There is nothing that states in your mortgage contact that you must have mortgage protection in place (other than buildings insurance).

So why is this?

It’s because it doesn’t affect the mortgage lender!

When a mortgagelender lends you money, the only thing they are concerned over is getting their money back with interest. If the house burns down, there isn’t a property left for them to sell to get their money back. so they make building insurance mandatory.

However, if you’re income stops because you have a serious car accident that puts you out of work for 5 – 10 years and you have no way or means of paying your mortgage, the lender will repossess the property, sell it and get their money back. This means you’ll have to find alternative accommodation to live in at the worst possible time, when you have no income. This isn’t a situation you ever want to find yourself in.

The mortgage lender doesn’t have a responsibility to make sure you cover yourself, we do. We have a responsibility to tell you about all the mortgage cover options and the implications of not having cover. It is then your decision to decide on what mortgage cover you want.

They will, but it’s usually a lot a lot less than you need to survive. The governments help is good as a top up but this should not be solely relied on over a long term as it’s not sustainable.

It’s a nice thought that after all we do for our employers they’ll look after us in our time of need but quite often this isn’t the case. It’s always worth finding out before you apply for a mortgage exactly what you’re covered for from your employer and we’ll take it into consideration where we can.

Yes. The younger you are when you take out mortgage cover the cheaper it will be. This is because you are a lower risk when you’re younger and it is likely you will be paying more into the policy. Clearly there are many other factors that insurance providers will take into consideration but your age and smoker status will have the biggest impact.

Yes – you can look at this cover whenever you want, but it’s important you have some sort of protection in place from day 1… even if it’s just a smaller amount to get you started. This is because its much cheaper when your younger and you can never predict what’s going to happen or when it’s going to happen.

Yes – Your protection should be reviewed regularly. There are milestones when your existing cover may not be relevant anymore as your circumstances have completely changed:

  • Getting married
  • Getting divorced
  • Having children
  • Changing employers
  • Promotion
  • Starting your own business
  • Increase in salary
  • Quitting smoking
  • Increasing your mortgage
  • Paying a lump sum off your mortgage
  • And many more

The great news is, we’ll do all this free of charge and let you know if you should keep things as they are or change your cover.

Cheaper isn’t always better. In fact, in many cases, it’s often worse. Most of the insurance premiums you pay go towards the insurers paying out when their customers claim. If a policy is cheaper it usually means it doesn’t cover you for as much as the more expensive policy. If you send over your policy documents… your mortgage expert will review everything and tell you whether it makes sense to cancel and replace your existing policy.

You must remember to never cancel a policy until the new policy is in place.

This is something we’ll take care of for you. We recommend starting your policies on exchange of contracts as this is when the purchase is legally binding. When you take your cover with us we’ll make sure this it goes in place, exactly when you need it to.

Previous complications may have an impact on what type of cover you can have but there’s only one way to find out.

The advantage we have is we use multiple insurance providers so the chances of us finding someone to cover you is better than most. We’ll ask you a series of questions and do all the leg work for you. If all the insurance providers come back and say they can’t offer you cover, you haven’t lost anything because the whole service is free of charge and completely no obligation.

We are ready to sum it up

All in all, protection is one of the most important things you need to consider when taking out a mortgage. It will cover you when times are tough and you have no one left to turn to. It will give you a financial blanket to make sure you’re looked after if the worst happens. It’s not something we like to think about but it’s something we must think about. We will shop around for the best and most appropriate deal for you and your family. We’ll make a recommendation based on what you tell us is important and we’ll work within a budget that’s affordable for you. You do not have to take our recommendation and you can choose to vary it. If you would like a recommendation or have any questions then please call us on 01206 688568

Get in touch