Protecting you, your family & your property

Home & Protection insurance

There are several types of insurance that are worth looking into when you buy your new home. Mortgage Matters Direct helps you to understand your options so that you can make an informed decision when insuring your home.

For a little free, tailored advice, get in touch with our advisors. We’ll even set up your insurance policies for you when you’re ready.

Talk to one of our staff

Types of insurance we provide

Building insurance

Find out more

Contents insurance

Find out more

Life insurance

Find out more

Critical illness cover

Find out more

Income protection

Find out more

What is Critical Illness Insurance?

Critical Illness Insurance pays out a tax-free lump sum if you’re diagnosed with a serious illness or condition that’s specified in your policy. It’s often paid as soon as you’re diagnosed and will also pay out if you make a full recovery. The payment is often used to pay off your mortgage or to give you time to plan your next steps.

It can go towards paying for any necessary alterations needed for your home as a result of your illness – such as the addition of a stairlift or downstairs facilities. If this is combined with Life Insurance then only one of these policies will pay out. If you receive a lump sum from a Critical Illness policy following a cancer diagnosis for example, your next of kin won’t be able to claim your Life Insurance if you pass away, unless you have a separate policy.

Talk to one of our staff

Which conditions are covered
by Critical Illness Insurance?

● Major organ transplant
● Head injury
● Paralysis
● Loss of sight or hearing

● Certain cancers
● Strokes
● Heart attacks
● Parkinson’s Disease

Other illnesses, injuries and conditions can also be covered, depending on the policy or provider.

Common Critical Illness exclusions:

Critical Illness Insurance will pay out even if you don’t die and make a full recovery. Insurers usually have exclusions on pre-existing conditions and may not provide cover if you’ve suffered from a particular disease or illness before.

Certain diseases may not be covered by your policy. Check which conditions are included before you decide whether this is for you.

Should I take out Critical Illness Insurance?

Critical Illness provides an extra safeguard if the worst should happen. Your mortgage can be paid off and, depending on the level of cover you take, you may also receive a tax-free lump sum on top of for other expenses.

Buy-to-Let mortgage

Buy-to-Let mortgages are designed specifically for landlords who are planning on letting their investment property out.

If you currently have a residential mortgage but are thinking about renting your current residential home out, you’ll need to switch to a Let-to-Buy mortgage. Even if you’re just thinking of taking in a lodger, you’ll need to let your mortgage provider know.

But rest assured, with us on board, switching to a Buy-to-Let mortgage couldn’t be easier.

Most ‘buy-to-let’ mortgages are not regulated.

Talk to one of our staff

Difference between a Buy-to-Let and residential mortgage?


Your property is underwritten

Unlike a standard residential mortgage, a Buy-to-Let mortgage is primarily underwritten on the property itself and not the borrowers’ income. The maximum you can borrow is related to the amount of rental income you’d expect to receive – so the property’s location, size and its amenities will all be looked at before a final loan amount is offered.

That being said, most mortgage providers will only lend to individuals who earn at least £25,000 a year and usually have an upper age limit.


Higher deposit and fees

The minimum deposit for a buy-to-let mortgage tends to be a little higher than average – with 25% of the property’s value being quite normal. As well as this, mortgage providers usually charge slightly higher fees for a Buy-to-Let mortgage – however, this will vary from lender to lender.


Usually interest only

Most Buy-to-Let mortgages are interest only – which means that you only pay the interest each month and the capital in full at the end of the term. Take a look at our mortgages page for more information about interest only mortgages.

New Buy-to-Let tax rules

Tax relief for Buy-to-Let mortgages are gradually being phased out. In the 2018/19 tax year, you’ll be able to deduct 50% of your costs from your rental income before tax is due. However, that will fall to 25% in 2019/20 then in 2020/21, you won’t be able to deduct any costs.

As well as this, any rental income exceeding your mortgage interest payments and certain allowable expenses are subject to Income Tax.

If you later sell your Buy-to-Let for a profit, it will be subject to Capital Gains Tax if in excess of the annual threshold.

Setting up a business to buy property

Landlords structured as a limited company are exempt from these new tax rules and instead will continue to pay corporation tax on their profits. Bear in mind that your property will still be subject to stamp duty.

Setting this up is easy when you have the right help. Your first step would be to set up special purpose vehicle in order to buy the property. You can do this yourself online but remember to select the correct SIC (Standard Industry Classification) code which relates to letting property. Alternatively, you can arrange for an accountant to do this for you.

Is buying property through a limited company for me?

Depending on your situation, this may be a more cost-effective option. However, bear in mind that this is not for everyone and it could lead to further implications down the line.

For more advice, tailored to your own situation, speak to one of our mortgage advisors.

Talk to one of our mortgage advisors

What is a Let-to-Buy mortgage?

If you want to keep your main home but let it out in order to purchase your new home, you can switch from a residential mortgage on to a Let-to-Buy mortgage. With a Let-to-Buy mortgage, you’ll often raise money from your residential property to help buy your new home. You’ll then arrange a residential mortgage on a property you’re moving to and a Let-to-Buy mortgage on your previous home, so you can rent it out.

This is ideal if you’re not quite ready to say goodbye to your old home – for instance, if you’re moving in with a new partner and want to still have the security of your previous property, or you just want to keep it as an investment.

As you can imagine, a Let-to-Buy mortgage can sometimes be tricky to arrange but with our help, it needn’t be such a headache. Speak to us about Let-to-Buy mortgages today and we’ll have you set up in no time.

Talk to one of our mortgage advisors

Smiling Woman
facebook logo Follow us on Facebook
youtube logo Subscribe to us on YouTube