How to protect your mortgage payments when you’re unable to work
Affordable mortgage cover that can protect your monthly mortgage payment should you be unable to work due to illness or injury.
Protection provider LV have launched a brand-new product specifically to help protect your mortgage or rent payment every month. If you were unable to work due to illness or injury, this cover would protect up to 100% of your monthly mortgage payment.
There is no financial underwriting for applying for this cover. You have to be working (although there is no minimum working hours or earnings required), and you just need to show us evidence of what your monthly mortgage payments are.
So if you are concerned about not being able to pay your mortgage in the event of an accident, sickness or a condition, then as long as you are working any job and any amount of hours – we can ensure you will have a regular income that pays that mortgage for at least a year or until you have recovered and can get back to work when you are fit and well.
How much could this cost?
For example, if you paid £723 on your mortgage payments every month – an example to protect this amount could be:
- £9.27 per month to receive tax-free monthly income of £723 for 12 months
- £10.71 per month to receive tax-free monthly income of £723 for 24 months
Based on a 35-year-old, female, non-smoker.
What you need to know
- Cover is based on your monthly mortgage or rental payment. The minimum amount of cover available is £100 and the maximum is £2,000 per month.
- No financial underwriting is required upon application. You just need to show us your documentary evidence at application to show the regular mortgage or rental payments that you’re legally responsible for.
- The LV Mortgage & Rent Guarantee means LV guarantee will pay the full chosen amount of cover throughout the claim.
- Includes a range of options so you have the flexibility to increase or decrease the amount of cover if your monthly mortgage payments change.
- “Pay my mortgage” facility offered to those with a mortgage so you can choose to have all or some of your claim payments paid directly to your mortgage lender.
- You also will have access to LV= Doctor Services and LV Member Care Line.
This information is a summary only. You will receive a full policy document upon application. This policy will set out the terms, conditions and limitations of cover provided under the plan
For more information about which protection policy suits you and your family’s needs, call 01224 316200 or request a callback to speak with one of our expert protection specialists.
Lifetime Finance Group Limited trading as Aberdeen Mortgage Company is an Appointed Representative of PRIMIS Mortgage Network, a trading name of First Complete Limited which is authorised and regulated by the Financial Conduct Authority for mortgages, protection insurance and general insurance products.
Protecting against the cost of injury: Introducing Legal & General Fracture Cover
Anyone can have a sudden injury – whether a slip on the stairs, car crash, or fall outdoors. This could require time off work, extra childcare, expensive travel costs, and even equipment to support your mobility. Not everyone would receive sick pay from an employer. And even if you did – the extra expenses may not be affordable without the cash sum that protection can provide. Fracture cover is here to help.
Our expert protection specialists can help discuss the right protection solutions for your, your family and your home. Speak to our expert protection advisers today, call 01224 316200 or fill in our online enquiry form.
This information is a summary only. You will receive a full policy document upon application. This policy will set out the terms, conditions and limitations of cover provided under the plan.
How does Fracture Cover work?
- Fracture Cover can be added to life insurance, critical illness, income protection and rental protection policies, for an additional monthly premium of £5.90.
- It covers 20 types of fractures, 9 types of joint dislocation, Achilles tendon ruptures and knee ligament tears
- Multiple claims are permitted per year – including accidents where multiple injuries are sustained at one time or in a 12-month period.
- Depending on the injury severity, claim pay outs are £2,000, £4,000, £6,000 or maximum of £7,500
What’s covered?
See below to see how Legal & General’s Fracture Cover could help ease the painWhat fractures are covered?
What dislocations, ligament tears and tendon ruptures are covered?
Our expert protection specialists can help discuss the right protection solutions for your, your family and your home. Speak to our expert protection advisers today, call 01224 316200 or fill in our online enquiry form.
This information is a summary only. You will receive a full policy document upon application. This policy will set out the terms, conditions and limitations of cover provided under the plan.4 Tips to Secure Your First Mortgage in Aberdeen
If you’re a first-time buyer in Aberdeen looking to buy a home this year, read on for our four top tips to secure your first mortgage.
1. Save deposit
You won’t get anywhere on the property ladder with out money for a deposit.
Deposit is key to getting yourself a mortgage. At the moment, you could get a mortgage in Aberdeen with at least 5% of the property’s value. A larger deposit will make you less risky for mortgage lenders and as a result they’ll generally offer you more competitive deals with lower interest rates.
