Mortgage and income protection cover advice

sammybee

hi
Ive been reading threads on here for weeks now and i am so confused, i am going to be selling my house (mortgage free) and wanting to buy a dearer property, so i need to borrow up to 50,000 I have no debts and have also got a large deposit also to put down.
I need advice on mortgages and also we need a life/critical illness cover for myself and partner over 44yrs of age and we also need a income protection cover for my partner who is fit and healthy and is 46yrs old
Is it best getting all these in with the mortgage provider ???
or to do them seperately
I contacted L & C about mortgages and he said we should sail through the process and get one for about £360 per month
we also got a hard sell from entwistle green the estate agents mortgage advisor who keeps ignoring my questions , even though they will charge us £295 in arrangement fees, so we come out non the wiser
any advise will helpful

Gary123456790

Hi,

The estate agents own mortgage advisor is 'tied' to a certain limited range of mortgage deals. They will not do what is best for you, but what gets them lots of commission...

The estate agent cannot insist on you taking their mortgage. I would advise you contact a local broker who can find the best deal for you, if you are not confident in doing this yourself.

It would be best not to take the life/critical/income insurances from the mortgage company as they wont be the best value. It is VERY important here for you to work out exactly what you need and find the relevant products, ensuring you get the right cover.

This is where a good broker or an IFA could really help out as they can look at the mortgage and insurances for you, using their experience to check the insurances are right for your situation.

As an aside, certain mortgage companies wont lend you 50k as its too low.

Thanks,

Gary.

sammybee

thanxs gary, i am going to see a financial advisor today, ive got my questions ready..lol

dunstonh

sammybee wrote: »

thanxs gary, i am going to see a financial advisor today, ive got my questions ready..lol

You dont want to see an FA. You should see an IFA. An FA is tied the products and services of one provider or a limited panel. They are employed by a company to represent their interests. An IFA has whole of market and is employed by you to represent your interests.

Plus, IFAs are cheaper as the FA distributed products are typically upto 40% higher in cost than the IFA version even when the same provider is used. Also, due to employer restrictions, the product or options are often cut back with FA versions compared to the IFA version.

DannyboyMidlands

I think that most insurance is a scam. Check this out:


http://www.telegraph.co.uk/finance/personalfinance/insurance/incomeprotection/9166885/800000-waste-money-on-worthless-income-insurance.html

The_J

DannyboyMidlands wrote: »

I think that most insurance is a scam. Check this out:


http://www.telegraph.co.uk/finance/personalfinance/insurance/incomeprotection/9166885/800000-waste-money-on-worthless-income-insurance.html

Important to know that specifically refers to work tasks only IP policies. Quite an important difference, if you don't know what that difference is then you are not best placed to comment.

A little knowledge is a dangerous thing.

DannyboyMidlands

The_J wrote: »

Important to know that specifically refers to work tasks only IP policies. Quite an important difference, if you don't know what that difference is then you are not best placed to comment.

A little knowledge is a dangerous thing.

Eh? You mean the article only refers to what it refers to?

Erm, thanks for that Einstein.

ACG

Entwistle Green are part of countrywide...i had an interview with them MANY years ago. They are tied to one company for income protection. Their rates are also more expensive than if you went via a mortgage or financial advisor who isnt tied.

If you dont know what your doing then yes its best to get them through a mortgage advisor, however its not compulsary, but your taking out protection to do something in the even of death or ill health - its not worth getting it wrong (i have seen it happen when i used to work at a life office).

Mortgage wise, there isnt enough information to go off but on the face of it, it would seem fairly straight forward to get a mortgage in your situation.

dunstonh

DannyboyMidlands wrote: »

I think that most insurance is a scam. Check this out:


http://www.telegraph.co.uk/finance/personalfinance/insurance/incomeprotection/9166885/800000-waste-money-on-worthless-income-insurance.html

You have misread the article.

It, correctly, states that some times of income protection are a virtual waste of money and that the decent ones that meet a criteria should be used.

The_J

DannyboyMidlands wrote: »

Eh? You mean the article only refers to what it refers to?

Erm, thanks for that Einstein.

Embarrassing.

sammybee

Thanxs for all the advice guys, i went to see a FA i was quite happy with him but if you think its better for me to go with a IFA to save more money i will try to find one in my local area (cheshire) , is there any does or don'ts where to look. I wish when i had a mortagage years ago i had come on here, i was probably paying over the odds, mind u , i dont think computers were invented then. thanxs again xxx