Buy life insurance today
At Yomo Finance, we understand the importance of protecting your loved ones and ensuring their financial security in the event of an unexpected circumstance. Our life insurance solutions are designed to provide you with peace of mind, knowing that your family's future is safeguarded. Contact our team in Aylesford today to discuss the options available.
What is life insurance?
beneficiaries upon your passing or if you are diagnosed with a terminal illness. This lump sum can be used by your loved ones to cover various expenses, such as:
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Outstanding mortgage payments
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Funeral costs
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Ongoing living expenses
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Educational costs for children
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Clearing outstanding debts and loans
Life insurance offers a financial safety net for your family, ensuring they can maintain their standard of living and avoid potential financial hardship during an already difficult time.
Factors affecting life insurance premiums
The cost of your life insurance premiums will depend on several factors, including:
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Age - Generally, the younger you are when you purchase a policy, the lower the premiums will be.
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Health and lifestyle - Factors such as pre-existing medical conditions, smoking habits, and occupation can impact the perceived risk and, consequently, the premium rates.
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Coverage amount - The higher the death benefit you require, the more expensive the premiums will be.
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Policy term - Longer policy terms typically result in higher premiums, especially for term life insurance.
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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.
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