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Why Get Mortgage Advice in Hull?

The Benefits of Getting Mortgage Advice in Hull

Have you ever had one of those moments where you’re booking a flight, only to find that you booked it on the wrong date or airport? You’d expect these things to be fairly straightforward, but sometimes they end up taking too long, being far more complicated than necessary, and in some circumstances costing more than you’d initially planned for.

These sorts of scenarios can cause you unnecessary stress along the way. Something that was meant to be fun, has now had that fun taken out of it because of one tiny mistake. In these cases, you have the option of going the route of using a travel agent to help you with bookings, reducing the stress of the process.

These same stresses and worries appear in the world of mortgages and much like the travel agent, this is where a Mortgage Broker in Hull like ourselves will come in handy, and take the weight off your shoulders.

Invaluable Mortgage Advice in Hull 

You may have recently seen a fixed rate advertised, only to find that its rate doesn’t match your situation.  As with all advertising, it’s there to draw you in and make you want to see more. Generally speaking, these deals are aimed at customers with lots of equity and perfect credit ratings.

There will almost always be a more attractive deal out there, but that doesn’t mean that’s the most suitable deal for you personally or financially.

You must also bear in mind that when going with this specific lender, you only have access to their products and their advisors. Also, be wary of real estate agents and their price comparison sites. You can read more about the Sales Tactics of Estate Agents in our article.

Here at Hullmoneyman, a customers best interests are always at the heart of what we do. We are able to offer a wide range of products from different, sometimes more niche lenders, depending on what it is you’re looking to achieve. As well as this, our loyal team of Mortgage Advisors in Hull will never try and force anything on you that you don’t want, we just want to help you along your journey.

Book Your Free Mortgage Appointment Today

Book your free mortgage appointment to speak with one of our Mortgage Advisors in Hull today. They’ll explore your options and recommend you the most suitable mortgage deal to match your current situation.

Also, features such as a fixed rate of interest, offset options, or variable rates for flexibility, may be recommended for you. It’s our job to know these criteria inside and out, which is why we will work hard to make sure you’re on the most suitable path for your situation.

If we’ve done our job right, and we have a good track record of doing just that (see our Customer Reviews). You’ll walk away with a deal that allows you to borrow the amount you’d like, with reasonable interest rates, saving you time and money.

We have helped many First Time Buyers in Hull, to those wanting to know there Remortgage Options in Hull and even those who are looking for Self Employed Mortgage Advice in Hull too. If you would like to take advantage of our free initial mortgage consultation and speak with a Mortgage Advisor in Hull, please get in touch and we’ll see how we can help. 

Getting Prepared for a Mortgage in Hull

Preparing First Time Buyers in Hull

Once you’ve saved up enough for a housing deposit, the next step is to prepare for your mortgage application so you are in the best position before starting your mortgage process. First Time Buyer in Hull like yourself, will find this guide beneficial to help you understand the progress with your mortgage application.

This article features some useful Remortgage Advice in Hull tips and tricks too, to help fast-track your mortgage application.

Get Mortgage Ready in Hull

Up to Date Credit Report

During the preparation process, make sure to obtain an up-to-date credit report. Having an up-to-date credit report is essential for your mortgage application; ideally, you should try and get yours arranged before contacting a Mortgage Broker in Hull. Your Mortgage Advisor in Hull will review your report before passing it on to a suitable lender.

Agreement in Principle

Another thing that you should look to obtain is an agreement in principle. These are handy, especially when making an offer on a property!

If you want a fully credit-checked agreement in principle within 24 hours of your application, you should get in touch with us. As an experienced Mortgage Broker in Hull, we aim to try and turn around an agreement in principle within 24 hours after your free initial appointment.

Proof of ID

Make sure to provide a photo ID to provide you are who you say you are. An alternative can be a Driving license or passport. You can’t use a Driving License for ID though if you are also using it for proof of address. If you are a non-UK national working over here on a Visa, you’ll need to produce that too.

Proof of Address 

You will be required to prove where you live. This is usually in the form of a utility bill or bank statement within the last 3 months.

Last 3 months’ bank statements 

Your bank statements will reflect your income and regular expenditures. Lenders don’t like excessive gambling transactions on your account and they will also not be happy if you keep going over your overdraft limit or have direct debits bounced.

Regardless of whether lenders ask for your bank statements or not, they want to be confident that you take your finances seriously. The bank statements which you produce should consist of your salary going in and your bills going out.

