We’ve broken the process down into steps to help provide a picture of what you can expect along the way. 

Step 1: 24 hours – Application for a Decision in Principle

A Decision in Principle is your initial step in the home-buying process. It estimates how much you could borrow, giving you a clear idea of the budget for your property search. Most lenders offer the convenience of applying online, with many providing instant decisions, typically within 24 hours. This crucial step ensures that you start clearly understanding your financial boundaries.

Step 2: Varies – Search and make an offer on a home

The time it takes to find your ideal property can vary significantly, ranging from a few weeks to several months. It’s important to take your time during this phase, researching your preferred area thoroughly to make an informed decision. Once you’ve found a property, the following steps may differ between regions.

In England, Northern Ireland, and Wales, making an offer is typically done through an estate agent, who should provide information on the response time.

In Scotland, you’ll need to engage a solicitor to help you prepare a bid. Since a successful bid in Scotland can legally commit you to the purchase, it’s crucial to have a Decision in Principle and be ready to proceed with a mortgage application.

Step 3: Up to 2 weeks – formally applying for a mortgage

Once your offer is accepted, you can apply for a formal mortgage offer. We recommend your mortgage application is submitted as soon as possible, although there may be exceptions based on specific circumstances. Processing and receiving a formal mortgage offer can take approximately 4-6 weeks. To expedite this phase, ensure you have all the necessary documents ready for review. The application includes thorough checks of your finances and a mortgage valuation of the property you intend to buy carried out by the lender. 

What is the time between the mortgage offer and completion?

Typically, you can expect the completion process to take around 12 weeks once your mortgage offer has been accepted. However, it’s important to note that each property transaction is unique, and the timeline may vary. Your journey to homeownership may take less or more time than the standard 12 weeks.

Step 4: 6 to 12 weeks – conveyancing

Appointing a solicitor or a licensed conveyancer is essential for handling the legal aspects of your property purchase. The conveyancing process may range from approximately six weeks to a few months, particularly if you become part of a property “chain”. A chain forms when multiple transactions need to happen and involve other buyers and sellers in the process.

Step 5: 2 to 3 weeks – property survey

Conducting a property survey is advisable to identify potential issues with the property. Surveyors provide a report within a couple of weeks of conducting their inspection, which generally takes a few hours. This survey differs from the mortgage valuation, which is typically for the lender’s use.

Sellers in Scotland would provide a Home Report containing an energy performance certificate, a survey and a property questionnaire, which a solicitor would then review.

Step 6: 1 to 4 weeks – contracts exchange to completion

Once you have your mortgage offer and your solicitor or licensed conveyancer is satisfied with the property’s search results, enquiries, and legal title, you’re all set to exchange contracts (the specific process differs in Scotland).

If you’re part of a property chain, all buyers and sellers involved must be prepared, which could cause delays. 

You’ll provide your deposit upon exchanging contracts, and the agreement becomes legally binding. At this point, you’ll need to have buildings insurance in place. The completion date is agreed upon during this phase, often set approximately two weeks after the exchange, but it can be adjusted as needed. You’ll usually receive the keys to your new home on the completion date.

Moving forward with ChoiceMortgages UK Ltd

At ChoiceMortgages UK Ltd, we provide independent, professional guidance and advice tailored to specific requirements. Feel free to use our no-cost and no-obligation consultation by phone or in person at the office. Our team of experienced and friendly advisors can handle all of your queries. Whether they’re straightforward or more complex, we’re on hand and ready to help. Remember, your home may be repossessed if you do not keep up repayments on your mortgage. 

The post A Step-by-Step Guide to Buying a Home in the UK appeared first on ChoiceMortgages UK Ltd.

The UK insurance sector is the fourth largest across the globe, with investments in the region of £1.8 trillion and employing 300,000 people. Additionally, over 40 million UK adults have some form of general insurance, from buildings, contents, and combined home insurance policies to life insurance.

Why you should consider shopping around

Knowledge is power, and armed with the right information, you’re already one step ahead. It’s so easy to feel overwhelmed by the many products available, and with all things technology, the online space can add to the confusion. 

