The experts from Velvet Mortgages demystify complex questions in the mortgage and financial markets
From remortgaging to insurance, the financial world can be a complicated one, and it’s best to consult the experts before making any important steps. We find out the fact about some crucial areas from the experts at Velvet Mortgages.
• What is remortgaging and why might I need to do it?
Remortgaging means that you move from one lender to another, and you would usually do this to secure a cheaper fixed rate on your mortgage. Saving even a small amount of money on your mortgage can save thousands in interest over the years. However it’s important to speak to a professional before remortgaging, because there could be other hidden fees involved, so it’s important to get the correct advice and make sure it’s worthwhile for you.
• What is a bridging loan and why might I need one?
A bridging loan is a usually short-term loan which gives you more flexibility. They help you to complete on property transactions quickly, but they have risks attached, and are generally expensive. You should get expert advice when considering this type of loan to make sure you have an exit plan (a way to pay off the loan at a certain time), and understand all the risks and costs to weight up against the benefits.
• What is a secured loan and why might I want one?
Secured loans are secured against your home. They can be really useful and cost effective for larger amounts than a personal loan. They can be really helpful to borrow against your property without touching your original mortgage, if for example you have a great deal on your original mortgage or it’s interest-only.
• Could a Lifetime Mortgage be right for me? What are the pros and cons?
A lifetime mortgage could be right for you if you are over 55. You can release equity from your home without needing to prove income and can always stay safely in your home. The loan doesn’t need to be repaid until you go into long term care or die. There are risks with it, such as having to pay back a lot more than borrowed when the home is eventually sold, so it needs to be very carefully considered and discussed with professionals.
• How does a Buy-to-Let mortgage differ from a conventional one? How do I qualify for one?
A buy-to-let property is different to a residential property, which is your home that you live in. A buy-to-let property is one you buy to let out to rent, and is generally bought for investment purposes to receive monthly income as a profit, then also capital growth when the value of the asset increases. To qualify for a buy-to-let mortgage there are many different things to be considered, which a professional will be able to help you with.
This includes rental calculations of the property in question, your personal income, and many other factors.
You do not have to prove a high income to be able to buy a buy-to-let, and they can be a great investment.
You should discuss with a buy-to-let specialist to go through all the pros and cons.
• Why might I need buildings insurance?
Buildings insurance is a requirement of your mortgage. You must have this in place as a condition placed on you by your lender to protect the asset, i.e. your property, in the event of some kind of disaster. This is because your lender has a vested interest, having loaned money to you against the value of the property.
• What is Relevant Life and why might I need it?
RL is a way of setting up protection for your employees or directors to give them peace of mind against terminal illness or death. RL insurance is a cost-effective way to set up individual death-in-service benefits for staff in companies that are too small to consider setting up a full group protection scheme as larger organisations are able to do. Subject to meeting legislation, it is a tax efficient way of setting up life insurance to provide for loved ones on death.
• Why might I need life insurance?
It’s not something we like to think about every day, but we all know one day we won’t be here any longer. Life insurance is your last gift to your loved ones to make sure they are comfortable financially. It can settle any outstanding debts you may leave such as a mortgage or other loan, and offer enough provision to bring up your children comfortably so they don’t have to struggle with money as well as losing a parent. Leaving enough provision in place is like wrapping a safety blanket around your family.
• What’s the background to Velvet Mortgages?
50 year-old financial services expert, Joanna Streames from Great Oakley Northants, is the Founder and CEO of Velvet Mortgage and Insure Services.
Passionate about putting what she knows best into practice so that her clients can protect their world, Joanna has been described as “bold, blunt and brilliant” and “a financial wonder woman” by those who have benefited from her expertise and straight-talking advice. Working with everyone from company directors to families of every kind, Joanna, is on a mission to help families leave a legacy and protect what they’ve worked so hard for so that they gain financial wellness.
“I come from a hard-working, working-class family” says Joanna. “My parents separated when I was young and when I was just 19 years old, my mother tragically died and I found myself Guardian to my 12-year-old sister.
“We struggled financially because there wasn’t enough provision in place. The Will was a mess and legal fees involved took a large chunk of our inheritance leaving us penniless. I was totally responsible for our wellbeing and that included our financial wellness…
“Fast-forward into adulthood and I’ve been motivated my entire life to make sure that nothing like that should ever happen to the ones I love. As I progressed through my career, I began to see that it doesn’t have to be the case for anyone else either.”
• How can I find out more about Velvet Mortgages?
Have a look at our website which will tell you our story and why we care, also on social media:
www.vmis.co.uk
www.facebook.com/velvetmortgageandinsure
www.instagram.com/velvetmortgageinsure
– and you can call us on 01572 360022.