Read our 9 First Time Buyer Deposit Saving Tips.
2. Check credit rating
Having a nice shiny credit rating is a plus.
Even if you have a good income and large deposit, your mortgage application could still be refused if your credit rating is poor. Missing credit card payments or not being on the electoral roll at your current address can make all the difference.
You can check out what your credit rating is by using sites such as Experian, Noddle and ClearScore.
3. Documents Ready
Having the correct documents ready could speed up your first mortgage process. These documents could include:
- Suitable ID
- Last 3 months payslips
- Last 3 months bank statements
4. Speak to someone
By using a mortgage broker in Aberdeen, not only will you receive local knowledge, but a broker will compare hundreds of mortgage lenders and thousands of mortgage deals to see what mortgage suits your circumstances the best.
Aberdeen Mortgage Company are a whole-of-market mortgage broker. We look at mortgage rates from lenders such as Halifax, Nationwide, Barclays and many more to see who has the best deal for you.
Next steps
If you’re looking for some advice of how to get started on the property ladder. Aberdeen Mortgage Company advisers can help explain to you the whole process. We stay with you and hold your hand all the way until you have your key in the door.
View our infographic – 10-step plan to moving into your first home in Aberdeen.
Speak to our expert Aberdeen Mortgage Company advisers to learn how we could help with your first mortgage. You can give us a call on 01224 316200, email us or fill in our online enquiry form.
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
Your home may be repossessed if you do not keep up repayments on your mortgage.
This firm charges a fee of up to £595 for mortgage advice. The fee will depend on your circumstances and will be discussed and agreed with you at the earliest opportunity.
Lifetime Finance Group Limited trading as Aberdeen Mortgage Company is an appointed representative of PRIMIS Mortgage Network, a trading name of First Complete Limited which is authorised and regulated by the Financial Conduct Authority.
Group Income Protection for Businesses – How you can reward your employees
Group Income Protection gives access to a range of professionally delivered workplace wellbeing solutions, added value services, provides rehabilitation and financial support. It adds value to your business as an important addition to a modern benefits package.
- Help with managing the cost of long-term sickness absence
- Long-term employee absences can have a huge impact on businesses.
- Group Income Protection rehabilitation services aim to reduce lengthy absences by providing early intervention and pro-actively managing employee health issues.
A policy like this can therefore:
- providing financial support to your employees
- helping employees back to fitness
- re-engaging employees with your business
Why your employees need financial support
Long-term sickness can affect daily life in a big way. And on top of dealing with the emotional and physical challenges, your employees may also have to deal with financial issues, which could spiral out of control. State benefits may be available when things go wrong, but these might not be as favourable or as comprehensive as we sometimes imagine.
- Flexible policy design – policies offer a range of benefit levels and payment terms, designed to meet the needs and budgets of individual businesses.
- Flexibility to choose which employees to cover you can select the level of cover and to whom it can apply, creating different categories of membership to suit your budget requirements.
- Flexibility over how much cover to offer you can choose the income benefits as a percentage of the member’s gross earnings. You select the benefit level depending upon your budget, as a percentage of the member’s earnings.
- Some policies offer flexible underwriting which means that medical information is not needed if cover is below a certain limit.
What value does Group Income Protection offer your business?
Group Income Protection cover offers you the opportunity to stand out from your competitors. Here are more ways it gives you value for your money:
- Retention and hiring – Offering Group Income Protection cover as part of an employee’s benefit package helps you show your commitment to your workforce. It can also help make you an attractive employer to potential recruits.
- Value for money – Group Income Protection usually costs less than an employee would pay when choosing to buy it privately.
- Tax – Benefit payments are subject to tax. Premiums will normally qualify as an allowable business expense and therefore qualify for corporation tax relief. All references to taxation are based on our understanding of current law and tax practices, which could change in the future.
- Flexibility – You can combine Group Income Protection with our other policies, such as Group Critical Illness, and Group Life or Group Spouse/Partner Life cover – building an employee benefits package that really stands out.
Speak to our expert advisers about our group protection policies such as Group Life, Group Critical Illness Cover and Group Spouse/Partner cover. Call 01224 316200 or fill in our online enquiry form.
