With the increasing values in house prices and as a consequence the amounts borrowed, I have noted recently that referrals to Consultants arising out of Applications for Life Policies/Mortgage Protection Policies appears to have increased. This is likely due to the increased values involved but also of the age profile of the Borrowers.
It is important always to ensure that the Application for the Life Policy/Mortgage Protection Policy is made at an early stage of the house purchase process to ensure, should any issues arise in respect of the Application relevant to past history or the administration of the process, that the unnecessary delays and frustrations on every parties’ part are avoided. Also, in the event of there being a difficulty in getting Life Cover, while most Purchasers are covered by what is referred to as the standard Loan Clause in a Contract, it is essential that a commitment to the Contract is not made without the Purchaser being in position to comply with all terms of the Loan Offer, including the requirement for a Life Policy particularly where the property is for their own use – it may not be required for a Buy-to-let purchase.