Sounds daft, because if you have children, you would want to protect them, but whether you send your little cherubs to state school or public school, the costs over the years can be colossal!

So, if their education and their start in life means the world to you, then why not take it as an addition to your life cover or serious illness cover so that in the event of your death or serious illness, the school fees or even money for uniform can be provided for until they are through university.

For peace of mind, there is nothing like it out there, and you could be giving your children the best chance possible through education, even if you are not around to see it.

If you’re children go to public school and something happens to one of the parents, then why would you want your child’s paid for education come to an end? What would it have all been for if you were happy to let it go by not protecting it?

Makes you think when you start working out how much time, effort and cost you put into your children’s education, doesn’t it?…

As much as we can push and prod on this subject, it’s not until it’s too late do people realise how fragile they are without the comfort blanket of employment around them.

It may seem another life factor that needs protecting, but whether you’re made redundant or you have an accident that keeps you off work for months, or even years, to many it’s not deemed important until it happens, by which time it’s too late!

You’re not just protecting your mortgage payments, but you can protect school fees, utility bills, food bills and more importantly your self worth and your ability to provide for yourself and your family.

After all, despite what you believe, the state won’t provide, so isn’t it time you took control of your own future?

Only a month ago, a 90% loan to value mortgage could be sourced for under 5%; Today, the same loan with the same lender is 6.09%!

In the past week, we’ve seen a number of lenders withdraw their products and return to market with new pricing. A presentation I heard recently from one of the big banks suggested that base rate may not change next year, but the overall pricing of mortgages could increase.

So what does this mean for Mr & Mrs Homeowner?

With so many homeowners with mortgages on the lenders own variable rates, whilst they are happy now with the rate, by the time rates do begin to rise, the most competitive interest rates in the market may have passed them by!

Depending on a clients circumstances would depend on what the right course of action is, but not taking an hour of time to find out the options available, may be the biggest cost of all.

Whislt the impact in these areas is actually unknown at this stage, I would anticipate other towns & cities not affected to hold strong on prices and in some cases could possibly increase where this type of behaviour has not been seen, and therefore people are likely to pay a premium for living in a perceived ‘safer’ environment.

Equally, what will the lenders view be on these areas?  Will there be lending by Postcode?  So, if you’re in Tottenham or other profile areas, are your chances of getting a mortgage reduced as opposed to being somewhere like Guildford as an example?

1) Check your credit report and profile – You can get copies of this from Experian and Equifax (the two most popular with lenders) and check for any discrepancies

2) Get on the electoral roll – Points makes prizes with lenders, the more credit points you score, the better chance you have of getting the mortgage

3) Have your deposit lined up – Whether it’s savings or a family gift, know where your deposit is coming from! – In the current market, there are a couple of mortgages with 5% deposit required, but more often than not, a 10% deposit opens you up to more lenders.

4) Talk to an independent mortgage broker – Someone who can give you a good idea on your borrowing potential and who understands the different lenders criteria

5) Think about how you are going to protect the mortgage. It’s not only the mortgage that needs covering, but you do too! Again, a mortgage broker should advise on the right protection for you!

6) Go shopping! Find your dream home and with the above all in place, you’ve just increased your chances of being accepted by a lender!

Dark nights, icy roads and weary souls are just some of the dangers that surround us and can make life quite difficult. 

If we are unfortunate enough to suffer an accident or illness at this time of year, knowing whether we will have an income at the end of the month may be the last thing we want or need to worry about.

Protecting your income is more important now than ever before with state benefits unlikely to pay out, companies offering very little or no sick pay provision and the prospect that an accident or illness could see you out of work from one week up to retirement age!

If you haven’t reviewed your sick entitlement from your employer, why not find out now and also ask yourself the question, “If my income stopped tomorrow, how long could I financially survive?”

Why not start 2011 with peace of mind that your income is protected?

Call (01483) 487417 for a no obligation quotation that’s bespoke to your circumstances!!

Website: www.crystalclearfs.com
Email: business@crystalclearfs.com
Telephone: (01483) 487417
Mobile: (07856) 127316

In my previous blog, I talked about an Englishman’s home being his castle and not his pension, referring to the fact that many have interest only mortgages because they believe the capital will grow and make them wealthy.

