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Mortgage Protection

Mortgage Protection: Securing Your Home and Family’s Future

Mortgage protection is a type of life insurance designed to help pay off your mortgage if you pass away before it’s fully paid. It provides peace of mind by ensuring your family won’t be left with the financial burden of repaying the mortgage. If the worst happens, the policy pays out a lump sum that can be used to cover the outstanding mortgage balance, allowing your loved ones to stay in their home without worrying about debts. It’s a straightforward way to protect your family’s future and secure the home you’ve worked hard for.

Why Mortgage Protection is Essential for Contractors and Their Families

For contractors, income can vary, and this can make financial planning tricky. Mortgage protection is important because it ensures that, if something unexpected happens to you, your mortgage will be paid off. This means your family can stay in their home without worrying about the mortgage. As a contractor, having this protection offers peace of mind, knowing that your loved ones won’t face financial stress. It’s an easy way to secure your family’s future and protect your home.
If you’re unsure, consulting an adviser can help you find the right coverage to fit your unique situation as a contractor.

How Much Does Mortgage Protection Cost?

The cost of mortgage protection varies based on several factors, including:

  • Age
  • Health
  • Smoking Status
  • Policy Duration
  • Coverage Amount
  • Policy Type
  • Size of your mortgage

However, mortgage protection is often cheaper than standard life insurance. This is because the amount that would need to be paid out reduces over time as you pay off your mortgage. So, while prices can differ, it’s usually a more affordable way to protect your home and your family’s future.

How Much Does Mortgage Protection Cost?

The cost of mortgage protection varies based on several factors, including:

  • Age
  • Health
  • Smoking Status
  • Policy Duration
  • Coverage Amount
  • Policy Type
  • Size of your mortgage

However, mortgage protection is often cheaper than standard life insurance. This is because the amount that would need to be paid out reduces over time as you pay off your mortgage. So, while prices can differ, it’s usually a more affordable way to protect your home and your family’s future.

Let Us Help You Determine the Right Amount of Mortgage Protection

We understand that figuring out how much mortgage protection you need can be confusing. That’s why we offer a handy mortgage protection calculator to make it easier. With just a few details, like your mortgage amount and term, our calculator will give you a quick estimate of how much cover you’ll need.

This simple and quick calculator, designed to give you an estimated amount that you might need for protecting your home and ensuring your family is secure. Let us help you find the right cover to suit your needs.

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Your total cover estimate:

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Please note, these calculators provide only an estimate. For a precise evaluation, connect with our experts today!

How Contractor Mortgage Solutions Can Support You

We have been helping families secure their future by finding the best life insurance products
Here’s why you can trust us:

Expert Guidance:

As an independent intermediary, we offer honest advice, excellent customer service, and ongoing support tailored to your needs.

Financial Production Guidance:

We help our customers secure the best mortgage protection from the most trusted and reputable companies.

Tailored Plan:

We can help customise your mortgage protection to fit your family’s needs and financial situation.

Ongoing Support:

As your life changes, we’re here to help you adjust your policy. we’ll guide you in switching to a plan that suits you better.

Understanding Your Mortgage Protection Options

When it comes to protecting your mortgage, there are two main types of cover to choose from:

Level Term Mortgage Protection

This type of cover stays the same throughout the policy term. For example, if you take out £250,000 of cover for 25 years, the pay-out remains at £250,000, no matter when you pass away during that time. As your mortgage decreases, your loved ones could use any extra money for other financial needs. The benefits include fixed premiums and a guaranteed pay-out amount, but it is typically more expensive, and inflation may affect the value of the pay-out over time.

Decreasing Term Mortgage Protection

With this option, the amount of cover reduces as your mortgage balance goes down. If you pass away with £150,000 left on your mortgage, that’s the pay-out your loved ones will receive. It’s often a more affordable choice, with fixed premiums and the peace of mind that your mortgage will be covered. However, the pay-out reduces over time, so it’s designed just to cover the remaining mortgage balance, with no extra funds left over.

Both options offer valuable protection for your home, and choosing the right one depends on your individual needs and budget.

FAQ’S

Which is better: level term or decreasing term cover?

It depends on your financial situation. Level term is great if you want to leave extra funds for your family beyond the mortgage, but it’s more expensive. Decreasing term is a more affordable option, designed specifically to cover your mortgage balance and nothing more.

Can I adjust my mortgage protection policy if my circumstances change?

Yes, you can adjust your policy to reflect changes in your circumstances, such as paying off a large portion of your mortgage or changes in your income. At Contractor Mortgage Solutions, we offer ongoing support to help you adapt your cover as your life evolves.

Is mortgage protection mandatory when taking out a mortgage?

No, mortgage protection is not a legal requirement, but many lenders may encourage or require it as part of your mortgage agreement. It’s highly recommended as it protects both your home and your loved ones from financial hardship.

Can mortgage protection help contractors secure a mortgage?

Yes, having mortgage protection in place can make you a more attractive candidate to lenders. It shows that, in the event of your passing, the mortgage will be paid off, reducing the risk for the lender.

How much does mortgage protection cost for contractors?

The cost depends on factors such as your age, health, and the size of your mortgage. However, as a contractor, your income structure (whether PAYE, umbrella, or limited company) can also affect premiums. Decreasing term cover is generally more affordable than level term cover.

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