Please note for these insurance products, terms and conditions apply. This information is a summary only. You will receive a full policy document upon application. This policy will set out the terms, conditions and limitations of cover provided under the plan.
Lifetime Finance Group Limited trading as Aberdeen Mortgage Company is an Appointed Representative of PRIMIS Mortgage Network, a trading name of First Complete Ltd which is authorised and regulated by the Financial Conduct Authority for mortgages, protection insurance and general insurance products.
What’s the difference between Death In Service and Life Insurance?
Life insurance pays out a lump sum if you die, helping your dependents cope financially. Death in service is similar.
Yet some people may be unsure if they have death in service, while others may not know if it would be enough for their family to live on. Meanwhile, those who have death in service may not realise they could benefit from taking out life insurance too.
What does death in service mean?
Death in service can be offered by companies as part of an employee’s benefits package. However, companies aren’t legally required to offer death in service benefit, so not all employers will give you cover. It’s paid out as a tax-free lump sum if you’re employed by said company at the time of your death.
Death in service cover doesn’t require you to die while at work or in a work-related accident – you just need to be on the payroll.
Death in service does have similarities to life insurance, but there are many differences. Even if you have death in service, you may want to boost your cover with life insurance.
What are the differences between life insurance and death in service pay-outs?
Typically, death in service benefit, if you have it, is two to four times your annual salary*.
You might think the benefit is a substantial sum of money, but you want to be sure the financial safety net for your family is as wide as it can be. Plus, if you were to die, the costs involved soon add up. The SunLife Cost of Dying Report 2021 states the average cost of a basic funeral is higher than ever before. At £4,184, it’s up 1.7% since 2019 – and up 128% since 2004.**
Meanwhile, the payout of a life insurance policy depends on the cover you’ve chosen to take out – meaning you have the freedom to decide how much your beneficiaries get, not your employer.
Depending on how much your beneficiaries may need if you were no longer around, you may wish to supplement your death in service benefit with a life insurance policy to cover not only funeral costs, but the remainder of your mortgage.
It’s also worth remembering that if you leave the company where death in service is offered, you’ll no longer be covered.
Who receives the death in service or life insurance payout?
Death in service
Usually, death in service schemes are set up under a discretionary trust, meaning trustees – i.e. your company – will have the final say as to who receives the money, though you can nominate a beneficiary. It’s a good idea to write an expression of wishes or a nomination of benefits letter letting your employer know who you’d like to receive the money if you pass away.
It’s worth bearing in mind that you’re unable to assign your death in service benefit to cover your mortgage, but your beneficiaries can decide to use the money towards repaying a mortgage.
Life insurance
With life insurance you have more options on who receives the payout. For example, you could place it in trust and choose your own beneficiaries, you could assign it to your mortgage, or you could simply leave it to form part of your estate.
Looking for advice?
Speak to our expert protection specialists today about life insurance. Whether you’re looking to set up cover or review your current cover, we can help. Call 01224 316200 or fill in our online enquiry form.
Sources:
* www.moneysupermarket.com/life-insurance/death-in-service/
** https://www.sunlife.co.uk/funeral-costs/
Lifetime Finance Group Limited trading as Aberdeen Mortgage Company is an Appointed Representative of PRIMIS Mortgage Network, a trading name of First Complete Limited which is authorised and regulated by the Financial Conduct Authority for mortgages, protection insurance and general insurance products.
COVID-19 Life Insurance Myths – Dispelled
While no amount of money can ever replace a life, insurers have and continue to do everything they possibly can to help families cope financially through these distressing and worrying times.
There are many false rumours and claims circulating regarding life insurance claims and COVID-19. In our article we hope to dispel these myths. If you have any further questions regarding this, tweet us @aberdeenmortgco.
I’ve had a COVID-19 vaccine, is my life insurance still valid?
There are claims being made that having the COVID-19 vaccine will impact your Life Insurance cover. As reported by the Association of British Insurers (ABI), this is false. Receiving a vaccination against Covid-19 will not impact your life insurance cover.
What do the Life Insurance providers say?
Aviva
If you have a life insurance policy with Aviva and they pass away due to coronavirus, Aviva will pay out, if the claim meets the terms and conditions of the policy.
Legal & General
Subject to all the normal criteria for a claim being met, Legal and General have no exclusions around taking medically approved vaccinations. You will continue to be covered if any reaction or complications arise as a result of taking the COVID-19 vaccine.
