mortgage protection on RIP

[Unregistered]

Is it necessary to get mortgage protection on an investment property. Myself and my wife bought a house as an investment recently. I have a medical condition so I am loaded by life assurance company. I decided to defer the mortgage protection as it can be expensive. Should I have bought it or not?

 

[eamonn66]

you dont need it but if you want to have it you can write it off against the rental income which means you can effectively get it for half price.

 

[stuart]

As Eamonn66 stated it is not a necessity so only take it if you feel your current cover is not adequate

Also, since you are not oblidged to have it, do not assign it to the mortgage company
If not assigned then when it is paid out it will be paid direct to your other half

They can then decide if they want to clear down the mortgage on the investment property or not

Remember it is investment, it should still pay for itself no matter wo is looking after it

stuart@buyingtolet.ie

 

[GreatDane]

Stuart

Do remember, some lenders wont advance high levels of debt against properties without the additional security of a life policy. To be fair to them, if your looking for a high level of debt on the property without extra security then there is a higher risk to be offset by either other security or a higher lending rate imho.


... given your e-mail address, Stuart, I imagine you are very much aware of the fact that lots of Borrowers are now trying to get 90% plus on each RIP, which is most likely to high to ever be self financing & pay for itself (and no, I don't consider rental income equal to current interest repayments as a property paying for itself, like some people might try and tell you )

Cheers

G>