Why cover:
  • 6 of 10 UK mortgage holders have life cover*
  • secure your loved ones’ well-being
  • price at all-time low, cover from £5 a month
Why us:
  • helping you find the right policy for you
  • critical illness cover; heart attack,cancer,etc.
  • the whole market compared, fast & free

Switching mortgage life policies

When you apply for a mortgage, you are presented with the option of getting mortgage life insurance cover form the bank or lender. However, you are free to either work with an agent or broker or buy the cover directly from the provider (Read more about the two options buying from lender vs. direct). You are not obligated to get private mortgage insurance or mortgage life insurance from the lender.

To switch or not to switch

There are instances where you may need to shift from your existing mortgage life insurance policy to a new one:

What happens when your mortgage changes hands?

Your mortgage is a long-term transaction. There may be instances when your mortgage gets sold to another company who then gets the right to service the loan.  The good news is, as long as you are making the payments on time, the terms of the loan will not change. The bad news is that your mortgage life insurance may not be transferrable.

There is a mandatory disclosure where the lender informs you of the possibility that they will sell your mortgage to another company.

When your mortgage is sold, be sure that you have the information you need with regards to the new company.

A word of caution

Now that you know you can switch, don’t go rushing into the nearest mortgage life insurance provider! Think about it first. There are some drawbacks to a new policy:

Also, if you decide to shift to a new and cheaper policy, check the list of benefits and coverages to make sure that you get the same (or a higher) level or coverage.

How to switch to a new policy

Latest update: 16.06.2013

Get your mortgage life insurance quote now, fill our form on the right.

Other sites: critical illness cover, lifeassurance.org.