Each joint borrower is individually liable for amount of loan and interest due to lender and is always responsible for full amount outstanding. Events such as separation, divorce, unemployment, long term sickness, injury or disability could ultimately cause a house to be sold and mortgage to be terminated. The early repayment of a loan can have different financial consequences depending on type of mortgage involved.

Most mortgage lenders also require you to have a suitable life assurance policy, which would repay borrowing in event of death or critical illness. This ensures that, in these distressing circumstances, your house would not have to be sold to repay mortgage.

You may find perfect mortgage for you at your local building society. But shopping around could land you with a much better deal or alternatively you can use a mortgage broker. Mortgage brokers scour market to find most suitable deal for you. A good mortgage broker can save you time and money.

If you are in full-time employment lender will ask for written evidence for example, payslips and your P60 for past two years. They'll also probably write to your employer asking for confirmation.

If you're self-employed it more difficult to get a mortgage and as a result there are lenders who specialise in self-employed. You would need to show three years audited accounts. If you haven't been in business long enough then lender should accept a letter of confirmation from your accountant.

You may freely reprint this article provided author's biography remains intact:

Mode of Premium Payment

The frequency of premium payments during policy year. Premium payments can usually be made on annual, quarterly, or monthly basis.

Mortality Table

A statistical table showing death rate for each age.

Nonforfeiture Options

A provision in policy that allows policy holder to choose how cash value of policy will be used if policy is surrendered or lapses due to non-payment of premium.

Ownership

All rights, benefits, and privileges under a policy controlled by insured.

Paid-Up Insurance

A life insurance policy where all premiums have already been paid, with no further premium payment due.

Policy

The printed document issued to policy holder by company stating terms of insurance contract.

Policy Year

A one-year period starting on day and month policy was issued. The first policy year starts on date of issue, and ends on day before policy's first anniversary date.

Premium

The payment a policy holder is required to make to an insurance company to purchase insurance coverage and to keep policy in force.

Rated Policy

A policy issued with an additional premium to cover extra risk involved if an insured has impaired health, a hazardous occupation or hobby.

Reinstatement

The restoring of a lapsed or surrendered policy to full force and effect.

Renewable Increasable Convertible Term Insurance

This contract combines options of increasing sum assured, converting policy and renewing contract.

Reviewable Term

Level term assurance with an option to renew contract at end of term, without need for further medical evidence.

Rider

A provision added to a policy that provides additional benefits.

Settlement Option

The manner in which insured or beneficiary may choose to have policy proceeds paid.

Suicide Clause

A policy provision which reduces or eliminates amount to be paid if insured dies from suicide.

Surrender

To voluntarily terminate or cancel a policy for its cash value.

Term Life Insurance

This type of policy runs for a specified time period.

Underwriting

The process of evaluating applicants for insurance and classifying them fairly, so appropriate premium rate may be charged

Waiver of Premium

A provision added to a policy that will waive premium payments required by an insured during total disability of insured.

You may freely reprint this article provided author's biography remains intact: