Mortgage Insurance

flyingbanana_2

Hello everybody,

I am wondering if someone can help me.

Me and girlfriend have just bought our first flat and we get the keys in 2 weeks.

We have had the worse mortgage broker and he signed us up to all kind of things, including mortgage protection with critical illness cover and god knows what! He has said to us that they will send a letter out and if we dont sign it then the policy will be taken out but if we dont want the policy anymore then sign and the pliocy will be stopped.

What i am asking is do you have to have insurance on a property? I know that critical illness is not compulsory but do you have to have something in place like life insurance or life assurance?

If so do you have to have this inplace before we complete?

Please can someone offer some advice cos time is of the essence

Thanks

payless

Sounds like he is talking about a cancellation note - on life/cic policies you do get opportunity to cancel , although if you don't want it you should be able to contact the insurer earlier to stop it- and so should the adviser if you instruct him.
( that said , the policy may be prudent- have you spoken to anyone esle , got other quotes , as some "advisers" deal with just a small number of providers)

Its rare ( but stil sometimes the case) that a lender requires life cover in place ( although again may be prudent)

Usually the only insurance that MUST be in place is building cover.

flyingbanana_2

Hi there,

thanks for your reply.

Our mortgage is with Nationwide and our building insurance is covered in our flat's service charge. What insurance companies does nationwide deal with? What are the best ones to go with?

Does nationwide usually require life cover? I have no problem taking out life cover, it makes perfect sense i just want to know if it needs to be inplace before we get the keys.

Thanks

payless

Our mortgage is with Nationwide and our building insurance is covered in our flat's service charge.

so that's that bit sorted

What insurance companies does nationwide deal with?

No idea- they seem to brand things

What are the best ones to go with?

depends on what product you are talking about

Does nationwide usually require life cover?

No- but might be prudent

flyingbanana_2

Hi Payless,

Thanks for that, the only policy i am thinking on taking out it mortgage life cover.

Is it recommended to go with someone like Tesco? What would you recommend for this service?

Thanks

payless

Don't believe Tesco gives advice to product suitability of their own products - so sorry but I'm not going to give advice on their products either. ( same applies to recommendations for a non advice broker)

A good broker or IFA would give advice as to suitability and best product provider and may obtain lower rates or perhaps cashback. ( we can't give recommendations here for a varity of reasons)

flyingbanana_2

hi there,

thanks for your help. I will have a shop around and see what products are good.

Thanks