Don’t forget the insurance when you remortgage

Many borrowers have been remortgaging to lock-in record low mortgage rates, but are you certain you will always be able to afford the new repayments?

The number of new homeowner remortgages hit a nine-year high at the start of 2018. There were 49,800 new homeowner remortgages completed in January 2018, 19.1% more than in the same month a year earlier.

This is the highest monthly number of remortgages since November 2008, when the figure stood at 51,300. The value of remortgaging was also up by 20.3% annually to £8.9bn.

There are plenty of benefits to remortgaging, You may be able to access a lower rate or release cash from the equity in your property to pay off debts or fund home improvements.

But what would happen to the mortgage repayments if you passed away or became ill.

Mortgage life insurance can be a vital form of protection that can payoff your home loan if you die during the policy or if you add critical illness cover for an extra premium it could also pay out if you are diagnosed with an specified condition.

If you had the cover on your previous product, don’t forget if your loan size and circumstances have changed, any cover linked to your mortgage may need to be looked at again.

This provides extra reassurance for you and your loved ones that whatever the rate and size of your new mortgage, there won’t be any worries about the repayments if you are no longer around.

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE OR ANY DEBT SECURED AGAINST IT