Having said that, it’s so important that you wholly understand your options and that your choices are right for your budget and circumstances. 

We’ve broken the general types of insurance down into bite-size chunks that are easy to digest. Remember, a great reason to switch policies is that you could be underinsured in your current policy. For example, your personal circumstances may have changed. Things like your health status, your employment, or if you now have children. It’s also worth knowing that newer policies could come with better coverage and support services, due to products and consumer demands changing over time.

Life insurance, also known as life assurance

Life insurance is a financial safety net for your loved ones in the event of your death. It can provide a lump sum or regular payments to your dependents, offering reassurance that they will be cared for if you are no longer able to provide support.

The payout amount is determined by your chosen coverage level, allowing you to specify the required sum and coverage duration. You can opt for a lump sum or guaranteed/reduced payments. Alternatively, you may choose monthly payments to cover specific expenses like mortgage, rent, bills, or credit commitments.

It’s important to consider how a life insurance payout may impact means-tested benefits for your dependents. Having life insurance provides peace of mind, especially if you have a young family, your partner relies on your income, a family member resides in a mortgaged property you support, you wish to cover funeral expenses, or you have substantial personal debt.

Critical illness

Critical illness cover is a type of insurance that pays out if you are diagnosed with specific medical conditions or injuries outlined in the policy, such as stroke, heart attack, cancer, multiple sclerosis, or total and permanent disability. It’s essential to note that critical illness cover is distinct from life insurance, although they are sometimes combined together.

This coverage provides a benefit upon diagnosis, and once the claim is settled, the policy ceases. The received benefit is flexible, allowing you to use it as needed – whether to ease financial pressures during treatment, settle debts, take time off work to be with a loved one, pursue innovative treatment, or create a memorable experience.

Some policies may offer smaller or partial payments for less severe conditions and, if chosen, provide a lump sum if one of your children is diagnosed with a specified condition.

Why consider critical illness insurance? Critical illnesses can strike unexpectedly; for instance, in the UK, someone is diagnosed with cancer every two minutes, and every five minutes, someone experiences a heart attack or stroke. Critical illness cover helps financially safeguard you and your family, providing relief during challenging times.

Consider exploring if:

• You lack sufficient savings to rely on
• State benefits are insufficient to replace your income in case of long-term sickness or disability
• Your employer does not offer enhanced sick pay
• There is a family history of serious illness
• You want the ability to take time off to care for children diagnosed with a specified illness.

Income protection

Income protection cover, also called permanent health insurance, is a policy designed to provide financial support if you cannot work due to injury or illness. Typically lasting until retirement, death, or your return to work, it offers flexibility with short-term options available for one, two, or five years at a lower cost.

The coverage is linked to your gross earnings, usually ranging from 50-75% of your income, and the tax-free monthly benefit is paid upon a valid claim due to illness or injury.

When setting up the policy, you’ll determine a deferred period (4, 8, 13, 26, or 52 weeks) and specify the required benefit amount and duration, whether full-term or short-term.

Why consider income protection insurance? Having this coverage ensures peace of mind for you and your loved ones, offering financial security in the face of accidents or sickness. Income protection helps:

• Provide a regular income during illness or injury
• Meet financial obligations
• Enhance overall financial security
• Offer peace of mind and protection for your family
• Access specialised support services
• Focus on recovery without added financial stress

Redundancy cover

Redundancy cover is here to provide reassurance in case you face job loss. If you experience redundancy, managing mortgage payments and household expenses can be challenging. This coverage typically offers a monthly income, starting after four weeks, and extends up to a maximum of 12 months.

Home insurance

There are three main policies: buildings insurance (this protects the structure, fixtures, and fittings), contents insurance (this covers all your belongings, clothing, furniture, white goods, jewellery, electronics, etc.) or combined buildings and contents insurance. It is important to note that if you have a mortgage, buildings insurance is mandatory and will be a legal requirement by the lender.

You should also consider additional features, such as accidental damage to buildings, damage to contents, individual high-risk items, personal possessions away from the home, legal cover, and home emergencies.