Equally you will continue to be covered if you have (had) COVID-19 and had previously refused a COVID-19 vaccine.
LV
COVID-19 vaccinations will not have a negative impact on your cover.
LV are aware that there are claims being made that having the COVID-19 vaccine will adversely impact life insurance and other insurance policies. This is not true. If you have had a COVID-19 vaccine as part of the UK vaccination programme, there will be no negative impact when applying for or claiming under any of our personal or business protection policies.
Source: LV, March 2021, lvadviser.com/coronavirus/protection
Royal London
If you’re worried about whether you’re covered for coronavirus under your life policy, Royal London would like to reassure you that claiming on your Life Insurance for death due to coronavirus is valid, as long as the terms and conditions agreed under your plan are met.
Royal London life policies don’t contain exclusions in relation to pandemics or the contraction of a virus in a foreign country.
Vitality
Should you pass away as a result of Coronavirus, or complications from the virus, a claim will be paid, as per the terms of your life insurance plan.
Source: Vitality Coronavirus FAQs, March 2021, vitality.co.uk/coronavirus-faqs/
Has there been life insurance pay-outs for COVID-19 deaths?
Association of British Insurers (ABI) figures show equivalent of over £550,000 per day was paid in Covid-19 death claims in 2020.
According to the figures, there were 11,198 claims received under individual and group life insurance policies. Of these, 10,205 were individual policies (whole life, term insurance and critical illness claims) with 993 on group life insurance schemes.
A total of £202 million was paid out throughout the year on 96% of individual and 99% of group claims.
LV have published their COVID-19 related claims. As of 31 August, the total value of COVID-19 related claims exceeded £6 million.
Craig Paterson, chief underwriter at Royal London, said: “Despite 2020 being an unpredictable year, we continued to pay claims promptly and support our customers. The pandemic has shown the importance of having protection in place and we have paid £13.1 million in Covid-19 related claims.”
Looking for advice on your life insurance?
For more information on arranging life insurance or reviewing your current policy, speak to our expert protection specialists today. Call 01224 316200 or fill in our online enquiry form.
_ _ _ _ _ _ _ _ _ _ _
Lifetime Finance Group trading as Aberdeen Mortgage Company is an appointed representative of PRIMIS Mortgage Network, a trading name of First Complete Ltd which is authorised and regulated by the Financial Conduct Authority.
95% Mortgages Return for First Time Buyers & Homemovers
The COVID-19 pandemic has led to a reduction in the availability of high loan-to-value (LTV) mortgage products, particularly for prospective homebuyers with only a 5% deposit. This has left many hard-working households unable to get onto the housing ladder. In today’s Budget the government has therefore announced a mortgage guarantee scheme to support a new generation in realising the dream of home ownership.
It will give buyers – both first-time and existing – the option to put down a 5 per cent deposit on a home with a value of up to £600,000.
Are you eligible?
The scheme is designed to help creditworthy households struggling to save for the higher mortgage deposits required by lenders in the current environment. For this reason, a mortgage eligible for a guarantee under the scheme will need to:
- be a residential mortgage (not second homes) and not buy-to-let
- be taken out by an individual or individuals rather than an incorporated company
- be on a property in the UK with purchase value of £600,000 or less
- have a loan-to-value of between 91 per cent and 95 per cent
- be originated between the dates specified by the scheme
- be a repayment mortgage and not interest-only and
- meet standard requirements in terms of the assessment of the borrower’s ability to pay the mortgage, for example a loan-to-income and credit score test
Source: The mortgage guarantee scheme outline, gov.uk, March 2021
The scheme is intended as a temporary measure. It will be open for new mortgage applications from April 2021 to December 2022.
Looking for advice?
For more information and advice on which mortgage lenders are taking part in the scheme, speak to our award-winning expert mortgage advisers at Aberdeen Mortgage Company. Call 01224 316200 or fill in our online enquiry form.
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE
This firm charges a fee of up to £595 for mortgage advice. The fee will depend upon your circumstances and will be discussed and agreed with you at the earliest opportunity.
Lifetime Finance Group Limited trading as Aberdeen Mortgage Company is an Appointed Representative of PRIMIS Mortgage Network, a trading name of First Complete Ltd which is authorised and regulated by the Financial Conduct Authority
What is the First Home Fund?
