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Mortgage Life Cover??
Ladyduran
Posts: 6 Forumite
Hi there, i am after a little advice please.
We are taking an interest only mortgage out for 2 years only while i am on a career break due to having a little one. The mortgage will be for 151k, we currently have two endowments running for £30,258 and £16,542, we also have £10,000 decreasing term life cover.
Do we need to take additional cover out for the 2 years and if so any idea what the monthly premiums would be? We are on a very tight budget at the moment. We have accident,sickness and unemployment cover with Norwich Union which only covers £315/month cover at the moment, we would be increasing this as well.
Thanks in advance for any advice regarding this matter.
We are taking an interest only mortgage out for 2 years only while i am on a career break due to having a little one. The mortgage will be for 151k, we currently have two endowments running for £30,258 and £16,542, we also have £10,000 decreasing term life cover.
Do we need to take additional cover out for the 2 years and if so any idea what the monthly premiums would be? We are on a very tight budget at the moment. We have accident,sickness and unemployment cover with Norwich Union which only covers £315/month cover at the moment, we would be increasing this as well.
Thanks in advance for any advice regarding this matter.
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Comments
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Do we need to take additional cover out for the 2 years and if so any idea what the monthly premiums would be?
You dont need to have it although whether you need it financially or not depends on your circumstances. You say you have having a child and increasing your borrowing. With that you should be looking at covering the mortgage of £151k and another 200-300k of life cover for family protection. Although actual figures are only guesswork as you havent given anywhere near enough information for a real analysis.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
Hi There
As dunstonH (very bluntly!) put it above you really do need to provide more information. You cannot really receive specific advice in these forums anyway, but why don't you contact an advisor who can ask all the right questions and sort out a decent level of cheap cover for you? There are lots of options you see and life assurance and critical illness are very specialist areas, and your circumstances will dictate which type of cover is best for you, i.e. level term assurance, decreasing term assurance, pension term assurance, family income benefit to name just a few.
MMI am a Mortgage Adviser
You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
Ok thanks for your responses, just wanted some rough thoughts. I Will speak to an advisor as you say without all our details it really is hard for anyone to give their thoughts0
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you say interest only mortgage - and have stated the £10k is reducing term - but the mortgage is not reducing
but more info is needed0
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