Life Deeds of assignment

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cill dara34

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I have my morgage about 5 years with the same bank and my solicitor is asking me to sign a Deed of Assignment of life assurance can anyone explain what this is and what would happen if i didnt sign it if anything at all.
Thanks
 
The deed of assignment is basically giving/assigning your bank power over your life assurance, in other words if you die the life cover will be paid to the bank to clear your mortgage and not directly to dependents. Some banks assign policies, others just insist you have one.

If you dont sign it then in theory if you died the life assurance would be paid to your estate who would then I presume clear off the mortgage. It's not really that big a deal either way as I assume the purpose of it is to clear the mortgage so its not like you and the bank want different things.
 
Dont agree with attitude of keeping them sweating. Someday you may want something from the bank and your non cooperation may have been noted. I know many will not agree but someone in the bank is just doing their job. Maybe it was overlooked in the first instance. Actually it could result in a benefit to your estate in that the funds would be applied quickly to any loan in your name. However this is only a minor aspect.
 
It is a legal requirement to have mortgage protection cover when taking out a Mortggage Loan
 
All that's happened is your bank forgot to get their interest noted on the policy and following a review they are putting things right. It should have been done before you drew down your loan.

The bank could do this without your solicitor. I'm puzzled as to why he / she is involved. Did the bank discover the error or did your solicitor? From what you say seems like solicitors are reviewing their files too.
 
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