Will you have to pay a fee to your mortgage lender if you don’t buy your Life Insurance through them?

No! By law mortgage lenders are not allowed to charge a fee if you choose to shop 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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What is Mortgage Payment Protection Insurance?
Mortgage Payment Protection Insurance pays your monthly mortgage repayment if you were off work due to sickness, accident, or unemployment. (Don’t forget that your home is at risk if you fail to keep up the repayment of loans secured against it.)
Why should you have Mortgage Payment Protection Insurance?
Your home is at risk if you fail to keep up the repayment of loans secured against it.
Is Mortgage Payment Protection Insurance the same as a Mortgage Insurance Guarantee?
No. Mortgage Payment Protection Insurance is totally different to a Mortgage Insurance Guarantee.
What is Mortgage Payment Protection Insurance?
Mortgage Payment Protection Insurance pays your monthly mortgage repayment if you were off work due to sickness, accident, or unemployment. (Don’t forget that your home is at risk if you fail to keep up the repayment of loans secured against it.)
You want to ensure that your mortgage is paid off if you were to die or become seriously ill and could not work again. What sort of life insurance do you need?
You need either Life Insurance if you have an interest only mortgage, or Mortgage Life Insurance if you have a repayment mortgage. Then you need to add Critical Illness Insurance. You can do this all in one policy.
Sometimes confusion can arise in this area because mortgage lenders are allowed to charge a fee if you don’t take out your Home Insurance through them - that is the insurance that insures the structure of your home. But as we said above, they are not allowed to charge a fee if you take out your Life Insurance independently and they can easily be 50% more expensive!

Frequently Asked Questions related to the above topic.
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