Mortgage Protection for Investment Property

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fitz

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My wife took out mortgage payment protection on her house and has since moved into my house since we got married. Should we continue with this payment as the premium is currently going up? The house is now rented and the tenants just signed another year lease.

Thanks.
 
I don't know anything about this type of cover but it seems to me like it would not be intended for investment properties. If you are receiving rent then this should cover much if not all of the mortgage.

You should contact the provider to clarify this.
 
It's up to yourselves what you decide to do. Nearly all people taking out mortgages for investment properties do not take out a mortgage protection policy. As you said the mortgage is paid with the rent so the mortgage would continue to be paid if your wife died, alternatively the property could be sold to repay the debt if your wife died. It's not the same situation with your home if either of you were to die (ie no rent to pay mortgage and can't just be sold - where would you live?) which is why banks require mortgage protection for all home mortgages.
 
sivelr said:
It's up to yourselves what you decide to do. Nearly all people taking out mortgages for investment properties do not take out a mortgage protection policy. As you said the mortgage is paid with the rent so the mortgage would continue to be paid if your wife died, alternatively the property could be sold to repay the debt if your wife died. It's not the same situation with your home if either of you were to die (ie no rent to pay mortgage and can't just be sold - where would you live?) which is why banks require mortgage protection for all home mortgages.
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I thought this was mortgage payment protection we were discussing (where the insurer temporarily pays your mortgage whilst you're ill or unemployed) not mortgage life protection
 
Hi,

I've a similar situation. Bought house as home few years back, took out mortgage protection etc.

Got married, moved into my wife house and rented out my own.

I take the point that the rental covers the mortgage-ish...I rent to students so its not all year round and its certainly not guaranteed.

So I would have been of the opinion that it would still be safer for me to hold on to my mortgage protection because at the very least, in the event of my death, the mortgage would be paid off and not hanging over my poor wife? If I cancel the protection, she would still need to chase and manage rent on top of ensuring theres enough dosh for the other mortgage....a very stressful scenario.

Unless I'm wrong here. Given that the house is rented, does that play any factor in the actual morgage protection and how much would be paid off in the event of my death?

Apologies for the morbid nature of this post :)
 
L0llip0p said:
Hi,

I've a similar situation. Bought house as home few years back, took out mortgage protection etc.

Got married, moved into my wife house and rented out my own.

I take the point that the rental covers the mortgage-ish...I rent to students so its not all year round and its certainly not guaranteed.

So I would have been of the opinion that it would still be safer for me to hold on to my mortgage protection because at the very least, in the event of my death, the mortgage would be paid off and not hanging over my poor wife? If I cancel the protection, she would still need to chase and manage rent on top of ensuring theres enough dosh for the other mortgage....a very stressful scenario.

Unless I'm wrong here. Given that the house is rented, does that play any factor in the actual morgage protection and how much would be paid off in the event of my death?

Apologies for the morbid nature of this post :)
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Original query related to Mortgage Repayment Protection. This query seems to relate to a different product - Mortgage Protection. See here.

There's no difference between Mortgage Protection covering a family home and that covering a rented property, unless the original application made acceptance conditional on the policy being used for a family home mortgage. This was the case with a small number of Mortgage Protection policies offering reduced underwriting and block policies. Check with the insurance provider.
 
Very true. My apologies for the mix up. I am referring to mortgage protection as opposed to mortgage repayment protection.
 
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