Why Should I Use a Mortgage Broker in Birmingham? 

The Benefits of Using a Mortgage Broker in Birmingham

Here at Birminghammoneyman, we believe that there are many positives to using the services of a Mortgage Broker in Birmingham, instead of going direct. That is just our opinion though, of course, we would say that!

There are loads of positives going elsewhere, so it is worth exploring your mortgage options. Thankfully for us, most people will opt to speak with a Mortgage Broker in Birmingham. In this article, we will look at the pros and cons of both routes.

Mortgage Broker in Birmingham vs Going Direct in Birmingham

The first benefit of going to a Mortgage Broker in Birmingham is that whilst most high street banks can be approached directly, not all mortgage lenders can be.

This means that to get the best deal across all lenders on our panel, you will benefit from speaking with a Mortgage Broker in Birmingham, though a mortgage lender may still have some deals you cannot get going to a mortgage broker.

An experienced Mortgage Broker in Birmingham will typically require a fee, whereas this may not be the case when going direct. That said, we can help to recommend other services that you may need for much cheaper than they might be with a lender.

In previous arguments some would say that “the bank manager knows my finances inside out,” but this was no longer the case once credit scoring was introduced.

If you know what you are doing and what you are looking for, going direct can be a quick and straightforward process. On the other hand, if you do not know what you are doing, you could harm your chances of ever obtaining a mortgage, as you will not match all lender’s criteria.

A trusted Mortgage Broker in Birmingham will be able to go over the different lenders’ mortgage criteria and will be able to match you up with the most suitable mortgage deal. We always aim to get this recommendation right first time.

Mortgage Advice Past vs Present 

Back in the day, mortgage advisors from high street banks would approve you for a mortgage, regardless of circumstances. You would not benefit from correct Mortgage Advice in Birmingham or any consumer protection.

In 2014, the government banned this type of practice. Now, only experienced Mortgage Advisors in Birmingham could go about providing expert Mortgage Advice in Birmingham to customers and making recommendations for products.

The only downside is speaking with specific individuals at a bank, which means you could be waiting months, just to speak with someone.

Because of this, the usage of a Mortgage Broker in Birmingham became more popular. As a company ourselves, we offer various time slots seven days a week, allowing you to pick a time that is convenient to you, and not months in advance!

Quite often, if you book your free initial mortgage appointment early, you may be able to speak with one of our Mortgage Advisors in Birmingham on the same day.

Modern Day Challenges 

Nowadays, the most difficult part of the mortgage process is matching up against the right mortgage lenders’ criteria. It is also essential to remember that deals with the lowest rates often have higher arrangement fees.

You may have come across a really good deal, only to find that you need to pass affordability checks and be eligible for that deal in the first place. With the help of a Mortgage Broker in Birmingham, we will be able to find the most suitable deals that are suitable for you.

Newer Regulations 

Thanks in part to the regulations that followed after the credit crunch back in 2008, mortgage applications perhaps are not as straightforward as they used to be.

This is not necessarily a terrible thing, however, as it makes lenders have less of a chance of anyone falling into arrears, which both customers and mortgage lenders do not want to occur.

There are still a lot of situations that could cause some issues for applicants, some of which a Mortgage Broker in Birmingham may be able to help with. 

• You have a poor credit history. 
• You are receiving a self-employed income. 
• There is a mixed deposit source, i.e. Gifted & Savings. 
• Opting for Let to Buy. Renting your current home to buy another. 
• Being a contractor or working under a zero-hours contract. 
• You perhaps can’t quite meet affordability requirements.

Lending Criteria 

As an expert Mortgage Broker in Birmingham, we have seen mortgage lenders demonstrating their competitive prowess, trying to offer better interest rates than their fellow mortgage lenders.

Because of the changes to regulations, the other difference between these lenders is their mortgage lending criteria and whether the customer can match up with them.

Examples of how these can differ, is that some mortgage lenders may have more products for self employed applicants than others, whereas others may not but will be more lenient to something like bad credit mortgages. If you are looking at getting a mortgage as a self-employed applicant, check out our article all about getting a mortgage as a self-employed applicant in Birmingham.

Still, need more convincing?

Our trusted mortgage advisors in Birmingham will always keep you in the loop, with availability from early until late, every day of the week, responding as soon as they can.

With our services as a Mortgage Broker in Birmingham, is that nowadays people are so busy. It is often easier to use a professional service, to take the stress off your shoulders.

