Do Inusurers notify mortgage lender?

sarah3891

I need to make a claim on my mortgage protection policy due to a recent, unexpected, redundancy. My policy is with an Insurer, not my lender, and I have held the policy faultlessly for over ten years. Although I am hoping to find a new job soon, and we can support the mortgage payments comfortably at present, but a monthly claim payment would obviously ease this even further. However, I'm terrfied the Insurer will notify the lender and we'll end up having to repay the mortgage in full or something crazy because the income has been lost. I appreciate that probably sounds extreme but I'm feeling a bit vulnerable and a bit scared right now so just trying to understand the implications of making a claim. Will they tell my lender I've lost my job?

ilikewatch

As long as the payments are maintained the mortgage holder won't make any changes, and are certainly not going to demand repayment in full.

However, a change in your employment probably will affect any attempt to remortgage.