# Tracker mortage - Mortgage protection requirement?



## poolfanabc (4 Apr 2011)

I am on a tracker mortgage currently. I cancelled my mortgage protection a while ago as they put up their monthly payments, however never started another mortgage protection.

My bank have never asked about this so presuambly were not notified by the cessation of policy.

Is mortgage protection compulsary or not and if so, is this something that could be used by bank to force me off tracker as breach of contract or soemthing like that?

I have a perfect mortgage repayment history, so no other mortgage issues.


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## Brendan Burgess (4 Apr 2011)

It's odd that they put up their monthly payments. Are you sure? Normally, it is a set figure for the duration of the mortgage. 

If you don't have dependents, it's a terrible waste of money. You are paying for something from which you will not benefit. If you have dependents, I would have thought it was essential. 

Under the Consumer Credit Act, anyone under 50(?)must take out a mortgage protection policy unless it is prohibitively expensive due to ill health. 

No, the bank will not be able to force you off your tracker if they find out that you don't have it, but they will tell you to take it out again. It could be more expensive now that you are older. But you may be able to shop around and get it cheaper. 

To get a mortgage, you have to have it. I think that the insurance company notes the interest of the lender on the policy and should notify the lender that the policy has been cancelled. 

Brendan


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## poolfanabc (4 Apr 2011)

okay thanks.

will leave for the minute so.


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## niceoneted (4 Apr 2011)

I think it is not clear what cover you are talking about - well to me anyway as I feel sometimes people use different ways of saying things. 
Is it the life assurance cover that you take out with the mortgage where it is cleared upon your death OR is it the mortgage protection for where you or sick or lose your job and they pay for a period of time? 
Which is it?


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## DrMoriarty (4 Apr 2011)

That's what I was thinking - do you mean _repayment _protection? This would make more sense.


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## Sumatra (8 Apr 2011)

Ask your bank for a print out of what your direct debit covers and ask them to explain the requirement and benefits of each item.

This convenience thing of having just one direct debit covering a multitude of products shouldn't be allowed. The payments on a mortgage protection policy remain at a constant level througfhout the term of the loan so it was not your policy that increased it must have been something else.


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