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Insurance Premiums
gareth_ni
Posts: 5 Forumite
Can anyone confirm whether new insurance premiums (Home, Life/Income) payable via direct debit/monthly are credit checked?
Unfortunately my wife is due to have a default added to her credit file due to a store card being 3 months in arrears which we did not know about until our mortgage application was referred (statements somehow were redirected to credit lender).
Upon our decision in principle and application being directed to Nationwides underwriters our application has been satisfied and we've received our mortgage offer. We'd intended on any new insurance premiums to be satisfied via monthly DD as thats what we've arranged at present, whilst they would be affordable if needed to be paid annually they are expenses that we hadn't allotted for.
Unfortunately my wife is due to have a default added to her credit file due to a store card being 3 months in arrears which we did not know about until our mortgage application was referred (statements somehow were redirected to credit lender).
Upon our decision in principle and application being directed to Nationwides underwriters our application has been satisfied and we've received our mortgage offer. We'd intended on any new insurance premiums to be satisfied via monthly DD as thats what we've arranged at present, whilst they would be affordable if needed to be paid annually they are expenses that we hadn't allotted for.
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Comments
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You will get credit checked, but if you got a mortgage ok, hopefully there won't be an issue.0
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Insurers and brokers fairly often do credit check, this may be about if to offer credit terms or not but can also be used as a rating factor to determine the base premium irrespective of if you're getting instalments or not0
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Long term cover, such as life cover, critical illness cover and permanent health insurance do not require a credit check as there is no finance agreement required.
If you stop paying the premiums the cover stops and that's it. No charges or penalties.I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0
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