Life insurance and mortgage payment insurance condition

Pammy

Hi,

We have an AIP but have now been asked to fill out sections which refer to life insurance and mortgage payment insurance.

Can these be a condition of the obtaining the mortgage?

The lender keeps coming back with new things, its dragging on.

Im find it very wearing, paying for valuations, demands for further reports to be done at costs to me, now this request.

Could anyone advise if we need to get cover?

dunstonh

Can these be a condition of the obtaining the mortgage?

No. Only buildings insurance is compulsory. Although you dont have to buy it through the lender.

Im find it very wearing, paying for valuations, demands for further reports to be done at costs to me, now this request.

That is quite normal when buying a house. Especially if the house has issues or isn't in the best of condition and/or you are borrowing a high loan to valuation.

Could anyone advise if we need to get cover?

We don't know your circumstances so cant tell if you have a financial need or not. You say "we", so that suggests they could be a need. The simple way to answer that is could either of you continue to afford to pay the mortgage on the death of the other?

opinions4u

Pammy wrote: »

Can these be a condition of the obtaining the mortgage?

No, although as the post above says a mortgage lender will insist that you insure the building.

The lender keeps coming back with new things, its dragging on.

Im find it very wearing, paying for valuations, demands for further reports to be done at costs to me, now this request.

You're asking them to lend you money. They are asking you to provide evidence that they can sell that property if you fail to pay.

Could anyone advise if we need to get cover?

You should certainly give it serious consideration.

1) How would the mortgage be repaid if you died?
2) How would you pay the mortgage if you suffered a serious illness?
3) How would you pay the mortgage if you lost your job?
4) Could another party to the mortgage afford the payments on their own?
5) How would you afford to replace the contents of the house if you were burgled?

Borrowing money is a massive commitment. Repaying it in times of hardship is just as important as being able to repay it during the good times.