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The average British household would run out of money in less than two weeks if a wage earner fell critically ill or died – how long would you be able to keep up your mortgage without the income you currently enjoy?

New research from Aviva has shown that the average British household may only have enough cash to cover bills for 14 days if they or their partner fell critically ill or died. One in four British households say they could only access £100 without further borrowing.

The research shows that without further borrowing, the average British household could get their hands on only £914 of disposable cash, less than two weeks of the average weekly household expenditure of £471 – Aviva says this is just a tiny percentage of an insurance payout that a well-covered person or their family is likely to receive should they fall ill or die.

By taking out critical illness cover or life insurance you can be safe in the knowledge that you will be able to keep up with all your bills, but most importantly your mortgage – it is the biggest bill most people have to pay each month and it is the most crucial if you want your family to have a roof over their heads.

The Aviva research shows that, should the worst happen, Britons are drastically under-insured with only 37% of households covered by life insurance or critical illness cover.

But at the same time the majority of Britons consider it their personal responsibility to cover any loss of income, should the worst happen. So these conflicting number simply don't not make sense – the best way to cover your liabilities is to take out some sensible insurance cover. A mortgage broker can help – as well as offering home loans they are also qualified to offer advice on a range of protection products.

Louise Colley, head of protection for Aviva, says: "When it comes to critical illness or death, money worries are the last thing a family would need at such a distressing time, so we would encourage everyone to take the time to consider life and critical illness cover to make sure they have adequate protection in place."

SOURCE: Aviva, 24/02/10

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The fixed rate loan has been around in the UK for 21 years now and it has become one of the most reliable and popular home loans around – but is it the right choice for you?

Halifax, which was one of the first providers of fixed rate loans in 1989, says there were 12 fixed rate products from 12 lenders back then compared to over 1300 fixed rates from 69 lenders today. According to the Council of Mortgage Lenders figures, 68% of new mortgage lending was on fixed rate products in 2009. In 21 years the fixed rate has grown in popularity and in its ability to deliver the right results to borrowers.

In the late eighties interest rates rose to 13% and people were struggling with their mortgages, most of which followed that high rate. But the introduction of a new product revolutionised everything by introducing a level of stability, choice and competition into the market. Those first borrowers marveled at the ability to lock in a rate for a number of years, keeping them safe and secure.

Stephen Noakes, mortgages commercial director at Halifax, says: "In today's market, borrowers can select their product based on a number of factors – including the term, type and rate. It's easy for us to take that level of choice for granted, but before the introduction of fixed rates, borrowers simply didn't have access to the same options. Ever since their introduction 21 years ago, fixed rate mortgages have been fundamental for homeowners looking for certainty and stability in managing their household expenses, and this is an important milestone to mark."

Innumerable borrowers have, over the last 21 years, been able to comfortably live within their means thanks to fixed rate mortgages. They were able to budget, look forward and take control of their finances.

So is a safe, reliable fixed rate the best choice for you now? It's a very different market to that of 1989 – there are many more variations of mortgages and the rate is at an all time time low of 0.5%. But that doesn't mean that a fixed rate isn't the best choice for you, you'll just have to ask a mortgage broker to be sure.

SOURCE: CML, Feb 2009, Halifax, 20/02/10

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Mortgage borrowing slowed down in January 2010, according to mortgage lenders, but there are still plenty of reasons to be cheerful about prospects for UK mortgages in 2010.

According to the Council of Mortgage Lenders, gross mortgage lending declined to an estimated £9.1bn in January, a 32% fall from £13.4bn in December and a 21% fall from £11.5bn in January 2009.

The CML admits that a decline is typically experienced between December and January, however this is the lowest monthly total since February 2000 and the lowest January total since 2000.

CML economist Paul Samter says: "We remain in a period of uncertainty for the housing market and economy at large. The market certainly improved over the second half of last year and started 2010 in better shape than most would have predicted twelve months ago. Also, the Bank of England is likely to keep rates low which should continue to mitigate mortgage payment problems and help cushion borrowers from the worst of the recession."

