The House Buying Process
Insurance
When you have bought your home, you will want to protect it by insuring the building against damage, such as that caused by flooding, fire or subsidence. In any case, the mortgage lender will insist on it.
It is also wise to protect your contents. You can often buy a combined buildings and contents insurance policy.
You may also need life insurance, critical illness cover or mortgage payment protection insurance (MPPI) in case you are made redundant or suffer a prolonged absence from work and are not able to meet your mortgage payments
If you are buying your home with someone else, you might want to take out life insurance. If one of you dies, this will pay off the mortgage or pay out a lump sum. Make certain that you have the right beneficiary appointed.
You should be aware that the FSA now regulates general insurance business so don't be afraid to ask any insurance adviser or broker you see or talk to, whether independent or affiliated, to disclose their status. Ask them to fully explain your options and how they will make money from transacting your business.
If you have any questions about mortgages and would like to see how the cost of a joint mortgage would compare with your current situation, or you have any other query, click here to arrange an appointment with a mortgage adviser. He or she will be happy to answer any question you might have about mortgages or insurance – no matter how simple or complicated.
Useful websites
www.biba.org.uk – website of the British Insurance Brokers Association.
www.unbiased.co.uk – website run by IFAP, which promotes independent financial advisers.
www.sofa.org – website of the Personal Finance Association.
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