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What is a Cashback Mortgage?

Cashback Mortgage Advice in Sheffield

There are many different types of mortgages available, and most of them are entirely different. In this article, we will talk about the cashback mortgage and how it works.

Does it benefit you in the long term or short term? How does it compare to my other mortgage options in Sheffield? Let’s take a look and answer the most frequently asked questions regarding cashback mortgages.

Firstly, if you prefer to watch our moneymanTV video on cashback mortgages, feel free to watch it below. As a Mortgage Broker in Sheffield, we receive many questions about cashback mortgages, so mortgage advisor and our managing director Malcolm ‘the Moneyman’ decided to make a video to make cashback mortgages easier to understand:

What is a Cashback Mortgage?

Cashback mortgages are pretty self-explanatory. To put it simply, after paying off your mortgage or after finishing your mortgage term, you will get some money back.

The sum you get back gets based on a percentage of what you have borrowed. It usually’s something small like 1 or 2%. Some lenders like to have a fixed price in the contract. Even if you have a long mortgage term, this is a fixed amount, and it will not increase over time.

Will a Cashback Mortgage benefit me?

Cashback mortgages come with both advantages and disadvantages. For example, some Cashback Mortgages might come with a free property valuation or some fringe benefits.

Cashback Mortgages can be very attractive to customers that are borrowing lower mortgages. You will get some money back plus some benefits on the side. If you are offered a reasonable percentage on your Cashback Mortgage, you should consider taking it up as it may be worth it in the long term.

The only real disadvantage to a cashback mortgage is that they usually come with high-interest rates.

Different Types of Mortgages in Sheffield

Compared to other mortgage options available, Cashback Mortgages are not the most popular. However, they are still worth considering. We still see customers at Sheffieldmoneyman looking for Cashback Mortgages, and they are a great backup option if you don’t qualify for your first choices.

If you want a more in-depth viewpoint, be sure to book your free mortgage appointment online or give us a call To speak with a Specialist Mortgage Advisor in Sheffield. Our team will be more than happy to explain the benefits of taking out a Cashback Mortgage and why they could be a suitable option for you.

What are The Different Types of Mortgages Available in Sheffield?

Mortgage Advice in Sheffield

At the start of your mortgage journey, you will come to realise there is a range of different types of mortgages. 

Whether you are a First Time Buyer looking to get onto the property ladder, thinking of Moving Homes in Sheffield, or your term has ended, and you want to know your Remortgage options. Understanding the different types can help find you the most suitable choice that fits within your circumstances when living in Sheffield. 

This article will feature a comprehensive list of the most popular mortgage types available to most customers when looking into their options along their mortgage journey.

For more information regarding these types, please book your free mortgage appointment online today to speak to one of our expert Mortgage Advisors in Sheffield. Our advisors are on hand seven days a week, ready and waiting to try their very best to help you with your mortgage scenario.

What type of mortgage to choose?

Something to contemplate when buying a property is the type of mortgage you take out. The most suitable mortgage for you will depend on your circumstances, plans, and whether you choose to live in or rent out the property. Feel free to use one of the jump links below to go to a specific spot in the article;

Fixed-Rate Mortgage

A fixed-rate mortgage is when your interest rates are on a fixed agreement between you and the lender. This fixed payment can span over a few years. Most buyers and owners usually opted-in between 2 to 5 years or longer.

Choosing this option will lead to your mortgage payment will stay the same throughout this period, even though any economic changes such as interest and inflation, so you can rest assured that you will have no differences with your payment.

Tracker Mortgage

Unlike a fixed-rate mortgage, a tracker mortgage doesn’t have a set rate between you and your lender. But instead, the interest rate will alter depending on the Bank of England’s base rate so that interest rates can fluctuate at any time.

For example, if you are repaying your mortgage, and the Bank of England base rate is 2%, while you are tracking a 2% above base rate, this means the overall rate you will pay back is 4%.

Repayment Mortgage

A repayment mortgage involves paying a combination of interest and capital each month. Over time, the property will eventually become yours if you keep up to date on the mortgage payments.

This method can be described as the most risk-free way to pay back your capital to the mortgage lender. At the start of your mortgage journey, interest becomes your principal payment. If you have taken out a much larger term like 25, 30 or 35 years, your balance will reduce slower.