Evidence of Deposit

A vital part of the mortgage application is evidencing your deposit for Anti-Money Laundering purposes. Make sure not to move finances around your accounts too much as this will make it a lot more difficult and may delay the process.

Lenders like to see that you are saving your money responsibly, but that doesn’t exempt you from having to account for any large recent deposits in your accounts. If you have been gifted a deposit, then there will need to be written confirmation stating it’s a non-refundable gift.

Proof of income

If you’re in employment then you’ll be asked for the last 3 months’ pay slips, though some lenders will also ask for your most recent P60. Lenders will take into account regular overtime, commission, shift allowance, and bonuses. Additionally, extra earnings may also be considered with some lenders such as part-time jobs or self-employment.

We have dealt with many applicants who are Self Employed in Hull. If you are a self-employed applicant then you may mean you will need to acquire your Accounts’ help to request your last two- or three-years’ proof of earnings from the Revenue. If you submit your own accounts then feel free to get in touch and we will be happy to advise you on how to go about downloading from the Government Gateway.

Budget planner 

By working out an estimate of your expected outgoings after you move house means you can gain an idea of how much disposable income will be available to you to pay your mortgage after such things as regular expenditures, council tax, and utility bills have been paid out from your account. To help you with this, we are happy to send you our version of a Budget Planner to get you started.

As seen, there are many steps you must take in order to prepare fully for your mortgage application deeming it not an easy feat but it doesn’t mean you should worry. If you approach the mortgage application with due timing and an organized matter along with a Mortgage Broker in Hull, you will be in safe hands. 

Moving House Mortgage Advice in Hull 

Capital Raising to Buy out an Ex-partner in Hull

We had done mortgages for Craig a few times in the past for him and his wife. So it was sad to receive a call to say he and his wife Emma had now separated. Craig wanted to transfer the house in Hull into his sole name. They had agreed to split the equity in their home between them 50:50.

The idea then was for Craig to arrange Remortgage Advice in Hull to buy out Emma. Pay off the current mortgage and raise a small additional amount to pay off a credit card debt.

Remortgage Advice in Mortgage Advice in Hull

Craig is an HGV driver, and he was concerned about whether he would get a mortgage in Hull or not. His credit history was excellent. However, he had changed employers a few times during the past 18 months, including a period of self-employment.

Back when Craig called, he was actually between jobs, but he offered a new role with one of the companies he had worked for in the past. I explained to Craig that while some Lenders need you to have been in your current job a certain length of time or require you to prove you have had 12 months’ continuous employment.

In any case, others can accept a job offer letter, coupled with a contract of employment signed by both employer and the new employee. When you remove someone from the deeds, this is called a transfer of equity, and there is more legal work to be done.

Specialist Mortgage Advice in Hull

Luckily, in this case, the split was reasonably amicable. The house got transferred into Craig’s name, and Emma received her share of the equity. Which she went on to put down as a deposit on an onward purchase. Suppose you can relate to this scenario and need some Specialist Mortgage Advice in Hull. Get in touch, and book your free mortgage appointment to see if one of our Mortgage Advisor in Hull can help.

Have You Been Declined For a Mortgage in Hull?

Mortgage Advice in Hull For Difficult Situations

Every mortgage lender is different, they each have their own way of deciding who gets accepted and who doesn’t. Some lenders criteria are hard to match and some aren’t, it depends on if you match any of your their criteria and how good your credit score is.

Often we see that mortgage applications are mostly declined due to a customer not meeting their lenders criteria. We believe that this really highlights the value of using a Mortgage Broker in Hull, like ourselves. We search thousands of deals and work hard to get you the most suitable lender for you and your personal circumstances.

How can I avoid disappointment?

Firstly, before you apply, you should check your credit file to see if it’s looking good, if not, why not read our How To Improve Your Credit Score. There are lots of different ways that you can do this, however, we always recommend that you speak to a Mortgage Advisor in Hull before anything.

Generally speaking too, only a small number of people are realistically eligible for every deal on the market. This means that most of the time, people are searching for the wrong deals. Just because you have seen a cheap deal, doesn’t mean that you will qualify for it.

As a Mortgage Broker in Hull, we advise that before you rush into anything, either do some research into the different types of mortgages available or get Mortgage Advice in Hull.

To speak with one of our expert Mortgage Advisors in Hull, book your free mortgage appointment online or give us a call.

