my work mate has a mortgage for 5 years all paid up to date.he hastold me he has no mortgage protection or life cover. he has secure job. he said he had the cover at the start but never renewed it. the house is rented.am i right ib saying he is crazy.
thanks
doesnt sound right as his mortgage provider would have been onto him, you have to have cover.. when the cover is stopped or changed to a new provider the mortgage company are notified. cant have one without the other!!
doesnt sound right as his mortgage provider would have been onto him, you have to have cover.. when the cover is stopped or changed to a new provider the mortgage company are notified. cant have one without the other!!
This is the important part. lenders will often waive need for mortgage protection n cases of an investment property as if the borrower died, the house (and other assets) could be sold to re-pay the mortgage.
The provision came from Family Home Act (or something like that). Back in the day, mortgage were often in a husband's name only & if he died, his wife/children would be out on the street as bank would have to sell the property to re-coup the outstanding mortgage. By having mortgage protection, situations like this are avoided as the mortgage would be repaid on death of either party to the mortgage.