9Sep2018

Critical Illness Insurance as a Safety Net for Your Future

We all hope that we go through life without suffering a life-changing illness or injury, but what if the worst case does happen? In these instances a family can be left struggling to pay bills on time, and a person could be stripped of their ability to work. It is in these cases where critical illness insurance can come to the rescue, helping a person and his or her family recalibrate for the future and build a strong foundation to move forward with.

Critical Illness Cover provides you with a financial safety net should you suffer from a specific illness listed in your particular insurance policy. There will be strict conditions, including the type of illness you are suffering from, and the severity and necessary life changes linked to it, but once released it can help you to claim a tax-free lump sum of money that will help you to:

  • Make any necessary adaptations to your home and/or transportation
  • Cover the cost of future care
  • Cover the cost of any required rehabilitation
  • Help you manage your finances at a time when you are unable to work

Types of critical illness that can be covered in an insurance policy include heart attacks and strokes, certain types of cancer diagnosis, permanent disabilities caused by an accident or illness, and debilitation conditions such as Multiple Sclerosis.

If you would like to find out more information about how Critical Illness Insurance could help you plan for the future, contact our team today at Central Mortgages. You can find us by calling 01277 630183 or by emailing office@centralmortgages.net.

2Sep2018

Can You Get a Mortgage with Bad Credit?

If you have tried unsuccessfully to secure a mortgage through traditional high street lenders due to a bad credit score, do not worry. Here at Central Mortgages we have built a service that works towards helping all people secure funding, even if you have poor credit.

If you have bad credit you will know that it is quite difficult to secure a small personal loan, let alone a large residential mortgage. If you are looking to secure a mortgage, it shows us that you are serious borrowers and that you have the full intention of moving forward with your life and improving your credit score over time.

Why should your bad credit keep you down?

Our process is always an extensive one, looking at your unique case and searching for options that suit your specific needs and budgets. If you show us willing, we are in a position where we can help you secure a mortgage with bad credit. You deserve a chance to move into a home of your choosing and not to be stuck renting if you don’t wish to do so.

Even if you have been turned away by traditional lenders come to us here at Central Mortgages and we’ll help you put together a plan of action that helps secure bad credit mortgage funding.

To speak to a friendly member of our team call us today on 01277 630183, or you can email office@centralmortgages.net and we will call you back at a convenient time.

25Aug2018

Questions to Ask Your Mortgage Broker

As experts on mortgages, a mortgage broker could end up saving time, money, and a lot of stress by recommending a suitable mortgage and finding the best deal possible. However, make sure to ask them these important questions to ensure they can provide accurate information to help you find a good mortgage!

Are you an independent or tied mortgage broker?

Some mortgage brokers are associated with certain lenders, whereas others are not tied to a specific organisation, the latter of which are known as independent mortgage brokers.

Always determine what broker they are, as those that are not tied to a specific lender or group of lenders will have access to a great range of deals throughout the market, although those with ties to a specific lender may have access to deals not available to an independent broker.

How do you charge fees?

A mortgage broker may charge their fees in a few ways, so make sure you know which to determine the cost of the service. For example, some charge a flat rate while others are paid a commission from a specific lender they recommend.

Do you have industry-related qualifications?

Mortgage brokers with an industry qualification are always a better bet than those that don’t. For instance, those with FCA qualifications such as the Certificate in Mortgage Advice and Practice are help to the high standards of the FCA, so should be reliable brokers worth hiring.

Why are you recommending this particular mortgage?

After giving the broker all your key information, they will come back with a few recommendations for mortgages, but you should always determine why these have been recommended. In most cases, it’s because it is the most suitable choice going on your requirements, but you should always seek clarification in any case.

17Aug2018

Things to Know About a Mortgage Broker

A mortgage is a massive financial commitment, so by hiring the services of a mortgage broker you could stand to make some savings, not to mention getting a mortgage that is best suited for your situation.

Here are some useful things to know about a mortgage broker before you hire one!

