Can I ditch my home insurance to cut costs?
QIS home insurance a legal requirement? I’ve been buying it for years and never claimed, but money is a bit tight at the moment so I’m looking for ways to cut costs.
AYOU don’t have to have contents insurance, it’s your personal choice. But, if you have a mortgage it is a lender’s requirement to have appropriate building insurance in place.
I would always suggest you have some contents insurance cover in place just in case. If you have been with the same firm for a few years it may be worth comparing quotes as that might save you a bit of cash – there are no rewards for loyalty and insurers tend to raise prices for those who stick with them year after year, while offering the best prices to new customers.
Q
IS there a limit on the number of years I could delay taking my state pension? I need to continue working for a few extra years to help pay off our mortgage.
I’ve read somewhere that you can get a higher weekly figure by delaying taking your state pension. Is this true?
A
THERE is no limit on how much you delay taking your state pension, but you must defer for a minimum of nine weeks. Your state pension will then increase by the equivalent of 1% for every nine weeks you defer. This works out as just under 5.8% for every full year. Remember to factor in how much state pension you will miss out on over the period you delay. Even with the increase it will take years to make up that cash.
Q
I’VE bought my first property and a friend said I should take out a protection policy on my mortgage. But I thought payment protection insurance was a bad thing, what with all the refunds? A
THE PPI refunds were due to mis-selling. A lot of people were sold payment protection insurance on loans and credit cards without knowing they were paying for this cover, and some, the self-employed or retired, were not even eligible to make a claim on the cover. However, people do need to ensure they have their finances covered by the right type of policy. As a single person with a mortgage you should at least consider mortgage payment protection or income protection – so you could pay your mortgage if you were unable to work due to injury, illness or job loss. Q
I’VE been divorced for almost five years and can’t seem to get my lender to take my ex-partner’s name off my mortgage unless I take out a new deal. Although I am making repayments each month and can afford them, I don’t pass the stricter affordability criteria. Any advice?
A
UNFORTUNATELY, this is often the case when it comes to couples splitting up and one remains in the home. To remove your ex’s name, you would have to re-mortgage and then affordability would be calculated on your income alone. You may have to stay as you are until you pay off some of the loan or your salary increases.