Hi, my children are starting to think about mortgages. I had an endowment policy in the past so didn't need life insurance for my mortgage. I wandered what the rules/advice is about life insurance for to cover mortgages these days ? Do mortgage lenders require that as standard ? I assume you can have your own policy not the lenders ? Can you use any life insurance policy that covers the term of the mortgage for that purpose ? Thanks Tony
Mortgage life insurance ?
Apr 23, 2013
6 Replies
dunno
tim
Not all of them, for sure. Mine doesn't. Maybe it would be different for larger LTVs.
I would assume most don't mind. I would avoid any lender that restricts from whom you can buy assurance and insurance. It would almost certainly end up more expensive.
To have life assurance is prudent (if there are two people sharing the loan ) but not normally a requirement. Neither is it normally necessary to buy i t from the lender. You might also consider some form of insurance to pay th e loan if you fall ill or lose your job.
but not normally a requirement. Neither is it normally necessary to buy it from the lender. You might also consider some form of insurance to pay the loan if you fall ill or lose your job.
When I had a mortgage and lived on my own with no dependents, I did not bother with the expense of life insurance.
loan) but not normally a requirement. Neither is it normally necessary to b uy it from the lender. You might also consider some form of insurance to pa y the loan if you fall ill or lose your job.
No, neither would I in this situation. But I'd be considering what would ha ppen if my salary stopped.
if my salary stopped.
You will have to try living off £1/day. Tory MPs say it's really easy.
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