Mortgage Support Misery For Unemployed

As a result of the emergency budget on 22nd June 2010 thousands of those unlucky unemployed who reply on the state to provide a roof over their head will have more financial misery as a result of the changes that will take effect on how much of their mortgage payments are paid for by the department of work and pensions (DWP).

The new formula will used to calculate how much support they will get each month is based on an average of the Bank of England’s monthly Average Mortgage Rate (found on their website under “statistics” then “Bankstats” Table G1.4 under column “HSDE”). This rate will only change when the Bank of England publishes an average rate that differs from the standard rate by 0.5% or more.

Currently this rate is 3.67% (set from Apr 2010).

Interest rate support will be based on the lower of this rate or the actual rate you have on your mortgage. For the unlucky 110,000 people who on a higher rate you will have to fund the shortfall in the mortgage payments yourself or more likely accumulate arrears and charges and a tarnished credit profile.

If you are on a higher fixed rate or standard variable rate contact your lender and find out if you have any cheaper alternatives. Although you should consider interest rates movements when they happen are likely to be upwards which would reduce the amount of shortfall you may have to find each month if you locked into a fixed rate. Switching to a tracker could make your position worse in a market where rates are increasing. Not to mention DWP may alter the calculation again.

There are many unemployed borrowers suck on lenders standard variable rate. A prime example Northern Rock with a rate of 4.84% with no option to switch to a cheaper rate even if they were supporting their own mortgage so those dependent on the DWP will incur arrears and charges. With new borrowing at a all time low homeowners are being placed in a very venerable position indeed with far reaching consequences which will damage and limit their borrowing capacity in the future.

And if you think being registered as disabled will help your cause, you will of course be wrong the government has a mandate to reduce public spending and are doing just that.

Homeowners should therefore take note covering your mortgage monthly expenses and income has never been so important so consider your own “what if?” scenario’s and ensure your not left in a poverty trap.

Income Protection

Visit our website and obtain an instant quote for Permanent Income Protection (provides a regular monthly income should you be unable to work as a result of any sickness or accident)

Unemployment Insurance

Compare unemployment insurance on our website www.quoteme4.co.uk provides a monthly benefit should you be made unemployed or redundant.

Please contact me if you have any questions on this article or about income protection and redundancy insurance 0800 0226571

Unemployment / Redundancy Insurance Arn’t They The Same?

Considering protecting your income or mortgage should you be made unemployed?

You could be forgiven for thinking when comparing two policies one covering unemployment and another covering redundancy they cover the same thing.

But they don’t the terminology used for the cover should be read carefully along with any description of the terms offered within a policy.

A policy covering redundancy would NOT trigger a valid payable claim should your employer end your contract of employment unless you were involuntarily made redundant. Where as a policy covering unemployment would pay if you were made  involuntarily redundant or if your employer ended your contract of employment through not fault of yours.

Therefore a policy offering unemployment insurance offers a higher level of protection than a policy covering redundancy.

Go to our main website to compare over 35 income protection policy quotes www.quoteme4.co.uk

Insurance Websites Need to be Fair

The ever more frequent searches on the web for insurance is difficult at best. But the healthy competition has placed a cloud as some websites employ misleading tactics in a strategy to win over your business.

Web pages offering Mortgage Payment Protection (MPPI) is a prime example, as well as misleading claims on the product pages stating they compare 100’s of MPPI products when clearly they don’t as there not that many to compare in the whole market place.

Other strategies employed include awards with no credibility or value, and with some awarded with the so called  independent expert judges being the award recipient and on the judging panel.

If you plan on making a buying decision based on a websites awards take another 10 minutes to Google it and check the validity of the award and the criteria it was awarded for. As it maybe just a fake or irrelevant to your purchase or awarded by a panel who maybe respectable but what is there background of expertise?

Many of these insurance websites with pointless awards tend not to include Defaqto Star ratings, which is industry recognised as providing information used for comparing all types of financial products. Their tools are also used by independent financial advisers to compare similar products and provide advice.

More information http://www.defaqto.com/

For independent quotes on  insurance visit http://www.QuoteMe4.co.uk