Moving life assurance with mortgage

[Eloisedublin123]

Hi all,
Just wondering if anyone has done this!
I’m in Ireland but I’d say principle same in U.K.
We want to downsize and move and have life assurance for our existing mortgage - since we took it out 15 years ago my OH has had a heart attack and developed T1 diabetes and a few other bits. I’m just 15 years older 😅
We are both 47 now. Even though it would be more expensive to port our existing assurance policy with us (as it would be for more than we would need for a cheaper mortgage if we moved) can we technically do that? Same bank, we are also hoping to move our tracker rate, the bank will add on 1% to allow us to do so but it’s still a great deal to move it.
Hope that makes sense!
Thanks in advance!
E

I'm not too sure how it works in Ireland.

Is your life assurance actually tied to your mortgage? It's not compulsory to have life insurance for a mortgage in the UK but if your mortgage provider required it then I'd expect they specified that they need first charge on the payout ie that the payout would cover any outstabding mortgage first.

If you're porting your mortgage to the new property and staying with your existing provider then I can't see a problem, and there may not be any administration to do.

Havw I understood correctly that the bank want to add 1% to your ongoing interest rate for you to port the mortgage? Or charge you 1% to port it? Either way that sounds steep. I'd expect 1% to be the early repayment charge depending on how long you have left on the term and the outstanding balance.

I remortgaged several times and never needed to do anything about our life insurance. When we increased the mortgage we just took out another police for the extra amount. We had reducing term cover so that as the amount owing on the mortgage reduced so did the life insurance. The only downside to this is that now our mortgage is paid off we haven’t got any life insurance cover and at our ages its very expensive!

We're in the UK a and we just kept the same life insurance running through different mortgages.

Brill thanks a mill for that. It’s likely similar in Ireland although I will of course properly look into it. Yes, 1% to carry mortgage onto different house, very good to us as we have a tracker at 0.9% above ECB and as ECB is 0% our mortgage interest is currently 0.9%. And will be 1.9%.

I assume it's a decreasing term policy? We had one but changed it recently to a lump sum because we will be mortgage free in about 5/6 years & it's cheaper to do it while we're young (ish) and don't have any pre-existing conditions.