Mortgage Protection Insurance

Mortgage providers will insist that you have sufficient life insurance to pay off the mortgage should you die during the period of the mortgage. They will also insist on home insurance, so that their investment can be rebuilt or repaired in the event of damage or fire. You will need these arranged before the loan is completed.

A buildings-only insurance does not insure the contents: the lender is not interested in these. It pays for damage caused by fire, storms, floods, landslip, subsidence, explosions and malicious damage. You will need tom arrange that before the mortgage is given. However, you are not obliged to purchase the insurance from the mortgage lender.

There are other types of insurance you can also take out in addition to building and life insurance, including contents, serious illness cover and accidental injury cover that pays out if you lose a limb or your sight - that could affect your employment. You can often get a good deal if you buy all of these from the same company, including your mortgage lender.

So, negotiate with your lender with these various forms of insurance as your basis for discounts.