Home Insurance and Mortgage protection insurance when switching mortgages.

[Nowronganswer]

Hello, i have a query, when i took out my mortgage and had the get a letter of interest or deed of assignment (cant remember which) for both the home and MPI assigned to the lender. So if when switching mortgage providers do i need to assign these to the new lender.

 

[skrooge]

Yes, the details will need to be updated. Did you get both protection and insurance yourself or was it packaged through your mortgage provider? If you did it yourself it should be straightforward but if they formed part of a package offered mortgage provider it might be more difficult.

If you're increasing your term/amount switching you will have to get new mortgage protection rather than update your existing one. If you're going they other way and reducing term or balance you won't need to change.

 

[Monbretia]

Yes usually, the home insurer has the 'interest noted' on your policy of the lender, you can change that.

The life insurance may be assigned and you can get the assignment released, usually you need the permission of the lender you are leaving to remove the assignment but not in all cases, things seem to have changed in some places. I was able to cancel assigned policies recently without anything from lender needed, life company said it had changed that requirement!

Equally the new lender may not be assigning policies either, you may just have to give them proof that you have one, best to check with all the parties involved what their actual procedures are.

 

[Nowronganswer]

Yes, the details will need to be updated. Did you get both protection and insurance yourself or was it packaged through your mortgage provider? If you did it yourself it should be straightforward but if they formed part of a package offered mortgage provider it might be more difficult.

If you're increasing your term/amount switching you will have to get new mortgage protection rather than update your existing one. If you're going they other way and reducing term or balance you won't need to change.

I got them myself separate to the mortgage. Home insure through high street broker, NMPI through AA insurance.