First time buyers and the mortgage insurance policy
- 23RD JULY 2007
The UK financial industry has been having well documented problems getting individuals onto the housing market in recent months as a result of inflated prices and poor mortgage rates. The added cost of a mortgage insurance policy could stretch some households to the limits of their budget.
First time buyers are especially torn when it comes to the mortgage insurance policy. Whilst it makes good financial sense, they are sceptical about whether it would ever work for them considering the costs.
The average mortgage insurance policy can add thousands on to a mortgage if it is taken out with the same high street provider or bank. When added to the mortgage sum, a mortgage insurance policy is extremely hard to cancel and a homeowner will in a lot of cases also be charged interest as a result.
Extra costs may also put first time buyers off. Mortgage brokers add to the cost of taking out a mortgage and putting younger people off owning their own home. They insist on a mortgage insurance policy to cover their own time and effort. For some this means further commission, but that should not put buyers off seeking out a good mortgage insurance policy for themselves.
Protection specialists British Insurance offer a standalone policy that is available on a monthly premium basis and can thus be altered to suit your needs and circumstances. They also offer a comprehensive mortgage insurance policy for up to 40% less than high street providers and so are well worth looking at!
