Cancelling Mortgage Protection - Yes or No?

Swinstie73

Hi,

Not sure if this is the right place to post this, basically we are in the process of buying - hopefully moving 4 weeks today, yeah!

We have our deposit sorted and I have my house on the market, only been on for 5 weeks (but no interest yet, boo) and the Halifax have agreed to us having two mortgages (new one for £112,500) and current one is for £29K.

If my house hasn't sold by the time we move, we'll be looking at paying my current mortgage which is £168.99 and £22.90 for mortgage protection - question is, can I cancel this mortgage protection or should I keep it? Am I able to cancel it - unsure as to whether it is a legal requirement to have it or not? If we need to pay the MP that's fine, just trying to cut our costs a wee bit for the new house.

House is up for let too so might have to change to BTL.

roonaldo

if you're letting it, you dont need it.

however, if you are not, if you got made redundant next week and had cancelled it, you would kick yourself. its up to you.

theres no legal requirement to have it, its just insurance.

Swinstie73

Thanks roonaldo, will take this into consideration if it ever gets let - no interest in that either. Will probably continue to pay it just now anyway, would be too scared to cancel just incase.

handytips

The only insurance that you have to have is Buildings insurance, the Rest, well thats up to you, but if it was sold by the bank i would check the policy to make sure it is back to day 1 cover, if not CAN it.
All insurances should only be sold on affordability and the clients needs and preferences, remember banks are NOT allowed to give advice. We are

jimjames

Swinstie73 wrote: »

Thanks roonaldo, will take this into consideration if it ever gets let - no interest in that either. Will probably continue to pay it just now anyway, would be too scared to cancel just incase.

Amazed that you've had no interest in letting. How are you advertising and is the rate comparable to others? Every agent I've spoken to has said that they cannot get enough decent rental property and anything good would go on first viewing.

Check what is covered with the insurance - as with the PPI situation you may find that you cannot claim due to their restrictions.