There is a seachange taking place with interest only mortgages.  Whereas we used to be able to place a mortgage on interest only, with no repayment vehicle, this process is becoming harder and harder to achieve.

If the method of capital repayment at the end of the mortgage term does not fit into one of the lenders criteria, then the interest only mortgage will not be approved.

Whilst I wholeheartedly agree that there should be a valid method of repayment, there are times when a sensibility check could be taken as it would be in the best interests of the client to have the interest only mortgage.

This in itself will begin to cause problems to many, so it is time to take notice of the writing on the wall and put in place some method of capital repayment to avoid these future pitfalls.

So whilst the shop window still displays interest only mortgages with no repayment vehicle, the chances of being able to purchase one is rapidly diminishing.

We’ve seen many things happen in the last couple of years, including house price falls and a correction in the value of property.  Whilst we live on an island where demand has historically been higher than supply, prices were inevitably always going to increase.

I believe those times are gone for some considerable time and we should be expecting much lower increases in property values if any at all.

So what problems does this create?

Well, many have purchased homes above and beyond their financial capability, the mortgage on an interest only basis, with the view that by retirement there will be sufficient equity to not only be able to downsize and buy somewhere smaller but also to partially fund retirement.

An Englishman’s home is his castle and not his pension and so we should begin to behave in this manner.  We should be buying a home to be able to pay it off and keep a roof over a heads, and not to profiteer from it.

There is a lot of focus around interest only mortgages and how borrowers are going to be to repay the capital at the end of the term.  Five years ago, the interest only approach seemed to be an acceptable way of buying a home.  Today, I would suggest that a robust repayment plan is in place to secure the family home by the end of the mortgage term.

We should be thinking about our home as our castle and not as a “get rich quick” investment.

With the spending cuts upon us, it begs the question of who will look after you and your family if things go wrong?

When speaking to clients, I’m often told “the state will look after me”.  The fact of the matter is that the state will not provide or look after you or your family.  The government talk about “a more responsible society”and that’s exactly what they mean!

So, let’s think about being unable to work through illness or injury.  Some of us have comprehensive employee benefits, many don’t.  If you think your company will look after you, if it’s not your contract, don’t count on it!  If you have to take statutory sick pay, this will provide you £79.15 per week up to 28 weeks*
* source: www.hmrc.gov.uk/paye/rates-threshold.htm  

How can you pay all your bills and look after your family on £320 per month?  The answer in many cases is that you can’t!

If it’s a serious illness or injury requiring hospital treatment, if there are cuts to the NHS, whose to say your receive the right treatment at the right time? How long would you be prepared for your loved ones to receive the treatment they need?

So coming back to the point that the state will not provide for you and your family, it really is time to take personal responsibility for you and yours!

Talking to professional advisers who understand the replacement of income through illness or injury, the provision of private medical insurance, and a thorough review of your personal circumstances to ensure that should the worst happen that you’ve taken the necessary steps to protect you and yours and not relying on the state when the state expects you to make your own provisions!

With the spending cuts upon us, it begs the question of who will look after you and your family if things go wrong?

When speaking to clients, I’m often told “the state will look after me”.  The fact of the matter is that the state will not provide or look after you or your family.  The government talk about “a more responsible society”and that’s exactly what they mean!

So, let’s think about being unable to work through illness or injury.  Some of us have comprehensive employee benefits, many don’t.  If you think your company will look after you, if it’s not your contract, don’t count on it!  If you have to take statutory sick pay, this will provide you £79.15 per week up to 28 weeks*
* source: www.hmrc.gov.uk/paye/rates-threshold.htm  

How can you pay all your bills and look after your family on £320 per month?  The answer in many cases is that you can’t!

If it’s a serious illness or injury requiring hospital treatment, if there are cuts to the NHS, whose to say your receive the right treatment at the right time? How long would you be prepared for your loved ones to receive the treatment they need?

So coming back to the point that the state will not provide for you and your family, it really is time to take personal responsibility for you and yours!

Talking to professional advisers who understand the replacement of income through illness or injury, the provision of private medical insurance, and a thorough review of your personal circumstances to ensure that should the worst happen that you’ve taken the necessary steps to protect you and yours and not relying on the state when the state expects you to make your own provisions!