They use many factors to find you a mortgage

A mortgage broker recommends specific mortgages based on your personal circumstances. They use various factors to determine what mortgages are suitable, then using the information to find the best deal possible.

Factors that they will consider include:

  • Deposit amount
  • Total monthly repayments
  • Credit history
  • Interest rates

There different types of mortgage brokers

While mortgage brokers are all financial advisors that specialise in mortgages, there are several types available. For instance, an independent mortgage broker is known as a whole of market broker, essentially meaning they use the entire market and are not committed to one or several organisations.

Tied or multi-tied brokers have close links to certain lenders, meaning they don’t use the entire market but could have access to less widely available deals due to their working relationship with said originations.

Fees are charged in different ways

Mortgage brokers have different ways of charging for their services. In most cases, this is done through a commission, typically charging 1% of the mortgage amount, while lenders often provide a commission on top of this.

Other brokers charge a flat rate, usually starting at around £500, and they should always provide a clear indication of what is included for this fee.

Both have their merits, so be sure to determine how your broker is charging you!

12Aug2018

Secure Loans Vs Unsecured Loans – Which is Best for You?

While there are countless types of loans available, most of them fall into one of two categories – secure or unsecured. There is a notable difference between each type of loan, either of which may be better suited to your situation, so let’s take a closer look at what each one offers.

The Difference Between Secured and Unsecured Loans

With a secured loan, the borrower must provide an asset as collateral against the loan, providing a guarantee to borrowers should the loan not be repaid. If the loan is not paid, the borrower then takes ownership of the asset, selling it to cover the cost of the debt.

There are various assets that can be used for a secured loan, such as property, a vehicle, jewellery and antiques, or stocks and other investments.

Unsecured loans require no assets as collateral, with borrowers typically using your credit history to determine whether the loan is worth providing.

Which is Best?

It depends on the individual circumstances. For instance, a secured loan is typically easier to qualify for, often comes with lower interest rates, and lets you borrower higher amounts, but this comes at the massive risk of losing the asset should you fail to repay.

Unsecured loans aren’t as much as a risk for borrowers as there is no asset to lose, but this makes them a higher risk for lenders, so the interest rates are almost always higher than a secured loan.

However, borrowing small amounts over shorter periods offsets the higher interest rates, making them worthwhile in various situations.

6Aug2018

Benefits of Using a Mortgage Broker

While mortgage broker fees aren’t the cheapest, they often pay for themselves when you hire an independent mortgage broker that can get you a great deal on your mortgage. Let’s take closer look at the benefits of a using a mortgage broker:

Qualifications

All independent mortgage brokers in the UK must have specific qualifications to provide you with mortgage advice. This means they have the knowledge, skills, and experienced needed to find the best possible deals for a mortgage, while providing invaluable advice that could save thousands.

Industry Insiders

A mortgage broker knows the entire mortgage process like the back of their hand. With tighter regulations now in place, it never hurts to have someone that is fully aware on the latest developments, trends, and processes when shopping around for a mortgage.

Trying to understand the current state of the industry or aspects of a mortgage is often very difficult for those without a mortgage broker. These are people working in the industry daily, so know how to best apply for loans, places for the best rates, and what type criteria a specific lender has for securing a loan.

Protection

You get the upmost protection when working with an independent mortgage broker, as it is their job to get you the best mortgage possible.

They aren’t going to suggest a mortgage that isn’t suitable for your finances, as they need to justify why you should consider any type mortgage they suggest. The same can’t be said when going directly to a lender.

17Jul2018

The Importance of Business Plans

Every successful business starts with a good plan. Despite the importance of creating a robust business plan, many SMEs do not start out with a business plan or even consider implementing one down the line, which is understandable given the massive undertaking of setting up a new business – sometimes sitting down to write out a business plan is the last thing on the mind.

However, the importance of a business plan should never be overlooked – read below to find out why.

Direction

When creating a business plan, you set forth goals and a plan of action to achieve these goals, providing a company with the direction it needs to succeed. With business goals established, you can create appropriate strategies required to meet your objectives, which can then be analysed to see whether they were successful or not.

