Hi all, have searched for info on this on the forum but no luck.
I am currently trying to sort out Mortgage Protection for a property that I am buying. My mortgage is interest only for the first year. But what I can't figure out is what implications this has on the Mortgage Protection policy that I require.
From what I gather the 'standard' Mortgage Protection policies are for a decreasing capital sum but if the first year is interest only then the capital isn't decreasing in year 1. My lender has stipulated that this non-decreasing capital should be allowed for but I don't understand how to allow for it!
The brokers I approached said that the lender would have to clarify what level of cover they require...but when I approach the lender all they told me is what they would charge me for such a policy. I don't want to take their policy as I believe I can do better with a broker...as you can probably tell I'm not sure how to tackle this prob...
I am currently trying to sort out Mortgage Protection for a property that I am buying. My mortgage is interest only for the first year. But what I can't figure out is what implications this has on the Mortgage Protection policy that I require.
From what I gather the 'standard' Mortgage Protection policies are for a decreasing capital sum but if the first year is interest only then the capital isn't decreasing in year 1. My lender has stipulated that this non-decreasing capital should be allowed for but I don't understand how to allow for it!
The brokers I approached said that the lender would have to clarify what level of cover they require...but when I approach the lender all they told me is what they would charge me for such a policy. I don't want to take their policy as I believe I can do better with a broker...as you can probably tell I'm not sure how to tackle this prob...