There are a range of options and excesses that you can choose from. Need a quote?

Landlord’s insurance

Landlord’s insurance is a special type of coverage that’s crucial for those renting out their property. It gives peace of mind by safeguarding your home and belongings from potential loss or damage. Tailored for buy-to-let investors, this insurance offers coverage based on the number of bedrooms. You can also opt for additional protections like legal cover and rent arrears protection.

Find insurance with ChoiceMortgages UK Ltd

At ChoiceMortgages UK Ltd, our advisors have access to all insurance providers and provide unbiased, free advice. We will help you find the best insurance and help you safeguard the people you care most about. Call us at 01780 480600 for professional advice that won’t cost you a penny.  

The post Should I Change My Insurance? appeared first on ChoiceMortgages UK Ltd.

Fixed-rate mortgages

First and foremost, what does it mean to fix your mortgage? A fixed-rate mortgage is where the payable interest rates are the same for a set time, typically between two and five years. During this time, the monthly repayments will remain the same and won’t be affected by the Bank of England base rate.

What’s better, a two or five-year mortgage?

Choosing between a two- or five-year mortgage largely depends on your personal preference and circumstances. By fixing your mortgage for two years, you have assurance over the short term, and if you plan on keeping your home only for a short while, this option could be right for you. Additionally, if the rates drop, you can switch to a preferred rate once your deal ends.

Alternatively, with a five-year fixed rate, you have certainty over those five years, which could be the better option if you plan to settle into your property for longer. However, a lot can change in five years, not least of all mortgage rate fluctuations, which may result in higher fixed rates than live rates.

Should I fix my mortgage for longer?

With a longer fixed rate, you can rest assured as you’ll know your mortgage repayments for the next five years or longer. This provides you with some peace of mind and consistency in your financial planning. If you’re expecting to keep your property for the long run, a long-term fixed-rate mortgage could be right for you. 

A risk associated with fixing your mortgage for longer is current mortgage rates may become lower than your fixed rate. This means your repayments could be more than the actual interest rates. If you find yourself in this position, you could move to a new rate, but you could be subject to an early repayment charge (ERC) and a penalty to exit your deal before it expires, which can be an expensive exercise.

What are the pros and cons of fixing your mortgage?

Pros of fixing your mortgage:

Protection against interest rate increases.

You may save money on fees.

If your situation changes, you’re protected.

Cons of fixing your mortgage:

Your monthly payments may be higher.

You may pay a penalty if you move.

You may face an early repayment charge if you pay your mortgage off early

Is it worth getting a fixed-rate mortgage?

Ultimately, whether a fixed-rate mortgage is worth it depends on you, as does the length of term. Your financial situation, your feelings about risk and stability, and your long-term plans or objectives will help you determine your next steps toward home ownership.

If you’re ready to begin your journey and are seeking trustworthy advice, that happens to be obligation and cost-free, give us a call at ChoiceMortgages UK Ltd. We provide independent mortgage and insurance advice based on your specific requirements. Whether you’re a first-time buyer or seasoned in the housing market, we can find the best solution for you.

The post How Long Should I Fix My Mortgage For? appeared first on ChoiceMortgages UK Ltd.

Here are essential qualities to look for when choosing a mortgage advisor:

Choosing a mortgage advisor – key qualities

Expertise and Experience 

A good mortgage advisor should thoroughly understand the current mortgage market, including regulations, trends, and all recently available products. Look for an advisor who has been in the industry for several years and has a proven track record of helping clients secure the best mortgages for their needs.

Independence

Choosing an advisor who is not tied to any particular lender or financial institution is essential. An independent advisor will have access to a vast range of mortgage products and rates, giving you the best opportunity to find the right mortgage for your financial position without any restrictions or bias.

Personalisation

It’s a two-way street, so take your time and research to find an advisor who is invested in you. A good mortgage advisor should try to get to know you and understand your goals and needs. This level of personal service is vital in helping you to ask questions and feel comfortable with your decisions. 

