Mortgage Insurance - is it worth it

[thegman]

Question is pretty simple - is it worth it. CC insurance always seemed a con to me, so is this any different. Are you best off getting it from your mortgage provider or are there some independant insurers?

Thanks

[s,one]

When I looked into this recently I found to many loopholes to make a viable expense. Whats the deal with the goverment now and covering your mortgage for up to 2 years?.

[ss64ii]

When I re-mortgaged in July, They wanted over £70 a month for extra insurance, despite us telling them we could survive for 2 years on savings, we told them no thanks.

[Trax]

It depends on what type of insurance.

I have always had ASU (Accident sickness and unemployment), it meant that we still remained in our house after being out of work for eight months, twice in the last four years. I am contracting now, so only have the accident cover.

It cost us £44 per month, and paid £1100 a month whilst out of work, with no deferment period.

Also, if you dont have at least life cover (ideally with critical illness), then your family deserve to have to sell their house and go into council accomodation if you happen to die (which sometimes does kind of happen), as you obviously done care about them.

A good advisor should be able to prioritise which insurance is needed, how much you want to spend per month on them, and therefore which ones you do and dont take.

[bazking69]

Too many stipulations and clauses IMO. You are miles better off putting the money you would spend away in a saving accounts.

[thegman]

bazking69 said:

Too many stipulations and clauses IMO. You are miles better off putting the money you would spend away in a saving accounts.

I have life cover, and illness cover. Unemployment is the only real worry.

[s,one]

Thought you had to have life cover to get a mortgage. Unemployment, critical illness is optional. Right?

[onomatopoeia]

Trax said:

Also, if you dont have at least life cover (ideally with critical illness), then your family deserve to have to sell their house and go into council accomodation if you happen to die (which sometimes does kind of happen), as you obviously done care about them.

One size does not fit all and sweeping generalisations are bad.

I have a home which is mortgaged. I don't have life insurance. I can see no point in me having it.

[M400 NBL]

s one said:

When I looked into this recently I found to many loopholes to make a viable expense. Whats the deal with the goverment now and covering your mortgage for up to 2 years?.

I think the government have asked/persuaded lenders to give payment holidays.... but only for those with whopping great mortgages. About £400k I believe.

Sorry s,one, I had to remove the comma from your name to quote your post.

Edited by M400 NBL on Monday 29th December 11:26

[bazking69]

thegman said:

bazking69 said:

Too many stipulations and clauses IMO. You are miles better off putting the money you would spend away in a saving accounts.

I have life cover, and illness cover. Unemployment is the only real worry.

You are obliged to have life cover on any mortgage policy. Illness and unemployment are optional, and it is this that is a waste of money IMO.

[Trax]

swerni said:

onomatopoeia said:

Trax said:

Also, if you dont have at least life cover (ideally with critical illness), then your family deserve to have to sell their house and go into council accomodation if you happen to die (which sometimes does kind of happen), as you obviously done care about them.

One size does not fit all and sweeping generalisations are bad.

I have a home which is mortgaged. I don't have life insurance. I can see no point in me having it.

If you have no dependencies then life insurance is pointless.
If you have a family and children then it is far more relevant.

Of course one size does not fit all, and if you are single with no dependants, you qouls only have life insurance if you dont want the house selling if you die, i.e. leave to family. Life cover is generaly cheap, with critical illnes cover a lot more money, we pay £70 per month, but if I have a heart attack, we still get to keep the house, rather than having to sell.

[sleep envy]

I have unemployment cover to make sure the mortgage, council tax and house insurance is paid

after that they can get in a queue

[odyssey2200]

Having been made redundant a number of times including being unemployed now, I have claimed on my Mortgage insurance a number of times.

I have to say that if I did not have it, I would probably be selling the Big Issue right now.

[trooperiziz]

bazking69 said:

thegman said:

bazking69 said:

Too many stipulations and clauses IMO. You are miles better off putting the money you would spend away in a saving accounts.

I have life cover, and illness cover. Unemployment is the only real worry.

You are obliged to have life cover on any mortgage policy.

No you aren't.

There is no legal requirement in the UK to have life cover on a mortgage.

[illmonkey]

trooperiziz said:

bazking69 said:

thegman said:

bazking69 said:

Too many stipulations and clauses IMO. You are miles better off putting the money you would spend away in a saving accounts.

I have life cover, and illness cover. Unemployment is the only real worry.

You are obliged to have life cover on any mortgage policy.

No you aren't.

There is no legal requirement in the UK to have life cover on a mortgage.

I hope not, I don't have any. My broker told me they have to advise, but I don't need to listen.

[matt3001]

If you have a safe job and sensible mortgage then no. If you have leveraged yourself to the hilt to buy a house you can't afford then yes.

[odyssey2200]

matt3001 said:

If you have a safe job

Sorry! No such thing!

matt3001 said:

If you have leveraged yourself to the hilt to buy a house you can't afford then yes.

The size of the mortgage is almost irrelevent.

If peoples income suddenly stops how many, especially those with families, could carry on paying their own mortgage indefinately?

Not many I would suggest, especially when you consider how property prices had risen in the recent past.

[Badgerboy]

I considered this but then realised that the small self employed business I run along side my full time job would negate any claim I could make.

The income from that is no-where near enough to cover my outgoings but its either collect the money that comes in from that, or pack it in and pay for insurance I might never use. Instead I have decided to put all the money I earn from the business into savings and create my own fund.

[matt3001]

Hmm I really do disagree with you, joint incomes of 40k that have been buying 300k houses would be better with insurance than the same couple that lives within its means in a 100k house.

[odyssey2200]

matt3001 said:

a 100k house.

not since 1998