When you first took out your mortgage, you probably considered your income, household budget and protection needs at the time. However, having children, changing jobs or separating from a partner can all affect your financial circumstances.
A regular mortgage and protection review helps you check whether your mortgage arrangements and insurance cover still suit your needs. It can highlight gaps in your protection and help you plan for changes to your household income or commitments.
Life Changes That Could Affect Your Mortgage and Protection
Starting or Growing Your Family
Having children can bring new financial responsibilities, from childcare costs to changes in working hours. If one parent takes parental leave or reduces their hours, your household may need to manage mortgage payments on a lower income.
This is a useful time to review your life insurance and consider whether the amount and length of cover remain suitable. Think about your mortgage balance alongside the everyday costs your family would need to meet if you died.
You may also want to review how your household would manage financially if illness or injury prevented you from working.
Changing Jobs or Becoming Self-Employed
A new job, promotion or move into self-employment can change both your income and the benefits available through work. Your new employer’s sick pay or death-in-service benefits may differ from those you previously had.
Reviewing your income protection can help you understand whether your existing cover remains appropriate. These policies generally replace part of your income if illness or injury prevents you from working, subject to the policy’s terms. They do not usually cover redundancy.
If your income falls or you lose your job, reassess your household budget. Contact your lender early if you think you may struggle with mortgage repayments.
Buying an Additional Property
Purchasing a second home or rental property introduces additional borrowing and running costs. Your mortgage arrangements should reflect how the property will be used, and your lender will need to assess the application against its criteria.
Alongside the new mortgage, consider whether your existing protection cover is sufficient for your increased financial commitments. A review can help you understand how your household would manage those commitments if your circumstances changed.
Changes to Your Health
An illness or injury can affect your ability to work and keep up with household expenses. Reviewing your existing policies can help you understand what support may be available, including any waiting periods, exclusions and claim requirements.
However, taking out new cover after a health change may be more expensive or subject to exclusions. Before replacing an existing policy, seek advice and check the terms of any proposed replacement carefully.
MoneyHelper’s guide explains how income protection insurance works and what to consider when reviewing your cover.
Divorce or Separation
Separation can mean managing mortgage payments and other household expenses on a single income. You may need to explore whether one person can take over the mortgage or whether selling the property is more appropriate.
If you have a joint mortgage, moving out does not automatically end your responsibility for repayments. Changes to the mortgage require the lender’s agreement.
It is also sensible to review joint protection policies and who would receive any benefits. Mortgage advice and separate legal advice can help you understand your options.
Why Regular Mortgage and Protection Reviews Matter
A mortgage or insurance policy that suited you several years ago may no longer reflect your circumstances.
An annual review, or a review following a significant life event, gives you an opportunity to:
- Check whether your protection cover still reflects your income, dependants and financial commitments.
- Review how your employer’s benefits work alongside your personal insurance.
- Consider your mortgage options before your current deal ends.
- Discuss whether overpayments or a change to your mortgage term would suit your budget.
- Identify gaps in cover or policies that may overlap.
Switching mortgages does not always save money. Compare the overall cost, including product fees and any early repayment charges, rather than the interest rate alone. Similarly, check your lender’s overpayment allowance before making additional payments.
Our remortgage advice can help you assess the options available for your circumstances.
Review Your Mortgage and Protection with Aura Mortgages
At Aura Mortgages, we help you consider your mortgage alongside the protection that could support you and your family if circumstances change.
Whether you have welcomed a child, changed jobs, separated from a partner or taken on additional borrowing, we can review your current arrangements and explain your options.
Supporting clients in Grimsby and across the UK, our advisers provide guidance based on your individual circumstances.
Speak to an Aura Mortgages adviser to arrange your mortgage and protection review.