At munstergroup we understand that buying a home is a milestone. From start to finish the whole process can be a daunting experience. Before drawing down a mortgage it is vital to consider house insurance and mortgage protection.
What is Mortgage protection?
Mortgage protection provides you with the knowledge that; in death this policy will pay off the mortgage. It protects your family home in the event of your death or serious illness. The policy runs the same term as your mortgage. It is in the same suite of policies as life insurance. Mortgage protection is based on the following criteria:
- the mortgage interest rate has not risen above the decreasing rate on the policy (usually 6%).
- all payments have been made to date.
- there are no arrears on the loan.
Who is this Policy for?
- Any person who wishes to draw down a mortgage is required by their lender to have basic mortgage protection.
Where can I purchase Mortgage Protection?
- Most lenders will offer mortgage protection however you may get better value through an insurance broker or insurance company.
- There are no legal grounds for the lender to advise you that there will be a delay if you do not take out the policy through the lender directly.
Who is exempt?
Anyone who has had a successful mortgage application must get mortgage protection insurance. But as always there are number of exemptions.
- If the mortgage is not on your main home (However it is recommended that you purchase mortgage protection)
- If you are over 50 years of age
- If you are not eligible for the type of cover or declined by the insurer.
- If you have adequate life cover in place to cover any loans should you pass.
Contact our Life & Pensions team on 065-6841766 or via email