Life Assurance for a mortgage

sticky23

Hi there

My partner and I are trying to buy a property, and I'm trying to anticipate any problems we might encounter.

My partner has a genetic condition called Cardiomyopathy - he has never had any symptoms, but is being monitored every two years by a heart specialist, and he is also on preventative medication. His sister and father developed quite severe symptoms.

Are we likely to find life assurance for him? Would the mortgage company insist on life assurance, before approving it?

We are taking on a very small mortgage which would probably be paid off within 5-6 years. We don't have any children, nor are we planning to have them.

To complicated things further, we are both self-employed (with three years records), and the property is shared ownership. Therefore I think the mortgage company will be extra vigilant about life assurance. We are 32 and 37 years old.

Thanks in advance.

kingstreet

The lender won't be bothered if you have life cover or not.

The condition may result in a decline or special terms being imposed. I don't expect "normal rates" to be offered.

A specialist protection adviser or IFA would be the best option for such a case as it's likely to need specialist knowledge of the right choice of provider.

sticky23

Thanks.

So the mortgage company won't ask us to get life cover? We probably wouldn't bother then, as it will be very expensive. If the worst were to happen, one of us could easily pay the mortgage..

kingstreet

They'll try to flog it to you, as they are targeted for such business and are paid commission on successful sales.

However, the lenders' tame insurers are often not geared up for "round peg, square hole" scenarios, so they should be avoided.

Your call on what protection you feel you need.

sticky23

Thanks, kingstreet. That's really helpful.