Communication

A good mortgage advisor should be easily relatable, and customer-focused. Look for an advisor who is responsive, approachable, and provides clear and concise information.

Completeness of Service

Having part of the information and being left to Google to find your way around what to do next is of no use. A good mortgage advisor should guide you through the entire mortgage process, from start to finish. Look for an advisor who will complete all the necessary paperwork, keep you updated on the progress of your application, and ensure that the process is smooth by foreseeing any potential challenges along the way.

Availability

When looking for a mortgage advisor, it is important to consider their availability. You want an advisor who can organise appointments that work with your schedule and is available to answer questions, provide support when you need it, and not leave you hanging. 

Fee structure

Some mortgage advisors charge fees for their services, while others are compensated by the lenders they work with. Much like the services of a solicitor or an accountant, the professional services of a mortgage advisor need to be taken into account. Make sure you understand the fee structure of the advisor you are considering so that you know what to expect and plan for contingencies.

Reputation

Look for an advisor who has a good reputation in the industry and is well-regarded by their clients. Read reviews, check ratings, and ask for referrals to ensure you choose a trustworthy advisor.

In conclusion, when choosing a mortgage advisor, it is crucial to consider their expertise, independence, personalisation, communication, completeness of service, availability, fee structure, and reputation. By finding the right mortgage advisor for your needs, you can be confident that you are making an informed and intelligent decision about your mortgage.

At ChoiceMortgages UK Ltd, benefit from personalised and efficient services with over 100 years of experience from our team of reliable advisers.

Contact us today for friendly and impartial mortgage guidance

The post What to look for in a Mortgage Advisor appeared first on ChoiceMortgages UK Ltd.

First things first: Get your paperwork organised

Lenders will need to see various documents. Get your paperwork together in advance. This will help speed up the process as the lender will have everything they require to assess your application.

Lenders will not accept photographs, screenshots, or summaries of the required documents. Everything must be saved as PDF, and reflect the formal document. Become familiar with a scanning app on your phone or ensure that online portals are active so you can download the relevant items from the respective websites.

Check that all documents show the correct address at the time of application. If not, update the provider to avoid problems that could result in delays. DVLA and financial organisations can take several weeks to update their records.

Your required documents

• Passport
• Driver’s licence showing your current address
• Utility bill dated within last three months
• If employed; your last three months’ payslips and P60
• If self-employed; your latest two years’ tax calculations and tax overviews, along with two years’ Ltd Company accounts, if applicable
• Most recent three months bank statements

There may be additional documents depending on your circumstances, but a ChoiceMortgages UK Ltd advisor will be happy to assist you during a consultation.

Register on the electoral roll

This is the quickest and easiest part of preparing for a mortgage application. Being on the electoral roll at your current address is important because lenders often use the electoral roll data to help identify you. Being on the electoral roll will also help your credit profile.

If you’re not currently registered, you can do so here.

Don’t touch your overdraft

Constantly being in your overdraft may raise red flags for lenders. Try to avoid using your overdraft three months prior to an application, or at least ensure you remain within an agreed limit.

Stop applying for credit

Try to avoid applying for credit in the three months before getting a mortgage – it could impact your credit score. Taking out new loans or increasing your credit card balances will likely reduce the amount you can borrow. 

If you need to apply for credit, it’s unlikely that one application will hurt that much, as long as it’s affordable. But if it’s a payday loan or revolving credit facility, some lenders will decline your mortgage application.

It’s also strongly advised to avoid new credit between your mortgage offer being issued and completing your new home. If you do, you will need to inform the lender, which could result in them changing the amount they’re prepared to lend you.

Manage your payments and spending

If you have an existing credit card or loan, it’s important you keep up with the minimum repayments and try not to get too close to your credit limit. Missed or defaulted payments, County Court Judgements (CCJs), payday loans, and clear betting patterns on your bank statements can all lower your chances of getting a mortgage. If you have dormant accounts, consider closing them by contacting the provider. 

It’s always worth adding to your savings if you can, even while you’re still looking for a property. Although gifts from the family will be considered, personal savings need to be evidenced, and lenders want to see an accumulation of funds.

