Can I take out mortgage protection if I am not named on mortgage?

justo

Registered User
Messages
129
My wife is the only person named on the mortgage on our primary residence. Currently our mortgage protection policy is in her name only. Obviously this is a great risk in case I die.

Do banks allow mortgage protection policies to be taken out my someone not named on the mortgage, or the deeds to the house?
 
My wife is the only person named on the mortgage on our primary residence. Currently our mortgage protection policy is in her name only. Obviously this is a great risk in case I die.

Do banks allow mortgage protection policies to be taken out my someone not named on the mortgage, or the deeds to the house?
My understanding is that the so called mortgage policy is just an ordinary life policy which will expire after a certain number of years and is payable in event of death during this period on a reducing basis. You can also take out such term policy for a certain sum which will not reduce and again payable in event of death before expiry date.
 
Just take out a bog standard policy for the term and amount, it doesn't have to be assigned to the lender if you are not on the mortgage so you just keep it rather than giving it to the lender.
 
Back
Top