This is especially beneficial for professional applicants who are dealing with customers of their own, not having the time to run through their process themselves. 

The Benefit of a Mortgage Broker in Birmingham

From your first initial touch we will discuss your case, and will use our knowledge to help. We like to go above and beyond with customers that need our help.

During your process, one of our Mortgage Advisors in Birmingham will be able to discuss the maxium amount you can borrow and supply you with an agreement in principle, which can help when making an offer on a property. As well as recommend additional services like solicitors and property surveys.

We can also reccomend any potential insurance options with you, helping prepare you and your family for the future, in the event of anything unfortunate that affects your financial state.

Book Your Free Mortgage Appointment 

If you would like to go direct, that that’s fine, but wether a customer is a First Time Buyer in Birmingham, Self Employed in Birmingham, or looking to Remortgage in Birmingham, they prefer to enlist the services of an expert Mortgage Broker in Birmingham. 

Book your free mortgage appointment today with our Mortgage Broker in Birmingham and our Mortgage Advisors in Birmingham will see how we can help you along your mortgage journey.

Do you need Critical Illness Cover in Birmingham?

Mortgage Protection Insurance Advice in Birmingham

A long-term insurance policy that covers an individual who has a severe illness listed within a policy is known as critical illness cover or critical illness insurance.  

When you take out the policy, you will need to mention any underlying medical conditions. This could mean some illnesses being excluded from the cover. If you don’t disclose any underlying medical conditions, this could make the policy void in the event of a claim.

The way this illness policy works is through a one-off payment that provides financial support to pay for your mortgage, medical care or make modifications to your home if needed.

What does critical illness cover? 

In the circumstance, where you get one of the specific medical conditions or injuries stated within the policy, this is when Critical illness insurance will pay out.

Remember, that not all instances of a specific illness will be covered. Within the policy, it will mention what particular conditions are covered along with defining these in the policy documentation.

Through our experience, we sometimes find that a number of customers mix up critical illness cover with life insurance. Even though they are purchased together, they are entirely different in terms of what they cover.

Examples of critical illnesses that might get covered include: 

• Cancer 
• Stroke 
• Heart Attack 
• Certain types and stages of cancer 

A number of policies will also consider permanent disabilities that could result from injury or illness and other illnesses that aren’t listed above.

What isn’t covered? 

Some illnesses may not be listed in the policy such as more severe forms of cancer and conditions. It’s unlikely that you won’t be covered for health problems you were aware of prior to taking out the insurance. Furthermore, this type of insurance doesn’t payout if you pass away.

The policy details will disclose what’s covered and what isn’t, therefore, you need to be fully aware of these by looking through all documentation to make sure they protect your needs.

Other types of insurance you might need 

The benefit of many insurance products is that they provide you with peace of mind should something go wrong. The links below can provide you with more information on this:

• Do you need life insurance? This product will provide expert Life Insurance Advice in Birmingham and other financial support to your dependents if you die. 
  
• Do you need income protection insurance? This type of insurance provides regular payments if you’re unable to work due to illness or injury. We provide excellent Income Protection Advice in Birmingham.
  
• Do you need mortgage protection insurance? This umbrella term is used for various types of cover to help protect borrowers from any unfortunate events or circumstances that would prevent them from keeping up their mortgage payments. 

Our Critical Illness Insurance Advice service in Birmingham 

All our new/existing customers are offered a free no-obligation protection review where our hardworking team can look at any existing policies you have in place as well as assess their suitability.

Affordability is key with any financial venture. This is why we provide a tailored service to get you in touch with an experienced Mortgage Advisor in Birmingham from our team who can search for the most suitable combination to your family’s priority and budget.

I’m a Single Homeowner in Birmingham, Should I take out Life Insurance?

Just because you aren’t married and choose to settle down with kids means Life insurance doesn’t apply to you. Even if you are single, there are good reasons to take out life cover.  

Having a life policy in place can support your family dealing with your debts, i.e. mortgage repayments if the most unfortunate happened to you. 

How does life cover affect your mortgage? 

Life cover gets taken out to cover mortgage debts: typically, the policy will set up to pay out a lump sum, equivalent to the home loan, in the event of the policyholder’s passing. 

If you live with a partner or have children, the cover might get extended to provide an income that your dependents can use to pay for living costs. 

This extra protection is unlikely to be necessary for single people, but taking out protection insurance covers the mortgage is still a good idea. 

