In these tough times its hard to get a mortgage, there was 22,051 mortgages approved in December an increase on November’s figures according to the British bankers association. For those lucky ones who have managed to get a mortgage it’s just as important to protect your self against losing your home.

Income protection is an umbrella term for insurance policies which pay a lump sum or monthly income to you, the policyholder, if you are unable to work. They are designed to assist you financially by paying the mortgage and the bills if you are unable to work due to accident, sickness, redundancy or death.

There are many Insurance Providers on the market who offer their own versions of Income Protection, it would be easier if generic terms were used, unfortunately the providers use their own terms for their products, making comparing products and choosing the right policy confusing. The following are the most popular terms used by providers and their general meanings. Clients may choose one or all of the following.

Mortgage Protection is linked to your salary and monthly mortgage payment. These policies are designed primarily to pay your mortgage plus a little extra, (usually 133% of your monthly mortgage payment), in the event of Sickness, Accident or Unemployment.  These policies will pay for either 52 or 104 weeks while you recover / or look for alternative employment. You may take Accident and Sickness only, or Accident Sickness and Unemployment.

Income Protection (also known as Permanent Health Insurance – PHI) this is the Rolls Royce version of Mortgage Protection. These policies offer a larger monthly income to cover the cost of not only the mortgage, but bills, food – anything your salary would usually pay for. In addition these policies pay long term, i.e. until you return to work, until the end of the policy term or until you die.

Death Benefit policy pays a lump sum on your death. If you have a family it is wise to insure the mortgage amount and then some, if you have young children and the mortgage is repaid your partner will still have monthly expenses for bills and food. Most death benefit policies will pay early if you are diagnosed as being terminally ill.

Critical Illness Benefit offers either a monthly income or lump sum payment if you are diagnosed with a critical illness such as cancer. Can be taken for the full mortgage amount, or a smaller amount e.g. 2 years salary to pay mortgage and bills while you receive treatment.

The Government has also announced 3 new schemes that lenders should be able to advise you on.

1) The Support for Mortgage Interest (SMI) for those on Income Support, income-based Jobseeker’s Allowance, income-related Employment and Support Allowance and Pension Credit offers help on loans up to £200,000.

2) The Homeowner Mortgage Support Scheme helps couples facing hardship, where one partner has lost their job, by deferring a portion of mortgage interest for up to two years.

3) The Mortgage Rescue scheme, offers families and the elderly either a shared equity option on their home or a Government mortgage, allowing them to remain in their home.

If you want to know more about protecting you mortgage, then contact Click n go Mortgages here.

With Rightmove reporting increased demand for houses and property listings at an all time low. First time buyers are struggling to save the deposits which lenders are currently insisting on to purchase in today’s market. So the alternative is to buy via a Shared Ownership scheme.

The housing market isn’t moving and this is creating a build up of first time buyers who would are still trying to get on the property ladder this isn’t going to change and demand will build. Click n go Mortgages have seen a huge increase in the number of new enquiries this month.  Owning your own house is still seen as life goal for most people and the thought of renting and paying someone else’s mortgage is just not cricket.

To quote Margaret Beckett “first-time buyers should snap up bargains amid signs of a property market ‘upturn’.The Bank of England has reduced interest rates to help stimulate the economy and prevent a deeper and longer recession. Before you fall in love with a house and pay a holding deposit sometimes required by some builders you should get your shared ownership mortgage approved.

First time buyer’s looking for shared ownership properties have quite a few options here is a few of the shared ownership mortgage rates and some of the lenders criteria available today that might help you make your decision a little easier.Abbey with a 10% deposit available for house, however if the property has been built in the last 12 months you will need a 20% deposit. There is a five year fixed rate at 7.09%. You need a 30% deposit for a new build flats.

Nationwide a 15% deposit required for houses and a 25% deposit for new build flats. Current rates are 4.19% this is for a 2 year tracker or a 4.59% for a 2 year fixed. They do not accept most benefit incomes, however they do accept 100% of your current P60 figure regardless of whether basic or overtime time and bonuses.

Leeds requires a 10% and currently offers a 7.89% for a 3 year fixed rate. Currently have very good service levels which can be a major factor in this market.

