Fully Protected Mortgage

Mortgage Brokers for First Time Buyers

First Time Buyer Mortgages

Alex Kerr: Mortgage Broker for First Time Buyers

Mortgage Chain are Mortgage Broker for First Time Buyers and also help many first time buyers by keeping them and their most valuable assets safe.

It is vital that once you purchase your dream home, you keep it safe in the event your income is affected.

It is vital that you know your most valuable asset is protected in the case of an unwanted event that could threaten to take it all the way from you. In this post I discuss how to protect yourself your family and your home in what we call a fully protected mortgage. So the first thing I discussed with my clients the money machine concept. If you imagine a money machine inside your property that churned out thousands and thousands of pounds that you rely on to pay your mortgage or rent and related bills, you would most definitely get that insured in case it broke down and couldn’t generate any more money. It is the same concept, you are the money machine, you are the income generator.

You could get sick, have an accident or a more serious illness and you need to have protection in any eventuality. That is what a fully protected mortgage is, it means you’re covered for any event that would threaten to take away your property by missed mortgage payments. The best way to go about this is always to do your budget at the very start. Think about the mortgage and related costs and how much you are prepared to put towards your monthly payment, to cover your mortgage and fully protected it. It is much better to have a little bit of a longer mortgage term and leave some budget to go towards protection, rather than a shorter mortgage term with no budget left for protection.

Without any form of protection, you are exposed and risk losing everything. Hopefully, it will never happen to you but it only needs to happen once and it can take everything away from you, which you’ve worked years and years and years for to get that mortgage balance down. The last thing you want at the last few years of your mortgage is for something to happen and you’re not covered. If you’ve got a family, insurances will include cover for children as well to make sure you, your home and your family is protected. There are various different covers dependant whether you’re employed or self employed but will provide valuable cover if you have an accident, you become sick or unemployed and you will benefit from income protection if it’s a minor accident or serious illness cover if it’s likely to keep you off work for a much longer period, maybe you’re not going to return to work or maybe you’re not going to return to the previous job that you had. In that eventuality serious illness cover would pay your mortgage off in full, just in case you could no longer produce an income.

All life covered companies work slightly differently and it’s just a simple fact of applying your situation to the right life cover company, and a little bit like looking for a mortgage reflecting your needs. These days you’ll find that most providers have very high percentage payouts in relation to the number of claims, usually in the late 90’s. Claims information can be found from the outset.

Question of the day – Do you have a fully protected mortgage?  Let me know in the comments.
so thanks for checking out today’s blog and if you’re new to the blog please subscribe and if you’re looking to understand a fully protected mortgage in more detail and have some further questions please do get in touch, my email is alex@mortgagechain.co.uk and my phone number 03333446869.
Until next time mortgage chain are bringing the best tools and tips to first time buyers, have a beautiful day will see in the next blog.

Speak soon

Alex Kerr
Mortgage Broker for First Time Buyers

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