Mortgage protection advice needed pls

lizzywig

My husband and I are buying a house, part buy, part rent. The mortgage is in my name as he has a bad credit rating from before we were together. We have applied jointly for mortgage protection for life cover, critical illness cover, income cover and sickness cover. Originally our mortgage advisor quoted us approx £50 but the final quote has come through and it’s £100. It’s gone up because of my weight, I’ve always been a UK 16 and at the moment I am pregnant and so far have put on a stone. This is the weight I was when they did the medical exam, but they didn’t know I was pregnant. As the sole mortgage applicant we didn’t think it was a good idea to tell them that I was pregnant in case they decided I wouldn’t be able to afford the mortgage. Before you ask we have done a thorough budget and based on our savings and my husband’s income we will be fine.

We can’t afford £100 a month on this insurance though, at least while I am on maternity leave. I am considering two options. 1) Going without for a while, I am new to this so can you tell me if you think this is a bad idea which I feel it probably is or 2) looking around for other companies who do this type of cover for cheaper quotes, although I assume it may be around the same. However do all protection companies accept people who have a part buy part rent mortages?

magpiecottage

An insurer will be concerned with the risk you present to them.

The issue of whether you own or rent part or all of your property is unlikely to be of great interest to them other than, perhaps, whether the amount of cover asked for is reasonable. (They do not want to set themselves up for a fraudulent claim).

However, your health is a concern. They need to know if you are pregnant both because, on the one side it might mean there is an initial increased risk so that they want to defer a decision until it is out of the way and because they really need to understand that you are expecting not fat!

hcb42

on the going without for a while question, this depends on your attitude really. Personally, i would go without as I always figure I could save that amount and it would cover the mortgage payments in the event I do become sick/redundant etc....I also point out that I am an exceptionally good saver/completely employable and enough savings to get by on for several years in the event of ill health so please dont take that as advice as to what you should do - but it doesnt mean it's a stupid idea not to insure these risks (especially with the small print that many of them have).

Life insurance is pretty cheap though, (and I do have that) its the illness and unemployment that bump the premiums up

Bigsmak

It will be the Critical Illness and Unemployment Cover parts of the policy that will cost the most.

Ask for a re-quote without them, or a reduced level of CI / unemployment. Your IFA, if they are any good, should be working on your behalf and trying to get you the best deal possible. So speak to them, they should be able to help you priorities what you actually need or don't need. (just read its a Mortgage advisor - they should be able to do the same though)

The other thing I would add is that you are expecting a child. Perhaps you should be taking out more cover than just what you owe on your house. The reason being that should you or your partner die, you will need some money in place to look after your child. This is very important.

Life cover on its own, for non smokers, is a lot cheaper than you think. Of course it all comes down to your health, weight, height etc for the final costs.

Some other good advise.. DO NOT LIE ON YOUR LIFE COVER APPLICATION. You did this when you put your weight without telling them you are pregnant. Being pregnant will not put your cover up. If you lie in other parts it might get you a cheaper policy, but will probably not pay out if you try to claim because they check everything. I've seen it happen and its a very very sad thing.

You need to re-apply and make them aware that the extra stone is due to pregnancy.