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Choweree House, 21 Boutport Street, Barnstaple, Devon EX31 1RP | (Tel) 01271 344300 | info@miltonpj.net
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    Philip J Milton & Company Plc provides a well established and very competitively priced "direct instruction" share dealing service.

     

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    It is estimated that 65% of the UK population does not have a valid Will. For those, the law decides how your Estate is distributed under “Rules of Intestacy” meaning that your assets are unlikely to be distributed as you wish upon your death, not even recognising an unmarried partner, for example. Do not delay making a Will! (This service is not regulated by the FCA.)

     

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Weekly Column

Mortgage Debt – Are You Adequately Insured?

1 June 2017

Currently 11.1 million households in the UK have a mortgage secured on their property and according to figures from The Money Charity, the estimated average outstanding mortgage balance was £119,937 in January 2017. However, the latest figures from the Association of British Insurers (ABI) and Group Risk Development (GRiD) reported that life insurance claims paid out in 2016 had an average value of only £75,000. This demonstrates that many households are not fully insuring their mortgage debt, which could leave their loved ones struggling to repay the mortgage on death.

When applying for a mortgage, lenders are required to state the importance of ensuring the mortgage is adequately protected by ensuring that a life and or critical illness policy is in place to repay the full outstanding balance. However, some are choosing not to fully protect their mortgage, which could be due to factors such as affordability or thinking it is not necessary as it will not happen to me! Also, those applying for further borrowing in the future do not always insure the additional loan. When reviewing and increasing your level of mortgage and borrowing you should also review any existing protection policies to ensure you have adequate provisions in place to repay the debt on death. By not having sufficient cover in place could result in your family struggling financially and could even result in them losing their home at a time when they may already be suffering.

Of course, self-insurance is possible too by saving into Pensions and ISAs as these can be inherited on death and they should therefore be taken into consideration when assessing the level of cover required.

If you are concerned that you do not have sufficient life or critical illness in place to repay your mortgage and other debts, please do contact one of our highly qualified Advisers who will be able to review your situation and provide suitable recommendations to protect your family.

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Top 100 Advisers

We have made it again into New Model Adviser’s top 100 advisory firms across the Country. See:- http://goo.gl/eU44LS Yes, they have mis-spelt the name but never mind!  It is a great accolade to be amongst this esteemed bunch and reassures clients, staff and prospective clients alike that they are dealing with a Firm which has some dependable substance behind it and in our thirtieth anniversary year too.

 

 
Founded in 1985, Philip J Milton & Company are delighted and proud to offer a fully independent financial and investment planning service and we advise upon all aspects of clients’ financial affairs.

The Financial Conduct Authority does not regulate some areas mentioned on our web site including: Buy to Let Mortgages, Claims Management Activity, Taxation & Accountancy, Probate Administration and Will Writing.

Financial services complaints we cannot settle may be referred to the Financial Ombudsman Service; www.financial-ombudsman.org.uk 0800 023 4 567. Details of our complaints procedure are available via the documents tab above.

Risk Warning - Stockmarket investments can offer income through the payment of dividends and interest and good opportunities for capital appreciation over the longer term. By this, generally we mean periods in excess of five years, preferably much longer. However, we can never promise you particular returns, especially in the short-term. At any point in time but especially in the short term, your capital could be worth less than the original amount invested as some of the selected holdings may fall in value, regardless of expectations at the time of acquisition. We may also invest in funds that hold overseas securities. The value of these investments may increase or decrease as a result of changes in currency exchange rates. Returns achieved in the past cannot be relied upon to be repeated.

Philip J Milton & Company Plc is authorised and regulated by the Financial Conduct Authority.
Philip J Milton & Company Plc is entered on the FCA register (http://www.fca.org.uk/register) under reference: 181768.
# Registered Office: Choweree House, 21 Boutport Street, Barnstaple, Devon EX31 1RP
Registered and Incorporated in England number 3233275 | VAT number 682 2544 28
A list of the Directors is available from the registered office

 

Copyright © Philip J Milton & Company Plc - 2016