Sole mortgage and protection of spouse

mrjp84

Hi there,

My partner and I recently bought a property. Although we are married, we needed this done in my name only, as my partner is from overseas and has tax/credit difficulties.

I want to make sure my partner is protected in the event of my death, so I'm taking out mortgage life assurance to cover the loan. That seems like an obvious choice. But unless I buy this from the lender who sold me the mortgage, how can I ensure this goes to pay off my mortgage loan?

Also, could the lender not decide to just call the loan anyway if I die, regardless of the insurance?

Any advice much appreciated.

MRJP84

ACG

Even if you take it out from the lender, you cant ensure it gets paid to the lender.

What you would need to do, is to put it in trust. This ensures it goes to whoever you like (and is free), its then down to your partner to use it as they see fit. It may be the mortgage, it may not be.

kingstreet

Why not do joint cover, then the survivor has the option of paying off the mortgage?

Don't forget to leave a will!