What are other applicants doing?

Another common occurrence is customers using price comparison websites to find a mortgage. There is nothing wrong with this, although, you need to remember that the price comparison websites can’t match you to all the nuances of a lenders criteria.

Time can be wasted, as it can be weeks down the line of an application sometimes when a mortgage lender finally declines a case. Consequently, this can result in you losing your property and/or breaking down a chain. You may also find yourself getting declined because of picking the wrong mortgage, which in turn could end up leaving a negative mark on your credit score for a failed application.

Reduction in loan amount

Customers may be eligible for certain deals, but only at a reduced amount that allows them to match the criteria. This seems to happen regularly, at first the lender says that you can borrow a certain amount and then further down the line they change their mind and find a way to reduce the mortgage available.

As we mentioned before, lenders are all different and they each have their own way of doing things. There is sometimes a huge difference between lenders and it’s very unlikely that you are going to match all of them. You need to narrow down your options and find out which is the best mortgage option for you.

Your Mortgage Broker in Hull is Here to Help

Whether you’re a First Time Buyer or Moving Home in Hull, we think that you will find our Mortgage Advice service highly beneficial. Not only will we support you through the whole mortgage process, but we will also try to find you an amazing mortgage deal for your personal and financial circumstances.

We have dealt with thousands of specialist mortgage cases and have secured mortgages for customers who thought that they never had the chance. Approaching a Mortgage Broker in Hull, like Hullmoneyman, will allow you to get an up-to-date credit report too and we will work with you and match you to the most appropriate mortgage for you!

Do you need the help of a Specialist Mortgage Advisor in Hull? Not a problem! Get in touch today with your local Mortgage Broker in Hull for a free mortgage consultation. Please refer to our reviews for more information about our amazing Mortgage Advice Service we provide to new/existing customers in Hull.

Reasons Your Mortgage Application in Hull Might Been Declined

Specialist Mortgage Advice in Hull

As a Mortgage Broker in Hull, it’s not unusual for us to receive enquiries from First-Time Buyers in Hull like yourself who have recently got turned down for a mortgage from the bank. Going directly to a bank/building society for a mortgage should seem straightforward, but it can be more complicated than it looks.

You may have heard of the term ‘mortgage maze’, where every lender seems to be a dead-end, and you can’t quite find the one that will get you out the exit.

The good news is, this is where we step in, our job as a Mortgage Broker in Hull is to get you out of this maze. We’ve been in this maze before, and we know the challenges that come with trying to find the right lender.

Our team will help you find the right lender for you with a tailored product to match your financial circumstances. Here we will cover with you why you could be struggling to get accepted for a mortgage and how we may help.

Going directly to a lender

Failing a credit score for a mortgage

To get accepted by a lender, you will first have to pass their credit score criteria. Each lender will always have its own unique credit scoring method, and some will be more complicated and harder to pass than others. Some lenders have even built their niche audience, so they may only offer specialist deals targeted at applicants with lower credit.

Lenders with the lowest interest rates will likely have the most arduous lending criteria, and usually vice versa. A lender will offer a better product to someone with a high credit score and carry a trustworthy credit history behind them over an applicant with a low credit score with a CCJ(s) or Default(s).

If you go directly to a lender without doing your research, you may be far off their lending criteria, and you could end up being declined. This can harm your credit file when you apply again through another lender, and they will see that you were denied. This is why we always advise that you don’t keep using lots of different lenders, as the more you are rejected, the higher the negative impact you are putting on your credit file.

Your Mortgage Broker in Hull is here to help

Before submitting your mortgage application to a lender, we will first check that you match the lender’s criteria and are likely to pass their credit scoring. We aim to get it right the first time!

Our job is to find you a deal that we know you will love and match perfectly. This applies to everyone regardless of their situation. Bad credit or good credit, we will try our hardest to pair you with a great mortgage deal through a lender that will accept your mortgage application.

Economy’s effect on the mortgage market

We’ve seen applicants struggle to get accepted for a mortgage due to the economy. For example, during the credit crunch in 2008, it was tough to obtain a mortgage no matter your credit history. Lenders lost all of their confidence in the market. They show that your chances of struggling to get a mortgage are likely to increase if the economy is suffering.

If you are struggling to get a mortgage because of the economy and the mortgage market, you may have to hold back your mortgage application at the moment. Sometimes, it may be better to keep building up your deposit so that when the market eventually bounces back, you have even more funds to aid your mortgage deposit. Furthermore, this may even increase your chances of being accepted too.

