Switching Mortgage Protection Provider

[Kine]

Hi,

I have just switched Mortgage Protection provider and am in the process of cancelling existing policy. One thing I hadn't thought of though, do I need to inform my Mortgage provider that I have changed who I'm covered by?

K

 

[Papercut]

Definitely, as the policy forms part of the bank's security in relation to the loan. The policy will need to be assigned to the bank & they will need to hold the original policy documents.

You should give your bank a ring & ask what you need to do if you wish to change insurance company, & then get back on to your new insurance company & get them to alter anything if required.

 

[jas376]

Not only do you have to inform the bank but also be aware that the bank will not release your current policy until it receives and approves of your new policy. The mortgage has to be covered by a mortgage protection policy at all times and the bank has to have written evidence that it is. This meant that in my case (I switched last year) that I had to pay premiums on two policies for a month or two while all the paperwork was being sorted out.