Is mortgage payment protection of any real value? Will it pay out in my time of need?
I cannot speak for other products on the Irish market but can I explain the benefits and exclusions of our policy which is available through http://www.paymentprotection.ie/
Firstly if you are a full-time permanent employee and you are not sure how you would pay your mortgage in the event that you were unable to work due to an accident, sickness or redundancy then you need and should take out MortgageLine Payment Protection.
You are covered for all accident and sicknesses from day one as long as it is not something that you have suffered from in the last two years. So you are covered straight away for all new accidents and sicknesses and for all illnesses that you have not suffered from in the last two years.
For redundancy there is a 3 month (90 days) exclusion period from the start of the policy regardless of when you take your mortgage out. Once you have had the policy for 3 months you are then fully covered for involuntary redundancy. Voluntary redundancy is not covered.
If you are self employed or a contract worker then you should think carefully before taking out payment protection and be aware of the policies limitations. For a self employed person to make a claim for redundancy the business must be fully wound up. A self employed person cannot claim for redundancy if work is simply quiet. In the case of a contract worker a claim for accident, sickness or redundancy will only be paid up until the end of the current contract. Therefore if there is only 3 months left on your contract at the time of a claim you can only get a max of three monthly benefits.
In brief cover is available for the self employed and contract workers but because of the limitations the cover is only really suitable for permanent paye employees.
There has been alot of bad press in Ireland over the last few years about mortgage payment protection products. Charlie Weston, of the Irish Independent, for example has written about the bad claims history of the product. However he has not offered any examples or facts and figures, just hearsay and the innuendo of brokers who have no direct knowledge of the product. This is not helpful for consumers, it is just scaremongering and has perhaps prevented some people taking out a policy that they had a need for.
From my experience the main problem with payment protection policies is that over the years bank and building society direct sales staff have sold the policies to self employed and contract workers. Payment protection is unsuitable for them and so they will have found it hard to make a successful claim.
If sold properly to permanent paye employees then this product can be invaluable. We at MortgageLine have now been selling the product for over two years and have first hand experience of our customers making successful claims.
We have sold and continue to sell the product to customers who need it and are suited to the policy, namely paye employees. Unfortunately we are now experiencing calls from customers who were suitable for the policy and now need it but did not take it out, perhaps due to bad press or perhaps because they felt secure in their jobs at the time the cover was offered.
As with any insurance the pros and cons should be weighed up and the terms and conditions read in full.
If you are interested in more information on mortgage payment protection click on http://www.paymentprotection.ie/
Stephen Hamilton
For great value Mortgages, Life Assurance, Home Insurance, Redundancy Cover and Travel Insurance log on to http://www.mortgageline.ie/
Friday, March 27, 2009
Thursday, March 26, 2009
Dealing with Debt
Sorting out your personal finances can be a daunting task but is something we all need to tackle sooner rather than later. Many of us lived to excess and perhaps borrowed too much during the Celtic Tiger years and are now overwhelmed with debt. In this article I am going to try to give some pointers on where to start when dealing with debt.
1. Do you know how much debt you have?
First of all, you've got to establish how much trouble you're in. Set up a filing system that works for you, and start a simple spreadsheet that shows exactly what you owe, and to who. This should include Mortgage, loans, credit cards, outstanding bills ect.
Make sure you calculate your total debt, both including and excluding your mortgage. Once you've taken these first crucial steps, you'll be able to work out whether you should be saving or paying off debt.
If you have many debts, it usually makes financial sense for you to clear them before you start saving. This is because the interest you pay on your debt is probably greater than the interest you would earn on any savings you have.
2. Do you know precisely how much your debt is costing you?
The cost of each of your debts is the rate of interest you're paying on them. Once you've established how much each of your debts costs, see if you can rework them so you're paying as low a rate of interest as possible. One way of doing this is to take out a 0% balance transfer card and transfer some of your debts onto it.
Once you've minimized the interest you're paying, the quickest way to clear your debts is to snowball them. First work out your most expensive debt (highest interest rate) and then pay as much to this as possible while keeping up the minimum payments on everything else. Slowly but surely you should be able to get your debts paid off one by one.
3. Are you prepared for the unexpected?
Everyone should have a savings cushion equivalent to at least three months' wages, to deal with unexpected costs and emergencies. However in the current environment it can be hard to build up this savings cushion.