Funding

Going to any type of lender without a business plan is never going to end well. Lenders want a business to prove that their business is viable, that you’ve researched the market, and demonstrate how you intend to make it profitable.

As a business plan helps to forecast your incomings, outgoings, and profits, which is not only needed to get a business loan but also helps to better manage going forward.

Growth

Many businesses are so focused on getting set up now that they don’t take the time to think about the future. With a good business plan, you can establish strategies for growth, plan for future investments, and know what courses of action to take to encourage growth going forward.

12Jul2018

Things to Consider Before Applying for Business Loan

Acquiring a loan is often the biggest the challenge for a new business. Lending has become far more restrict since the financial crisis, making it even more difficult for small businesses and start-ups to secure the funding they need to succeed.

The process can be arduous, so be sure to consider the following points before applying for a business loan!

Why do you need the loan?

A lender is always going to ask you why your business needs a loan, so be sure to think carefully about this. For instance, is it needed to establish the business in the first place or are you looking to further expand your current business?

Are you eligible for the right loan?

Most new businesses struggle to get a loan, as you need an income to display to a lender to show that you can afford to repay the loan in the first place. Therefore, most start-ups won’t be eligible, so will need to secure another form of credit in the meantime or apply for a start-up business loan from a specialist lender.

Is your income high enough?

Those looking for a business loan will obviously need to repay it, so always make sure your income is high enough to make all payments. Plus, when applying for a loan you need to show a lender the details of your income, including gross profit, cash flow, assets etc., so it’s worth clarifying as early as possible to see if you can get a suitable sized loan.

6Jul2018

A Quick Guide to Start Up Business Loans

 

What is a Start Up Business Loan?

As the name suggests, a start up business loan is type of loan used to help a business get started. Provided in a lump sum, the cash can be used for a variety of expenses needed to start a new business, such a buying stock and equipment, renting a business premises, or wages to hire staff.

Where can I get a start-up business loan?

Start up loans aren’t the easiest line of credit to secure. Traditional lenders such as banks often view a new business as too much of a risk, so a business looking to start up may need to look elsewhere for a loan.

However, it is possible to get a start up loan from a business lender. These loans are much the same as other business loans, where you agree a loan amount to be repaid, the cost of interest, and the fixed period in which the loan is to be repaid.

There are other options to secure a loan for a new business too, with local councils often providing small loans for new business start-ups – check your local government to see what you could apply for.

What do I need to get a start-up business loan?

Due to the risky nature of a new business, anyone seeking a start-up loan must prove to a lender they have viable business, which is typically demonstrated through an in-depth business plan.

A forecast for cash flow and revenue are some of the more important components of a business plan, so be sure to have this ready whenever applying for a business start-up loan.  Most start up business loans are only available to newly established organisations, usually set up within the last two years.

27Jun2018

What is a Semi Commercial Mortgage

A semi commercial mortgage features aspect of both residential and commercial mortgages. It’s not the most common type of mortgage due to the unique circumstances a property requires to quality for a semi commercial mortgage.

To qualify for this type of loan, a property needs to be both residential and commercial. This typically comes in the shape of a small business that has a commercial area on the ground floor and a residential area above the business.

Because on part of the property is used commercial while the other is used as a personal residence, a semi commercial mortgage can be arranged to accommodate the unique circumstances. Common examples of a property with semi commercial elements would be a pub or shop on the ground floor and a flat on the top floor.

Loan amounts are similar to commercial mortgages, typically falling between 60% and 75% of property value, while lenders calculate the criteria of the loan in the same manner as a commercial mortgage, basing it around the accounts, profits, and business plan of the borrower.

Some lenders provide 100% semi commercial mortgages, although you do require a form of additional security, which is most typically owning another property. Many businesses looking to expand use this to their advantage, especially when renting the property to residents.

In fact, a semi commercial mortgage is treated as a type of commercial mortgage by lenders, meaning you need to seek out a commercial mortgage financier to acquire such a loan.

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