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020 8460 8460info@chancerymortgage.co.uk 17 Langdon Road 
Bromley 
Kent BR2 9JS 
 


We will advise and make recommendations for you after we have assessed your needs for:

For mortgages, we can offer a fee based arrangement or can be paid commission direct from the mortgage company on completion of the contract.

Your options regarding our remuneration structure will be fully explained at our initial discussions.

We are paid commission direct from the life company once the policy has been placed on risk. Details of the commission paid to us will be highlighted to you within the relevant key facts illustration prior to any transaction proceeding.

If you or we propose to operate on a fee basis, we will agree its basis, frequency and method with you in writing before we carry out any chargeable work.

You will not receive advice or recommendations from us for Private Medical Insurance and Buildings & Contents Insurance. We may ask some questions to narrow down the selection of products that we will provide details on. You will then need to make your own choice about how to proceed.


Mortgages

Please note this is a generic guide, it is important to check the Key Facts Illustration for the particulars of any recommended mortgage.

What is a mortgage?

A mortgage is the name given to a loan secured on a property. It is usually used to buy the home although it is becoming increasingly popular for existing home owners to consider a new mortgage, to access a more competitive product or to raise additional capital for home improvements or other purposes.

A mortgage is a long-term loan and traditionally runs for a fixed period, typically 25 years. However, most mortgages are flexible enough to allow for early repayment or, if your circumstances dictate, the term can be extended beyond the original loan period.

What different types are there?

Although there are many different types of mortgages on the market, generally they can be split into two basic types:

Repayment mortgage: Under these arrangements you are required to make monthly payments which are made up of part capital and part interest. The structure of the repayment method normally means that during the early years of the mortgage, little capital is repaid. The rate of repayment accelerates over time.

Repayment mortgages are normally quite flexible and it is sometimes possible to extend the term of the loan but only with the written permission of the lender. Also, it is normally possible to increase the capital repayment of the loan so decreasing the term, allowing you to repay your debt early.

Interest only: These arrangements do not require that you make capital repayments until the end of the loan. The monthly payments to the lender are made up entirely of interest on your outstanding debt.

In order to repay that debt then normally you would use an additional savings vehicle. One that enables you to build a fund of money from which you can clear the mortgage at the end of the agreed term. The lender may also expect you to have sufficient life assurance cover to enable your next of kin to repay the debt if you die during the term of the mortgage.

Please note that the above method is not guaranteed to repay your mortgage at the end of the mortgage term.

Further differences occur in the way interest is calculated on your mortgage.

Tracker: The interest rate you pay rises and falls in line with the Bank of England's base rate, but it may also have a ‘collar’, i.e. it will not fall below a certain rate.

Fixed: The interest rate is fixed for a given time at the start of your mortgage normally from 1 to 5 years although this can be longer.

Discounted: The lender gives you a discount on its standard variable rate for a given time.

Capped: The interest rate is guaranteed not to rise above a certain percentage, but it may also have a ‘collar’, i.e. it will not fall below a certain rate. However, there is normally a fixed timescale for the capped rate period.

Flexible: Some lenders offer you the option to increase or decrease your monthly payments (and sometimes even the opportunity to stop them altogether for specified periods). This flexibility is designed to assist you to manage your cash flow. Many flexible mortgages offer daily or monthly calculation of interest, and when compared with a more traditional mortgage could reduce the overall amount of interest you pay throughout the loan term.

Offset: A mortgage that combines current, savings and mortgage accounts under one arrangement. The mortgage element will still be a repayment, interest only or flexible loan, but the amount of money in your current and/or savings accounts are taken into account and considered when the lender calculates the interest due on your mortgage.

For example if you hold a savings account with a balance of £1,000, this amount will be considered by the lender when calculating the interest due by effectively reducing the total mortgage by an amount equal to your savings.

Standard Variable Rate (SVR): The interest rate you pay rises and falls in line with the Bank of England's base rate.

With a standard variable rate mortgage your interest payments are likely to rise or fall every time there is a change in the Bank of England's base rate. However, your lender may not pass on the change in base rate immediately. This can be to your disadvantage if the Bank of England base rate falls but the interest rate you are paying doesn't.