Later on in your mortgage term, your payment methods will change to paying off more capital than interest, and your balance will lower at a quicker rate.

Interest-Only Mortgage

An interest-only mortgage is a payment method that involves you only paying the interest per month. Whilst that sounds ideal, this means that the borrowed amount has to be paid back in its entirety by the end of the term.

Many Buy to Let Mortgages are seen to be on an interest-only basis. However, getting a residential property on an interest-only basis is nearly unheard of these days due to the complicated criteria that need to be met.

There are circumstances where this may still apply, with reasons including; downsizing your property when you’re older or paying back capital through other investments.

Lenders can be strict when offering these products, and the loan to values is a lot lower than in previous years.

Offset Mortgage

An offset mortgage is a blend of a conventional mortgage account with a savings account that runs alongside it. This mortgage type can allow you to be flexible by regularly paying in your offset account or withdrawing funds if needed. 

This is seen as the more appealing type of mortgage as it allows you to have a savings account opened alongside your main account. An example of this is if someone took out a £100,000 mortgage, but in your savings, you have £20,000. You can put this into your new savings account and pay the interest on the remaining amount, which would be £80,000. 

The potential option is to pay off your mortgage earlier if you keep your payments as expected. 

Capped Rate Mortgage

A capped rate mortgage involves the customer making repayments each month with a maximum interest rate like fixed-rate mortgages. However, this type has a restricted percentage so that you won’t be paying any higher than the agreed percentage. For example, if you’re capped at 5%, your rate will never go above 5%. 

This type can be beneficial if interest rates reduce, as your mortgage rate will follow this reduction. This should reflect in lower monthly mortgage payments.   

Flexible Mortgage

This type of mortgage allows you to be flexible with your payments and either underpay or overpay any amount. You can only underpay if you have overpaid the first time and have agreed to do this with your lender.

Overpaying your mortgage can be helpful if you want to pay your mortgage off early and pay less interest.

How to Approach Making an Offer in Sheffield

Mortgage Advice in Sheffield

First and foremost as a First-Time Buyer in Sheffield who is looking to make offers on a potential new home, you have to bear in mind that there will be lots of other possible buyers all looking to buy the same home.

Because of this, it is very important for you to make sure that you are as prepared as you possibly can be ahead of time. This helps to speed the process up and get you a higher chance of getting the offer accepted.

Something else that you should also remember is that you could be doing everything by the book, have a great credit score and everything saved, but if a cash buyer gets involved you’ll probably not be the one to get the property.

The reason that this is likely to be the case is that cash buyers are easier and quicker to take along through the process, as they won’t be needing a mortgage. Luckily for first time home buyers out there, you don’t tend to find a lot of cash buyers anymore.

Tips For Making an Offer on a Property

Get a Mortgage Agreement in Principle

Getting yourself an Agreement in Principle is major factor in the home buying process. Your AIP (as it is often shortened to) is a written statement of approval that is given by the mortgage lender to confirm that in principle, that subject to further checks later down the process, they are willing to lend you the amount you need for your property purchase.

It’s because of this that you are always better off having one of these to your name, as a home seller or estate agent will definitely want to know conclusively that you have the funds to go forward with the process, avoiding the possibility of both of your times being wasted.

Back during the COVID-19 lockdown periods in 2020, you were even required to have an Agreement in Principle in order for you to view a property, not just buy it. This was to restrict the amount of people viewing or making offers who weren’t in a position to proceed straight away.

As a reputable, open & honest mortgage broker in Sheffield and surrounding areas, we would always highly suggest getting prepared for your mortgage ahead of time and putting yourself ahead of other home buyers, by obtaining an Agreement in Principle as soon into your journey as you can.

We touched upon cash buyers at the beginning. Whilst they are few and far between these days, if and when you encounter one, you will be hard pressed to outdo them as they are probably more favourable to the seller of the home.

Even with that in mind, you may still find that having an AIP to hand will put you in a much stronger position against a cash buyer or any other possible buyers. In many cases, having an Agreement in Principle can be a difference maker.

By obtaining an Agreement in Principle, you are able to prove to the seller of the property in question that you are in-fact a serious buyer and have the necessary funds to proceed with the purchase.

You may also find yourself in a much higher position than other potential home buyers who maybe do have the ability to afford the property purchase, but have yet to obtain their own Agreement in Principle.

