Insurance
Why do you need Life Assurance?
Karen and James, both worked full time
earning £60,000 a year between them. They had an
interest only mortgage of £252,000 and their
home was worth £300,000 when they bought it in
2006. They have a 9 year old son, Ben.
James was 41 when he died of a heart attack
in 2008. He was earning £42,000. The shock of
James' death affected Karen immensely, she was
off work for 5 months. After 2 months Karen
realised that she would have to sell the house
because she could no longer afford the mortgage
on her own; they didn't have life assurance. The
property market crash of 2007\2008 reduced the
value to £245,000 when it was finally sold.
Karen had to pay estate agents costs, solicitors
costs, a mortgage redemption fee, 2 missed
mortgage payments and the difference between her
mortgage (£252,000) and the sale price
(£245,000), the total bill was £22,184. Karen
had to borrow £20,000 from her Mother and Father
because she was unable to get a loan after her
credit worthiness had been affected by two
missed mortgage payments.
Karen and Ben are living with Karen's parents
for the time being. Karen continues to work full
time and her parents help with Ben. The stain on
Karen's personal credit report will be gone
after 6 years at which time she hopes to be able
to buy another property.
The story above is fictional but it could be
very real for many people. The outcome would
have been very different had James' life been
insured to repay the mortgage. Contact us for
competitive life assurance policies.
Buildings & Contents
It is a condition of your mortgage that the
property is insured for its full rebuild value.
Let us quote for buildings insurance. You may
also wish to consider contents insurance
Solicitors (Conveyancing)
Many lenders offer free legal work for
re-mortgages but if you are buying a property
then you will have to pay for a solicitor
yourself. We have links solicitors all over the
country, please contact us for a quote or
get
an online quote here.
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