If you lost your job tomorrow, how long would you be able to last before you resorted to credit cards and high-interest loans? If you've managed to pay off your debts - but you haven't started saving yet - it's crucial you start straight away!
If you are paying off debts and have no savings then it might be worthwhile considering taking out a payment protection policy to at least cover your mortgage repayments in the event of an accident, sickness or redundancy.
Preparing for the unexpected also means being properly insured. If you have dependents, you should also think about taking out life insurance to provide support for them if the worst happens. It's not a pleasant subject to think about, but nor is the prospect of your loved ones being unable to cope after you're gone.
However despite the need for insurance if you are in debt the most important thing is to tackle your debt head on and get out of debt as quickly as possible. Easier said than done, I know, however if you have a plan and stick to it you will be out of debt in no time.
If you have some equity in your home it may be worth while thinking about a remortgage to clear your debts and get back on track.
For great value Mortgages, Life Assurance, Home Insurance, Redundancy Cover and Travel Insurance log on to http://www.mortgageline.ie/
1. Do you know how much debt you have?
First of all, you've got to establish how much trouble you're in. Set up a filing system that works for you, and start a simple spreadsheet that shows exactly what you owe, and to who. This should include Mortgage, loans, credit cards, outstanding bills ect.
Make sure you calculate your total debt, both including and excluding your mortgage. Once you've taken these first crucial steps, you'll be able to work out whether you should be saving or paying off debt.
If you have many debts, it usually makes financial sense for you to clear them before you start saving. This is because the interest you pay on your debt is probably greater than the interest you would earn on any savings you have.
2. Do you know precisely how much your debt is costing you?
The cost of each of your debts is the rate of interest you're paying on them. Once you've established how much each of your debts costs, see if you can rework them so you're paying as low a rate of interest as possible. One way of doing this is to take out a 0% balance transfer card and transfer some of your debts onto it.
Once you've minimized the interest you're paying, the quickest way to clear your debts is to snowball them. First work out your most expensive debt (highest interest rate) and then pay as much to this as possible while keeping up the minimum payments on everything else. Slowly but surely you should be able to get your debts paid off one by one.
3. Are you prepared for the unexpected?
Everyone should have a savings cushion equivalent to at least three months' wages, to deal with unexpected costs and emergencies. However in the current environment it can be hard to build up this savings cushion.
If you lost your job tomorrow, how long would you be able to last before you resorted to credit cards and high-interest loans? If you've managed to pay off your debts - but you haven't started saving yet - it's crucial you start straight away!
If you are paying off debts and have no savings then it might be worthwhile considering taking out a payment protection policy to at least cover your mortgage repayments in the event of an accident, sickness or redundancy.
Preparing for the unexpected also means being properly insured. If you have dependents, you should also think about taking out life insurance to provide support for them if the worst happens. It's not a pleasant subject to think about, but nor is the prospect of your loved ones being unable to cope after you're gone.
However despite the need for insurance if you are in debt the most important thing is to tackle your debt head on and get out of debt as quickly as possible. Easier said than done, I know, however if you have a plan and stick to it you will be out of debt in no time.
If you have some equity in your home it may be worth while thinking about a remortgage to clear your debts and get back on track.
For great value Mortgages, Life Assurance, Home Insurance, Redundancy Cover and Travel Insurance log on to http://www.mortgageline.ie/
Wednesday, March 25, 2009
Is now the prefect time to do home improvements?
Alot of Irish homeowners have faced up to the reality that dramatic price falls mean that it is not the right time to sell and move house. However just because you cannot move, it does not mean you have to put everything on hold.
Increasing numbers are turning to a spot of home improvement. Improving your home is a great way to add value to it, as well as increase the equity on your mortgage. The great thing is, there has never been a better time to carry out home improvements. Many home retailers are currently slashing their prices(some are having closing down sales), while builders are becoming increasingly desperate for work, giving you a better chance of grabbing a bargain.
So let's take a look at how you can improve your home without breaking the bank.
1) A splash of paint
It's simple but a fresh lick of paint on the walls can really make a difference. You don't need to be an expert to do it and it doesn't have to cost a fortune. And if you're thinking paint alone is a little dull, you could always use stencils to add snazzy designs! However, if you're still planning to sell your home in the not too distant future, stick to neutral colours. Magnolia can be a little boring, but its usually cheaper and will make your house more attractive to buyers.
