Frequently Asked Questions

This is a plan required for Interest-Only mortgages to prove how you will pay off the original loan balance at the end of the term. Common strategies include endowment policies, ISAs, other investments, or a plan to downsize the property.

Typically, a remortgage takes between two to three months. It can be faster if it's a "Product Transfer" with your existing lender, but a full remortgage requires a new valuation and legal conveyancing, which adds time.

LTV is the percentage of the property's value that you are borrowing. For example, if the house is worth £200,000 and your mortgage is £150,000, your LTV is 75%. Generally, the lower your LTV (the bigger your deposit), the better the interest rate you can access.

With a Fixed Rate mortgage, your interest rate stays exactly the same for the length of the initial term (e.g., 2 or 5 years), regardless of what happens to the Bank of England base rate. This provides certainty for your monthly budgeting.

Remortgaging is the process of switching your existing mortgage to a new lender. This is often done to secure a better interest rate, to raise capital for home improvements, or to consolidate debt.

You only pay the interest charged on the loan each month. The original debt amount does not decrease. You must have a proven repayment strategy (like an ISA or downsizing plans) to pay off the full balance at the end of the term.

Often called Equity Release, this is a loan secured against your home for those aged 55+. There are typically no monthly repayments; instead, the interest is added to the loan and the total debt is repaid when the house is sold (usually when you pass away or move into care).

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While rare, some lenders offer 100% (zero deposit) or 95-90% mortgages. These often require a guarantor (like a family member) or specific evidence of long-term rental payments. While they help you buy sooner, they often come with higher interest rates.

Your home is used as security for the loan. If you do not keep up repayments, the lender has the right to repossess and sell the property to recover the debt. Important: If you experience financial difficulty, contact your lender immediately; repossession is always a last resort, and they may offer solutions to help.

Yes. Consolidating unsecured debts (like credit cards) into a mortgage turns them into secured debt. While your monthly payments might decrease, you are increasing the risk of repossession if you can't pay, and you may pay more interest over the total term of the mortgage.

An ERC is a penalty fee charged by the lender if you pay off your mortgage or switch deals before the initial product term ends. These fees can be significant. We usually recommend waiting until your ERC period ends before switching to a new deal.

Many policies offer "personal possessions" cover, which protects items like jewelry, laptops, or bikes while you are out of the house or even on holiday. Check your policy to ensure this extension is included.

You should insure your property for its full rebuild cost, not its market value or purchase price. The rebuild figure is usually lower than what you paid and is often stated in your mortgage valuation or, for leasehold flats, calculated by the freeholder. If you are unsure, the BCIS rebuild calculator (accessed via the ABI website) gives a reliable estimate. Underinsuring risks your claim being reduced, so it is worth getting this right.

Past flooding does not mean you cannot get cover, but it may affect your premium or excess. Most homes built before 1 January 2009 can benefit from Flood Re, a government-backed scheme that helps insurers offer affordable flood cover for higher-risk properties; it runs until 2039 and applies to single residential units and small leasehold blocks in council tax bands A to H. As a broker, we can identify which insurers participate and find you the most competitive option for your situation.

Accidental damage cover protects against sudden, unintentional one-off events, such as putting a foot through the loft floor, spilling wine on a carpet, or drilling through a pipe. It is often an optional add-on rather than included as standard, and it sits alongside your buildings or contents policy. Check your schedule carefully, as standard policies usually exclude this type of damage.

Home emergency cover pays for urgent call-outs and temporary repairs when something fails suddenly and makes your home unsafe or unliveable, such as a boiler breakdown, burst pipe, or total loss of power. It typically covers the cost of a tradesperson and immediate parts up to a set limit, but it does not replace full repairs or major works. It is an add-on to home insurance rather than a substitute for buildings or contents cover.

Legal cover, also called family legal protection, funds legal costs for certain disputes, such as employment matters, personal injury claims, or contract and consumer disputes. It usually covers solicitor fees up to an agreed limit, provided the case has reasonable prospects of success. Like accidental damage and home emergency, it is normally an optional extra on a home insurance policy.

Income protection is a long-term policy that pays a regular, tax-free income if illness or injury stops you working, often continuing until you recover, retire, or the policy ends. Accident and sickness protection is short-term, usually paying out for a maximum of 12 to 24 months per claim. Income protection generally offers more comprehensive, lasting security, while AS cover is cheaper but more limited; the right choice depends on your circumstances and existing safety nets, such as employer sick pay.

CIC pays out a tax-free lump sum if you are diagnosed with a specific, life-changing condition listed in your policy (such as cancer or a major stroke). This money is often used to pay off a mortgage so you can focus on recovery without financial stress.

No. Most income protection policies cover 50% to 70% of your gross earnings. This is because the insurance payouts are tax-free, and the limit ensures there is still a financial incentive for people to return to work when they are able.

Employer sick pay is usually short-term (often 6 months or less). Income Protection is designed to provide long-term security, potentially paying out until you reach retirement age if you are never able to return to work.

Serious Illness Cover provides a lump sum payment if you are diagnosed with a long-term, serious condition. It covers major illnesses like cancer or heart conditions, but can also pay out for less severe conditions like kidney disease.

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While Critical Illness usually pays a set lump sum, Serious Illness payouts can be adjusted based on the severity of the diagnosis. This means a less severe condition might result in a partial payment, whereas a more critical diagnosis results in a full payout.

When applying for illness or income protection, you must be 100% honest about past and current conditions. If you fail to disclose medical information and later try to claim for a related issue, the insurer may invalidate your policy and refuse to pay out.

You must answer all health questions honestly and accurately, as the Consumer Insurance (Disclosure and Representations) Act 2012 requires, since non-disclosure can invalidate a claim. A pre-existing condition may mean a higher premium, an exclusion for that condition, or, in some cases, a need for a specialist insurer, but cover is very often still available. We can approach providers who deal sympathetically with your specific condition to find suitable terms.

There is no single figure, as it depends on what you want the policy to achieve, but a common starting point is enough to clear your mortgage and other debts, plus an amount to support your dependants and cover future costs such as childcare or education. Some people also factor in replacing lost income for a set number of years. We can talk through your commitments and recommend an appropriate level of cover for your circumstances.