The cost of living without protection insurance
Without doubt current cost-of-living crisis is hitting us hard. According to a Government report published in June this year, around three in four adults (77%) reported feeling very or somewhat worried about the rising costs of living and already around 60% of adults have reported spending less on non-essential items in response to rising costs. The Office for National Statistics – Opinions and Lifestyle Survey, found around 15% of adults report using more credit than usual, while in a separate question, around 21% report that they have had to borrow more money or use more credit in the last month compared with a year ago. Similarly, around 45% of adults reported that they do not think they will be able to save any money over the next 12 months. Around 42% of adults reported finding it somewhat difficult or very difficult to afford their energy bills.
Furthermore, in a survey conducted by HR software provider CIPHR, over half (53%) of UK adults, when asked how rising living costs are impacting them at work, said they would consider or have gone to work unwell to avoid losing their wages.
It's therefore not surprising that YouGov found that people are pessimistic about the future, with four in ten Britons expecting their finances to get even worse in the coming months.
As a result, it seems that protecting our income is now even more essential than ever!
Consider if, on top of the financial strain that we are all feeling, that you became seriously sick or injured and could not go to work. How would you cope with having even more financial (and not to mention emotional) pressure of not being able to work and at the same time still trying to pay ever increasing prices to get by day-to-day?
If the answer is that you can’t imagine how you’d cope, then income protection could be of more value to you than ever before. It could provide a safety net if something goes wrong, and you are unable to work in the future and give you some peace of mind today.
Income protection pays you part of your monthly income. It is an insurance policy that can help support you with a monthly payment if you are ill or injured and can’t work - it can pay out for a range of conditions including cancer and mental health issues. The pay-out is tax-free and can help you protect your finances while you recover. The money can cover anything, like bills, mortgage repayments, rent and childcare costs. So, you’re able to focus more on getting better and back to work – and because you don’t pay tax on your monthly payments, it should replace most of your salary.
If you have a family who depend on you financially, having income protection can give you peace of mind that their needs – as well as yours – will be covered if you become unable to work because of illness or injury. It means you won’t have to worry about how you’ll be able to feed the family or pay the bills, without seriously harming long term financial health by dipping into your savings (if indeed these aren’t already being depleted).
Let us not forget that the pandemic gave millions of us a scary insight into just how quickly circumstances can change, by forcing a huge proportion of the population out of work. Now, imagine how horrendous that would have been without the safety net that the furlough scheme provided for so many households nationwide.
If the past few of years have taught us anything, it is that no one can predict what the future holds. Illness or injury can stop you working at any time and without warning and being amid a cost-of-living crisis, means that having a plan in place is more essential than ever.
Nothing is certain during uncertain times, but being protected could provide a much-needed financial safety net that could prove to be invaluable to any of us.
For more information, contact us on 01245 956900 or enquiry@mortgagebusiness.net
Good News for Properties with Cladding from 9th January 2023!
Following an announcement by a group of key UK lenders*, a commitment has been made to lend on flats undergoing building safety remediation works, subject to certain criteria and updated valuation guidance from the Royal Institute of Chartered Surveyors (RICS).
The news is a very welcome step forward for leaseholders trapped in unsellable properties with Grenfell-style cladding or other historic fire safety defects.
As intermediaries we have been restricted by rules and content in EWS1 forms, if the EWS1 form confirmed the property did not meet minimum safety standards, the property would be deemed unsuitable and not able to mortgage.
From the 9th January 2023, lenders will now be able to consider mortgage applications for flats in buildings of 11 metres or more for the first time since the EWS1 crisis began. There is new criteria which includes properties that will:
·be ‘self-remediated’ by developers;
·be covered by one of the following government schemes:
·The Developer Remediation Contracts (11 metres+),
·The Medium Rise Scheme (11-18 metres),
·The Building Safety Fund (18 metres+);
·or be covered by leaseholder protections contained in the Building Safety Act.
*Key lenders include Barclays Bank, HSBC, Lloyds Banking Group, Nationwide Building Society, NatWest, and Santander
As Advisers we will validate with individual lenders what documents and evidence they will accept under these rules as this will be unique to each property.
Call to discuss your options with a qualified Adviser on 01245 956900 or contact us at enquiry@mortgagebusiness.net
Hearing the sad story about Jonnie Irwin and his cancer diagnosis is shocking and awful, but what it does do is serve as a reminder that even a large employer like Channel 4 can’t support a man with a young family when a serious diagnosis comes.
