Did you read the thread that I linked to? It clearly explains the difference between reducing term and level (including convertible) term mortgage protection life assurance. In either case the premium will be set at the outset and will not change for the term - unless you shop around and get cheaper cover elsewhere.Thanks for replying, not sure if I'm reading you right RS2K are you saying that if one of us died before the mortgage period was up that the other person would get the the full amount that we originally mortgaged for or at least their estate would and that's the reason the Mortgage Protection fee we are paying is still the same as it was originally, because then that makes sense now.
It is mandatory for all owner occupiers with some minor exceptions (e.g. refused cover for medical reasons and lender waives the normally mandatory requirement for such cover).And Clubman are you saying that it's not compulsary to have Mortgage Repayment Protection
As above - the premium is determined at the outset based on the mortgage amount, term, your age, health/smoking status etc. and does not change thereafter. That's just the way it works. If you can get cheaper cover for the amount outstanding (or the original amount if you wanted level term cover) then go for it and replace the existing cover with the new one. Bear in mind that if you bought cover from your lender rather than shopping around then you probably did not get anything near the best deal on offer at the time.I know it's a must when you have a big mortgage but now that I have a big chunk paid off can I reduce this because the building society never gave me this option, because I can't see the justification in charging the same monthly fee for MRP when the new monthly mortgage is less than a quarter of what it was.
Probably. And many MRP policies are very bad value for money because the premiums are inflated with excessive charges/commissions and the policies often only pay out in restricted circumstances (e.g. you cannot get any job and not just one in you area of expertise) and for restricted periods of time (e.g. 12 months in total and no more). If you still have the MRP policy then perhaps you should consider ditching it? And see if you can get cheaper MP? Better late than never...No doubt I paid over the odds for MP & MRP back in 1992 'cos I got the cover along with my mortgage
Yeah - that's why I pointed the original poster at the key topic on this stuff in my first post above.Beware, beware, beware...the difference between Mortgage Protection cover (decreasing life cover over term of loan) and Mortgage Payment Protection (insurance cover to protect against inability to make monthly mortgage payments in the event of loss of earnings). Life cover is compulsory, the latter is not, and the latter is also usually very expensive, and of limited value anyway (often to a max of 12 months cover). If the life cover is more than you need, even if decreasing, get a new quote for less cover, but as previously stated, any excess over the loan at this time is simply for teh benefit of the survivors.
I think the name confusion is no accident!why can't the powers that be change one of names so they aren't so similar sounding or is that the way the like it !!!!!!!!
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