A real-life case study

Mr & Mrs Jones were married and lived together, with a residential mortgage. Mr Jones had two children from a previous marriage (he was widowed) and the property was solely in his name.

A cruel blow

Mr Jones was killed in an accident. He had no life cover – he hadn’t believed it to be important. He had left a detailed will and believed there would be no problems if the worst happened.

Sadly the children disputed the will, which meant the estate was left unsettled for several years.

A surprise demand

As soon as the mortgage lender became aware of the situation, and the fact there was no life cover in place and therefore no immediate way of paying off the mortgage, they commenced proceedings to repossess the property.

The lender did not take into account Mrs Jones’ ability and willingness to take on the mortgage. Instead, they demanded repayment of the loan in full.

Finding the money

Mrs Jones was forced to remortgage in order to raise the money to pay the lender.

She also had to find £9,000 to cover the additional costs incurred by the remortgage, including stamp duty.

A sobering lesson

This unfortunate situation would have been avoided if Mr and Mrs Jones had taken out adequate protection insurance, written in trust.

The funds would have been available to pay off the mortgage and further costs and stress would have been avoided at a particularly difficult and emotional time.

We believe in protection

This case study highlights the importance of protection – especially in conjunction with a loan. That’s why we’ll always talk to you about life and critical illness cover when advising you on your mortgage.

Talk to us today

If you’d like to review your protection cover, please contact us online or call us on 01480 357 100.

OW0420 Exp. 24/11/17