If an individual passes before their mortgage gets paid off, their bank or building society can attempt repayment of the loan from their late customer’s estate — this is their accumulated assets. 

Most likely, to pay off the remaining balance, the property will get sold. But if the home is in negative equity, the lender has the right to demand that the difference gets made up from the estate. 

The other alternative is that the lender can demand that the property gets sold. But the surviving family members cannot continue to make up any shortfall. To make matters worse, if the probate process — during which the individual’s estate gets dealt with — is drawn out, the lender can continue to add interest charges, increasing the total amount. 

Taking out life insurance advice in Birmingham will help make sure that these problems do not proceed. 

Speak with one of our protection advisors 

If you think you might want to take out life cover at some point, speak to one of our dedicated protection advisors in Birmingham. For example, if you plan to become a First Time Buyer in Birmingham or already a homeowner, or perhaps your circumstances have changed. It makes financial sense to do so now rather than waiting. 

A life insurance policy means that an inheritance can be left to children or grandchildren, for example, irrespective of whether there is any equity left in the home. If you are hesitent to go to a broker, we do have an article on why use a Mortgage Broker in Birmingham, where we highligh the benefit of using our service.

Mortgage Advice in Birmingham 

Why Mortgage Protection Insurance is Essential to Have in Birmingham

Importance of Having Insurance in Birmingham

The term “Mortgage Protection Insurance” is an umbrella term used for various types of cover. The goal of this is to protect borrowers from any unfortunate events or circumstances that would prevent them from being able to keep up their mortgage payments. When connected to a mortgage, they give a sense of security and peace of mind to borrowers.

The Different Types of Cover in Birmingham;

• Life Cover in Birmingham.
• Critical Illness Cover
• Income Protection in Birmingham.
• Accident, Sickness, Unemployment (ASU) Cover.
• Family Income Benefit.

Life Cover Mortgage

There are usually two life cover options; “Whole of Life” or “Term Assurance.” When using Whole of Life Cover, you are guaranteed to have your mortgage paid off in the event of death. Term Assurance does the same thing, but only if you die within a chosen amount of years.

Within Term Assurance, there are also some branching types of cover. These include “level,” “increasing,” or “convertible” Term Assurance. Nowadays, we mostly see people utilising “Decreasing Term Assurance.”

By linking this to a repayment mortgage, the sums assured reduce at about the same mortgage rate. The premiums on these are usually cheaper than the other types of cover. If you passed away within the term, the risk to the insurer has diminished.

At that point, the remaining sum should be more than enough to pay off the remaining mortgage balance. This type of insurance helps out the departed families, making sure they don’t have to struggle with their debts after you pass.

Critical Illness Cover

Sadly you won’t be around to see it get utilised. Nevertheless, whilst you are undergoing treatment and recovery, your finances could be affected. You’re left unable to pay off any commitments, which in turn leads to the development of Critical Illness cover.

Functioning similar to Life Assurance, Critical Illness Cover gets taken for a specific term of years. There are also other options you can choose from, such as level or increase.

The purpose of this cover is to pay out a lump sum and taken on a decreasing term—basis in line with the reduction of your mortgage balance. The key is that the benefit gets paid if you fall victim to one of several specified critical illnesses.

It will then pay out whatever the long-term prognosis of that illness. The type of illnesses covered varies for each provider. In general terms, insurers usually cover between 40 – 50 specified conditions, including cancer, heart attack, and stroke. Payouts depend on meeting the required level of seriousness of the particular situation suffered.

Income Protection Insurance

Whereas Life and Critical Illness cover pay out a lump sum, “Income Protection” pays out a monthly amount. They got designed to replace your wages in the event of you being unfit to work in Birmingham. Unlike Critical Illness cover, there are no restrictions on the illnesses or injuries covered.

The only factors being whether they make you unfit to work. There are, however, restrictions on how much you can cover and how quickly benefits would start to get paid because the insurers want you to have an incentive to return to work rather than being better off on sick.

Typically, the most you can cover would be approximately 55%-65% of your income. Benefits would begin to get paid after a “deferred period.” Usually, it equates to the length of time you would receive sick pay from your employer.

Benefits would continue to get paid for as long as you remain unfit to work. Or until the policy term ends, whichever comes first. However, to make premiums cheaper, most companies offer a “budget” option whereby benefits would get paid for a shorter period.

