Buying a house - first steps

:rotating_light: Boring question about insurance :rotating_light: What personal insurance did others arrange when buying a place - e.g. life insurance, critical illness, income protection? I have life insurance through work but am leaning towards a life insurance and critical illness combo to be on the safe side/so my partner can rake it in if I pop my clogs. No idea what actual adults do in this situation.

Life insurance through work, my partner gets quite good deal if I croak it, something like 8x my salary. My partner has a private policy, I think it pays out the cost of the mortgage.

I’ve had income protection for a couple of years but cancelled it recently as the provider more than doubled the premium (£30 to £80 per month), at the moment all income protection policies have been withdrawn from the market so you won’t be able to take one out anyway!

Also, have you had an offer accepted on a place?!

Thanks, that’s really helpful. Didn’t know that about income protection - answers that particular point at least for the meantime! Yep we have but just keeping cautiously excited after last time🤞

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Nice one! Fingers crossed for you!

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Can’t remember what I did tbh, just did what the mortgage adviser said as it was about £50 a month and said it wouldn’t go up and seemed useful, think it was critical illness and 1 other but not sure if it was income protection or life. (I think it was L&G he said lock in the premium price for those policies for as long as they last)

We have life and critical illness insurance privately, with decreasing life cover (so it pays out more now that it does in the future), in theory so it covers the remaining mortgage.

I also have some crazy-good payout from work.

Thank you (and @Unlucky), it sounds like this might be a sensible way to go. Really quite depressing thinking about how much you might be worth dead! :skull::moneybag:

none :sunglasses:

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Yup same here. We winged it, based mainly on laziness, but also on the fact that we both work full time, could both sort of afford to carry the mortgage alone for a bit if need be and we had quite a lot of equity. Now we don’t have a mortgage there’s no need, but we did take a bit of a gamble at the time. Some sort of life cover is definitely a good idea.

Oh good, thought I’d missed something essential here.

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Also feeling a bit weird at people describing that Sheffield place as a mansion, given that it’s a semi that doesn’t look a lot bigger than my house, in south London, that wouldn’t fetch a lot more than that at the moment. Looks to me like the hike in the price is paying for all that renovation/modernisation work.

either of us could cover the mortgage if something happened to the other, we both have very secure employment, and no dependents. if any of that wasn’t the case i’m sure we’d reconsider, but for now it seems like money down the drain. like most insurance :sunglasses:

Same.

Same (except for the dependents).

what part of south london are you in that a 5 bed semi isn’t much more than £450k?!

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Don’t some mortgages stipulate that you have to have life cover (to ensure that the mortgage gets paid if you pop your clogs)?

I’ve got life cover through work, and my other half took out a separate policy, for not very much.

Sydenham. Our house is probably worth about £500k. The highest any of the houses on our street has ever gone for was £550k which was way above the previous ceiling, and was bought by a couple of oddballs with their heads in the clouds who sell Star Wars miniatures on the internet for a living.

Our loft hasn’t been fully converted so ours is only a three bed, but it would take very little extra cash to rejig our current layout to turn it into an extra two beds if we wanted to. We don’t want to.

Our garden’s bigger and nicer than that one though :wink:

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Thought @Epimer was in the fens?

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Can almost guarantee I’ll be buying something from these people in the next few weeks.

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We got life insurance through the broker who did our mortgage (I can pass details if you’re interested) but the crit illness was either too high or we were ineligible because I’m an overweight diabetic.

It has been a condition of both of our mortgages, I think, but I do feel better knowing that lump sum is there. I’d hate for my family to need to sell all of my Star Wars toys* if I were to stop living.

*This is a joke; I do have a life

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Except for on Monday nights

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