B
From the day that the mortgage cheque is drawn down at the latest. Most providers will allow you to say when the policy takes effect. When you know when you will be drawing down the mortgage have the policy start from 00:00 on that day or maybe a couple of days before just to be sure (in case your lender wants proof of cover in advance).When must one have the insurance in place?
What do you mean? Mortgage protection is a form of life assurance. Are you talking about something else here like mortgage repayment insurance or something? Have you read this thread - oh, and shop around for mortgage protection life assurance and don't just take it automatically from the lender.Also there seems to be conflicting opinions as to whether a mortgage protection will suffice to close a loan deal or if life insurance is needed.
Yes - but that has nothing to do with the original query which was specifically about MPLA as far as I can see.Usually you mortgage company will request 2 policies. Firstly a standard insurance policy to cover the building in case it burns down etc otherwise they would lose the money forearded to you.
It also protects your next of kin from having to worry about mortgage repayments and the possibility of having to sell if they cannot be met in the event of your death.it effectively just protects the bank if something was to happen to you.
Thanks for that Clubman. I assume you can sign some sort of a wavier acknowledging the risks involved?See this thread:
MS and life assur/mort protection
Under the CCA the lender is allowed to waive the normal requirement for MPLA on an owner occupier's PPR mortgage if this happens. They are not obliged to do so though. And there is obviously a risk involved to the borrower especially if they have next of kin who might be lumbered with an unmanageable mortgage on their PPR and might have to sell if the mortgage holder dies.
I don't understand what you mean. Sign such a waiver for whom? Basically if the borrower can't get any or "affordable" cover then the lender may (under the CCA) waive the normal requirement for it and then it's up to the borrower to accept the risk or not.Thanks for that Clubman. I assume you can sign some sort of a wavier acknowledging the risks involved?
Sorry - I inadvertently deleted a post from somebody else (bigchicken I think) asking if one had no MPLA and died would the lender get the house. I don't think that this is the case and believe that the house passes to your next of kin who would then be added to the deeds/mortgage and would have to meet the mortgage repayments. I don't think that it's a case of the lender necessarily just taking the property.
Not according to the [broken link removed] which states that other than in specific limited cirucmstances MPLA is a legal requirement for owner occupier PPR mortgages. Those specific limited circumstances do not include the owner occupier not having any dependents.But in any case, where ther are no dependents, I would imagine that life cover would be waived without too much hassle.
Not according to the [broken link removed] which states that other than in specific limited cirucmstances MPLA is a legal requirement for owner occupier PPR mortgages. Those specific limited circumstances do not include the owner occupier not having any dependents.
None. But I suppose whatever about having no dependents having absolutely no next of kin would be quite unusual.So, as a matter of interest, does anyone know what is the rationale (from a borrower's point of view) of having life cover in place (to cover a mortgage), assuming they don't have any next of kin/dependents that would benefit in the event of their death?
I disagree. It's also to the benefit of any next of kin/dependents that the mortgage holder has MPLA.Any mortgage Co that insists on insurance isn't doing it for your benefit. They are doing it for their own.
If you think so then lobbby your elected representatives to change the law (Consumer Credit Act) which makes MPLA for owner occupiers mandatory in the vast majority of cases.Insisting of a Life Policy is plain daft. This should be up to the individual surely!
Linking financial products is illegal so while it's possible that lenders might suggest a particular source for MPLA they cannot insist that you buy from them and you are free to shop around independently. As ever don't expect independent advice from tied agents or those with a vested interest in selling you something. Caveat emptor.If you are being steered towards a certain company then my guess would be is that the Mortgage Co is getting a larger commission from them.
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