This is one of the many perks of speaking to a trusted mortgage broker in Sheffield like ourselves. Our dedicated and loyal team of hard working mortgage advisors in Sheffield will be able to obtain one of these within 24 hours of your free mortgage appointment (of which you can book in a time slot of your choosing, using our online appointment booking system).

Be Prepared to Negotiate with The Seller

Purchasing a property is all about negotiation. If your initial offer is rejected by the seller of the property that you are looking to buy, you will be asked about whether or not you would like to increase your price offer.

If you are firmly in the belief that the property is definitely worth the increase in price and you want to call it home, you may have to be prepared to spend more money than you had initially planned for.

Don’t be worried though if the seller declines your first offer, as this is something that has happened to lots of First Time Buyers in Sheffield over the years and they are still able to find a property for themselves in the future.

If your second offer also happens to be declined, you will most likely have to pay the asking price, something that you’ll have to be prepared for ahead of time. It’s here where it will benefit to do plenty of research beforehand.

Prior to making any offers on a property, you should always take a look around at the other properties in the local area and scout what their sales prices are on reputable property sale websites like Zoopla or Rightmove. This can help give a general idea of what to offer the property seller.

You should also check out the length of time that the property has been actively on the open market. If it is a newer listing, the seller may not be so willing to budge, whereas if it has been listed for quite a while, the seller may be more inclined to accept a lower offer.

If you come across houses that may have gone for lower amounts than the property is worth there is probably a good reason for it. There’s a chance it has possibly been repossessed, perhaps sold to at a discounted price to a tenant living in, or maybe an inter-family sale.

Speak to a Mortgage Advisor in Sheffield today

To gain any mortgage advice relating to this specialist subject, please feel free to get in touch and speak to one of our brilliant mortgage advisors in Sheffield today.

If you require any form of assistance when it comes to making an offer as a First Time Buyer in Sheffield or maybe would just like a mortgage advisor in Sheffield to guide you towards a fantastic deal, we’ll always be there to offer you guidance and support all throughout your process.

Our fast & friendly team of mortgage advisors in Sheffield are here to provide mortgage advice every day of the week, so book your free mortgage appointment online and make a start on your very own mortgage journey.

10 Factors to Help you Decide Where to Live in Sheffield

Moving Home Mortgage Advice in Sheffield

One of the critical factors when moving home in or around the Sheffield area is to consider where you are looking to locate.

If you are looking for that ‘dream home’, you also need an ideal location. It would help if you thought about what the area is like, what is there and what’s a priority.  

To help you get a better sense of the sort of place you would like to locate, we have compiled a list of the different factors that some First Time Buyers in Sheffield look for when trying to find their ideal home.

Are you looking to move to the countryside or the city?

It is essential to develop an idea of the type of area you would like to move in, as this is somewhere you will be living in for a good while, maybe even turning it into a family home further down the line.

If you are someone who enjoys being in the heart of it all, then city life is more suited for you. Otherwise, if you prefer a quiet life, living in the countryside might be more fitting.

In all areas, you will find pros and cons to either choice, so make sure to give it much thought and research the location before you get your heart set on a potential new home.

Public Transport in Sheffield

The transport links to and from your potential new location are essential factors to consider. For example, if you heavily socialise with friends or family, don’t work from home, go out shopping, you may need easy access to the necessary transport links. 

Not to mention each mode of transportation can vary in price depending on location and regular use. If you own a car, how long will it take for you to reach each destination? How much will fuel be? Where is the closest fuel stations?

Schools & Education

For those who have children, you should look at what nearby schools are available. After all, every parent wants to find the right school for their child. It’s essential to learn about the various schools nearby to determine which school is most suitable. 

If you don’t have any children now but are planning to for the future or have no plans at all, it may be beneficial to look it up, just to future proof yourself.

Nearby Facilities – What You Need Vs What You Want

There may be certain facilities you would like to have close to you when you plan on a place to live. We would recommend writing down a list and separating those that you need from those that you want.

An example of this would be looking to have a gym nearby, but doing so could mean that you have to live in an area without the essential shops you need regularly.

You probably need the shops more for your general living, so that might be something to prioritise, whilst finding an area somewhere close to a gym is an added bonus.

Friends and Family

The distance between where you might be living and where your family and friends currently live can influence where you locate. Some prefer keeping them close by, so they have that support network if they need it.

