Guide
Protection cover after a remortgage
Why life cover and income protection need a fresh look when your mortgage term or balance changes.
A remortgage often shortens the term or reduces the balance, yet many households keep the old life policy unchanged. Cover that once matched the loan can become either excessive or — after a larger borrowing — suddenly thin.
Income protection is easy to forget when the focus is rate shopping. If your household relies on one salary to meet the new repayment, a sickness that lasts beyond employer sick pay can unravel the remortgage benefit within months.
We compare existing policies against the new mortgage schedule, including any joint ownership changes. Sometimes a decreasing term policy fits better than level cover; sometimes keeping a small level policy for family needs outside the mortgage is wiser.
When you receive a mortgage offer in principle, add protection to the same conversation. It is cheaper to adjust cover while underwriting is fresh than to discover a gap after completion.