A gifted deposit is money given to a homebuyer to buy a property and can equate to some, or all of their deposit needed, with an understanding that you don’t need to repay the person who gave it to you.
Gifted Deposits are beneficial when you can afford your monthly repayments but struggle to afford the initial deposit; this is common for lower-income people. Having more gifted deposit available may also enable you to receive conceivably better rates from a mortgage lender.
It’s usually birth or adopted parents and carers who can gift you the deposit. You may have come across this referred to as the “Bank of Mum & Dad”. Additionally, other family members could also get acknowledged. It depends on the individual lenders, so your dedicated mortgage advisor in Essex needs to be accurate.
We often find that customers don’t know that their parents can support them out with their mortgage or don’t have the confidence to ask for help. Some parents will be more than happy to help their children, it’s a massive chapter in there lives, and their gifted deposit will allow them to live a sheltered life in a property they can call home.
Generally speaking, buying a house is a long term commitment. However taking out a mortgage often works out better than renting, you could potentially be paying less per month. Although parents can sometimes gift it earlier on in life if they already have enough saved or have released a certain amount of equity from their own home, the deposit usually is from inheritance.
Most lenders will not accept a loan to pay off your deposit. It comes down to the lender being uncertain that you’d have enough disposable income to pay back both the loan and the mortgage concurrently.
There is no maximum limit on the amount that someone can give you as a gift, with more deposit often giving you better rates, at least one lender that insists you put in at least 5% deposit from your income.
The people who reap the most benefits from this tend to be First Time Buyers and Home Movers in Essex. It can also be beneficial when used in conjunction with the Help to Buy Scheme, as the required 5% deposit, depending on the lender, can be paid via gifted deposit.
For the most part, all lenders will require a gifted deposit form. Depending on the lender, you may ask to provide additional proof and ID (things like donor ID or bank statements).
Mortgage Protection Insurance is an umbrella term used to encompass various different types of insurance. The purpose of any type of mortgage protection cover is to limit financial stress on you and your loved ones from any unforeseen circumstances that may occur later down the line.
Here Malcolm has put together a video to talk to you about the significance of having the correct insurance in place for your personal circumstances. The key message here is due to the coronavirus pandemic; the importance of health and getting insurance is now higher than it has ever been.
There are a lot of different insurance options to choose from when it comes to protecting you and your family. Here at Essexmoneyman, we are able to compare lots of providers in order to find you the best policy for your own individual circumstances. The following insurance policies that we are able to offer you are:
For some clarity on each of these, Get in Touch and speak with one of our experienced & trusted Mortgage and Protection Advisors in Essex today. Our dedicated team will always be at the other end of the phone or email to help with the insurance process.
Life insurance is an insurance policy that minimises your loved ones’ financial impact in the event you or another joint policyholder pass away. Our Mortgage Advisors in Essex can run through all the different life covers accessible to you and advise the most suitable plan for you.
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.
Various illnesses will not get covered, for example, certain types of cancers. And you are unlikely to be covered for pre-existing health issues you knew you had before 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 Essex 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.
Whereas Life and Critical Illness cover pay out a lump sum, Income Protection pays out a monthly sum intended to replace your wages if you are 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 when you apply. All income protection policies get written on a single life basis.
You can combine Life Insurance, Critical Insurance and Income Protection, into what’s called a menu plan. The providers give you a discount each time you add a benefit in, which 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 Essex today.
The least common of the mortgage protection policies can often be useful, especially for 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 paying out a lump sum, the cover would pay an annual or monthly income for the remainder of the plan’s term. Consequently, it can replace the primary worker’s payment for several years, dependent upon a particular client’s circumstances. Such an approach would usually get written on a level or basis, or an index-linked basis designed to keep up with inflation.
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 Essex 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 Essex today.