On the other hand, some prefer to keep to themselves with their loved ones at a distance, prioritising peace over going out and socialising with people regularly.

Is the property good value for money?

When making purchases, we all would like to know that we’re getting good value for money. Determining this for your home will depend on the area that you’re looking to move to.

Sometimes a better option is for you to look for a cheaper property to start with, though this might mean compromising various features or nearby facilities that you would’ve preferred to have had.

What is the community like?

The local community can impact your home living experience quite a bit.

As established, some prefer a quiet life. This might require having a few residents nearby who keep to themselves. Others like to have a thriving, busy community, generally where everyone is known and communicates regularly.

Speak to your estate agent and find out what the area is like. Community Facebook pages or locally run websites tend to be quite common these days, so they are worth looking up to get a rough feel for the area.

Career Changes

Some home buyers may be moving because of a new job or career plan. This is something we’ve heard from customers a lot and is a huge factor. You should review the distance between your new home and workplace.

If you will be working in a home office and only visiting the office sporadically, would you be okay with living a bit further out? What is the space like within the property? Is there even room for a home office?

Those who will be job hunting once they have already moved, do some research on the companies in the local area and compile a list of the leading employers to apply with.

Property Type

You will find a lot of different property types available to you across the open property market, with these varying depending on where you’re looking.

Some prefer end-terrace properties with a garden to enjoy, whilst others prefer a modern flat or studio apartment.

Make sure you have a good look at all the available options, undertake some property viewings and get a good idea of the type of property you would prefer to live in.

Local Developments

Any proposed local investment would probably be helpful to find information on, especially if you’re looking to build a life within that home and stay there for quite a while.

Online research will be the best port of call when looking to find any future investments. It’s important to consider whether these will be a benefit or a detriment to your lifestyle.

Again, those who prefer quiet country life might find their dream scenario turned into a nightmare if a significant new housing development is planned within proximity.

Mortgage Broker in Sheffield

Hopefully, you are now better equipped to find a place to call your home by reading our list.

When the time comes to make offers on property and get yourself a mortgage, get yourself booked for a free mortgage appointment. We would be happy to help!

We have a dedicated team of Mortgage Advisors in Sheffield available from early until late throughout the working week and weekend, subject to availability.

Whether you are a First Time Buyer in Sheffield or are Moving Home in Sheffield, we can’t wait to hear from you.

What is a Tracker Mortgage?

Tracker mortgage advice in Sheffield

Tracker mortgages are just one of the many different types of mortgages out there. Some mortgages will be more beneficial to you than others, it entirely depends on your personal and financial situation. Just because a Tracker Mortgage is perfect for someone else, doesn’t necessarily mean that it will be good for you.

As a mortgage broker in Sheffield, we always recommend that you do your research first prior to taking out a product. You need to make sure that it benefits your individual circumstances. If you get locked into a deal that isn’t right for you, you may have to wait until the end of your fixed term to switch products/remortgage in Sheffield. There may be an opportunity to switch deals if you are happy with paying a large fee.

In this article, we are going to focus on the Tracker Mortgage, looking at how it works and why it may be a good option for you. Feel free to watch our Tacker Mortgage YouTube video below:

What is a Tracker Mortgage?

When you take out a Tracker Mortgage, you’ll be tracking the Bank of England’s base interest rate percentage. This percentage will be used to work out your mortgage payments.

Usually, on top of the tracked percentage, your lender will add another percentage to slightly further increase your interest rate. The extra percentage of interest that they add is normally around 1%-2%. So, your interest rate should always be another percentage over the Bank of England’s.

How can a Tracker Mortgage help me?

Since a Tracker Mortgage tracks your interest rate percentage from the Bank of England, if their base rate is low, then your mortgage payments should be lower. Typically, their base rate lies around the 0%-1% mark, however, this will change month to month.

During the credit crunch crisis in 2008, the Bank of England’s interest rate shot right up. It even reached 5% at one point, which meant that customers were potentially paying their mortgage with a 6% interest rate. We all thought that a similar situation would happen again during the coronavirus pandemic in March 2020, although, this time the rates went down. If you had a Tracker Mortgage in this period, you’d be tracking the Bank of England’s base rate at 0.1%! At the time, you couldn’t take out a Tracker Mortgage as the rates were too good to be true. Lenders would be losing money if they kept handing them out.

