Protection schemes and ECB rate

[quasiman]

I have a relatively small mortgage, less than 100k and I’m trying to figure out if it’s worth still having payment protection and life assurance.
I’m a young, healthy guy and although the amount I’m borrowing has decreased over time the premiums haven’t.
When I looked through the booklet, the terms and conditions seem to be fairly lengthy..and in terms of life cover, I thought the property would go to your next of kin if anything happened to you?
Also, to people who’ve been made unemployed, how useful have these various policies been?
Also, a 2.7 tracker rate, how competitive is that by todays standards?

 

[Senna]

It maybe a term of the mortgage contract that you have life assurance, it means that if you die the mortgage is paid off. The house will then go to your next of kin (or whats in your will). If you had no assurance and died, the bank would sell the property, pay off the remaining balance of the mortgage and give the rest to your estate.

Mortgage protection insurance is different and its "worth" is depending on you? is your job stable? even in the current climate, do you think you could lose your job? how would you pay the mortgage if you did lose your job?
If you haven't considder these questions while watching the news lately, then you might not need it.

Do you mean you have an tracker of ECB +2.7%? or is your current rate 2.7% meaning a tracker of ECB +1.2%. If its the latter, then is not the best, but still better than most (all?)standard variables. Since your mortgage is low, its probably a "good" rate to be on. You probably wont get a better rate without fixing.