Loss of income has direct consequences for the affordability of the monthly payments of your mortgage. Especially if you become incapacitated for work, become unemployed or have to deal with a mortgage after the death of your partner. This involves uncertainty, but luckily there are ways to keep a grip on your financial situation. In this article, you can read what is changing and what steps you can take.
When you become incapacitated for work, your income often drops immediately. As a result, the monthly costs of your mortgage can suddenly feel heavy. Some lenders offer temporary solutions, such as reduced repayments or a longer term. Do you have home expenses insurance? Then it can help absorb part of the burden. Do you want to limit your risk beforehand? Then you can take out disability insurance. It pays out when you are (partly) no longer able to work, so you are better protected against financial pressure. If you become incapacitated for work, it is wise to quickly gain insight into your options. With independent financial advice, you can see which solutions suit your situation.
In case of unemployment, your income decreases while the monthly payments on your mortgage continue. Therefore, contact your lender quickly, via your financial advisor, if you expect financial pressure. Sometimes temporary customization is possible, such as a break in repayment or an adjustment of your type of mortgage. Do you want to protect yourself against this risk in advance? Then you can opt for unemployment insurance. This helps to cope with a period of loss of income. With independent financial advice, you can decide which steps are wise and how to keep enough space until you get back to work.
The affordability of your mortgage after the death of your partner can have major financial consequences. Income changes, but fixed costs remain. Was term life insurance taken out? Then it can help repay (part of) the mortgage, making the monthly costs of your mortgage more affordable. There are also options without insurance. By clearly visualizing your financial situation, you can see what is feasible and which choices suit your future. In a situation of death and the presence of a mortgage, clear financial advice beforehand provides a lot of peace of mind.
You keep a grip on your mortgage by inventorying and acting in a timely manner:
• Make a clear overview of your income and expenses;
• Check what insurances you have and what the mortgage conditions are;
• Contact us in time for independent financial advice;
• Report it to the lender in time or let your financial advisor do this.
Do you want to know what your options are if you become incapacitated for work, become unemployed or what happens to your mortgage after the death of your partner and do you want to have this calculated. Schedule a personal meeting for independent financial advice with Van Loon. You are welcome to visit our offices in Dordrecht, Breda and Den Bosch or at one of our other eight locations. Of course, we can also help you online if it's more convenient for you.
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