A Tracker Mortgage can be a gamble sometimes. You’re depending on the economy performing well so that your base rate maintains its percentage. The base rate may fluctuate now and again, however, in most cases, it should stay at a similar rate.

Your mortgage options in Sheffield

There are lots of different types of mortgages, and some will be much more beneficial to you than others. It all comes down to your personal and financial situation.

If you want to find out more about Tracker Mortgages and how they work, feel free to get in touch with our brilliant team. If you want to discuss your other mortgage options, that’s completely fine too!

Our mortgage advisors in Sheffield have been helping first time buyers in Sheffield, home movers and people looking to remortgage for over 20 years now – we know what we’re doing.

Book your own free mortgage appointment online today and we can discuss all of your mortgage options in Sheffield.

How much deposit do I need to put down?

First Time Buyer Mortgage Advice in Sheffield

First time buyers, home movers, landlords and the self employed will always ask the same question when it comes to applying for a mortgage – “how much can I borrow?”.

The answer varies depending on your individual situation. For example, how much you can borrow could change depending on your credit score, income, bank statements and your personal situation.

Let’s take a look into ‘how much you can borrow for a mortgage’ and how things have changed following the credit crunch.

Historic rules when borrowing for a mortgage

Long before the credit crunch, credit scoring was non-existent and mortgages were manually assessed by your local building society manager. Then, during the 1990s, lenders started performing income assessments to provide a consistent approach across applicants.

Maximum lending caps were also introduced. This meant that customers couldn’t borrow more than three to four times their annual income. Scary to think that before people could!

Despite these lending caps in place, in the early 2000s, lender’s income multipliers grew more generous. This meant that more and more people were borrowing more than they can afford to pay back. Furthermore, some lenders were even allowing some of their customers to ‘self-certify’ their income with minimal/no background checks such as payslips.

Of course, all of this went very wrong. Lenders were lending to applicants that couldn’t afford to pay them back, therefore the market crashed and all of sudden, it became extremely hard to get a mortgage from 2008-2010. Lenders tightened their margins and created a cautious (over-corrected) lending environment.

Nowadays approach to how much I can borrow

In 2014, the Mortgage Market Review (MMR) was introduced. This initiative helped the market get back up on its feet; it brought a new set of guidelines for lenders to adhere to. The old income multiplier method was scrapped and replaced with new, more sophisticated affordability calculators.

These new affordability calculators provided a closer look into an applicant’s spending habits and net disposable income. This meant that the lender could have an in-depth look at your bank statements to ensure unaffordable mortgages were not granted as they were before the Mortgage Market Review.

There is still a “lending cap” in place at about 4.75 times your annual income but your expenditures are also analysed. For example, lenders seem to penalise low-earners and even things like gambling showing up on your bank statements can sometimes affect your chances of being accepted. Some take pension contributions as a fixed outgoing so would often lend, say a public sector worker with a big pension deduction less than a private sector and so on.

Mortgage Broker in Sheffield

If you are currently trying to work out how much that you borrow, we would recommend trying our online free affordability calculator or speaking to us for a more accurate measure. A Mortgage Advisor in Sheffield will research the market on your behalf and try to find a lender that will lend you the amount you need.

Before you take out a mortgage you should sit down with a First Time Buyer Mortgage Advisor in Sheffield and work out your finances together to ensure that the repayments feel comfortable to you.

The Main Reasons People Decide To Move House in Sheffield

Home Mover Mortgage Advice in Sheffield

There are many reasons why some may choose to move home. That said, this article will highlight some of the most popular scenarios that we have seen as a mortgage broker in Sheffield:

More Living Space

Some borrowers look at wanting to move home simply because they wish to live somewhere bigger. It makes sense, considering that some first time buyers in Sheffield look for a smaller property to start small and then move when their circumstances change down the line, i.e. ready to settle down and start a family.

Another option to making more living space is to raise capital through a remortgage to build an extension/conversion. This option is popular amongst growing families.

Others choose to remortgage for home improvements to raise their property value for when they sell it in the future.

Change of Scenery

We also hear that some wanted a change of scenery and looking to move to a different area. These will likely be first time buyers again as they usually have a restricted budget and settle for an affordable property for a reasonable price. The chances are that these borrowers now have a higher income coming in that they can afford to live in a more affluent area.