Usually between 2-5 years – to at least allow you to make alternative arrangements. In case it looks like you’ll get incapacitated for longer than that.

Like Life and Critical Illness Cover. These policies are underwritten based on your health and lifestyle at the time you apply. All income protection policies get written on a single life basis.

Accident, Sickness, Unemployment (ASU) Cover

Similar in many ways to Income Protection, you are covered by these policies if made unemployed. Benefits get usually linked to your mortgage and other costs (rather than necessarily your wages). It would usually be paid one month “in arrears” after a successful claim.

These policies only get underwritten at the time of a claim. Rather than at the outset, which can sometimes mean there can be some confusion/delay regarding whether demand would get met.

They are a useful safety net if you get made long-term unemployed. But be sure to check the details of how/when any unemployment benefits would get paid out. As it may be that you would have returned to work before any monies become due.

Family Income Benefit

Probably the least common of the “mortgage protection” type policies. However, these can often be valuable, particularly for those with young families in Birmingham. These plans can get taken to cover Life and Critical Illness and get underwritten on the application.

Unlike the traditional forms of policy or instead, pay out a lump sum. The covers would pay an annual or monthly income for the remainder of the term of the plan. Thus, it can replace the payment of the primary breadwinner for several years.

Dependent upon a particular client’s circumstances. Because of this would usually be written on a level or basis. Or an index-linked basis designed to keep up with inflation.

How our Mortgage Advisor in Birmingham could help

Whether you are a First-Time Buyer in Birmingham, a Buy to Let Landlord, someone looking to Remortgage in Birmingham, insurance is always hugely beneficial.

Many people have different policies, and it would be wrong to think of these as an “either/or” choice. You can have more than one kind of Mortgage Protection Insurance.

In any case, affordability plays a massive part in the real world while it would be fantastic to cover every Mortgage Protection Insurance type.

A good Mortgage Advisor in Birmingham like us can tailor the type of cover to be the most suitable combination to your family’s priority and budget.

Suppose you do take more than one policy, your Mortgage & Protection Advisor in Birmingham. Typically, we would usually place all the covers with one provider. To help save you the additional policy administration charges which individual policies carry.

Coronavirus & the Mortgage Market in Birmingham

Coronavirus impact on the mortgage market in Birmingham

This article was originally published on 30th March 2020 and as of the 20th May 2020 the property market has now resumed and this information has become outdated. Everything was 100% accurate at the date that this article was published.

During last week, the mortgage market has suffered thanks to the coronavirus. Everything has come on a bit fast, and we recommend it’s best to catch you up to speed.

We aren’t trying to scare you, and we want to explain what is happening to the mortgage market and do our best to help you through the problems you may face during these rough times.

Mortgage Surveyors

The central dilemma for the mortgage market is that surveyors and mortgage valuers can’t go out and visit properties because the whole property market is on hold. Lenders need to know what they are lending against, so require some sort of valuation before accepting your application.

Some lenders rely on AVM’s (Automated Valuation Model) for valuations on a property. The reason being it’s a way for lenders to receive a valuation without actually going out to the property.

However, when they don’t need to send someone out to look at the property physically, these types of mortgages get restricted and to lower loan-to-values only.

During the last couple of days, as of March 28th, some lenders have been restricting their maximum loan-to-value down to 60%. So, they are continuing to process these types of applications but not necessarily ones at higher loan-to-values.

A lender’s viewpoint

Each lender is taking a different approach. So far, no mortgage offers got withdrawn, and we think that it is just a waiting game at the moment, lenders are just putting everything on hold before rushing into accepting more mortgages.

We have whiteness that some lenders have decided to extend the periods of their mortgage offers from six months up to nine to allow the economy and the mortgage market to get back up and running again.

Mortgage Payment Holidays

Following our recent article about Mortgage Payment Holidays, we want to remind you that you should only take one if you need to. Do your research, talk to a Remortgage Advisor in Birmingham, evaluate your options, and see whether it is the right thing for you.

It is more than likely that they will extend the period of your mortgage anyway, so it could be better just to hold off. You should contact your lender if you are questioning your ability to meet your monthly mortgage payments.

If you decide that this is your best option, lenders are asking for you to get in touch online due to the sheer volume of calls they are receiving.

If you are going to request a payment holiday, check that it won’t affect your credit rating or mark any arrears against your account. Also, don’t just cancel your direct debit and remember that you will need to seek permission from your lender to take a payment holiday.

