mortgage adviser do not currently have any kind of financial protection for their mortgage – be that life insurance, critical illness cover or income protection.

Sadly, this means that there are a significant number of homeowners that haven’t accounted for the negative financial impact – and the potential for missed mortgage payments – associated with long-term illness. Essentially, there are currently a large number of UK homeowners that are exposed.

Fortunately for our clients, Complete Mortgages isn’t just a Guildford mortgage broker.

Through our sister brand, Complete Cover, we also provide a wide portfolio of personal cover and mortgage-related insurances so that in the event of illness and even death, those that have taken a mortgage with us can feel rest assured that they (the policy holder and their family) will not run into financial difficulty.

In order to safeguard UK homeowners, it’s essential that mortgage advisers advise and not just broker deals. Articles such as that published by the Express – and research commissioned by Legal & General – will not only play a role in raising awareness of the potential consequences of sub-standard cover, but also make mortgage brokers more accountable in the process, too.

For access to mortgage insurances including property insurance, life insurance, mortgage payment protection and income protection contact the team on 01483 238280 or email info@complete-mortgages.co.uk.

By Mark Finnegan, Director at Complete Mortgages

Five reasons to use a mortgage broker

Tuesday, 22nd August, 2017
mortgage broker

Regular readers will know that we tackle pretty much every topic related to applying for a mortgage; from the actual mortgage products themselves (buy to let mortgages, commercial mortgages, residential mortgages etc.) to the legislation and changes in rules that either hinders or facilitates access to them.

However, on this occasion, I’ve decided to place the spotlight not just on the team of mortgage brokers at Complete Mortgages, but mortgage brokers as a whole.

Not because mortgage brokers have come under fire, or that that there is any particular reason to defend the work of a mortgage broker. It’s just that there are now a number of elements such as regulation, new rules, and restrictions that affects those wishing to apply for a mortgage.

This, on one hand, makes the work of a broker more complex and challenging, however on the other it’s allowing brokers throughout the UK to showcase how they can add value to their clients.

As a result, I would simply like to take this opportunity to remind homeowners and investors why using a mortgage broker can help expedite the mortgage application process and save a lot of heartache in the process.

From the recent changes affecting mortgage affordability to the latest set of rules from the Prudential Regulation Authority, which come into play in September and require landlords to provide details of their assets and liabilities, declare future investment property intentions and reveal the property schedule already requested for buy to let mortgage applications, there are now more obstacles to navigate than ever before.

And, as the number of obstacles grow, so too does the number of reasons to outsource your mortgage application requirements to a mortgage professional. Here are five.

1. Knowledge is power

This sub-heading is probably slightly over-egging the pudding, however it’s true that the more you know the more you can control. A good mortgage broker thoroughly knows the industry and, as a result, knows how to present your case in a way that reduces administration time and gets the desired result quicker. This knowledge, which non-mortgage brokers typically wouldn’t know, also enables brokers to sidestep the pitfalls and capitalise on any potential opportunities, thus ensuring you receive the best possible mortgage advice for your particular circumstances.

2. Qualifications count

It goes without saying, but those with formal training and qualifications in anything – from medicine and teaching to hairdressing and car maintenance – are more likely to approach what they do in a more efficient, balanced and professional manner.

3. Duty of care

Professional mortgage brokers are not only morally obliged to act in your best interests, but also the Financial Conduct Authority also heavily regulates them. If your mortgage broker is not acting in your best interest, then you’re covered. Complete Mortgages positively embrace the FCA’s Treating Customers Fairly initiative meaning that you will be treated fairly with the utmost duty of care at all times.

4. Bigger picture

Mortgage brokers assess and evaluate every aspect of your financial situation. Not only does this ensure that you end up with the right mortgage for you, but it also means that they can develop a holistic package covering other aspects of your financial planning such as life insurance, critical illness cover and income protection in one go.

5. No time to lose

If, like most people, you’re incredibly busy, then juggling mortgage applications with your job and family commitments is probably something you could do without. By using a mortgage broker you can offload the burden of finding the right mortgage – and the associated admin – freeing you up to either a) focus on doing what you do best or b) spend time on anything but applying for a mortgage!

As the mortgage lending landscape continues to change and lenders become more careful about whom they lend to, why spend time doing something that mortgage brokers can handle for you

Whether you’re looking to secure a mortgage or simply want to remortgage, then contact the team at Complete Mortgages on 01483 238280 or email info@complete-mortgages.co.uk to find out how we can help you.

By Mark Finnegan, Director at Complete Mortgages

Income protection and the mortgage: a match made in heaven?

Wednesday, 29th April, 2015

Property values are increasing, mortgages are getting bigger and repayment terms are getting longer.

This isn’t a surprise to most people. It’s been happening for years. But with higher value mortgages and longer payback periods comes a higher risk of defaulting in the unfortunate event whereby homeowners are unable to work due to illness.

As both a mortgage adviser and insurance broker, Complete Mortgages is not only responsible for helping clients to find a mortgage but also create the perfect premium and provide complete cover, from critical illness to income protection. Linking both services together isn’t always a natural step, nor is it always relevant, however the topic of making income protection a condition of mortgage approval is increasingly being debated.

Currently, those applying for a mortgage will, whether they know it or not, undergo a degree of financial modelling to establish whether they can withstand the impact of a rise in interest rates. This is relatively straightforward and based more on what is likely to happen or, to a degree, predictable. What isn’t predictable, however, is illness. Anyone can become ill at any time however this doesn’t have any bearing on mortgage liability. It still needs to be paid back.

By making income protection a standard part of the mortgage process it would arguably be win-win for everyone involved. Homeowners would have that extra piece of mind, albeit with a slightly higher monthly outgoing, and lenders would minimise their risk even further. Of course, a higher number of income protection policies would lead to a higher number of claims, however this would be offset by the additional revenue the insurance companies would generate.

I’m sure that there are many who would support this idea. I’m also confident that many would object on the grounds that it removes choice and adds another layer of cost to what is already a large expense.

There are regularly calls for more responsible lending and tighter regulation of the financial services markets, particularly in the wake of the last recession. If effectively controlled and enforced, this approach could help increase the UK’s credentials when it comes to financial responsibility whilst simultaneously protecting the homeowner and the lender.

For more information on income protection or for mortgage advice, contact a member of the team on 01483 238280 or email info@complete-mortgages.co.uk.