The First Home Fund is a £200 million shared equity pilot scheme to provide first-time buyers with up to £25,000 to help them buy a home.
It is open to all first-time buyers in Scotland and can be used to help buy both new build and existing properties.
The First Home Fund is run by the Scottish Government and aims to help first-time home buyers purchase a property. Up to £25,000 is available to all first-time buyers towards the purchase of both new build and existing properties. A first-time buyer is anyone who does not own, or has previously owned, a property in Scotland or anywhere else in the world.
In order to take part in the scheme, you will be required to provide a minimum deposit of 5% (subject to individual lender requirements, but any amount over valuation must be cash funded) and your mortgage must be at least 25% of the purchase price. Although the Scottish Government will have an equity share in the property, you will own the property outright. There are no monthly payments to be made towards the Scottish Government and no interest will be charged.
What you need to know
- The maximum contribution from the Scottish Government is £25,000 or up to 49% of the property valuation figure or the purchase price (whichever is lower).
- There is a limit of one application per property. You can submit a joint application however you will be limited to one award of £25,000.
- Your mortgage must be at least 25% of the purchase price.
- The property must be the sole residence of all applicants.
- The scheme is not available for buy-to-let properties.
To find out more about what you can borrow as a first time buyer, speak to our expert mortgage advisers today. Call 01224 316200 or fill in our online enquiry form.
Who is Aberdeen Mortgage Company?
Aberdeen Mortgage Company (AMC) are award-winning mortgage and protection experts. We have helped clients throughout Aberdeenshire secure the property of their dreams. AMC caters for a range of clients and property, be it first time buyers looking at a new build or experienced landlords expanding their buy to let portfolio. Beyond mortgages, Aberdeen Mortgage Company also advises on home insurance as well as life protection.
Your home may be repossessed if you do not keep up repayments on your mortgage.
This firm charges a fee of up to £595 for mortgage advice. The amount of fee will depend on your circumstances and will be discussed and agreed with you at the earliest opportunity.
Lifetime Finance Group Limited trading as Aberdeen Mortgage Company is an appointed representative of PRIMIS Mortgage Network, a trading name of First Complete Limited, which is authorised and regulated by the Financial Conduct Authority
COVID-19: The Importance of Financial Protection
The Coronavirus (Covid-19) pandemic has had a profound impact on everyday life across the globe. For months we sat back, watching Governments around the world struggle with the decision of how and when to lift lockdown measures, when businesses would re-open and how to protect the people who may have lost their jobs, due to the pandemic. Not forgetting those Thursday evenings we all spent clapping, for every single person working on the frontline.
Many of us are concerned with what’s going to happen over the coming months or even years, and worries surrounding our financial wellbeing continue to linger in our minds. Now is the best time to consider what’s best for you and your loved ones going forward.
Here at Aberdeen Mortgage Company, we specialise in financial protection for you and your family. it’s important to know the different types of insurances that is available to keep you financially protected. Our video explains all that we can help you with.
What type of protection is available to me?
Life Insurance
Life insurance helps protect your family from the financial worries they could face if you die. It means that your family will receive a lump sum or regular income after you’re gone. It can help with household bills, child-care costs or covering mortgage payments.
Critical Illness Cover
Critical illness cover is there for you if the worst happens and you are diagnosed with a serious illness such as cancer or heart attack. Having a critical illness cover in place can help ease your recovery by paying out a lump sum or regular payment when you are diagnosed with a serious illness. This could cover your care and treatment, your recuperation, help pay off your mortgage or make up for lost income.
Income Protection
Income Protection Cover is a policy that pays you a regular income if you can’t work because of injury or illness. It helps meet your outgoings such as mortgage payments or bills in the event you are unable to work. It pays out on a monthly basis, until you return to paid work or you retire (whichever is sooner).
Aberdeen Mortgage Company can help find you the best option to suit your monthly budget and will make sure the cover is suitable for your needs. Speak with our expert protection specialists today, call 01224 316200 or fill in our online enquiry form.
Lifetime Finance Group Limited trading as Aberdeen Mortgage Company is an appointed representative of PRIMIS Mortgage Network, a trading name of First Complete Limited which is authorised and regulated by the Financial Conduct Authority.