Why do I need mortgage protection?

Under the Consumer Credit Act 1995 (very exciting!), a mortgage lender is obliged to ensure that a mortgage protection policy is in place to cover the balance due on a mortgage in the event of the death of a borrower, or in the case of a joint mortgage, in the event of the death of one of the borrowers.

There are some exceptions to this rule, but is also at the lender’s discretion whether or not to insist on a mortgage protection policy being put in place as a condition of a mortgage. If you are exempt, this should not stop you from seriously considering taking out a policy in these circumstances. For further information on the Consumer Credit Act, please click here.