During times of economic crisis, in the UK, we’ve seen deposit requirements go as high as 25% of the property’s value. On the contrary, if you were looking to Remortgage in Hull in the middle of this period, you will have access to better rates and products. 

Whether you’re remortgaging or carrying out a product transfer, you won’t need to provide a deposit as you are simply switching products and will still have the equity from your original deposit. You are likely to have more equity if you have been on a repayment mortgage.

Improving your credit score in Hull

If you are being declined for a mortgage due to your credit score, you need to start looking at ways to improve it. There are lots of methods you can do to try and improve your credit score. Here are some of the ones that we recommend:

???? Check whether you’re registered for the voter’s/electroral roll; if you aren’t, get registered! It’s friendly and easy to do and can boost your credit score.

???? Avoid unnecessary credit searches as they can show up on your credit file and sometimes reduce your score.

???? Don’t run too close to your maximum limits. Running into overdrafts and not paying off credit cards each month can reflect poorly on your credit score.

???? Validate that your address is up-to-date across all of your accounts. This includes credit cards and store cards.

???? Close unused credit accounts. This can also reduce your chances of falling victim to fraud.

???? Remove financial links to others. If you unknowingly have a financial connection with someone else’s name, it could be doing more harm than good.

There are more ways than you realise. So if you have a low credit score and need credit score Mortgage Advice in Hull, make sure you get in touch with our responsive team, and we will see how we can help.

Get help from a Mortgage Broker in Hull

If you are struggling to get accepted for a mortgage in Hull, it may be time to get in touch with a Mortgage Broker in Hull like us for help.

Being an expert Mortgage Broker in Hull has allowed us to gain valuable experience and deep insights into what lenders are looking for in mortgage applicants. We know all about lender’s credit scoring systems and their lending criteria, allowing us to search for a deal that we know will suit you and you’re likely to match with.

Once you get in touch with us, we will pass you onto a Mortgage Advisor in Hull, who’ll undergo your free mortgage consultation. At this stage, your advisor will learn a little more about your personal and financial mortgage situation so that they can begin searching through mortgage deals for you.

To learn more about our service, get in touch with us today. Hullmoneyman is your new home for Specialist Mortgage Advice in Hull; we have been helping struggling applicants over the last two decades. You could be next!

Mortgage Advice in Hull

Divorce & Separation FAQ’s

Going through a divorce or separation with your partner when you have a joint mortgage together can be difficult. In this guide, we have compiled a list of frequently asked questions that have been answered on this subject. 

Do I Need to Keep Paying my Half of The Mortgage?  

Regardless of if you are going through a divorce, you need to keep paying the mortgage, even if you are living elsewhere in the meantime. 

You and your ex-partner both agreed to take out a joint mortgage and are both held equally liable for the debt until the mortgage gets paid off, regardless of whether it’s just one person living there at the moment. 

Failing not to pay the mortgage on time can harm your credit history as well as your ex-partners, and your home may be repossessed if you do not keep up with repayments on your mortgage or any other debt secured on it.   

When Should I Inform my Lender?  

As soon as you know you will be separating, you need to inform your mortgage lender sooner rather than later, especially if you find it challenging to meet your mortgage payments. 

What are my options? 

1. Sell the Property. 

If you both decide it is best to move out of the property, sell up, and pay off the mortgage. 

Any equity left after the mortgage has been paid off will be split between the two of you. Strictly who gets what from the leftover funds can be open to dispute.  

If you move out and are looking to purchase a new property, our trusted team of mortgage advisors in Hull are available 7 days a week. They are ready to recommend you with the best deal, offering open and honest mortgage advice in Hull. 

2. Continue to Make Those Payments 

If the divorce is on good terms, some decide to stay and continue paying the existing mortgage, and this method can be beneficial, especially if your mortgage is fixed for a couple of years. 

3. Stay in the Property 

If you both conclude that you or your ex-partner will live in the property, the current resident will have to remortgage in their sole name. 

If you decide to become the sole owner of the property, and there is an existing mortgage in joint names, you will need to remortgage. The new mortgage will be taken out in your sole name, therefore your affordability will be reassessed.  

Can I get a Second Mortgage? 

