What You MUST Know BEFORE choosing Buy To Let Insurance
Posted by Foreclosure Prevention in FinanceIt was 1989 and I decided to take the leap and buy my first property. As an estate agent I knew property was a good investment. So how could I lose? But there were no buy to let mortgages
Oh How The Mighty Fall
In 1990 it all started to go horribly wrong as high unemployment, high interest rates and over spending led to a financial crisis in the UK.When I applied for my mortgage (pre the financial crash) the bank manager asked me to come in for a chat.
He gently suggested insurance against possible repossession.
Choices
What choice did I have? He was saying all be it in a very friendly manner, take the insurance or you don’t get the mortgage.Did I want the house or to stay living with my parents? That’s right I accepted the bank managers offer and took the insurance.If it all went pear shaped I had the insurance as backup. So why worry.If you are curious about how I survived this mortgage nightmare go to mortgage insurance and read how much the insurance protected me.
You need to check carefully how much cover your insurance policy provides.When it comes to investments as big as your home it’s worth getting all documents checked by a solicitor.There are times when insurance can really save your backside. I just get really angry with companies that claim to offer great cover only to try all they can to get out of making payment when you call on them to help.If you want more advice why not check out the Hayes Mortgage Solutions website.
My 7.5% mortgage very soon increased to a massive 16%.It was so unexpected and really difficult to work through. I had to come up with a plan, a strategy but what?And when you have the very real possibility of unemployment too.
Simple! Stay Calm. Don’t panic. There’s always the back-up of the insurance and if I lose the house its just a house right, I can get another one when the market turns again. What’s the point in worrying about something I can’t control?
Find My Story Too Hard To Believe?
What do you do if repossession comes knocking on the door?Now I could have tried positive thinking to get me out of this mess but there’s positive thinking and there’s the debt that mounting while you practice thinking positive thoughts. All the time with one eye on the increasing balance. The negative balance. The one I would have to pay back. And who knows how long this will last. Could I actually end up bankrupt? At this point I’m still only twenty one.
The Mortgage Nightmare.
Needless to say many sleepless nights followed. And what sleep I did get was far from enjoyable. It almost seemed easier to stay up watching late night TV. Anything to keep from allowing my mind to visit my mortgage hell.
Quick Get Out The Insurance Policy – We need IT!
So did the insurance save me? Did it hell. The insurance it turns out was to protect the bank not me. It covered the banks cost of repossession my home! And that wasn’t the end of it either. Having repossessed my home the bank proceeded to sell it at auction far below market value. They then pursued me for the shortfall, some sixteen thousand pounds.
So I paid for the insurance and the bank got protection. You work it out.
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