2) Revamping tactics
If your kitchen is starting to look a little dated or grubby, you don't have to pay out stacks of money for a brand new one. Instead, why not replace the unit doors and fit new handles yourself? You can also pick up some new kitchen worktops pretty cheaply. IKEA opens in Dublin soon and will have a great selection of low cost kitchen products. Alternatively, you could simply repaint the units in a colour of your choice. You can buy specialised paint to do this -- just make sure you fully clean the surface before painting so that it gives it a nice clean finish.
3) Bag a builder bargain
If there's a fairly large job to be done and your own DIY skills aren't up to it, you'll need to hire a contractor. Usually, the trouble with this is the expense. But in today's climate, you might be pleasantly surprised. In fact, because many builders are currently finding work harder to come by, they're more likely to offer you a competitive deal. So it's worth shopping around and obtaining as many quotes as possible -- at least three anyway -- to ensure you're getting the best deal. What's more, once you've got a range of quotes to hand, you can use the lowest quote as a bit of a bargaining tool to see whether any of the builders will reduce their offer any further.
4) Get a better mortgage
Mortgage rates have dropped dramatically over the last few months meaning that now is a good time to think about switching lenders to see if you can get a better deal. And if you have some equity in your home you could think about borrowing a bit extra to do those home improvements or pay off expensive loans to get your finances in order.
You can apply online with MortgageLine for a Free Mortgage Review.
5) Spring cleanout?
Getting rid of clutter can really make your house feel more spacious. Keep furniture to a minimum and get rid of things that you do not need. The thing to remember is that it need not cost a fortune to improve your home and you can add some real value to your property at the same time. Good luck with the Spring cleaning!
Stephen Hamilton / http://www.mortgageline.ie/
For great value Mortgages, Life Assurance, Home Insurance, Redundancy Cover and Travel Insurance log on to http://www.mortgageline.ie/
Increasing numbers are turning to a spot of home improvement. Improving your home is a great way to add value to it, as well as increase the equity on your mortgage. The great thing is, there has never been a better time to carry out home improvements. Many home retailers are currently slashing their prices(some are having closing down sales), while builders are becoming increasingly desperate for work, giving you a better chance of grabbing a bargain.
So let's take a look at how you can improve your home without breaking the bank.
1) A splash of paint
It's simple but a fresh lick of paint on the walls can really make a difference. You don't need to be an expert to do it and it doesn't have to cost a fortune. And if you're thinking paint alone is a little dull, you could always use stencils to add snazzy designs! However, if you're still planning to sell your home in the not too distant future, stick to neutral colours. Magnolia can be a little boring, but its usually cheaper and will make your house more attractive to buyers.
2) Revamping tactics
If your kitchen is starting to look a little dated or grubby, you don't have to pay out stacks of money for a brand new one. Instead, why not replace the unit doors and fit new handles yourself? You can also pick up some new kitchen worktops pretty cheaply. IKEA opens in Dublin soon and will have a great selection of low cost kitchen products. Alternatively, you could simply repaint the units in a colour of your choice. You can buy specialised paint to do this -- just make sure you fully clean the surface before painting so that it gives it a nice clean finish.
3) Bag a builder bargain
If there's a fairly large job to be done and your own DIY skills aren't up to it, you'll need to hire a contractor. Usually, the trouble with this is the expense. But in today's climate, you might be pleasantly surprised. In fact, because many builders are currently finding work harder to come by, they're more likely to offer you a competitive deal. So it's worth shopping around and obtaining as many quotes as possible -- at least three anyway -- to ensure you're getting the best deal. What's more, once you've got a range of quotes to hand, you can use the lowest quote as a bit of a bargaining tool to see whether any of the builders will reduce their offer any further.
4) Get a better mortgage
Mortgage rates have dropped dramatically over the last few months meaning that now is a good time to think about switching lenders to see if you can get a better deal. And if you have some equity in your home you could think about borrowing a bit extra to do those home improvements or pay off expensive loans to get your finances in order.
You can apply online with MortgageLine for a Free Mortgage Review.
5) Spring cleanout?
Getting rid of clutter can really make your house feel more spacious. Keep furniture to a minimum and get rid of things that you do not need. The thing to remember is that it need not cost a fortune to improve your home and you can add some real value to your property at the same time. Good luck with the Spring cleaning!
Stephen Hamilton / http://www.mortgageline.ie/
For great value Mortgages, Life Assurance, Home Insurance, Redundancy Cover and Travel Insurance log on to http://www.mortgageline.ie/
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