Question on deeds of assignment

Deisce

Registered User
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114
Hi,
so I am on a variable rate mortgage and have reduced my term to 15 years from 31 remaining over last few years with lump sums. Now I find myself in situation where I need to extend the term back out to reduce payments during a fixed time period (6 months).

I applied to bank and they sent letter stating that this is possible but they want me to sign a deeds of assignment to put my life cover over to them and witness it. I am unsure of what this means.

My life cover is with another company and is unchanged from when I took out mortgage.

Should I hesitate before doing this? I am reading alot of how banks are sneaking in changes of conditions when people are chnaging their mortgage terms. So I want to ask aboutmoney.

Cheers
 
A deed of assignment allows the bank to receive the benefit of your life insurance policy on death if it occurs in the term of the mortgage. It is now standard on all mortgages so don't worry.

If you prefer not to assign your life insurance policy then you could take out a separate basic mortgage protection policy and assign that instead.

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