Can anyone help me!

samuela66

Hi, I have just applied to my mortgage provider (Yorkshire) for an increase on my mortgage of £10,000, I owe £32,000 and my house is valued at £100,000. I am single and when I split with my partner 18 months ago I canx our life insurance figuring that i am alone and if anything happened to me the house could be sold by my brother and the mortgage paid off. However today when talking to my b/s they say they want proof of my house insurance, no prob and also a copy of my life insurance, do I really need to have this???

many thanks

sujman

I cant speak for the Yorkshire but the two banks I have have had mortgages with have made it a condition that I already have house insurance when applying for a mortgage.

However, Life Insurance wasn't a condition and when asked I simply said I dont have any. I suspect this might be the case with the Yorkshire. Half the time they only ask coz if you dont have any, its an opportunity for them to sell you some!!!

Find out (by perhaps posing as a new customer) to see if Life Insurance is a necessity and if by chance it is, I'd suggest you cancel your application and look for a provider that doesnt require Life Ins.

regularsaver1

They can't make it a condition - ( life)they may well be asking for 1. to ensure your covered, or see it it was a need for you at this time 2. possibly to sell you some

samuela66

regularsaver1 wrote:

They can't make it a condition - ( life)they may well be asking for 1. to ensure your covered, or see it it was a need for you at this time 2. possibly to sell you some

Hi Regular, so let me get this right basically they are just trying to sell me some can they refuse me the loan of 10k without it do you know????
Many thanks
Sam

regularsaver1

No, I do additional lending. We do have to ask about it, and have to note what cover in place, or at least mention so there would not be a shortfall in cover.