FAQs

A mortgage is the loan that you take out which is secured against your property that enables you to purchase your home. The mortgage lender has the option of taking possession of the property and selling it on if the mortgage repayments aren’t made to try and recoup any losses it has suffered.

The lender will charge you ‘interest’ in return for lending you the money. Therefore, over the term of the mortgage you will need to pay the lender interest and repay the amount you originally borrowed fully before the mortgage ends.

This is simply swapping the mortgage you have on your current property for another mortgage with a different lender. You may consider this option if your existing mortgage deal has expired and you wanted to see if a more competitive deal was available. You could also consider this if your circumstances have changed and you want to borrow more. There are many reasons why you would remortgage but this does not involve moving home.

One of the most difficult aspects of organising a mortgage is sorting through the hundreds of mortgage deals currently available. Different mortgage schemes will often cater for different needs. To establish what is suitable for you it is important to take into account your current circumstances as well as your priorities and long term plans. We recommend speaking to one of our mortgage advisers as they will be able to guide you.

Your mortgage lender will insist buildings insurance is in place as you move into your new home. Home insurance combines buildings and contents insurance to cover your most valuable asset. We would recommend that when you take out a large debt, you should also consider protecting it against the unthinkable like death, injury or long-term illness.

It’s not a legal requirement to take out mortgage protection insurance. However, it will protect your asset for the mortgage term and give you the peace of mind that your family would be able to remain in the property in the event of your death, or should you suffer a critical or long term illness.

A repayment mortgage is where you pay the interest as well as the capital borrowed, so your mortgage balance is reduced every time you make a payment. In the early years you will pay mostly the interest and a little towards your capital but in the later years you pay more towards the capital.

Life insurance is a way of helping your family cope financially when you die. It is intended to provide help to your loved ones when they can’t rely on your salary or income any longer.

The pay-out can be used to clear debts, pay off the mortgage or just cover everyday expenses. It could even pay for your funeral if you haven’t set anything aside for that.

Term policies, the most common type of life insurance, only pay out if you die within the duration agreed in the policy. For example, if you take out a term life policy for 25 years, your family can claim if you die during this 25-year period.

However, if you die after this term then there would be no pay-out.

Your premium will vary depending on the type of policy, the size of the sum insured and also the risk of a claim – if you have a dangerous job, for example.
Also, age is a factor, so life insurance will be more expensive for an older person. Similarly, if a customer is in poor health, they can expect to pay a higher premium.

The insurer will take into account occupation, hobbies, lifestyle – such as whether you smoke, your weight and your fitness – to help determine their premiums. Even postcodes are checked, as certain areas of the country are more likely to claim.

While you can usually make amendments to your life insurance policy, it might result in higher premiums. You should also keep your insurer up to date with any changes in circumstance or you might invalidate the cover.

In fact, you should regularly review your policy to make any changes you might need, such as marriage, a new home or a new addition to the family.

Critical illness cover is a common extra people add to their life insurance. It pays out a lump sum if you are diagnosed with a serious condition during the term of your policy. However, most policies only pay out once, so if you claim, your family would not be able to claim again on your death.

Also, the list of conditions is not exhaustive, so check the small print for what is listed.

Business insurance is a type of cover you can take out that protects you and your business against certain losses you might face during everyday operations.

While employers’ liability cover is the only type of legally required business insurance, some business regulators may also want you to have certain policies in place before they let you practice. For example, you might have to take out professional indemnity insurance if you’re a solicitor or an accountant.

If you work with other companies or clients, they may also request that you’ve taken a particular level of cover before signing a contract with you.

Business insurance comes in a number of variations, and the policies you’ll need will depend on your business and how you run it as well as the provider you choose. Most offer cover for the following:

Public Liability
Public liability insurance covers you for the cost of compensation you might have to pay if a member of the public is injured or their property is damaged as a result of your business’s operation.

Employers’ Liability
As mentioned above this is a legal requirement if you employ staff, and it’ll cover you if your employees become injured or ill or have their property damaged as a result of the work they do for you.

Professional Indemnity
Professional indemnity policies protect you if you or an employee makes a mistake with your work and as a result your client or the business you’re working with lose money and sue you.

Business Buildings
Business buildings insurance can be helpful if you have a specific business premise, such as an office or shop, as well as if you work from home. It can cover you for damage caused by floods and other natural disasters, depending on the details of your policy.

Business Contents
A business contents policy covers any tools or office equipment in your business premises if they’re damaged, stolen, or lost.

Product Liability
Product liability insurance is cover for when a customer is injured or suffers damage due to a faulty product you’ve supplied – you could be liable even if you didn’t manufacture it.

Business Interruption
With business interruption insurance you’ll be covered for the cost of getting your business up and running again if it’s disrupted by an insured event, such as flooding or fire.

Personal Accident
Personal accident cover means your insurer will pay out for things like medical costs or loss of income if someone dies or is seriously injured at your work premises.

Legal Expenses
A policy for your business’s legal expenses means you’ll be covered for the potential cost of legal action if someone brings a case against you or vice versa.

Cyber Crime
A policy that’s growing in importance in the modern age, cyber crime insurance protects you if your business falls victim to cyber criminals.

If you work from home, you might want to consider taking out a business insurance policy – however the exact cover you need will depend on the kind of work you carry out. For example, you might benefit from a public liability policy if you have clients at home, while professional indemnity insurance can be useful if you handle your client’s data.

Business insurance can still be important if you’re self-employed. Policies such as public liability or professional indemnity insurance can still apply if your business deals with the general public or with client data, and if you employ others then employers’ liability insurance will still be a legal requirement.