Yes, you can have more than one mortgage. Lenders each have different credit scoring systems and take various factors when applying for a second mortgage. The main one is your current financial commitments. Before applying, you need to make sure you can afford a second mortgage because if you get declined, it could negatively impact your credit file. 

You will be happy to know that here at Hullmoneyman. We can perform a search for you that won’t damage your credit file. Once we have the necessary information gathered, we can then confirm the maximum amount you will borrow.  

This can help you get a good idea of your budget and how much your monthly mortgage payments will be on top of your current financial commitments. 

It can be challenging to move on from your current financial commitments, and this is why having an expert Mortgage Advisor in Hull by your side could prove highly beneficial.  

Moving home can be a stressful experience, and if you add that to a complex situation like a divorce or a separation, it can sometimes all get a bit too much. Speak to a Mortgage Advisor in Hull today, and we will see how we can help you. 

What if I am in Negative Equity? 

If you get divorced while your joint home is in negative equity, it can be challenging to sell the house and pay off the mortgage in full. 

You might have to split the outstanding debt between you or agree with your mortgage provider. 

Adverse Credit | Mortgage Advice in Hull

Getting a head start is getting prepared

It can be more challenging to get a mortgage if you have had credit problems in the past. Still, Gareth and Maria’s situation got trickier in that Gareth had not long since he quit his job to pursue his hobby as a Graphic Illustrator as a new profession. In this case study, we discuss the importance of taking Mortgage Advice in Hull as soon as possible to give your application the best possible success chance.

Multiple finance issues? Different reasons for Lenders to avoid.

Gareth disliked his job, but the salary was excellent, and he felt he couldn’t afford to quit. He started moonlighting on the weekend as a Graphic Illustrator, and he began to see this as a viable career in itself. He eventually dived looking at Self Employment mortgage Advice in Hull, to improve his work/life balance and finally enjoy his job.

With the additional hours he could now devote to his former “sideline,” Gareth’s business quickly showed a profit. In fact, after the very first year of trading, it was profitable enough for him to consider buying a home for himself, Maria, and their adopted child and get out of renting for good.

Sadly, finances have never been Gareth’s strong point, and his negligence on such matters when he was younger led to a couple of defaults on his credit record. His credit score had improved in recent years, but the old ruins were still showing on his credit report. Therefore, there were two issues when the customers approached our Mortgage Broker in Hull for Mortgage Advice. These appeared to consist of finding them a Lender who would take a more forgiving view on his historic poor credit while also lending to him based on the year’s trading figures.

The help of Specialist Lenders and the ‘Bank Of Mum and Dad’

Gareth knew he would not be an easy mortgage and took the sensible step of engaging with us early on, well before they started viewing houses. He felt that getting a mortgage might even be impossible. Looking at Gareth’s Experian report, it is evident that a specialist lender would be required. Luckily his photography business didn’t need much cash to get going, and he had been quickly able to raise a 15% deposit with just a little help from the “Bank of Mum and Dad.” giving me the reason for some optimism.

Don’t be put off by high rates of interest.

Some of the less well-known “specialist” Lenders have carved out a real niche for themselves when lending to customers who have not long been Self-Employed In Hull. There is some additional risk for them in this area when so many businesses go bust in their infancy, thus to mitigate this, they insist customers put down a fat deposit. 15% was just enough, and we obtained an Agreement in Principle for Gareth and Maria, who went on to buy a family home.

Because these specialist lenders are working in carefully selected niches, they tend to charge higher interest rates than you might see advertised with High Street Banks. That said, these higher rates are by no means extortionate, and in many cases, it’s still cheaper than renting.

You’re not stuck with the Mortgage options you choose

Just because your first mortgage ends up being with a specialist Lender, it doesn’t mean that you are frozen out of more competitive mortgage rates forever. While it’s likely that you’ll have to sign in for at least two years, if you can prove a good payment history, then a remortgage to a more well-known Lender offering a better deal after a while should be achievable.

Specialist Lenders don’t mind you seeking another deal elsewhere, and they expect that’s what will happen in a large number of cases. They see themselves as “stepping stones” Lenders, and when you come to leave them in the future, they take the funds you have repaid and look to lend it back out to new customers.

In summary, specialist Lenders play an instrumental role in the mortgage market. They will take a different view to mainstream Banks but don’t get fooled into thinking they lend to just anyone, and you have to fit precisely within their published lending guidelines.

Income Protection Insurance Advice in Hull

How does Income Protection work?

Income Protection Insurance got designed to pay out a monthly benefit if you are not able to work due to sickness or accident. The applicant can decide along with the help of their mortgage Advisor in Hull how much cover to take out.

Additionally, how long they are prepared to wait before they are entitled to put a claim in. Income Protection insurance can be costly compared to taking out Life Insurance in Hull. As you are much more likely to be unable to work due to illness than pass away.

The monthly benefit will continue to get paid out until you return to work unless you have selected the “Budget” version of the policy. It usually only pays out for 24 months but is considerably cheaper.

The considerable advantage of Income Protection Insurance is that unlike Critical Illness Cover it pays out for whatever is preventing you from working. In Contrast to Critical Illness which is just a list of specified illnesses.

This sort of policy is prevalent amongst the self-employed and also employed applicants who do not benefit from Employer sick pay schemes.

Get in Touch with a Mortgage Advisor in Hull Today

It’s essential to us that all of our customers get given an equal opportunity to take insurance through ourselves. We offer all of our customers a free, no-obligation protection review.

That’s where we’ll discuss with you why having Mortgage Protection Insurance is essential to have in Hull and have a look at any existing policies you have in place and assess their suitability.

We’ll then recommend which products, including critical illness and Income Protection that meet your needs.  If required, we’ll then tailor the plan to match your available monthly budget. 

Why Mortgage Protection Insurance is Essential to Have in Hull

Mortgage Advice in Hull | Importance of Having Insurance

Mortgage Protection Insurance is a term that is used to encompass different kinds of cover. This cover is designed to limit financial stress on you and your loved ones from any unforeseen circumstances that may occur.

Here Malcolm has compiled a video to talk to you about the significance of having the correct insurance in place for your situation. Due to the past events of the coronavirus pandemic, the importance of health and getting insurance is more prominent than ever.

What Insurance is Right for you? | MoneymanTV

There are variations of insurance to choose from when it comes to protecting you and your family. Here at Hullmoneyman, we can compare lots of providers to find you the best policy for your circumstances. The following insurance policies that we can offer to you are:

  • Life Insurance
  • Critical Illness Insurance
  • Income Protection Insurance
  • Menu Plan
  • Family Income Benefit

For more clarification, get in touch and speak with one of our experienced Mortgage and Protection Advisors in Hull today, our team will always be at the other end of the phone or email when you need to talk.

Life Insurance Cover

Life insurance is an insurance policy that minimises the financial impact on your loved ones in the event you or another joint policy holder pass away. Our Mortgage Advisors in Hull can run through all the different types of Life cover accessible to you and advise the most suitable plan for you.

Critical Illness Insurance

Critical illness cover is an insurance policy that covers serious illnesses detailed within a policy. Typically, these will include Stroke, heart attack, certain types and stages of cancer, and more.

Some illnesses will not be covered for example certain types of cancers. And you are unlikely to be covered for pre-existing health issues you knew you had prior to taking out the insurance. As mentioned, the specific illnesses covered and not covered will be detailed in your policy.

The most important thing is that the benefit gets paid if you fall victim to one of several specified critical illnesses and pays out whatever the long-term prognosis of that illness. The type of conditions covered vary from company to company; that’s why this type of insurance cannot be solely price-driven, and seeking specialist Mortgage Advice in Hull is advised.

In practice many businesses will offer Life and Critical Illness Critical cover as a combined policy and would usually payout on the “first event,” namely whatever happens first – either death or a severe illness – the payout is made. They could also get written on a single or joint life basis.

Income Protection

Whereas Life and Critical Illness cover pay out a lump sum, Income Protection pays out a monthly sum intended to replace your wages in the event of you being unfit to work. In contrast to the Critical Illness cover, there are no limitations on the illnesses or injuries covered, the only factor being whether they make you unfit to work.

There are, however, the restrictions on how much you can cover and how quickly benefits would start to get paid. Such As Life and Critical Illness cover, these policies are underwritten based on your health and lifestyle at the time you apply. All income protection policies get written on a single life basis.

Menu Plan

You can combine Life Insurance, Critical Insurance and Income Protection, into what’s called a menu plan. The providers do give you a discount each time you add a benefit in, and that can be a cost-effective way of taking cover.

With a Menu Plan, you can mix and match a range of cover and benefits to tailor a plan that suits your needs and budgets. We strongly advise all our customers should the worst happen, least you have covered yourself and your family, to find out more speak to one of our mortgage Advisors in Hull today.

