Set up income protection today
At Yomo Finance, we understand that your ability to earn an income is one of your most valuable assets. That's why we offer comprehensive income protection solutions to safeguard your financial well-being in the event of an illness or injury that prevents you from working.
What is income protection?
Income protection is an insurance policy that provides a regular, tax-free income if you become unable to work due to an illness or injury. This income can be used to cover various expenses, such as:
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Mortgage or rent payments
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Household bills and living costs
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Childcare expenses
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Medical bills and treatment costs
By providing a replacement income, income protection can alleviate the financial strain and allow you to focus on your recovery without worrying about meeting your ongoing financial obligations.
Key features of income protection
At Yomo Finance, our income protection policies offer a range of valuable features, including:
Tailored coverage - Choose the level of coverage that suits your needs, typically ranging from 50% to 70% of your gross income.
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Flexible payment periods - Select the payment period that aligns with your financial goals, such as until retirement age or for a specified number of years.
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Deferred periods - Opt for a deferred period (also known as a waiting period) that suits your circumstances, ranging from a few weeks to several months before the benefit payments begin.
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Guaranteed premiums - Your premiums are guaranteed not to increase during the policy term, providing you with financial stability and predictability.
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Indexation option - Consider adding an indexation option to your policy, which increases your benefit payments annually to keep pace with inflation.
Eligibility and underwriting
To qualify for income protection, you typically need to be employed or self-employed and meet the insurer's underwriting criteria. The underwriting process involves assessing your age, occupation, health history, and lifestyle factors to determine the appropriate premium and coverage levels. Our team of experienced insurance advisers will work closely with you to understand your unique circumstances, income needs, and financial goals. We will guide you through the process of selecting the most suitable income protection policy, ensuring that you and your loved ones are adequately protected in the event of an illness or injury that prevents you from working.
Here’s what our customers have to say
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How much can I borrow?A typical mortgage applicant can expect to borrow four and half times their annual income. This should not be affected by your employment type unless your income is low or you have a poor credit score.
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What deposit will I need?There is no specific deposit requirement needed by self-employed applicants and the minimum deposit usually needed for a standard residential mortgage is 10%. That being said, with a short trading history, you will increase your chances of securing a mortgage if you are able to offer more than the minimum deposit requirement. This can also give you access to more competitive mortgage rates.
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Do I have access to the Help to Buy scheme if I’m self-employed with one years’ accounts?All of the government home ownership schemes were created to help those applicants who would struggle to get a mortgage under normal circumstances. This extends to self-employed applicants and, although there will certainly be less availability if you have fewer years of accounts available, Yomo Finance will be able to help you. All of the government home ownership schemes were created to help those applicants who would struggle to get a mortgage under normal circumstances. This extends to self-employed applicants and, although there will certainly be less availability if you have fewer years of accounts available, Yomo Finance will be able to help you.
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What documentation is needed for a self-employed mortgage application?Tax returns, business accounts and possibly a reference from an accountant. This all depends on whether you are a sole trader, a director of a Limited Company or are in a partnership.
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How many years of accounts do I need to provide?Usually, two to three years of accounts. However, you can get a mortgage with one year's books.
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Can I get a mortgage if I am a contractor or freelancer?Yes, but you may need to provide more evidence of income stability. Typically you would need 12 months history.
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How do lenders assess self-employed income?They typically look at your average income over the past two to three years.
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What can I do to improve my chances of getting a mortgage as a self-employed individual?Keep thorough records, pay your taxes on time and maintain a good credit score. You should also limit the amount of expenses you put through in order to maximise your income.
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Are there specific lenders that specialise in self-employed mortgages?Yes, some lenders are more flexible with self-employed applicants.
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How does fluctuating income affect my mortgage application?Lenders prefer stable and predictable income but may consider averages.
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What is the impact of a limited company structure on getting a mortgage?Your income may be assessed differently, focusing on salary and dividends.
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Are interest rates higher for self-employed mortgages?They can be, depending on the perceived risk by the lender but most do not charge higher interest rates for self-employed applicants.
