Mortgages Uncovered

Mortgage Payment Protection Insurance (MPPI) is a type of insurance policy that you can take out so if you cannot make your mortgage repayments for any reason covered by the policy, the policy will make the repayments.

Insurance protection for your mortgage can prove invaluable at times when you lose your job because you have been made redundant, when you are off work because of a covered illness or if you are recovering from an accident.

When you take out this insurance make sure that you declare any current medical conditions you have with the insurance provider, as they may not make the necessary payments if you claim for a condition you had before the insurance premium was taken out.

Under new plans drawn up by the City watchdog, self employed persons will have to wait at least two years before they can get a loan. New business traders will thus not be able to buy their first home or even move house. This also means that those people who find that their one year introductory mortgage is coming to an end will be stuck on the standard variable rate until their two year trading anniversary.

The change has come about because from today lenders will have to confirm their applicant’s income which means that self-cert mortgages are effectively a no-no.

So how do you get a mortgage if you are self employed?

You now need to show two years tax returns or two years company accounts’ to get a mortgage if you are self employed.

It seems that the mortgage market is not recovering as well as expected, after reports that the number of mortgage products available in the UK dropped in the two weeks up to the beginning of July. At a time of year when many homeowners feel the need to move, this is not the news the new government expected.

The figures produced from Moneyfacts.co.uk stated that although the figures are much better than at the start of the year, when there were only 1600 products on the market, the numbers have stalled with little change to the 2600 products currently available.

The banks have also stated that they expect lending to fall over the next three months prompting fears that a new mortgage squeeze could be on the way. Mortgage rates are still dropping slightly, which is good news for borrowers, but it remains to be seen what happens in Q3 and Q4.

It can be really easy to get a mortgage from your bank or building society. You just have to walk in the door and because you are a current customer, they will blind you with technical jargon and what seems like great figures and you will leave with a mortgage in place. However this is really not the way to do it.

Banks and Building Societies will only have a limited range of mortgage deals and will fob you off with one of their own offers. What you need to do is spend a little time researching the market to find the best deal. If you use a website that offers a range of current best buy deals, you will be able to compare quotes and choose the most suitable deal available. Mortgage companies are falling over themselves to find suitable borrowers and by getting the best deal you could save a considerable amount of money.