Insurance providers are most reluctant to impose rate rises on their current customers so it makes sense that if you are contemplating mortgage protection insurance or income protection insurance that you should get in quick. If the result of a hung parliament is extra unemployment, then insurance companies would have to pay increasing numbers of [...]
We hear a lot about mortgage insurance related cover. Articles abound about providing protection for homes so people can keep up their mortgages. However we hear little about renters and as any renter will tell you, they wish to protect the roof over their heads as much as mortgage holders. Some renters are paying the mortgage holder half the mortgage amount but they don’t enjoy the same protection as the mortgage holder. Renters cannot obtain mortgage payment protection insurance because they are not mentioned on the mortgage deeds.
The alternative to mortgage insurance is income payment protection insurance. With income protection it doesn’t matter that the renter doesn’t have a mortgage. The insurance is not tied to any mortgage or any loan, it is simply based on the income of the worker. Renters in work therefore have the option to take income protection and assuming they qualify, renters can cover hundreds of pounds a month paid personally into their bank accounts to use as they see fit. Should unemployment hit them, renters can potentially afford to keep up rental payments and keep their rented home over their heads.
It seems a forgone conclusion that, whichever party win the election, the mortgage rate will go up. If the mortgage rates go up and the cost of borrowing goes up, the cost of office space and the cost of employing people will generally rise as well. We all hope the economy recovers but in order [...]
The floods of recent years have left many homeowners with a nightmare not of their making. Insurance companies are now increasingly failing to offer cover to homes that have experienced flooding or are likely to experience flooding. This makes it a costly exercise if they remain but equally they are unable to sell. [...]
There is a lot of confusion between the insurance policies that are available and, with every UK household now looking at the state of their finances, now seems a good time to look at your insurance policies to find out if you are over insured or worse under insured.
There are two kinds of insurance cover. [...]
According to the Association of British Insurers, the UK insurance industry paid out £57m per day in 2008; between 1998 and 2008 general insurance claims increased by 41% from £15.6bn to £22bn.
These figures give the lie to the accepted version that insurance companies “never pay out on a claim” but the analysis of complaints suggest this not to be true. The FOS reported that PPI complaints tripled in 2009 but the vast majority related to the sale of the insurance policy rather than the claim.
So what is the truth? When purchasing a policy most people look for the bottom line; which one is the cheapest almost irrespective of which insurance policy is the best. This means that almost from the start the consumer has a policy that was not bought with their individual needs in mind rather focusing on their financial needs.
When the policy finally arrives some consumers will barely give it a second glance, consigning it to the document draw never to see the light of day again until the need to claim arises, by which time the lack of attention to detail at the buying stage could become an issue.
Buying an insurance policy can be difficult; it does take time and some considerable patience but if you consider the importance of it then this is time well spent. If when you purchase an insurance policy such as mortgage protection, you should always carefully check the details and make sure that it is suitable for your needs and that you understand the eligibility criteria both for applying and claiming, then you will be one of the lucky ones who will receive the monthly claim cheques when you lose your income or have occasion to claim.
The insurance industry, in spite of its poor press, is there for a reason and when the criteria is met they will pay out; but they cannot be wholly responsible if a consumer decides that the most important decision they may make can be reduced down to a quick glance and a cursory nod in the direction of the small print.
The British Bankers Association reported that the number of approved mortgages fell to an eight month low last month. Almost simultaneously it was announced that houses prices had dropped for the first time in 10 months. This does not auger well for those still looking to obtain a mortgage to buy a property.
Banks are there to make a profit. In a falling market it is just a matter of mathematics as to whether a mortgage should be given or not. In the old days a bank or building society would lend up to 100% of the value of the property; in a rising market this was acceptable because the bank, in the event the buyer could not repay their mortgage, would make a profit on the deal when they repossessed it. However in a falling market the opposite happens and the bank stands to make a loss if the buyer could no longer repay their mortgage and the house was repossessed.
After a short period of upward movement, house prices now appear to be taking a dip and therefore the banks are nervous of this falling market. It seems that mortgages are still a limited commodity and may be so for some time to come.
Mortgages, and in particular good mortgage deals, are now becoming increasingly difficult to obtain. Only those with very high deposits can take advantage of the limited packages being offered so it may be some time yet before the financial markets are confident that the house prices have found their level.
Mortgage protection insurance protects against loss of earnings or sickness so it is always worth considering a good mortgage protection insurance as offered by Antinsurance.