Graduating as a doctor, lawyer or in another highly skilled field is a fantastic achievement.Your entry-level position in a GP surgery, hospital or law firm is likely to pay you well, but your salary will continue to grow as you gain more working experience and climb the ladder.

For example, entry-level lawyers in the UK can make around £35,000 per year, whereas lawyers with over a decade of experience and firm partners can make £120,000 and beyond per year.

So, with such lucrative income projections for these professionals, is it possible to get a mortgage with your future income in mind? If you’re an entry-level professional and also seeking a mortgage, you might be wondering if your future level of income can be considered.

Can my future income be considered in a mortgage application?

Some mortgage providers do consider what your future income will be when offering mortgages. This is typically only possible for those working in jobs where you need to be certified to carry out the job, such as lawyers, doctors and surgeons.

The lender accounts for your future income projection when offering a mortgage, which could enable you to buy a more expensive house than you otherwise would have been able to. Or it could increase the loan to value (LTV) ratio you need, meaning you can put down a smaller deposit on a more expensive home.

What are the risks?

Opting for a mortgage deal that accounts for future income increases does include some risks. If the professional decides they do not want to continue their career, they could find mortgage repayments more challenging than they otherwise would have been.

Moreover, although it is likely that your income will increase, there is no guarantee of when this will happen or by how much compared to the data used by the lender. Consequently, your mortgage repayments could be higher than preferred if you don’t climb the ladder as expected.

How soon can I get a mortgage?

Lenders can offer mortgages to professional and “non-professionals” with a permanent employment contract from the first day of their employment. Our team have a track record of securing mortgages with a value of x6 income for professionals and self-employed workers providing they have one year of accounts.

Speak with us now for more information!

 

Life cover providers are only just catching up on the needs of people with diabetes through better understanding. If you’ve looked for life insurance for people with diabetes before and came back empty handed, it might be time to look again.

Diabetes is a chronic condition that can cause an array of further complications, not limited to strokes, heart attacks, blindness and even premature death. The World Health Organisation (WHO) states that the estimated number of people with diabetes rose from 108 million to 422 million in just under 25 years. This is a cause for concern, but it also increases awareness of the condition and makes insurers more in tune with how they should be offering life cover to diabetes sufferers.

Taylor James Financial Services is a leader in the field of life insurance for people with diabetes. This is a topic close to our team as Sashi has been open about his own diabetes experience, and now specialises in the niche. Contact us now for assistance in navigating this emerging life cover market. We can help you find the most beneficial diabetes life cover.

Historic problems accessing diabetic life cover

The first thing to remember is that the industry of life cover is built on healthy people. Policy providers prefer to insure the healthy because this generates a larger pot of funding that can be used to cover a smaller number of people with health complications, or in their eyes – people who are a financial risk. This stance is strengthened by the trend of Moral Hazard, which is a likelihood that unhealthy people who do access cover are more likely to become unhealthier.

Nevertheless, from the get-go, if you have long-term and chronic health issues it can be harder to qualify for (affordable) policies. Diabetes has proven one of the most difficult conditions to list on a life cover application form without queries and rejection.

A lack of in-depth medical understanding and overarching insurer’s fear of the long list of possible complications has resulted in lots of diabetic people being denied cover or only offered extortionate policies. Two people with the same blood readings over the last three years, identical BMIs and family history can still have very different outcomes and life expectancies. Thus, it can be difficult to quantify personalised risks and create fair policies.

So, what’s changing?

The growing number of people with diabetes, especially Type 2 diabetes, has spurred policy providers to change how they offer cover to these populations. Not only is diabetes becoming more understood, but so are the complications associated with it and how they relate.

Some providers have dived into the data and consulted with medical experts to increase their understanding and be able to offer fairer and more affordable diabetic health cover based on the individual.

The state of play has improved greatly over recent years, and if you gave up on your search for cover previously, it might be time to search the market once again. If you need help finding health insurance with diabetes, our team are here to help!

Incentivised diabetic life cover

One new trend in this niche of life insurance is to incentivise good management of the condition as time progresses. This would minimise the risk of Moral Hazard occurring, as explained above.

The policyholder would supply HBA1C readings annually, and if their results improve, their policy cost would simultaneously decrease. However, the policy would never increase from the initial agreed cost if the person’s results and health deteriorated. This offers exceptional peace of mind for anyone with diabetes seeking life cover.

Today’s advice

It’s fantastic that people with diabetes now have more affordable life cover options. However, they can still fall victim to higher costs in the same way other people with health conditions can, i.e., by not knowing their data. Before you make an application, ensure that you have the following to hand:

1. Date of diagnosis
2. Your latest HBA1C score
3. Medication history
4. Details and history of diabetic complications
5. Your family history

Insurers sometimes believe that if you don’t know these things, you are not serious about managing your condition, which may not be true. Not being able to answer can increase the policy cost you’re offered.

Get help searching life cover for diabetic people

Don't hesitate to speak with our team for further information and assistance looking for affordable life cover as a diabetic, don’t hesitate to speak with our team. Sashi is on hand to provide you with a personalised and understanding service!