Different lenders will offer you different incentives to take out a mortgage with them, for example:

Cashback: on completion of your mortgage, you receive back in cash a payment of some or all fees: the lender pays for your survey, or your legal fees, or will meet the stamp duty charges. The cash back could be paid as either a percentage of the mortgage amount or as a lump sum.

Some lenders will charge you a penalty if you redeem your mortgage early, or want to pay off a part of it.

Please note where immediate offers such as these are provided it is common for lenders to charge you a penalty should you repay your mortgage during the early years of its term.

There may be a fee for mortgage advice, the precise amount of the fee will depend upon your circumstances but we estimate that it will be 0.35% of the loan amount. This is subject to a minimum fee of £599.00

Your home may be reposessed if you do not keep up repayments on your mortgage

The Financial Services Authority does not regulate some aspects of buy-to-let arrangements

Protection

Please note this is a generic guide, it is important to check the Key Facts Document for the particulars of any recommended policy.

There are many variations of the type of protection available; if you have any questions about the type of protection which can be arranged to best suit your needs, please contact us.


Life Assurance

To receive a quote for Life Assurance click HERE

Level Term Assurance (LTA)

The sum assured is set at the outset of the policy and remains at that level throughout the term of the policy.  The sum assured is only payable on death (sometimes on the diagnosis of a terminal illness) before the end of the term of the policy.

Decreasing Term Assurance (DTA)

The sum assured reduces each year (or more frequently) by a stated amount.  The amount of life cover will reduce to nil at the end of the term.  These policies are commonly used to cover repayment mortgages.  Although the cover decreases each year the premiums will remain constant.

Family Income Benefit (FIB)

The sum assured provides an annual income payable monthly in arrears. These policies are commonly used to protect your family and provide income should you die during the term of the policy. Income is payable to the end of the plan.


Critical Illness Cover (CIC)

Critical Illness insurance pays out a tax-free lump sum upon diagnosis of one of a number of illnesses e.g. certain heart conditions, cancers, loss of limbs.  It is important to check the Key Features of your selected insurer for the definitions of these and other conditions that may be covered.

Critical illness insurance can be arranged on a stand alone basis or combined with a life insurance policy.


Income Protection (Permanent Health Insurance (PHI))

To receive a quote for Income Protection (Permanent Health Insurance) click HERE

This policy pays an income when accident or illness prevents someone earning a living by carrying out their normal occupation.  The term of the PHI policy cannot normally extend beyond the person’s intended retirement age.  Benefits commence after a set deferred period.  All benefit payments are currently tax-free.  The maximum levels of income benefit are typically 50%-65% of pre-disability earnings.  Income will be paid until return to work, recovery, cessation of policy or death.


Accident, Sickness and Unemployment (ASU)

This type of protection can provide a regular income if the insured is unable to work due to accident, illness or unemployment.  Benefits are payable after a deferred period, typically one month and will be paid for a maximum specified period of one or two years, which will be defined at the outset of the contract.

Buildings Insurance

This insurance gives the insured financial protection for the structure of the property.  The lender will confirm the sum insured and will normally make it a condition of the mortgage offer that the property is insured at all times.  Many policies are index-linked, increasing the level of cover each year.

Contents Insurance

Although it is not a legal requirement to insure the contents of the property it is advisable to do so.  Contents insurance will typically cover your belongings against fire, theft, flooding and accidental damage.


Keyman, Shareholder or Partnership Insurance contracts

Keyman Insurance

This is a life assurance policy taken out by a company covering an employee's sudden absence from the business due to death or illness. 

By having Keyman Insurance in place the company could survive the financial loss of a key individual.  The money from the policy could be used to provide compensation for the loss in profits as a result of the keymans' death or illness.  This would allow the company time to train another employee to take over or recruit a new suitably qualified applicant.

Shareholder & Partnership

If a shareholding Director or Partner were to die or suffer an illness, the implications for your business could be very serious indeed. Not only would you lose their experience and expertise but consider too what might happen to their shares.

A written legal agreement gives the other Directors or Partners the right to buy the shares and gives the person to whom the shares have been passed, the right to sell those shares to the remaining Directors or Partners.

To protect against these eventualities happening, each Director or Partner should take out a life insurance policy to cover a specified amount.

Chancery Mortgage Services Ltd Registered in England No: 04249982
Registered office address as above
Chancery Mortgage Services Ltd is authorised and regulated by the Financial Services Authority