Bear in mind that there could be other fees to consider when buying a new home, such as legal fees, stamp duty, survey fees, and administration fees. Remember to take these into account when working out your overall budget.

Check (and maintain) your credit report before you apply

Lenders want to see that you’re able to manage your finances before they decide to offer you a mortgage. One way they do this is by checking your credit file to see if you have a good payment history.

Your credit file lists your current and previous credit cards, loans, overdrafts, mortgages, mobile phone bills, and utility payments, going back over the last six years. There are three main credit reference agencies in the UK, and several companies offer ways for you to see your report and score for free. You can get a view of your profile before applying using this tool.

If you think your credit file information is wrong, you can raise a dispute to get it corrected. Contact the company that registered the error on your credit file, or request that the credit bureau agency query it.

People who are financially linked to you could affect your credit score

You can become financially linked, or associated, with someone if you take out or apply for joint credit, such as a bank account, mortgage, or loan. Because there is a link, lenders will consider the other person’s credit history when you apply for your new mortgage. Any missed payments or defaults they have could impact your chances of being approved.

If you no longer have a relationship with them, make sure you’ve closed or had your name removed from any joint accounts so you’re not linked to them financially going forward.

It’s also worth writing to the credit agencies and asking for a notice of ‘disassociation’.

At ChoiceMortgages UK Ltd, we pride ourselves on providing a dedicated, personal service to our clients. It’s more than a business transaction, it’s a means to make life dreams come true. We understand that these processes can be overwhelming but we’re here to help, every step of the way.

Get in touch for a free consultation.

The post How to prepare for a mortgage application appeared first on ChoiceMortgages UK Ltd.

A trusted mortgage advisor has the experience and expertise to guide you through the process of buying property in such a way that it saves you time, money, and unnecessary stress.

Securing the best deal

Once your offer to purchase has been accepted, the mission of getting the best loan begins. As an individual, it can be very hard to secure an appointment with a potential mortgage provider. The waiting period for an appointment alone can be anything from seven to 14 days. So you can imagine the challenge when you want to consult with multiple lenders. Property buying is extremely time-sensitive, so you won’t have much time to play around with. 

A mortgage advisor replaces the need for clients to approach lenders directly, and you can secure an appointment a lot quicker, typically within 24 hours. What’s more, the process is in their hands, while you, as the client, will get updates throughout. 

The core role of a mortgage advisor is to find you the most competitive product and favourable terms based on your unique financial position. Key to note here is that independent mortgage advisors are well-placed to access all lenders simultaneously, foregoing the need for multiple, separate appointments.

Furthermore, they are well-versed in fees, rates, products, and lending criteria, therefore are better able to source the most competitive product. Put simply, they know what to look out for.

Full transparency

In all the excitement of an accepted offer to purchase, you could easily lose sight of all the ‘hidden’ costs associated with buying a property. When you’ve got a mortgage advisor on board, you can rest assured that you’ll be aware of every single fee expected from you as the home buyer. This includes legal fees, valuation fees and application fees, among others. 

You’ll also discover that there are so many technical terms and jargon, which could easily overwhelm you – and for that, mortgage advisors are a particularly valuable resource to have.

You can’t put a price on time

Because mortgage advisors have been facilitating home sales professionally for years, they are extremely thorough with the steps and processes involved. Besides the assurance of having all your boxes ticked, their services can save you plenty of time. Home sales are often marred by all kinds of administrative delays, all the while pushing your move date further out. But with mortgage advisors’ relationships and expertise that we’ve mentioned above, they’re often in a good position to expedite certain aspects. 

In addition, there are all those little things that need to get done, like phone calls, emails, follow-ups, etc. It’s those little things that sneakily thieve your time, but they all form part and parcel of mortgage advisory services. Money can be made, saved, or borrowed, but nothing can ever get your time back. And in our opinion, leaving the work in the hands of a capable mortgage advisor is a pretty good way of trying.

The post How do mortgage advisors save you money? appeared first on ChoiceMortgages UK Ltd.