Not everyone considers schools as they may have not even thought about starting a family yet. Those who have started a family or are planning to will always factor in accessible education within the area when they are looking at where to move.

Family & Friends

Some look at moving closer to their friends and family. If you have children at a young age and both parents work full-time then it is more than likely that you will ask their family to help them out with childcare as private nurseries can be costly.

Buying Vs Renting

Those looking to get on the property ladder will always consider buying over renting. That said, when it comes down to costs, no matter if you are renting or buying, the monthly payments are roughly the same, depending on the area, but you need to save up for a deposit.

As we mentioned before, if you prefer more living space but do not want the hassle of moving, then book your free mortgage appointment today to speak to one of our remortgage advisors in Sheffield, who will help you find a great deal to raise money for home improvements.

Speak to a Mortgage Advisor in Sheffield

Why hesitate? Book your free mortgage appointment now to speak to a Mortgage Advisor in Sheffield. Our mortgage advisors can calculate your maximum borrowing capacity and give you a quote on your monthly payments.

Even if you are looking at remortgaging, you can get in touch today, and we can pass you on to our expert remortgage Advisor in Sheffield, and they will be able to answer all of your mortgage enquiries.

Tenants buying from landlords in Sheffield

Buy-to-Let Mortgage Advice in Sheffield

As a mortgage broker in Sheffield, we find that we get an ever-increasing amount of enquiries from tenants looking to buy from their landlords. This could be due to the fact that landlords are offering their tenants ‘first refusal’, which provides tenants a chance to buy the house before it goes onto the open market.

If you are wondering if your landlord may offer you the same chance to buy your rented home, it’s worth asking the question as they may be very willing to do so.

Why are so many Landlord selling their property to tenants?

Landlords selling their property to tenants has become increasingly popular over the years because the government cracked down on tax relief previously available on buy to let and some of those changes were introduced over a 4 year period. Property has always been viewed as a solid investment, so many decided to get through the tax changes as they have looked at their properties as a long-term investment.

Maintaining their investment over time is something landlords, old and new, find difficult. As a result, they look to sell up and leave the property market. In the circumstance where your landlord is looking to sell, then there is a possibility that they would sell to you as the current tenant because they will be aware of the number of advantages by doing this instead of the market. Some of these include:

  • Avoiding estate agents fees – Because they are going directly to you and not the open housing market, they are cutting the costs by avoiding any estate agent fees. It makes the landlord’s job easier and cheaper through having no advertising costs and no costs for undertaking viewings.
  • Loss of rent – A tenant going out their way to do property viewing is very unlikely, therefore, arranging this with a sitting tenant can become a problem for the landlord. Alternatively, some tenants decide to move out which creates a ‘rental void’ where there are no payments until someone else moves in. Therefore, selling to the tenant benefits the landlord as they keep a steady income all through until completion.
  • No refurb costs –The landlord will have to make the house look presentable should the tenant decide to leave. Things like a fresh coat of paint, minor repairs, etc. can build up costs. Whereas selling the property to their tenant cuts this cost as they know the tenant is already happy with the house they live in and are willing to buy it.

The advantages for the tenant buying the property they rent

Tenants aren’t the only ones who benefit from this, tenants do too. Advantages include:

  • Property Knowledge – You will have a broader understanding of the property because you have already lived in it. As well as this, you will know the condition of the house and if there need to be any improvements.
  • Quicker Process – There is no need to sort out a moving date, pack up belongings, or anything like that because you already live there.
  • No Chains – Because you already live there, there are no property chains to worry about. If you were in a property chain, you would have to wait for someone else to move before you can, but in this case, you are not waiting for anyone.
  • Money Saved – Sometimes, landlords may offer you some discount off the asking price. This isn’t guaranteed but, you may find yourself saving money if this is the case. From a landlord’s point of view, selling to you benefits them by cutting additional costs in an open market.

If you are in need of some help with your mortgage after agreeing with your landlord to buy the property, please get in touch with your buy to let mortgage broker in Sheffield today.

Critical Illness Insurance Advice in Sheffield

What is critical illness cover? | MoneymanTV

Here’s our handy guide to understanding the importance of critical illness insurance — what it is, how it works and how it varies from other types of insurances. 

What is critical illness insurance?

