This can be bought alongside BuildStore’s self build mortgages.
The product features phased cover which allows self builders and renovators to start the policy with a level of cover equivalent to the repayments of the initial self build mortgage amount. The monthly benefit then increases at set times to cover further mortgage loan releases, a need unique to self builders and renovators so that by the end of the first year, the cover has reached its final level of double the starting amount.
A further very important feature of this cover is that if the client claims during the first year, the cover will continue to increase in payment in line with the agreed schedule. This will enable the self builder to continue with the construction of their house as the increasing benefit will help pay for the increase in mortgage interest payments as further amounts of the self build mortgage is drawn down during construction.
Raymond Connor, BuildStore’s founder and Chief Executive said: “When you are self building you go through a period of significant financial outgoings. Many people now stay in their current house while they build their new home which means servicing two mortgages at the same time. It is therefore important that the self builder reduces any risk of not being able to meet these payments and also that they have the money to get their new home built. This policy has been designed jointly with D&D Homecare and is the first ever ASU policy geared specifically to protect the self builder.”
Derek Green Chairman of D&D Homecare Ltd said:
“We are delighted to be working alongside Buildstore with what we regard as a highly innovative ASU product that we are confident will suit the needs of self builders and renovators; until now, there was nothing geared entirely to their needs and we are pleased to be first to market with this type of cover.”
Why people need ASU: -
- Under current legislation the state will provide no assistance with mortgage repayments for the first nine months. Even after this time, only one in four people will qualify for help.
- Basic sick pay will provide just £68.20 per week for weeks 1-28. No sick pay is payable to those people earning less than £77 per week. (Souce : DSS 2004)
- Over 25 million working days are lost annually as a result of workplace accidents, injuries and ill health
- Latest figures indicate that 650 people per day are made redundant (Source : Social trends)
- 6,230 homes were repossessed in 2004 (Source : Council of mortgage lenders June 2005.
- 53,960 mortgages had mortgage payment arrears of between 3 and 6 months. (Source : CML June 2005)
- 77% of mortgage holders have no unemployment cover.
- 83% of mortgage holders have no sickness/disability cover (Source : Mori/Scottish Provident research Jan2002).