Family Income Benefit

The least common of the mortgage protection policies but can often be useful – especially for those with young households. These plans can get taken to Life and/or Critical Illness Cover, and get underwritten on the application in the same way.

However, in contrast to the traditional forms of policy, rather than pay out a lump sum, the cover would pay an annual or monthly income for the remainder of the term of the plan. Consequently, it can replace the payment of the primary worker for several years, dependent upon a particular client’s circumstances and, because of this would usually be written on a level or basis, or an index-linked basis designed to keep up with inflation.

Get in Touch with a Mortgage Advisor in Hull Today

Many people have one or more of the different types of policy, and it would be wrong to think of Mortgage Protection Insurance as just an “either/or” choice. However, affordability plays a massive part, whilst it would be fantastic to cover yourself for every potential opportunity.

Our Mortgage Advisors in Hull are here to discuss with you and tailor the type of cover to be the most suitable combination to your family’s priority and budget. To find out more, give us a call or fill out our enquiry form to speak with one of our Dedicated Protection Specialists Advisors in Hull today.

Looking Deeper Into Incomes

Looking deeper into income: Lender’s perceptions.

Some employees’ incomes get made up of various elements. There is virtually always a basic income on a payslip. However, there can also be other items such as overtime, bonuses, and shift allowances.

Not necessarily all of these additional strands are guaranteed so as we learn in this case study, and lenders look at this in various ways.

Income elements can branch into complex issues.

Frankie, a First Time Buyer in Hull, was working for the NHS, and his payslips were incredibly complex. In addition to his basic income, he got paid different hourly rates for the various shifts he was working.

There was overtime too at the time and a half and holiday pay; in fact, one payslip had six different elements of payment on it!

His bank would not lend him and his family enough to buy the home they had made an offer on, and he approached a Mortgage Broker in Hull for a second opinion.

Lenders seek justification as much as the client.

An explanation as to why the lenders can have an issue with multiple elements of pay on payslips. Is that these extra strands are rarely guaranteed.

Therefore, in the event of a repossession taking place. They might struggle to justify to a Regulator why they granted the mortgage in the first place based on income. Which they knew was variable.

As a result, lenders often take an arbitrary view; for example, they might take 60% of overtime if it’s on every payslip. Others take bonus into account if it’s payable monthly or paid annually, things can get very complicated!

A different approach can mean a different perception

Our group of Mortgage Advisors in Hull managed to help Frankie; in fact, we discovered two lenders who would lend him the amount he and his family needed.

Lender one had a policy of taking 100% of the shift allowance and overtime into account. As long as it might get evidenced on every payslip.

They applied an average of the last six months’ payslips to give them confidence. That the income got smoothed out and sustainable.

Lender two would also lend more than enough but evaluated the income differently. Instead of considering all the various elements individually.

They asked that we provide Frankie’s last two years’ P60’s and took an average of those.

This technique also works well for employed applicants. Who works in sales roles with low basic salary but high commission and bonus.

A sustainable customer is a happy customer.

Frankie was delighted he contacted us for our Mortgage Advice in Hull. He knew the mortgage was easily affordable, and he knew that his income was sustainable. It was just a case of finding a lender who took a different approach.

Whatever your situation, whether you are Moving Home in Hull, buying as a First Time Buyer, or looking to Remortgage. If your income gets made up from several different sources.

We would recommend you make contact with us well in advance of making an offer. So you can be sure of your maximum borrowing capacity upfront to avoid potential disappointment.

Hullmoneyman.com & Hullmoneyman are trading styles of UK Moneyman Limited, which is authorised and regulated by the Financial Conduct Authority.
UK Moneyman Limited is Registered in England, No. 6789312 | Registered Address: 10 Consort Court, Hull, HU9 1PU.

Authorised and Regulated by the Financial Conduct Authority.
We are entered on the Financial Services Register No. 627742 at www.register.fca.org.uk

The information contained within the website is subject to the UK regulatory regime and is therefore primarily targeted at customers in the UK.
Should you have cause to complain and you are not satisfied with our response to your complaint, you may be able to refer it
to the Financial Ombudsman Service, which can be contacted as follows

The Financial Ombudsman Service, Exchange Tower, London, E14 9SR
www.financial-ombudsman.org.uk

© 2022 Hullmoneyman

Hullmoneyman, 410 Wincolmlee, Hull, HU2 0QL.

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