mortgage and mortgage insurance

HomeJames_3

We currently have a mortgage of £19000 with a view to pay it off in 3-4 years:j We currently pay £25.96 per month in mortgage insurance with CIC and wondered if we still need this we have life insurance policies of in excess of £100000 each and death in service benefit with our employers. We have no dependants and therefore wondered if we could cancel this and pay the extra to our mortgage in addition to our overpayments. What do you think?

LindsayO

I thought that having a final salary pension with a death in service benifit and a good medical retiral policy (ie they pay out my full pension if I'm too sick to work) had me covered. I was wrong. Three years ago I became disabled with a chronic degenerative disease. I may haveto take medical retiral and my pension will not be enough to cover my mortgage payments even if I take the maximum lump sum.

So if I have to stop working I will have to sell my house, and its too late to take out mortgage protection, since I am already sick

Of course I don't really know if I'd be any better off, if I had taken out mortgage protection, I don't know how long they pay out, or if they would pay me if I had a pension. The other factor is how well you would be able to keep paying your mortgage payments if you lost your current income

angelavdavis

Another point to raise is that most mortgage protection insurances only pay the interest - not the capital.

Personally, I would look through the small print of all policies and assess what the pros and cons are for keeping/dropping it.