There are various ways in which a family can protect itself, and because of the large range of products available, there is usually an appropriate policy for most circumstances, and most budgets.
We can help with many ways to protect your family and your standard of living when you need it most. Click on the different protection options on the main menu to learn more about these.
Protecting your home
Whether you rent or own your home, insuring it makes sense. There are two main types of home insurance to consider – buildings and contents.
As the names suggest, buildings insurance protects the property itself, whilst contents insurance covers the furniture, furnishings, appliances, clothing and all your possessions.
What if I die without making a Will – Rules of Intestacy
If you die without a Will, then the government will decide who will inherit your estate in accordance with the Rules of Intestacy. These were drawn up in the 1920’s, and despite major revisions in 2014, may not accord with your wishes. Depending upon circumstances and the size of your estate, your spouse may end up sharing your assets with your children. Married partners or civil partners inherit under the rules of intestacy only if they are married or in a civil partnership at the time of death. So, if you are divorced or if your civil partnership has been legally ended, you can’t inherit under the rules of intestacy.
The full laws of Intestacy depend on which part of the UK you lived in and can be found on the government website here https://www.gov.uk/inherits-someone-dies-without-will/y.
The Point of a Will
People have reservations when it comes to discussing this delicate matter, but the process need not turn out to be as upsetting or difficult as you might think. In fact, having a Will in place provides re-assurance that only comes with the knowledge that you have tied up all those loose ends.
It is important to have the correct type of Will – one that is professionally drafted to take into account your wishes, and your personal and financial circumstances.
The correct Will can allow you to:
- Specify whom you wish to inherit your estate, in what order and in what proportions, so that you have comfort in the knowledge that your wishes will be carried out
- Make specific legacies to family or friends or gifts to your favourite charities
- Appoint suitable guardians for young children, rather than leaving the decision to the Courts
- Set up maintenance trusts for children to protect their inheritance until an age specified by you
- Make provision for children or other beneficiaries, should your surviving partner remarry
- Protect your share of the property from having to be sold to pay your surviving partner’s future care fees, thus still having assets to leave to your family
Amending an existing Will
If you already have a Will, it is recommended that you review it every 2 to 5 years. Sometimes your wishes may not have changed, but the value of your assets and the law may have. It is very important to ensure that your Will does exactly what you want it to do; that it protects your assets and investments, and most importantly that you have taken advantage of various areas of flexibility within the law of estate planning.
INHERITANCE TAX PLANNING, WILL WRITING, TRUSTS AND TAXATION ARE NOT REGULATED BY THE FINANCIAL CONDUCT AUTHORITY.
There are two main accrediting bodies for surveyors – the Royal Institution of Chartered Surveyors (RICS) and the Residential Property Surveyors Association (RPSA) – and you should check that your surveyor is a member of one of them.
RICS surveyors offer three levels of survey:
| Type of survey available | Scope |
| RICS Condition report | This is the most basic form of survey and is aimed at new build and conventional homes in good condition. |
| RICS Homebuyer Report | The next level up, this will identify structural problems and common problems such as subsidence or damp |
| RICS Building Survey | The most comprehensive survey, this covers a full inspection and give professional advice on any repairs that may be required and the likely costs involved. |
In Scotland, sellers must have a Home Report available for would-be purchasers, carried out by an qualified surveyor. New build, converted homes, or properties purchased under Right to Buy don’t have to have a Home Report. However, purchasers should still consider having a survey carried out.
Why your credit score matters
Mortgage lenders look carefully at how you manage your finances when assessing your mortgage application. If you want to qualify for a competitive mortgage rate, then you need to have a good credit rating. When a potential lender reviews your application, they’ll look at your credit report at one or more of the main credit reference agencies like Experian or Equifax.
Generally, the higher your credit score, the better your chances of getting a good mortgage product at a lower interest rate.
Simple steps like paying your utility bills and making existing loan repayments on time, increasing your monthly credit card repayments, registering on the Electoral Roll and not taking on additional borrowing before you make your mortgage application, can help improve your chances of having a good credit score.
It pays to check your credit score. If it’s not as good as it could be, take steps to improve it before you make your mortgage application.
What are the main stages in buying a property?
Here are the major milestones in the house buying process:
- Contact your adviser to discuss your plans
- With your adviser, work out how much you can
- Draw up a budget to cover legal costs, surveys and mortgage fees
- Make your application and get a mortgage agreed in principle
- Start looking for a property you can afford
- Make an offer
- Arrange the most suitable protection plans with your adviser
- Expect your lender to arrange a mortgage valuation on the property
- Appoint a solicitor or conveyancer who will start the searches and legal work
- Arrange a survey, in Scotland review the Home Report and arrange a survey if necessary
- Finalise your offer and agree your formal mortgage offer
- Arrange to get your deposit to your solicitor
- Exchange contracts (England and Wales) or agree the contract (Scotland)
- Arrange buildings insurance to start from date of exchange of contracts
- Arrange completion and pay Stamp Duty if applicable
- Move in
What is remortgaging for debt consolidation?
Remortgaging your property allows you to replace your current mortgage product with new terms, which often changes the amount you pay each month. By remortgaging your property, you could free up a lump sum which can then be used to clear other debts, such as credit card repayments.
For example, you might remortgage your property and free up a lump sum to pay off an outstanding credit card debt in full. By doing this, you could save months-worth of potential interest and credit card repayments at the expense of a slight monthly increase on your mortgage costs.
On other occasions, a debt consolidation remortgage can be used to reduce your overall monthly commitments.
Whilst this may allow you to ease your financial circumstances, it may mean extending the term of the debts which could increase the overall costs of repayment. You must be aware that you would be securing previously unsecured debts against your property.
What are the benefits?
Remortgaging for debt consolidation could be beneficial to your finances overall:
- Consolidating your debts into smaller monthly payments can make them much easier to manage and potentially much more affordable.
- You may be able to agree on reduced payment terms with your lender if you already own a large portion of your property, lowering your monthly mortgage payments.
- You may be able to switch lenders to obtain a better service or find more manageable terms.
Check your eligibility for a debt consolidation loan:
Reduce your monthly payments
Homeowner loans available
Getting a quote is FREE and won’t affect your credit score
What is a remortgage?
To remortgage is to transfer one mortgage to another. This may be due to your desire for a new fixed rate term that will sustain lower payments (in comparison to the lender’s typical variable rate) or your want to borrow extra funds for purposes such as home renovations or the consolidation of existing unsecured debts.
Reasons to remortgage:
Raise extra money to…
- Consolidate date:
To simplify your budget overall, release money from your property to pay down (or pay off) debt. Your monthly expenses could be reduced as a result, which would ease management of your finance.
Although mortgage interest rates are often lower than those on unsecured debt (such as credit cards and personal loans), keep in mind that you may end up paying more total for any outstanding debt.
Whether it’s through remortgaging or a homeowner loan, our qualified consultants can help you decide how to generate additional funds in the most effective way.
- Complete home improvements:
Remortgaging to free up cash for house renovations may increase the value of your home. Remortgaging can release the finances you require, whether it’s for a loft conversion, new kitchen, bathroom or landscape garden.
Save money on a better rate:
You’ll be put on the lender’s normal variable rate, which is typically higher than the previous rate, when your current arrangement expires. You can get a considerably better interest rate by remortgaging.
You could now qualify for a cheaper rate:
Your loan-to-value ratio will have decreased if you’ve accrued enough equity in your house (that is, if the value of your home has increased or if you’ve paid off a sizable portion of your mortgage). As a result, you might now be eligible for a lower interest rate.
