Hello
I had a loan offer from a bank -and as per usual requirements I put in place a mortgage protection policy -This was cover for the same principal and term as mortgage.
but the letter of offer expired very recently-and I had to reapply for mortage- bank have now provisionally offered the same principal but for a term reduced by 1 year.
My question is around the mortgage protection policy that I have and the fact it has a 1 year longer term on the same principal_ I don't want to have to get into reapplying for insurance so:
*Also possibly worth noting that insurance is cover for the principal at 6%-which is a lot higher than the actual interest rate of the mortgage approval.
I would hope that would mean the slightly longer length insurance term/finish date would be insignificant to them.
I had a loan offer from a bank -and as per usual requirements I put in place a mortgage protection policy -This was cover for the same principal and term as mortgage.
but the letter of offer expired very recently-and I had to reapply for mortage- bank have now provisionally offered the same principal but for a term reduced by 1 year.
My question is around the mortgage protection policy that I have and the fact it has a 1 year longer term on the same principal_ I don't want to have to get into reapplying for insurance so:
- If I were to accept the new mortage offer with a 1 year shorter term, is it likely the bank will accept the current mortage protection policy that i bought?-it now covers for same amount but 1 year longer term/finish date?
- OR
- are they likely to be very rigid on the insurance term length/finish date matching the exact term length/finish date of mortgage.
*Also possibly worth noting that insurance is cover for the principal at 6%-which is a lot higher than the actual interest rate of the mortgage approval.
I would hope that would mean the slightly longer length insurance term/finish date would be insignificant to them.