3 times salary! How ridiculous!

jackieb

Why don't some people factor in mortgage protection payments, incase of accident, illness or redundancy? I don't think i'd have taken out a mortgage without one. I'd have been too scared.

Wig

jackieb wrote: »

Why don't some people factor in mortgage protection payments, incase of accident, illness or redundancy? I don't think i'd have taken out a mortgage without one. I'd have been too scared.

When we got our mortgage they were compulsory, but they only last for a year if a claim is made.

Are they not compulsory any longer with most lenders?

jackieb

We got a mortage with RBS last year and I thought it was one of the things we had to arrange before the mortgage was finalised. I know they only last a year, but it gives you a year to sort something out at least.

poppysarah

Wig wrote: »

Are they not compulsory any longer with most lenders?

I have a feeling they went the way of deposits.
No need for life insurance either from what I can see.

jackieb

We have life insurance too. I also thought this was compulsory with the RBS. But I see people on here worried about their mortgages when they're made redundant, so obviously mortgage protection isn't compulsory with a lot of lenders.

GrammarGirl

lostinrates wrote: »

I accept your point, but again, I don'tthink its practical. One could equally say older divorced couples already have shown they are prepared to separate and thats a risk I absolutely agree with you on a human level ; but I think this would be un comfortable progression into personal rather than financial life. People would also circumnavigate it very easily. 'I'm buying it as a joint purchase with 'my friend'' is a likely way.

I know you're right, I guess I'm basing my whole point on this one situation which is why I feel so strongly about it! I know what these people are like and I can SEE it going wrong! There's also a tinge of jealousy that they have a deposit saved because they were able to live at home with their parents, rent free. My partner and I don't have that luxury, but at least we know when we've got enough deposit to buy, we'll be able to live together comfortably without fear of each other's filthy habits (he already knows all mine! )

Kirri

jackieb wrote: »

We have life insurance too. I also thought this was compulsory with the RBS. But I see people on here worried about their mortgages when they're made redundant, so obviously mortgage protection isn't compulsory with a lot of lenders.

No it wasn't compulsory with mine. I struggled to get a mortgage on my salary and buying in London, I just simply couldn't afford any insurances - before anyone says I should have rented, I looked at that option and it would be costing me a lot more now.

The only difference is that after redundancy, benefits would pay out for rent where they don't if you are on CB JSA...