Case Study
Family Protection,
Wills and Mortgage review
Client Profile
Mr B, an HGV driver, and his partner, Miss T, an administrator, had recently purchased their home as tenants in common, ensuring each person's individual contribution to the property was protected.
As they prepared to welcome their first child, they wanted to review their financial arrangements and ensure their growing family would be protected should the unexpected happen.
Client Objective
To put appropriate estate planning in place, review their financial protection arrangements and ensure their mortgage continued to represent good value as their family circumstances changed.
The Challenge
Although the couple had structured the ownership of their property appropriately, they had not yet arranged Wills that reflected their new family responsibilities.
During our review, we also identified two additional areas requiring attention:
- Their existing mortgage interest rate appeared higher than was appropriate for their circumstances.
- They had not previously received advice on personal mortgage protection, leaving their family financially exposed should either of them die or become seriously ill.
As new parents, they wanted reassurance that both their family and their home would be financially protected within an affordable budget.
Our Mortgage Advice & Support
Following an initial consultation, we referred the clients to our specialist Will writing adviser to prepare Wills that reflected their wishes and their changing family circumstances.
We also completed a comprehensive review of their protection needs and recommended suitable life and mortgage protection solutions based on their priorities and agreed monthly budget.
As part of our advice, we explained the benefits of placing eligible protection policies into trust, helping ensure any future policy proceeds could be paid to their chosen beneficiaries as efficiently as possible.
To support their longer-term financial planning, we also arranged a forward-booked mortgage review so that their mortgage could be reviewed before the end of the current benefit period, giving them the opportunity to move onto a more suitable mortgage product when appropriate.
The Outcome
Mr Band Miss T now have a more complete financial plan that reflects their responsibilities as new parents.
Their estate planning, personal protection and future mortgage arrangements now work together to help protect their family, their home and each other's financial interests.
They also have the reassurance of ongoing mortgage review support to help ensure future opportunities to secure a more competitive mortgage are not missed.
Key Benefits Delivered
- Estate planning aligned with the needs of their growing family.
- Referral to a specialist Will writing adviser.
- Continued protection of each client's individual property interest through their tenants in common ownership.
- Comprehensive review of personal protection needs.
- Appropriate life and mortgage protection arranged within their agreed budget.
- Guidance on placing eligible protection policies into trust.
- Potentially quicker payment of policy benefits to chosen beneficiaries, subject to trust arrangements.
- Greater control over who receives policy proceeds.
- Potential inheritance tax advantages where appropriate, subject to individual circumstances and current legislation.
- Forward-booked mortgage review arranged before the end of their current mortgage benefit period.
- Opportunity to secure a more suitable mortgage product at the next review.
- Ongoing support providing reassurance as their family circumstances continue to evolve.
Summary
This case demonstrates the value of taking a holistic approach to financial planning. By considering the clients' mortgage, protection and estate planning needs together, we helped Mr Band Miss T build a financial plan that reflects their changing priorities as they prepare to welcome their first child. Alongside appropriate protection and Will planning, our ongoing mortgage review service will help ensure they continue to benefit from suitable mortgage advice as their circumstances evolve.
Like all Inform Mortgages clients, they continue to benefit from our ongoing mortgage review service, helping ensure their mortgage remains appropriate as their circumstances and the mortgage market change.