Speak to a Mortgage Advisor in Birmingham today

The main thing is not to panic. We are here to help you with all of your mortgage problems and get you and your mortgage through these next couple of months. At some point in the coming weeks or months, someone is going to press play again.

We will all be back to normal in the given time. You can still get in touch with a Mortgage Advisor in Birmingham 7 days a week. Business is as usual. We can’t wait for you to get in touch and help you with all of your mortgage needs.

Income Protection Insurance Advice in Birmingham

Insurance Advice in Birmingham

Income Protection Insurance is designed to pay out a monthly benefit if you are unable to work due to illness or accident. The applicant can decide along with the help of their Advisor how much cover to take out. Also how long they are prepared to wait before they are entitled to put a claim in.

Income Protection insurance can be expensive compared to Life Insurance in Birmingham. As you are far more likely to be unable to work due to illness than die. The monthly benefit continues to be paid out until you return to work unless you have selected the “Budget” version of the policy. This typically only pays out for 24 months but is much cheaper.

The big advantage of Income Protection Insurance is that unlike Critical Illness Cover it pays out for whatever is preventing you from working. Unlike Critical Illness which is just a list of specified illnesses.

This type of policy is very popular amongst the Self Employed in Birmingham and also employed applicants who do not benefit from generous employer Sick Pay Schemes.

Our Income Protection Insurance Advice Service in Birmingham

It’s very important to us that all of our customers are given an equal opportunity to take out insurance through ourselves if they wish to.  We wouldn’t be doing our job right if we didn’t mention it!

We offer all of our customers a free, no-obligation protection review where we’ll have a look at any existing policies you have in place and assess their suitability.  We’ll then recommend which products, including critical illness and income protection that meet your needs.  If required, we’ll then tailor the plan to match your available monthly budget. 

Get in touch with our friendly team who can provide you with open and honest Mortgage Advice in Birmingham. Along with this, we will discuss why it’s important to have Mortgage Protection Insurance and explore existing policies that are available to you.

Life Insurance Advice in Birmingham

Whether you are a first time buyer in Birmingham, a Buy to Let Landlord in Birmingham or ready to Remortgage in Birmingham, looking into insurance is always greatly beneficial.

Life insurance is designed to pay out, usually in a lump sum, in the event of death.  With regard to your mortgage, the sum assured should be enough to pay off your outstanding balance.

Here is some information about the most popular types:

• The whole of Life Insurance.
• Term Assurance.
• Family Income Benefit.
• Joint Life Insurance.
• Death in Service.

Importance of Life Insurance in Birmingham

The whole of life insurance does not have an end date, therefore, providing premiums is being met the policy will payout. Generally speaking, this type of insurance is used for family protection and also as part of inheritance tax planning. 

Term Assurance

Term assurance is the most popular type of family insurance used to cover a mortgage.  Our Advisors will recommend the sum assured and term of the policy, usually to run in line with your new mortgage. The providing that all premiums are maintained, the sum assured will be paid out if you were to die during the term.

There are various types of Term Assurance available, such as decreasing and increasing cover. As part of our personal protection review, the most suitable policy for your needs will be recommended.

Family Income Benefit

This is another version of Term Assurance, where instead of the sum assured is paid as a lump sum on death, it’s paid as an agreed monthly payment. This is very good for families looking to insure an income.

A good Mortgage Advisor in Birmingham will usually recommend a mixture of insurance types tailor-made to match your personal and family requirements. 

Joint Life Insurance

If you are part of a couple, you could consider taking out a single life policy that will payout in the event of one of you dying. This can be cheaper than paying the premiums on two separate policies, but bear in mind that joint policies only payout on the first death, after that the cover ends. If you had two separate policies, the second policy would remain in force even after a claim had been made on the first.

Death in Service

Many companies offer their employees family a lump sum payment if the staff member dies while they are employed by the firm. Although this doesn’t mean the death has to be at the workplace or in any way related to the job done. This cover will most likely end as soon as you leave the company.

Our Insurance Advice Service in Birmingham

It’s very important to us that all of our customers are given an equal opportunity to take out insurance through ourselves. We wouldn’t be doing our job right if we didn’t mention it.

We offer all of our customers a free, no-obligation protection review where we’ll have a look at any existing policies you have in place and assess their suitability. We’ll then recommend which products, including Critical Illness Insurance and Income Protection Insurance that meets your needs. If required, we’ll then tailor the plan to match your available monthly budget.