A Place in the Sun presenter Jonnie Irwin, says he was forced to continue working despite having terminal cancer because he failed to take out Critical Illness Cover.
The broadcaster, 49, has lung cancer which has spread to his brain. While he had taken out insurance for getting the 'terminal diagnosis', this will not pay out until he has died.
He has therefore had to carry on working, despite being so ill, as it was the only way to continue providing an income for his family.
Where does that leave the average person? When people have mortgages and bills to pay and families who rely on them? If you have a mortgage or rent commitment, I am sure someone will have asked the question, ‘Do you have life cover?’ or ‘Do you want to talk about the protection you have in place’
What’s Your Excuse?
Time and again Advisers are told, ‘I have cover with work already’ or ‘ I am sorting this out myself’ or ‘I can’t afford it I have a big mortgage or a family to provide for’.
For all of the reasons above you must absolutely speak to a professional about the cover you do have or should have.
‘I have cover with work already’
Some employers will provide some help for a limited time or a defined amount, there will be exceptions but it is unlikely it will be as much as you hope.
‘I am sorting protection cover out myself online’
When companies with qualified Advisers who offer expertise in exchange for some of your time and information at no cost, why would you go it alone? What if you didn’t know about a type of cover that was far better suited to meet your needs? You could be paying a premium for something that wont do what you thought it would do or has an exclusion you didn’t know about? Why risk it?
Even more commonly, it becomes something that people intend to do but don’t quite get around to doing.
‘ I can’t afford it I have a big mortgage or a family to provide for’
“I have to carry on working, despite being so ill, as it was the only way to continue providing an income for my family in the meantime.” Jonnie Irwin
When did you last check the cover you have and what it does?
When did you last look at your existing protection policies? Protection has advanced so much, some providers offer added value benefits with their plans. You could have 24/7 access to a GP by phone or virtually for you and your family members at no cost. No more holding on the phone for appointments, you would usually have access to a qualified GP within hours.
If you took out cover in the past, it was important to you then but is it right for you now? Who are your beneficiaries? Would the right people receive your support if you weren’t around to provide it? Have your circumstances changed since you first took that cover out. Do you remember what you took it out for?
If you want to talk to one of our team about the protection you currently have, what you think you might need or what you can have for your budget, we can help.
Call Mortgage Business today on 01245 956900 or 01277 223355
Mortgage Biz are excited to announce we are sponsoring the "Team Outstanding Achievement Award 2022" at this years NHS Shine Awards!
Mortgage Business have proudly supported our fantastic NHS workers by waiving all application and mortgage advice fees for any NHS worker! This year we were delighted to be asked to attend the awards and to also sponsor such a prestigious award!
A total of 350 nominations were submitted by patients across the nine categories, all of which were put through a robust sifting and scoring process by a team of volunteer staff. This process resulted in a longlist of highly commended nominated teams and individuals.
Following this, the highly commended nominees were considered by a judging panel which included representatives from medical and nursing leadership, governors, equality and inclusion networks, integrated care system as well as a patient representative
Watch this space for our live feed on the night and some incredible stories and experiences shared! Good luck to all the nominees..
#MSEShineAwards #MSETeam
Mortgage Strategy Awards 2022
The Mortgage Strategy Awards are undoubtedly seen as the pinnacle of success for those in the UK mortgage industry.
Initial qualification requires several written nominations from industry peers.
The Awards attract more than 900 of the UK mortgage industry's brightest stars.
Widely recognised as the ‘Oscars’ of the mortgage industry, the accolades are not awarded lightly. Several rounds of shortlisting take place before the judge’s comb through each entry and decide on a winner. It’s the culmination of hard work and effort over the past twelve months, the rigorous judging process associated with the Awards that ensures that winning one of the 27 categories really is a mark of excellence.
We were delighted to be Finalists in 2022 and the evening didn’t disappoint!
If you would like to speak to one of our Award Winning Mortgage Specialists about your mortgage or protection, give our fantastic team a call on 01245 956900 or 01277 223355
We appreciate the hard work and commitment shown by workers in our NHS & we are proud to waive our fees* for all NHS staff.
Call and speak to our award winning team for more information on 01245 956900 or 01277 223355
*Our standard fees, which are waived for NHS workers include an administration fee of £149 payable on application, there may also be a fee for advice in certain situations i.e. we will typically charge £500 for mortgage loans of £99,999 or under.
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