Halifax requires a 10% deposit this will secure you a mortgage rate of 7.49% fixed for a 5 years. You could reduce this to a tracker rate currently 4.09% by increasing the deposit to 25%.

Woolwich a 10% deposit is required, the current rates available is 6.79% five year fixed rate. This fixed rate is a very popular product in today’s market; this in turn affects the service levels.Theres is a lender offering a 100% shared ownership mortgage, the maximum rate is 13.75%. This applies to people who have had 3 County Court Judgements (CCJ’s) in last 3 years. There is a slightly better rate of 12.75% Applies to people who have 2 CCJ’s in the last 3 years. The interest rate is also affected by whether you pay the mortgage fees, or whether they are included in the 100% figure.Appetite to lend plays a huge part in the lenders decision to offer attractive deals. It’s vitally important to speak to a broker who has access to the whole market and fully understands the latest products, criteria and service levels to ensure you get correct advice to suit you personal circumstances. No one wants to waste time and money falling in love with a property when you don’t even know if you can get a shared ownership mortgage.

If you want to know more about first time buyer schemes including shared ownership & shared equity mortgage schemes, then contact Click n go Mortgages here.

There was huge contraction in the amount of mortgage lending in 2008. The credit crunch has swept through the housing market and all but obliterated most of the mortgage deals that were available in 2007.

 The CML figures show total lending is down by a third on 2007’s figure of £364bn and is at its lowest level since 2002, these figure demonstrate the impact of the credit tightening on the market. Mortgage lenders pulled there high loan to value deals that were attractive to first time buyers as they found it increasingly hard to raise the funds as the money markets dried up and the cost of inter bank lending started to rise.

Most lenders still don’t have any high loan to value mortgage deals available as they are still wary of first time buyers. They have adjusted there credit score to ensure only the best clients qualify. For a first time buyer to stand a chance and that includes shared ownership and shared equity purchases you must tick all the correct boxes.

The government has outlined its new proposal this week to help unfreeze the market and get lenders lending again. But if lenders open there doors again to new business will people be reluctant to buy whilst house prices are still falling.

If you want to know more about first time buyer schemes including shared ownership & shared equity mortgage schemes, then contact Click n go Mortgages here.

Banks need to use these facility’s to help breath life into the failing housing market as First time buyers and home movers continue to window shop.Right move has reported that supply remain constrained due to a falling housing market. There were 43,000 new listings in the month to January 10, compared with 89,000 in the same period last year, with inquiries rising to 429,560 in four weeks to January 10 from 199,762 in the same period last year.

The Governments second package of new measures are aimed at helping the banks provide new lending to first time buyers and home movers, shared equity and  Shared Ownership purchases. It’s this market that is suffering the worst, as lenders require a substantial deposit. With out this activity the housing market is slowly grinding to a halt.

Council of Mortgage Lenders director General Michael Coogan said: ‘At long last, the government has announced a comprehensive and coordinated package of measures sufficiently large in scale to have an impact on improving the flow of new lending.’

Northern Rock has been given longer to pay back its loan. This will give the lender more flexibility to offer new lending to help boost the economy.

If you want to know more about shared ownership & shared equity mortgage schemes, then contact Click n go Mortgages here.

When the market does turn, first time buyers will re-enter the market, driven by the renewed affordability of owning over renting. With lenders cautious on loan to value ratios, there will be new types of shared ownership and shared equity schemes to be in high demand.

This will not only be amongst households which qualify for the Government’s Homebuy scheme. There will be more opportunities for private Shared Ownership schemes to meet demand from more affluent households with limited equity, they will sell there home and rent it back.

Margaret Beckett warns would-be first-time buyers not to delay in the hope of further price falls, because “when the upturn comes, there will probably be a mad rush”. She has just launched a shared equity scheme to help first-time buyers purchase Barratt homes.

Most people believe that paying rent for years is as good as throwing money down the drain, the British perception of renting isn’t going to change. Estate agents are reporting an increase in new enquiries, there is still a demand for property that isn’t going away.  

If you want to know more about shared ownership & shared equity mortgage schemes, then contact Click n go Mortgages here.