mortgage protection rental property

A

ardman

Registered User
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63
Looking for advice on mortgage protection plan on rental property.
I have no mortgage on my home and a mortgage of E160000 on rental
property(which is worth approx. E240000. Mortgage protection costs us
E63 p.m. Is it an unnecessary luxury? Also would you advise to pay lump
sum from maturing SSIA off mortgage as rising interest rates have eaten
up profit on rent?
 
you probably do not need it, in that the house can be sold if you or joint owner (if any) dies. mortgage protection is to pay off the outstanding debt if the mortgagee dies.

Using SSIA to pay off the o/s loan is one for you to consider. I personally would pay down the loan. Others will have differing opinions
 
In general you should not bother with mortgage protection life assurance on an investment property. However some lenders insist on it even for investment properties. As you probably know it's generally mandatory under the Consumer Credit Act for owner occupiers.
 
Thanks for replies. Both of your opinions are along the lines I was thinking.
Ravima, why would you pay down the loan?
Regards, ardman
 
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