more S/O q's - insurance, mortgage protection etc

[nuttybud]

Hi
I just got a letter back from council with more forms to fill in and I have another one or two questions.

It still doesnt tell me how much I am approved for but it says that I have to state any savings I want to add to the loan and the source of it. Obviously that will depend on the amt I am approved for? It also says that if I subsequently want to add savings to the loan amount I will have to reapply!

Any "savings" would be from the scrounge of friends & family, how am I supossed to prove this is not a loan?

It says mortgage protection is covered within the repayments but it also states mortgage protection covers the mortgage portion only.
Does this mean that say if something happened and I was sick am I still liable for the rental part of the repayments? Do I have to take out additional mortgage protection to cover the other half?

For the insurance cover. I must cover for the rebuild cost against fire & flood and DCC must be included in the policy and indemnified against any claim. Is this a standard procedure or do I need to get specialist insurance/ broker to sort it out?

Can anyone who has already gone through this please give me the name of a solicitor/insurance/valuer they used.

Thanks again

 

[jenben1982]

Hi
I just got a letter back from council with more forms to fill in and I have another one or two questions.

It still doesnt tell me how much I am approved for but it says that I have to state any savings I want to add to the loan and the source of it. Obviously that will depend on the amt I am approved for? It also says that if I subsequently want to add savings to the loan amount I will have to reapply!

Any "savings" would be from the scrounge of friends & family, how am I supossed to prove this is not a loan?

It says mortgage protection is covered within the repayments but it also states mortgage protection covers the mortgage portion only.
Does this mean that say if something happened and I was sick am I still liable for the rental part of the repayments? Do I have to take out additional mortgage protection to cover the other half?

For the insurance cover. I must cover for the rebuild cost against fire & flood and DCC must be included in the policy and indemnified against any claim. Is this a standard procedure or do I need to get specialist insurance/ broker to sort it out?

Can anyone who has already gone through this please give me the name of a solicitor/insurance/valuer they used.

Thanks again

Did you go for Shared Ownership? The max loan amount is 210k with SDCC, so AFAIK you will need to find a property around that price.

They will need to see savings in the form of a savings statement from your bank or credit union etc, if you dont have any -a 'gift' letter may do (not too sure on this though) from someone in your family. It will state that so and so will be giving you x amount towards the purchase.
As far as I know with Shared Ownership all you need is a 1,900 deposit though.

In relation to the insurance, mortgage protection only clears the loan in the event of your death. Seperate insurance would have to be taken out in the event of you being unable to meet payments due to sickness or an illness (payment protection). Its a costly insurance and Iwouldnt bother with it.

Yes you will need to get buildings insurance, any insurance broker can help you with this. But - You havent even been formally approved with the council or even a mortgage so there isnt any need to worry about it just yet!

In relation to the Solicitor the council should be able to recommend you someone who is familiar with Shared Ownership mortgages and they might have a special fee package as well.