Transfer mortgage protection policy to new property or need new policy?

sandrat

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We have completed sale on our house and hoping to buy another in next 12 months.
there are about 21 years left on the mortgage protection policy which is reducing in line with original mortgage but stands at about 150k of cover right now.

The bank have removed their claim to the policy.repayment is very cheap and policy was taken out when we were very young and healthy. if we do proceed with buying another house in next 12 months can we assign this policy to the new mortgage?It will be a similar term to what is outstanding but there may be Up to 50k of a shortfall based on what the new mortgage Amount would be .

What are our options? is it possible to get a new policy for the difference or do we have to let the older cheaper policy go and start again with a brand new policy?

I am public sector so have death in service cover and also salary protection in place. Himself also has some salary protection through union.
 
No reason why you cannot use existing policy if it suits and take out new one for balance but I would also get quotes for a total new one just in case it's cheaper bearing in mind of course any changes in health since then that might make it more economically to keep existing and pay for new one.
 
New mortgage lender will probably look for the original policy document. If you're using the existing policy, this may still be with your bank. I'd start asking for that now to save rushing in the future. Some banks are better than others at locating such things in their archives.
 
Exactly as Liam says above- my last mortgage bank managed to lose my original policy document, which mean requesting a replacement from the life assurer and a 6 week delay in switching as I couldn’t put the life cover in place with the new mortgage bank. Health has changed quite a bit since we took out the original policy so buying a brand new policy would more than negate the savings from the switch as well as requiring medicals etc. I’d highly recommend to movers/switchers that they keep their existing mortgage protection policies - life cover gets a lot more expensive as you get older and/or experience any health issues.
 
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