Mortgage Insurance & Councillor Allowance

Siarad

I applied for a new mortgage insurance as the one I set up when I got my mortgage in 2008 seemed massive compared to other prices I'd seen quoted. I applied through iProtect and was told I was accepted and cancelled my old mortgage insurance. I have now been written to by the underwriters who have told me they cannot approve my application because I have a second income from the allowances I receive as an elected councillor for my area.

They say that if I was on long-term sick leave, I would not be accepted if I was receiving any income other than my sick pay and that if I was unemployed I would need to apply for job-seekers which I might not be given if I have another income.

My councillor allowances come to approximately £390 after tax and definitely wouldn't cover the mortgage (or anything much else) if I were end up unemployed or long-term sick - hence my choosing to pay out for insurance!

Are all insurers likely to react this way to my councillor allowance or do I have any other options?