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Protection Against Life’s Curveballs

Protection Against Life’s Curveballs

If you own your own home or are considering buying your first property, you must consider protecting it.  After all, it’s what protects you against the elements.  Even if you’re renting, it is essential to think about protecting your tenancy.  Have a read of our blog with some valuable tips.

Always have an emergency fund

Your emergency fund will cover minor issues and insurance excesses if you’re a homeowner.  If you’re a renter, you should ideally have enough money to cover a deposit on a similar property and moving costs to it.

In either case, you should also have enough money to cover unexpected expenses in other areas of your life.  These might not be directly related to your housing but could impact your ability to pay your mortgage or rent.

Take insurance seriously

It’s great to have an emergency fund.  Realistically, however, the average person will not be able to put aside enough of an emergency fund to cover serious expenses.  As a rule of thumb, if something could create significant legal or medical bills (including vet’s bills), then you should at least consider insurance for it.  This includes human medical bills for completeness as this will give you options outside the NHS.

You should also consider serious repair bills and if there’s any way you can be exposed to third-party claims for damages.  For example, cyclists and pet owners should consider insurance to cover themselves for potential damage claims.

Homeowners should consider buildings insurance, possibly outbuildings insurance, possibly accidental-damage insurance and contents insurance.  Renters should look at having their contents insurance.

Last but not least, you should think about protecting your finances.  There are policies to assist; speak to an adviser to find the right one for your circumstances.

Insurance and Employment

Your employment status may have implications for your insurance cover.  For example, some types of insurance may only be available to employed people.

Likewise, some employers may provide some types of insurance to their employees.  For example, many employers offer death-in-service cover.  Technically, this is not life insurance; it’s relevant life insurance.  However, the end effect is the same from an employee’s perspective.  If you die, your designated beneficiaries will receive a payout.

Be aware, however, that the insurance you receive from your employer may not be sufficient for your needs, let alone your wants.  Therefore, you need to do your calculations and, if necessary, top it up.  Similarly, you’ll need to arrange cover for anyone not employed, even if they’re not directly earning an income.

In particular, it’s vital to have suitable insurance for homemakers.  If anything happens to them, you need to pay someone else to do what they do without payment.  You will quickly discover how expensive this can be, particularly if they have caring responsibilities.

Take care of your credit record

Your credit record will be considered if you need to get a mortgage.  This includes remortgaging.  Many landlords will check it as part of their tenant-vetting process.  Some employers check it as part of pre-employment due diligence.

Managing your credit record doesn’t usually require a great deal of effort.  It amounts to paying all your bills in full and on time, avoiding taking on excessive debt and ensuring all information is complete and accurate.  You should check your credit file at least once a year to see if there are any mistakes.  If there are, get them corrected as quickly as possible.  Please do not ignore them until you want credit.

Why use Coombes & Wright Mortgage Solutions?

Coombes & Wright Mortgage Solutions is an award-winning mortgage & protection broker providing local, flexible, friendly advice. We offer a full range of products and provide tailored solutions to fit you and your family’s specific requirements.

 

Learn about our Mortgage Broker service

Go to our Protection page 

The Overlooked Costs Of Moving

The Overlooked Costs Of Moving

In one sense, completing on a property is “job done”.  Emotionally and financially, these are the most significant parts of moving. However, this is just the start, and there is a long list of other considerations that are, yes, you’ve guessed it – costly.  Moving your possessions from A to B.  Getting settled into your new home.  Updating your contact details with relevant parties.  Read on to learn more…

Moving your possessions

If you have anything more than a car boot’s worth of belongings, you’ll probably need help getting them from one home to another.  This typically means either renting a van or getting movers.  If you’re offered the chance to borrow a vehicle, make sure that you’re adequately insured to drive it.

If you’re using movers, it’s advisable to look at their reputation and headline price.  Quality of service is worth paying for, especially in a potentially stressful situation, like a house move.  However, you may be able to save some money by booking in advance and timing your move strategically.  For example, move mid-week instead of at the weekend.

Also, only move what you need to move.  Use up consumables (like food) as much as you can.  Declutter anything you’re not using and not going to use.  If you can start this process well in advance, you may have the option to sell some of your unwanted belongings.  Even if you can’t, however, moving them on will reduce the amount of stuff you need to move.

Do you need temporary storage?

If you’re moving to a bigger home, you should be able to get all your possessions inside it.  If, however, you’re downsizing, you might want to consider using temporary storage.  Generally, you want this to be near your new home so you can access it easily.  This may require you to move your stuff and have the movers deliver it to two locations.

Using temporary storage allows you to do the bulk of your decluttering after you move.  This can be a better option if you have many personal items to deal with.  It puts you under less pressure, but the fact that you’re paying for storage can be motivation to tackle the job.

The insurance issue

You should have insurance on your new home from when you exchange contracts.  The buyer will be responsible for any issues with the property from that point.  You should also ensure that you have insurance coverage for the moving process.  If you use professional movers, check that they are insured.  Likewise, if you’re using temporary storage, it’s advisable to have insurance cover for that too.