It's not all bad news. After the 2009 we all had these figures are still respectable. Lenders are still offering home loans to plenty of people and rates are still low meaning those who are managing a mortgage can do with relative ease.

David Newnes, managing director of Your Move Estate Agents, says: “This is not quite the cold shower on the housing market it may seem. December was artificially boosted by a mini rush of activity prior to the end of the stamp duty holiday, so January represents a natural correction after that.

"But the overall trend in terms of buyer demand and consumer confidence is clearly on the up, and the outlook in 2010 is more upbeat than it was a year ago."

So don't be disheartened by reports of more lending dips. It does not mean we are returning to the lows of late 2008 and early 2009. Talk to a mortgage broker to reassure you that getting hold of a UK mortgage is not quite the herculean task it once was.

SOURCE: CML, YourMove, 18/02/10

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Many people are worried about putting their money in the hands of a mortgage broker lest they turn out to be a cowboy – so make sure to check your mortgage broker's credentials before you trust them with your finances.

The first thing to ask a mortgage broker is whether they are properly regulated by the Financial Services Authority. Since 2004 anyone who offers mortgage advice has to be signed up with the Government regulator. Having FSA permission means that not only is your mortgage adviser fully qualified to offer mortgage adviser, but also they are under the glare of the Government should they try and take advantage of their clients.

Also, ask your mortgage adviser about how they are regulated and controlled. Essentially there are two types of mortgage adviser – those who make sure they abide by the rules themselves or those who are joined to a specialised network who does it for them. Both are perfectly valid ways to do mortgage business, but it is always good to check how their business is regulated and how it reports to the FSA.

You could also ask your mortgage adviser to show you some testimonials from past clients. Mortgage advisers are proud of the service they provide to people and if they have saved people money and have made their lives easier they will want to shout about it. Even though it's good to know that mortgage advisers are legally qualified, sometimes it's better to hear how good they are from real people like yourself.

A mortgage is the biggest financial decision you are every likely to make. It affects every facet of yours and our family's life so making sure the person who organises it is a good, honest adviser is crucial. Don't let a cowboy pull the wool over your eyes, get help from someone with credentials.

To keep up with the latest news and comments on the mortgage market please visit the Mortgage Broker Blog.

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The Mortgage Broker offers mortgage advice, obviously. But The Mortgage Broker is much more than a mortgage adviser – it is a one-stop shop for many of your personal finance needs.

In the old days a mortgage broker sold mortgages and little more. But soon they realised that someone buying a home needs more than a mortgage and they began selling good financial products to help them move onwards and upwards on the property ladder.

So now a good mortgage broker, like The Mortgage Broker, sells a whole lot more than loans for a home. They offer protection products like life insurance, illness cover and income protect to make sure that if something happens, your home and your mortgage is safe. The Mortgage Broker also offers trust and assured products that mean that your family gets hold of all your property assets should you die. They know that protecting your mortgage is as important as getting the right one.

They also offer advice on savings products like bonds and Isas, showing a mortgage borrower places where to make the most of their money. Saving while managing a mortgage gives you a buffer, gives you the chance to increase your equity in the future and it makes you a better borrower. Good brokers like The Mortgage Broker understand that personal finance is about making you an all-round better borrower rather than just getting a good rate.

And there's more – The Mortgage Broker can offer you advice about how to get the most out of your home through secured loans and equity release. A home is an asset as well as a roof over your head and a good adviser like The Mortgage Broker knows just when and where to use that asset best.

So talk to the Mortgage Broker about your personal needs. It may start with a loan to be able to buy a home but you'll soon find a good conversation with a good mortgage broker will end up with you being more financially fit.

To keep up with the latest news and comments on the mortgage market please visit the Mortgage Broker Blog.