4 Ways to Ensure You Never Miss a Mortgage Repayment
You’ve worked hard to secure a mortgage and become a proud homeowner, but even after those keys have been put in your hand, there’s still work to be done…
For many new homeowners, meeting repayment deadlines can feel daunting. A reputable bank will be doing everything they can to ensure that full repayment of their investment is being made and whilst it rarely happens, failure to repay can lead to the repossession of properties.
But there’s no need to panic just yet! Banks want to have a successful relationship with their clients. After all, a bank are happy to offer customers more flexible and helpful terms, if it means they’ll get their money back.
Redundancy, pay cuts, illness or disability – no matter what financial difficulties you may face in the future.
Here are 4 ways to ensure you never miss a mortgage repayment:
Consider Income Protection
If you’re not able to work Income Protection Insurance, or IP insurance as it’s also known, will help you to protect up to 70% of your gross salary and it’s designed to replace your income and to pay out a tax-free monthly sum, which can be used to help ease any financial hardship whilst you’re unable to work.
Start Putting Some Extra Money Aside
Nobody knows what the future holds, so once you’ve committed to a mortgage, why not protect yourself against unforeseen circumstances with an emergency cash fund? Having a separate savings account to set aside some extra money each month will help you to stay on top of your payment deadlines, even in the event of unforeseen financial difficulties.
Mortgage Payment Protection
Being unable to make monthly mortgage payments and ultimately losing the roof over your head, doesn’t need to be a worry anymore. Have you considered Mortgage Payment Protection or also know as Mortgage Payment Protection Insurance (MPPI) provides cover against this happening, meeting your mortgage payments if you are unable to.
Consider Critical Illness Cover
Another great way to protect yourself from the unexpected is with critical illness cover. Thankfully, the survival rates for critical illnesses are improving every day. However, ask yourself – if you were to become ill, even for a short duration of time, how would this impact your ability to meet your mortgage repayments?
Whilst some employers may be able to help, usually in the form of statutory sick pay, this lasts only for a limited amount of time and may not be enough to continue covering the costs of day-to-day living. Critical illness cover could help you to protect your family and keep your home.
With the above suggestions, you should have no problem meeting your repayment deadlines. However, if you do still struggle, do not hesitate to get in touch with your mortgage broker or bank. Whether they have to alter their terms or offer you new ones, your bank will want to find a solution beneficial to you both.
Want more advice? Speak with a friendly member of our team on 01702 619221 or contact us online today.