Critical illness cover is insurance that pays you a lump sum if you are diagnosed with a particular illness. 

Critical illness provides financial support for you and your family while dealing with your diagnosis, allowing you to concentrate on getting better without worrying about how you will be able to pay the bills.

How does critical illness cover differ from life insurance?

As we stated earlier, critical illness cover helps support you and your loved ones financially if you’ve been diagnosed with a particular illness listed in your policy.

When you are diagnosed with a critical illness covered by your policy, you will receive a lump sum payment, which could help financially with bills/mortgage payments should you be unable to work.

Critical illness insurance doesn’t payout if you pass away. That is where life insurance comes in.

In most cases, life insurance only pays out if you pass away during the policy term. Taking out life insurance can act as a financial safety net to support your family in the event of your death. 

How much cover do you need? 

Policies can differ in terms of which illness they cover, and this all depends on which insurer you choose. It’s good to speak to a protection specialist in Sheffield, as they can advise you on which policy goes well with your circumstances.

Critical illness insurance is a lot more expensive than life cover because you are more likely to make a claim.

That said, ensure you disclose any underlying health problems when taking the policy to avoid the risk of your claim being denied.

Our Critical Illness Insurance advice service

We aim to provide equal opportunity to all our customers when taking insurance out through ourselves.

Here at Sheffieldmoneyman, we offer all of our customers a free, no-obligation protection review, which involves us looking at any existing policies you have in place and assessing their suitability. 

From this, we will look for critical illness, income protection and other mortgage protection insurance products that will meet your needs, and we will try and personalise this to your budget.

Right to Buy Mortgages Explained in Sheffield

Right to Buy Mortgage Advice in Sheffield

Right to Buy, a mortgage option that can help you out when you’re wanting to purchase your council property.

The scheme was introduced to help individuals living in council properties purchase the property they’re living in. As a Right to Buy mortgage applicant, depending on how long you’ve lived in the property, you may receive a discount on the property that you’re applying for.

This discount is likely to be used as your deposit, meaning you can organise your remaining savings to help with the rest of the process.

You may also be able to borrow money if you want to make home improvements for the property. Some lenders may allow this, but you will need permission from the Local Authority beforehand.

The Right to Buy process

The Right to Buy scheme is simply a way to help council house owners take a mortgage out on the property they’re living in.

The first step to getting a Right to Buy mortgage is completing a RTB1 and finding out whether you’re eligible or not. If you’re unsure of how to do this, you can contact your local authority or a mortgage broker in Sheffield like us. We can help you get your right to buy process in Sheffield started.

Following this step, someone will arrange for a property survey to be carried out on your property. This means that the local authority can get a true value for your home and can work out the mortgage amount. You should also be able to access a Right to Buy discount on the property. This discount can be used for your deposit or used on solicitor, legal or arrangement fees.

Like the usual mortgage process, you’ll have to provide evidence that you can afford a mortgage and pass affordability assessments prior to being accepted. This is why it’s essential that you’re managing your finances well and being sensible with your money during the months leading up to your Right to Buy mortgage in Sheffield.

What fees are included?

When taking out a Right to Buy mortgage, you’ll come across similar fees and costs that applicants taking out a regular mortgage come across:

  • Lender’s valuation fee (some lenders do this for free, proving helpful to save on finances)
  • Lender arrangement fee (sometimes this isn’t necessary)
  • Mortgage broker’s fee (an experienced advisor in Sheffield will be able to support you through the process)
  • Solicitor’s and legal costs

Right to Buy in Sheffield

In summary, Right to Buy presents a great opportunity to council house owners and gives them chance to get onto the property ladder. A scheme like this is something to look into if you’re thinking of buying out your council property.

You will, however, have to live within the property for a certain amount of time before you can sell it, otherwise, you’ll be issued with a penalty. This will be in the form of repaying a sum of money linked to the original property discount generously presented at the start of the process.

If you can afford to purchase your council home and can compensate for new costs such as property damages and repairs, the scheme could be for you. Remember that an affordability assessment will be carried out before you take one out, so make sure that you’re as prepared as you can be.

Sheffieldmoneyman.com & Sheffieldmoneyman are trading styles of UK Moneyman Limited, which is authorised and regulated by the Financial Conduct Authority.
UK Moneyman Limited is authorised and regulated by the Financial Conduct Authority.
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