Halifax/Scottish Widows Mortgages Life Insurance - Compulsory?

Lineker10

I bought my first house 11 months ago from the halifax, fixed rate, 15% deposit and so far everything has been great. My only concern is that at the time of applying for my mortgage the halifax salesman (I refuse to call them 'advisors') informed me that life and critical illness insurance was complusory in order for them to be able to offer me the mortgage. Obviously i took this out at the time, however i am now wondering if this insurance is indeed needed. I currently pay £30 a month and have so far paid out well over £300.

I am 25 years old, in good health and although in a long term relationship, my partner is from Ireland and would almost certainly return there should anything happen to me - so no wife and kids becoming homeless scenarios.

I have looked through my mortgage conditions and i cant find anywhere where it mentions the need to have L&CI cover. Can anyone advise me whether this is indeed complusory for a mortgage? If not - is it a disastourous idea given my circumstances to get rid of it? And lastly if its not complusory, is there any action i cant take against Halifax for miss-selling it to me?

Thanks!

dunstonh

My only concern is that at the time of applying for my mortgage the halifax salesman (I refuse to call them 'advisors') informed me that life and critical illness insurance was complusory in order for them to be able to offer me the mortgage.

That's ok. Real advisers call them sales reps as well. There have been calls many times over the years to stop them using the adviser tag.

The only insurance requirement is buildings insurance and you can buy that anywhere.

If not - is it a disastourous idea given my circumstances to get rid of it?

Life assurance would be cheap for a 25 year old. Typically around £5-10pm. At £30 it suggests you have more than that. Although banks are more expensive than IFAs.

You do appear to have a financial need for it. So, in that respect it is right to have it.

And lastly if its not complusory, is there any action i cant take against Halifax for miss-selling it to me?

You can complain but unless you have any evidence to support your allegation, then you would expect it to be rejected. You may well have been told that but people that were not told that still claim they were in attempts to get money back. It is a he said/she said scenario and unless there is evidence to back it up, then its dead in the water.

bigadaj

Shop around for similar cover elsewhere for comparison. They may require it is present but that shouldn't mean that you have to source from them, only supply evidence to them that you have cover, The sales of such products was occasionally connected to a preferential mortgage rate but this doesn't appear to be the case with you.

ACG

Dunston has summed up the answers perfectly.