Redirecting post

You probably do just about everything online these days.  Even so, it can be worth setting up a postal redirect, at least for the first month, if not the first quarter.  Some organizations do still use letters for certain forms of communication.

What’s more, there may be a delay between you informing them of your move and them updating their systems.  If letters were already in the pipeline, they might still be at your old address.  A postal redirect will catch them.

Think about cleaning

This one is a personal decision, but it’s worth considering.  If you want your new home given a proper deep clean before moving into it, you either need to do it yourself or pay someone to do it for you.  There is a relatively strong argument for hiring professionals as they may have tools, products and skills you don’t.

Budget for new purchases

Assume you will have to buy some new items for your new home and budget for them.  It’s better to have the budget and not use it than to find yourself needing to spend money on unplanned expenses.

Why use Coombes & Wright Mortgage Solutions?

We are an award-winning mortgage & protection broker providing local, flexible, friendly advice. Our head office is in Brookmans Park, Hatfield, and we have advisers in Abbots Langley, Hertfordshire, London and Dover and Canterbury in Kent.

Our team has over 100 years of combined property and mortgage industry experience. Jointly, we have helped and advised thousands of people at all levels of the property ladder. We pride ourselves on personalised service, exceptional customer care and a friendly approach.

 

Learn about our Mortgage Broker service and book a free no-obligation initial consultation. 

 

How To Get The Best Deal On Your Home Insurance

How To Get The Best Deal On Your Home Insurance

It may seem rather ironic to be thinking about home insurance just when everyone can finally get out of their home. On the other hand, most people are going to need, or at least want, to start brushing up their finances. Getting the right home insurance can be a major part of that. Here are some tips to help.

 

Give yourself time to do your research

 

Ideally, you want to start looking for a new deal 6-8 weeks before your current one expires (or you get the keys to your new home). That’s late enough that prices are going to be fairly current. It’s also early enough that you should be able to review all reasonable options before making your choice. Whatever you do, avoid just taking out insurance with your mortgage provider.

 

Give yourself time to brush up your credit record

 

There are two reasons why insurers are likely to check your credit record. The first is just as a means of verifying your identity. This is just one (more) reason to make sure that your credit record is accurate.

In particular, you need to make sure that all the contact details on your financial products point to your current home address. Also, make sure that you’re on the electoral roll.

The second is to decide if they’re going to offer you the option to pay in instalments and, if so, at what price.

 

Consider using an insurance broker

 

In simple terms, the more money you’re spending, the more you could save by using a broker to find you the best deal. This is in addition to the time you’ll save yourself. This means that there’s a lot to be said for using a broker for any major purchase, such as a mortgage.

 

Realistically, home insurance can be more of a grey area. Some people might be paying enough to justify the fees/commission. Other people might not think it was worth it. If you have a standard property, especially a starter one, and just want a basic policy, then you could probably bag at least a decent deal just by doing your own research.

 

Remember you’re covering the rebuilding cost

 

After just taking out home insurance with your mortgage provider, this must be one of the most common and costliest mistakes in home insurance. You are not covering the sales value of your home. You are covering the rebuilding cost of your home. There is generally a significant difference between the two because you will not have to repurchase the land you already own.

 

Review your excess

 

Increasing your excess can help to lower your premium. Of course, you need to be confident that you could absorb the excess if necessary. In other words, consider this as an option, just make sure that you use it cautiously, if at all.

 

See if you can pay upfront

 

If you pay your fees in instalments, then your insurer is, effectively, giving you credit. They will probably charge for this. How much they charge will generally depend partly on their approach and partly on your credit record. There are, however, usually some savings to be made if you can pay the full year upfront.

 

Make sure you know what you’re covering

 

Read the policy carefully and make sure you are 100% clear about what it covers and, by extension, what it doesn’t. In particular, make sure that any areas outside the main property have suitable cover. This could mean anything from a communal stairway in a flat to outbuildings in a house with a garden.

 

Keep in mind that home insurance can mean exactly that. In other words, it may not cover gardens and outbuildings unless you specifically request it and pay extra.

 

Please contact us for any more information

Can DIY Devalue Your Home?

Can DIY Devalue Your Home?

DIY can make for good entertainment. Type either “Room makeover” or “DIY disaster” into a search engine and you’re sure to get plenty of results. On a more serious note, however, it can be advisable to do some thinking before you decide whether or not to tackle DIY. If you do, then it’s advisable to do some more thinking on the best way to go about it.

Renters beware

Renters should generally avoid DIY completely unless they have explicit permission from their landlord. Simple bits of DIY may have a very low chance of going wrong. The problem is that if they do go wrong, you could find yourself in a whole lot of trouble with your landlord.

If you are going to ask your landlord’s permission, be very clear about exactly what you intend to do. Get permission in writing and then stick exactly to what was agreed. Make sure you’re clear on whether or not you can leave the changes in place when you move on.

