Archive for October, 2014

Home And Mortgage Protection Insurance For Dummies

It seems that we can’t do anything without insurance these days. I can see a time coming when ordinary members of the public will need to buy liability cover to protect them against law suits from other people who are trying to make a quick buck. Many people dislike it because it is an invisible service. You might have wished some mishap would have befallen you so you can take advantage of the product that cost so much money. You don’t mean it, of course, but paying out endlessly for a premium that you never use is frustrating, to say the least.

The day might come when a disaster befalls you. Then you realise why you had the foresight to pay for the cover that you now desperately need. Home ownership is one area where you cannot afford to neglect insurance. It is your security and the biggest investment you will ever make. If somebody is offering a fast house sale in Stapleford and you find it attractive, here are some things you should think about when you complete the purchase.

4122171512_3f4dc612d0_zAlan Cleaver

Life Insurance

If you were to die while there is still a mortgage on the property, would your family be able to cope? Life insurance can be expensive, but it is necessary. It may come as a condition of the loan or could even be a part of it. Endowment mortgages are life insurance policies. During the term, you pay only towards the premium and the interest on the loan. The lender invests the money you pay them for the policy and uses the profits to clear the debt when the loan is due. If you die during that period, they will repay the mortgage and the house will belong to your beneficiaries.

Buildings Insurance

Buildings insurance will be a condition of the loan. The lender has to protect their investment in case the building develops structural problems or suffers damage from an accident. The cover should be enough to rebuild the house if the worst happens. Unwary people often don’t realise that the house will cost less to reconstruct than its market value, and they insure it for too much. Research the subject well, it could save you cash.

Mortgage Protection Insurance

Mortgage protection insurance will help you to maintain the payments for a year or two if you lose your job or cannot work through accident or illness. It gives you breathing space while you make alternative arrangements. This product is one of the culprits of the mis-selling scandal, so read the small print.

Contents Insurance

What would you do if everything in your home became a victim of fire or flood? It makes sense to protect your belongings with content insurance. You pay only a small monthly premium for peace of mind. You probably don’t realise how much all of your stuff is worth until you perform a survey. Take photographs of every room too, just in case you need to show them to the insurer in the event of a disaster.

You can never have too much cover in the modern world. Anything can happen and leave you penniless if you don’t arrange protection. It can be an expensive business, but you will be glad you paid for it if life takes a wrong turn. Sometimes you need help to rebuild your life and home.

How You Can Pay off Your Mortgage FAST

Many people would love nothing more than to pay off their mortgage over the course of just a few years. However, for most, their debt is so substantial that they could never dream of paying it off early. Many people accept that they’ll have this debt for a minimum of the next 15 years. However, just about anybody can pay off their mortgage fast, you just need to be determined and focused. Read on if you’d like to learn more:

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Put a Little More

In some cases, all you need to do is pay a little bit more. Literally paying an extra £5 per month on your mortgage could cut months off your payments. A lot of people say their mortgage costs them £570 a month, for example, when in actual fact it’s £563. If you really do round it off to £570 when you pay it, it could make a lot of difference! Just be sure you won’t get charged too much for paying it off early. Many lenders charge for early payment, but you need to be sure you can afford this as well as the money you’re currently paying.

Pay Every 2 Weeks Instead

If you can put some money down on your mortgage every 2 weeks rather than every month, you’ll have made one full extra payment by the end of the year. This shouldn’t make that much difference to your finances, but it can knock 5 years or more off the time you take to pay the full amount! Not only will it knock years off the time you’re paying it back, it’ll also save you thousands in interest. This can make a huge difference, especially if you have a large property, like a 5 bedroom terraced house in Wolverhampton. Even if your home isn’t quite as large as that, paying the mortgage bi-weekly is a great little trick.

Pay Off Other Debts First

If you have other debts, like credit cards or catalogues, make sure you pay them off before you begin overpaying on your mortgage. This is because the interest rates are higher on those kinds of debts, so if you can pay them off first you’ll be saving a lot more money in the long-run. It’ll also be a huge weight off your shoulders, allowing you to focus on your mortgage and nothing else. It can truly change your life!

Make Sure You Have a Cash Cushion

A cash cushion is always advisable at any time, but especially so when you’re thinking of paying off your mortgage early.  You should make sure you have the bare minimum of 3 months of savings to live off should anything go wrong. You never know what might happen! The larger the cash cushion you have, the better position you’re in to start paying off this debt early.

Providing you’re able to free up some cash from somewhere else, you should have no problems paying your mortgage off quickly. Knowing that your house belongs to you and all you have to worry about is the bills will give you peace of mind. Good luck!