How would you or your family cope if you were unable to pay your residential mortgage because of your death, or terminal or critical illness, or your inability to work because of accident or sickness? Such insurances may not be compulsory but it is wise for anyone who has a residential mortgage to consider insurance to protect you and your family against such events.
Buy to Let mortgages are often viewed differently. Because the property is not your home and the property should continue to generate rent sufficient to pay the mortgage even if you are ill or die the risks are not considered to be so great. There are reasons though for landlords to consider whether the level of insurance they have is sufficient to prevent leaving loved ones with financial problems and, for example, to mitigate possible Inheritance Tax.
At ibmco we have always taken the view that although it is right to draw your intention to the risks and the possibility of insurance, it should be your choice whether to insure against this risk, and it should not be seen as an automatic ‘add-on’ to a mortgage. We are experts in arranging mortgages but others have greater expertise in advising on insurance. Which is why:
· We do recommend you think carefully about these issues
· We won’t twist your arm to take out insurance
· We do welcome enquiries on Protection Insurance and we may refer you to a specialist broker to ensure you get the best advice.