If you can’t then think about the practicalities of rolling them back. For example, you may find it a lot easier to cover up paint than to take down even “renter’s wallpaper”, let alone traditional wallpaper.

People with old houses beware

Even if you live in a historic property, it’s probably fairly unlikely that you’ll find an oyster-shell wall or a fabulous wall mural in it. There is, however, at least the possibility of, literally, uncovering surprises, good and bad.

This means that if you’re planning on renovating an old house, you need to expect the unexpected and be ready to deal with it. That alone could be reason enough for home DIYers to leave well alone and just call in the pros.

The pros may also be in a better position to advise what materials can (or must) be used (or not used) in an older property. For example, some properties may require the use of traditional lime plaster to ensure breathability (and hence avoid condensation). In other cases, however, it may be appropriate to use modern materials but in a sympathetic manner.

Beware of your utility infrastructure

If you’re working anywhere near electrical wiring or plumbing (for gas or water), then you need to make sure that all the relevant supplies are turned off. Even so, you need to be very careful to avoid damaging them. The cost of putting right that damage could far exceed any savings you would have made by going down the DIY route.

If you’re tempted to attempt any DIY involving your utility infrastructure, then do your research thoroughly before you make a decision. Get it wrong and you could run into a whole world of pain. In fact, devaluing your home could be just one of a long list of problems you need to address.

Beware of working around windows

Take glass seriously. Even if you’re only doing something fairly basic like putting up a new curtain rod or installing shutters, you still need to protect the glass from both impact and vibrations. This isn’t just about keeping your window in one piece. It’s also about avoiding you (or anyone else) getting injured by broken glass.

Beware of working at heights

If you can’t reach something easily, get a ladder (or proper step stool). Do not just try to stretch or stand on a regular chair. Firstly you need to keep yourself safe. Secondly, if you’re going to do a job, do it properly. Raise yourself to a height where you can see and work comfortably and effectively.

Beware of paint cans

Spilt paint may not devalue your home, but it can certainly devalue your floor. Cover the floor properly. Pour as much paint as you need into a tray and keep that on a cover. Keep the lid on the paint can unless you’re actually pouring from it.

 

The (Mortgage Payment) Holidays Are Over

The (Mortgage Payment) Holidays Are Over

Autumn is very clearly on its way.  Schools, colleges and universities are reopening.  At least some workers are heading back to their desks.  In short, the summer holiday season is over.

So too, is the financial holiday season.  The furlough scheme is winding down and borrowers are being encouraged to move back to their regular payments.  This means that anyone with a mortgage may want to think carefully about their finances over the immediate, medium-term and long-term future.  Here are some tips.

Build up a cash cushion

Currently, it’s anyone’s guess what will happen with the credit markets.  That being so, there’s an even more compelling case for building up a cash cushion to give you some protection from life’s hard financial knocks.  How much of a cash cushion you will need and want will depend on your situation, but something is better than nothing.

Review your insurance

Similar logic applies here.  Insurance cover is a predictable expense, which saves you from the worry of how you’re going to deal with an unpredictable expense.  It’s particularly valuable to people who would struggle to “self-insure” through savings/investments and/or access to credit.

Work on your credit rating

If you have credit, then you want to pay the minimum amount of interest for it.  There are various factors which determine how much interest you pay.  One of them is your credit rating.  It, therefore, makes sense to do what you can to make it as good as it can possibly be.

Step one is to get hold of a copy of your credit record from the main credit reference agencies.  In the UK, these are Equifax, Experian and TransUnion, plus Crediva.  Make sure that there are no mistakes in it.

Then take care of any basics, like putting your name on the electoral roll and checking that any companies with which you do business have your current contact details.  Also, make sure that these contact details are entered as consistently as possible.  For example, if you live in John Smith Street, then always enter it as John Smith Street rather than John Smith St or any other variation of your street name.

If you have any credit accounts you don’t use, then take the time to close them properly.  Then focus on managing anything that remains.  Make sure that you do everything possible to make at least your minimum payments in full and on time.  If you really can’t then speak to your lender rather than just missing the payment.

If you’re dealing with debt, then focus your efforts where they make the most difference.  There are two ways to go about this.  One is to tackle the debt with the highest interest rate and then move on to the debt with the next highest interest rate and so on.  This is known as snowballing.  The other is to start by paying off small balances, close the credit accounts and then move on to snowballing.

The second approach can be useful if you want to try to get a better deal on credit such as a balance transfer.  This is because it clearly shows a potential lender that you no longer have the opportunity to run up further credit on the original account(s).

Actively look for the best deals you can find on everything

First of all, question every purchase before you decide whether or not to make it.  Ask yourself if you really need it and if the answer is no, ask yourself if you really want it enough to justify the financial impact it will have on you.

Secondly, when you do go ahead and make a purchase, do your research and make sure that you are getting the best possible deal on it.  This goes for small purchases too as the cost of them can soon add up.

For more information, help and advice, please contact us

Your property may be repossessed if you do not keep up repayments on your mortgage.