FTB - Insurances with Mortgage

Clarkey_24

Hi

Sorry Im not sure if this is the correct place to post but here I go. Myself and my boyfriend have just had an offer accepted on a house and we are currently going through the mortgage process. The lady at the bank has advised us of certain insurances we will need such as Home and Contents, Life, Critical Illness. Im just wondering, can anyone advise which insurances we will need and roughly how much we should expect to pay?

Thanks x

Senior_Paper_Monitor

You will need some insurance (building is compulsaory) and will be well advised to establish appropriate 'protection' in terms of life and critical illness.

HOWEVER - lenders will be selling (not advising) from a very limited range of protection products in most cases - I strongly recommend that you go to an independent 'whole of market' ('fair analysis' to apply the correct term) mortgage or insurance adviser before committing to the lender's products.

Unable to put a price on such cover for you - totally dependent upon your circumstances and needs (but lenders rarely the best value)

Clarkey_24

Thanks for the response.

So am I right in saying I dont have to accept the cover that my lender is offering, I can look around and accept cover elsewhere? Also, will a financial advisor help with just insurances if they didnt deal with getting me the mortgage?

Thanks

Senior_Paper_Monitor

In answer to your two questions - yes (it would illegal for a lender to force you to buy insurance from them as a condition of the mortgage) and yes (they certainly will - less work, better rewarded).

Clarkey_24

Brilliant. Thanks for the responses.

herbiesjp

Buildings insurance will be the only compulsory one

If you live in a flat, you may find there is a block policy already set up, so you would not need to set one up yourself - your solicitor would simply need to confirm the existence of the policy

All other insurances would need to be tailored to your needs and what you want - life, critical illness, income protection (not Mortgage payment protection) are all medically underwritten and although you receive an initial quote, are subject to change when being underwritten if there are any medical disclosures made.

If looking at CI cover or income protection, there can be a vast difference in the quality of cover, and therefore you should not be looking only at price, but at the cover you want included.