Will your Mortgage Lender charge a fee if you buy your Life Insurance from someone else?

No! By law mortgage lenders are not allowed to charge a fee if you buy elsewhere.

STEP 1 of 2
Type of cover
Life Insurance       Mortgage Life Insurance
 
Cover Level (£)

Number of years
Do you want:  
Critical illness cover
Family income benefit
 

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How much will the premium be?
Your premium reflects the level of cover you want and how long you want to be insured for. It also reflects the risk to the Insurance Company that you may make a claim. This risk is conditioned by your age, sex, occupation, health record and life style etc.
If you’re asked to supply more information or go for a medical, will the premium increase?
No, not necessarily. If you’re asked for more information or to have a medical it does not automatically follow that your premium will increase. To put this in context, in our experience 88% of people who apply for life insurance qualify for the price first quoted.
Does your age affect your premium?
Yes, your age is one of the most important aspects that determines your premium. (Other important aspects include the level of cover you want, whether you are male or female, whether you are a smoker, your occupation and health record.)
Is a medical absolutely necessary?
No. Most people do not require a medical. Normally an insurer will only ask for a medical if you have existing health issues that cannot be resolved by a report from your GP or if you have applied for an especially high sum of insurance.
What correspondence can you expect to receive after your Application has been submitted?
It all depends upon what complications arise from the details on your Application.
From time to time confusion can arise in this area because mortgage lenders are permitted to charge a fee if you don’t take out your Home Insurance through them – that’s the insurance that insures the structure of your home. But this is not the case with Life Insurance.

 

Frequently Asked Questions related to the above topic.
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