With up to 77% of buy-to-let property owners choosing to house their properties under such limited companies rather than their personal investments, it is beneficial to know the differences between the two options. In this blog, we will look at how your property investments can affect your profit margins by considering these specific points: 

• Tax differences between limited company-owned properties and personally-owned properties 

• Personally-owned properties 
• Company-owned properties
• Benefits of incorporating a mortgage broker

Tax differences between limited company-owned properties and personally-owned properties

Investing in property is trickier than it used to be with the increased regulation, decreasing tax relief and stamp duty changes, many property investors are noticing massive reductions in their rental revenues. 

This is where the option of owning a property investment company becomes attractive, as with the right business structure, your tax payments can be reduced by up to 26% – putting more of your profit into your pocket. Let’s break this down further.

Personally-owned properties

While the tax on personally-owned properties is fairly simple as you would deduct your allowable expenses from your rental income to obtain your profit, it is the profit on which you pay that income tax at your regular rate. Unfortunately, you can’t claim your mortgage interest as an expense on such properties. 

If you are a basic rate taxpayer, income tax is at the basic rate. Of course, this is a very different conversation for higher ratepayers with personal income taxed at a higher rate, who will, in turn, be liable to pay even more tax on their profits. This brings us to option 2, company-owned properties.

Company-owned properties

There is much more flexibility on property tax owned by limited companies. Much like the personally-owned properties, you must deduct the allowable expenses from the rental income to obtain the company profit. However, in this case, mortgage interest payments are able to be offset and will reduce the profit, thus decreasing the amount. In addition to this, you pay corporation tax rather than income tax, and by keeping the profit within the company for company growth, new purchases, and the like, you won’t have any more tax to pay. But how do you access this profit for personal use? 

There are three options here: 

• Salary 
• Dividends 
• Pensions 

Each option comes with its own tax requirements and can be beneficial in the long run. 

So, which of the two options is right for you? This is where you incorporate a mortgage broker.

Benefits of incorporating a mortgage broker

Suppose you are within a lower tax bracket; you will likely be suited to opt for personal property investment. However, suppose that you will exceed the minimum threshold of the lower tax bracket within a year, it will be advisable to consider the limited company option as your tax liability can jump from a basic rate to a higher rate quickly. 

Through detailed analysis and understanding of your personal circumstances, a mortgage broker can advise on the best path for you to take. It may begin on the personal property investment path that grows into a limited company or the other way around. 

Be sure to consult with your trusted broker sooner, as you may find that the right option can increase your rate of returns. Consulting an accountant for clarity on the exact tax liability may also be worthwhile.

You should know that with us, your individually-selected mortgage broker is more than just a salesperson, but someone you can turn to for help and clarity, all with personal confidentiality. 

So ask us all you wish to know about your policies, mortgages, and insurance. This is what we do. We provide independent mortgage and insurance advice and take pride in high-quality customer service and satisfaction. 
We’re here to help you, and you can contact us here for a non-obligatory consult.

The post Property Investments: Limited company versus Personal Name appeared first on ChoiceMortgages UK Ltd.

Regardless of whether you have a mortgage or not, you should regularly review your personal protection. Even when you move home, it is vital that you check that the policies are still adequate. There may have been a change in your employment, you may have had children, or you may have given up smoking. All of these events can affect what protection is right for you and the premium you pay.

If you have moved home recently it may have been a stressful time. If you have been looking for a property during the pandemic, and are about to move, you may have got lost in conveyancing backlogs, mortgage service delays, and stamp duty deadlines. Personal protection may not be at the forefront of your mind. 

Why Personal Protection?

It is absolutely vital that you take the necessary precautions to protect yourself and your home. Don’t be the one left saying, ‘I never thought it would happen to me’. Below are some of the types of protection available;

• Life cover – allows you to make sure your family is protected in the event of your death. It will provide a lump sum during the policy term.

• Critical illness cover – designed to pay out a lump sum if you are diagnosed with one of many critical illnesses covered in your policy, for example, heart attack, cancer, stroke.

• Income Protection – providing a monthly income to replace the loss of earnings should you be unable to work due to an accident or sickness.

