Mortgage Protection

Why do I need mortgage protection cover?

Mortgage lenders require that you take out mortgage protection or life insurance before they’ll allow you to draw down a mortgage. This is because they want assurance that the loan will be fully paid off in the unlikely event of your death during the term of the mortgage.

Do I have to buy mortgage protection insurance from my mortgage lender?

No. By law you’re under no obligation to buy mortgage protection from your bank. A bank can’t refuse you a mortgage if you decide to get mortgage protection elsewhere. You’re free to shop around and find the best value protection for you and we would highly recommend that you do. So Talk to us first

Do I need mortgage protection if I already have life insurance?

Generally, mortgage protection is designed to pay off your mortgage if you die, not to provide a cash sum to your dependants. So, you’ll usually need separate life insurance to provide a cash lump sum if you have a dependant family.

You can, if you want, use an existing life policy for mortgage protection by assigning it to your mortgage provider, so long as the amount you’re insured for is at least equal to the value of your mortgage and it runs for the same term. Should you die before the life insurance policy ends, the mortgage will be cleared, and the balance paid to your dependants.