Mortgage offer confirmed - What insurances do I need?

Sam_16

Mortgage offer received today 😊 solicitor has started on searches and has already been in correspondence with builders solicitor so things are moving pretty quickly.

My broker does not charge me a fee but say all she asks is we take our insurances out with her. Which insurances will this be? I know I will most likely pay a higher fee going through the broker. Are the insurances lifetime or will I be able to cancel after a period and find something cheaper if need be?

David_White

Firstly congratulations on the offer!

Assuming it's a house and not a flat the only mandatory cover is buildings insurance.

Having said that, I urge you to do a bit of reading on life cover, critical illness cover and income protection as they are all very important and in an ideal world you'd have them all.

I understand why your broker said that however I fundamentally disagree with that form of selling and believe their business model is flawed. It's not your fault they've chosen not to charge a fee, you don't need to be guilt tripped into taking out insurance with them if you don't want to.

If you're taking the cover specifically for the mortgage then the term will match that and can be cancelled/changed at any time.

Sam_16

Thank you very much 😀

Firstly yes it is a freehold house. I do intend on taking life insurance and building insurance I was thinking along the lines of taking out the minimum with the broker and then any extra find myself online if thats possible? I had done a few quotes online for life insurance of around £11pm and similar for building & contents so didn't want to get charged too much extra going through broker.

I had read before that if I cancel anything I take with broker they will lose their commissions?