Minimizing Mortgage Risk With Insurance

The mortgage industry has previously faced heavy scrutiny by the DTI (Department Of Trade & Industry) for the practise of advertising new competitively discounted mortgage rates only to include in the small print that these rates were only available to customers who took out buildings & contents insurance through the same lender. This is the only compulsory insurance policy one must have on a property in order to obtain a mortgage is buildings & contents insurance so the lenders security is protected in the rare event of some kind of kind disaster occurring to the property before the completion of the transaction.

There have been devious mortgage advisors in the past however who have dabbled in unethical sales practise and insisted on the unsuspecting clients that a life insurance or other such policies are also compulsory for commissions sake. While they are not compulsory it is wise thinking to be prepared for the worst case scenario and have ourselves covered for any dire event that can be anticipated. The minor additional expenses occurred when covered by a policy compared to the peace of mind they offer of assistance should the time ever come are definitely value for money. Policies from different providers differ vastly in price and quality so its always a good idea to identify your needs before hand before shopping around.

The links below provides a comprehensive reference source for the insurance options that fit the needs of mortgagees the most:

Buildings Insurance

Home Contents Insurance

Life Insurance

MPPI (Mortgage Protection Payment Insurance) & ASU

CIC . IPI , Health Insurance

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