• Buildings insurance – a legal condition of any mortgage, this policy protects the property structure, fixtures, and fittings

• Contents insurance – important if you want to protect any of your belongings against fire, theft, or flood i.e clothing, furniture, white goods, jewellery, electronics

The Cost of Protection

This depends on a variety of factors; age, smoker status, lifestyle, amount of cover, term required, and medical history. 

We’re here to help

Moving is exciting and there is always so much to think about. Protection might not be top of your to-do list, but your circumstances can change quickly. Preparing now ensures you and your family are protected in the future. 

To check whether your current policies are right for you and to review your options, please contact our team.

The post Personal Protection and Peace of Mind appeared first on ChoiceMortgages UK Ltd.

What Exactly is Critical Illness Cover?

The average life expectancy increases with every generation. For example, in 1950, life expectancy for men was 66 years and 71 for women. By 2007, that had grown to almost 80 years for men and 84 for women. Part of the increase is also due to the medical field advancing. A heart attack, for example, that was guaranteed to be fatal fifty years ago, is now an event that most patients survive. 

But that does mean that costs have increased and can leave patients with large medical bills. Critical illness insurance covers specific conditions or injuries listed in the policy.

Although life insurance, health insurance, and critical illness coverage are all sold together, they are all very different. 

• Life insurance is when a sum is paid out on the insured person’s death.
• Health insurance is paid out for most (not all) medical and surgical expenses and preventative care costs to the insured person, usually at specific places.
• Critical Illness insurance provides additional coverage that is specified in the policy.
• Gap cover provides extra protection for those with medical aid. It covers the deficit between the medical aid scheme and the actual rates charged.

All policies usually have terms and conditions, and might require information about your family history and even a general medical exam. Each one covers different ailments, and it is best to chat about this with your insurer to understand all the additional items it covers and what it doesn’t.

Can Choice Mortgage Provide Critical Illness Advice?

Yes, we do. We provide advice and are happy to give you a consultation to answer any questions that you might have about the policies or any concerns you have. 

If you are interested in getting Critical Illness Insurance or would like to chat about the policy in general, give us a call at 01780 480 600 or drop us a message on our website.

The post Everything you need to know about Critical Illness Cover appeared first on ChoiceMortgages UK Ltd.

Reassurance: you know that you can afford the intended mortgage and are in a financial position of being able to proceed. 

Property Viewings: in the current climate, estate agents and vendors are only likely to make a viewing with people who are in a position to proceed. Having a mortgage agreement or certificate demonstrates that you can.

Credibility: when viewing houses and find your perfect home, having an agreement in principle gives your offer credibility. Sellers are likely to take you seriously knowing that you have a mortgage already approved in principle.

Speed: it helps the mortgage process and prevents unnecessary delays. You should have been advised what supporting documents are required and therefore have time to collate them in advance of submitting a mortgage application. 

How do I get a mortgage in principle?

Your advisor will ask you to provide your full name, date of birth, three years address history, income details, and information relating to any financial credit agreements and expenditure.

It is important to know that when applying for a mortgage in principle, many lenders will carry out a credit search. This may be a soft or hard footprint and could be visible on credit-bureau data. Do not have many hard credit checks as this can have an adverse effect on your overall credit score. 

What if a lender declines my application?

It is important to try and identify the reason why;

• poor credit history or credit profile
• not on the electoral register
• too high debt to income ratio
• multiple addresses and cannot be located 
• don’t meet the lenders’ criteria

If you receive a negative response or decline decision, you may need to make some changes, check your credit report, or approach a lender more suited to your circumstances. 

How long does an agreement in principle last?

This can vary significantly between lenders. Usually, a mortgage agreement in principle is valid for 30 days. 

Should it expire, you can reapply but try not to request too many. Instead, apply for one when it is the most appropriate time.

We’re here to help

If you are unsure whether to apply for an agreement in principle or don’t know who to approach, let us help you.  We can discuss your circumstances and give you the appropriate advice. Contact us or call our team on 01780 480600.  

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