Skip to content

Mortgage Life Cover > Rightmortgageadvice.co.uk

  1. Home
  2. insurance
  3. life cover
  4. Mortgage Life Cover

Mortgage Life Insurance

Mortgage life insurance is typically the same thing as decreasing term insurance however the term could also apply to level term insurance so it is important to distinguish between the two products.

Decreasing term insurance will decrease in cover over its term assuming a notional interest rate usually between 8 to 10 percent.

This means it will almost always guarantee to repay the full balance of the mortgage on death.

some policies will actually guarantee this from the outset however some will not so it's important to check on this with your advisor.

Decreasing term insurance is therefore usually used to repay a repayment basis mortgage.

However if you have an interest only mortgage with a repayment vehicle arranged you could opt for decreasing term cover to reduce costs.

In the event of a claim though there may be a shortfall if the investment plan is behind target.

A level term insurance policy will provide a flat level of cover for the entire term of the policy so they are usually relevant to those on an interest only mortgage or borrowers who would like a surplus left after repaying the mortgage.

It's also important to distinguish between insurance and assurance, life insurance is a protection product with no investment element.

If you survive beyond the term there will be no return from the policy.

Whole of life assurance is an investment product, the policy is assured because it runs for the whole of life and will therefore always pay a return.

We do not arrange investment products however should an assurance policy be more suited to your requirements we can arrange for a financial advisor to assist you with this.

From the blog...

  • Can a foreign national get a mortgage on a visa?

    A simple and (nearly) definitive guide to whether foreign nationals from outside the EU can get a mortgage. One of our main areas of business is foreign nationals on visa's, and it...

  • Is a 10 year fixed rate mortgage a good idea and should you get one?

    10 Year fixed rate mortgages have been reducing significantly in cost, and for the first time in the UK it's now possible to get a pretty competitive rate fixed for 10 years but the big question is; s...

  • If you have an interest only mortgage now could be the time to consider switching product before the window closes.

    In the last two weeks both Natwest and Coventry Building Society ceased offering interest only mortgages for residential property following on from Nationwide's decision to do the same some time ago. ...

THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE OR ANY OTHER DEBT SECURED ON IT. YOU DO NOT HAVE TO PAY A FEE FOR OUR SERVICES AS WE RECEIVE COMMISSION FROM LENDERS. IF YOU PREFER YOU CAN PAY 1% FEE ON COMPLETION AND WE WILL PAY ANY COMMISSION WE RECEIVE TO YOU. SOME BUY TO LET AND COMMERCIAL LOANS ARE NOT REGULATED BY THE FINANCIAL CONDUCT AUTHORITY
© RIGHTMORTGAGEADVICE.CO.UK 2009-2016
RIGHTMORTGAGEADVICE.CO.UK IS AN APPOINTED REPRESENTATIVE OF JULIAN HARRIS MORTGAGES LTD, AUTHORISED AND REGULATED BY THE FINANCIAL CONDUCT AUTHORITY. FSA NO 304155
THE FINANCIAL OMBUDSMAN SERVICE (FOS) IS AN AGENCY FOR ARBITRATING ON UNRESOLVED COMPLAINTS BETWEEN REGULATED FIRMS AND THEIR CLIENTS. FULL DETAILS OF THE FOS CAN BE FOUND ON ITS WEBSITE AT WWW.FINANCIAL-OMBUDSMAN.ORG.UK

Get advice
Request insurance advice
close the form
Your details
Contact details
Enquiry details

Request impartial advice from one of our qualified mortgage brokers. By pressing submit you agree to the Terms & Conditions and Privacy Policy.