Mortgage/life insurance question

[Linnet]

When you apply for a mortgage or the bank agrees to give you a mortgage You have to take out life insurance don't you?

Is this paid as part of the mortgage payments or is it paid seperately?

Or are you better to just take mortgage from bank/building society and take out life insurance seperately?

Sorry dumb question really but need to know for working out my sums.
Thanks

Yes, you do.

It's paid separately.

Shop around for the best deal.

Good luck with the sums!

You don't hve to take out life insurance with all kinds of mortgages. You might want to for peace of mind, though, and I (personally) definitely would with any kind of investment / endowment / interest only mortgage.

Usually much better to not get any kind of insurance from the bank, they wont' give you the best deal. Shop around for it.

So would I just be looking for life insurance policys then?

look at what Martin lewis has to say on moneysavingexpert.com.

A good, cheap broker is Lifesearch - far cheaper than the bank or Building society.

Is it a repayment mortgage? If so, the cheapest option is DECREASING TERM life assurance. This covers the amount you owe over the period of the mortgage - the amount covered decreases over time as your mortgage decreases.

If an interest only, you need LEVEL TERM - as you will owe the bank the same amount after 25 yrs, you need cover for the full amount over the whole mortgage period.