Is Mortgage Protection Insurance suitable for interest only mortgages? (Test)
Niall O'Connor MSc CFP® QFA
A Mortgage Protection policy is not suitable for an interest only mortgage.
With an interest only mortgage, the capital sum outstanding on the mortgage does not reduce and for this reason a level term life insurance policy is more suitable.
If a mortgage is in arrears and repayments are less than the conditions of the original mortgage it is likely that any mortgage protection policy in place will not be sufficient to clear the mortgage balance. In these instances, the policy should be replaced by level term policy.
Pop into the chat in the bottom right hand corner of your screen and we can help you with your particular circumstances to ensure you get a policy that is the right fit.
Get a Quote in Seconds
No contact details required
How many people need cover?
What age are you?
Are you a smoker?
Is your partner a smoker?
How long do you need cover for?
How much is your mortgage for?
Comparing The Market ...
Enter your mobile number to receive a 4 digit pin so you can proceed with the application