Mortgage Protection Insurance - Is your lender notified of a claim?

3smees23_2

Hi,

We have applied for an additional mortgage and have had this approved (as we are moving). However a week ago I was told that I was at risk of redundancy.

I have mortgage protection so I'm happy to proceed with the purchase, however I was wondering whether the insurance company when dealing with a claim would notify the lender in any way? As we are a month or two away from completion I'm worried my lender may refuse to lend after all.

Thanks in advance,

Sam

dunstonh

Your post is off-topic for this section. However, in answer to your question, no, the insurer will not tell the lender.

3smees23_2

Thanks for the reply, Sorry just saw 'other insurance'.

Insider101

As I understand it, you are looking to actually make a claim on your insurance in view of your possible redundancy and at the same time looking to purchase a house?

The insurer would not routinely notify the lender. However, the lender has the right to check that your circumstances have not changed prior to completion. If you had been notified that you were to be made redundant then you would need to tell them.

3smees23_2

If I were to notify them and they re calculated based on my OH's earnings would they take into consideration my mortgage protection income and redundancy/in lieu payments?

3smees23_2

I will move this to another forum. Please ignore