Protecting A Part Part Mortgage Despite Medical Underwriting

The Clients 

The clients were arranging protection alongside their mortgage and wanted to ensure that the borrowing would be fully cleared in the event of death. 

Their mortgage was structured on a part and part basis, meaning part of the loan was on a repayment basis while the remaining balance was interest-only. 

The Challenge 

Because the mortgage was structured part repayment and part interest-only, the protection needed to reflect this structure. 

The repayment element of the mortgage reduces over time, whereas the interest-only balance remains constant throughout the term, meaning a single decreasing policy would not fully cover the borrowing. 

Underwriting also proved more complex, as the clients disclosed several health issues, which required the insurer to obtain additional information from the clients’ GP before terms could be offered. 

The Solution 

To ensure the protection accurately matched the mortgage structure, we arranged two separate life cover policies: 

Both policies were arranged over a 30-year term, mirroring the mortgage duration. 

Despite the additional medical underwriting and GP reports required, we were able to secure cover for the clients. 

Key details of the protection arranged: