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Mortgage Protection Insurance

di11on · 2016-03-30 15:31:51

Hi folks, If you are going for a new mortgage and already have a level term life insurance policy in place, can you just arrange to have the interest of the bank noted and use this as mortgage protection instead of taking out a new policy? Would banks allow this? Is it ever done? Cheers

30-03-2016 3:31pm

#1

di11on

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Hi folks,

If you are going for a new mortgage and already have a level term life insurance policy in place, can you just arrange to have the interest of the bank noted and use this as mortgage protection instead of taking out a new policy?

Would banks allow this? Is it ever done?

Cheers

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Comments

#2 30-03-2016 3:49pm

PaulM1977

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Yes, just make sure it is in the name of all borrowers and that the loan amount and term are sufficient for the mortgage, otherwise they will need this to be amended to cover them before the lender will accept it.

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#3 30-03-2016 4:01pm

di11on

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Thanks for this.

Now, if the level term policy was in Ireland and the property and mortgage were in another country (France), is it possible that this could still work?

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#4 30-03-2016 8:32pm

PaulM1977

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I don't think so, different jurisdictions so that may cause an issue for the lender if the mortgage ever needed to be paid off and the policy called in.

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