What if I Have an Interest Only Mortgage?

With an Interest Only mortgage, you are paying the interest due only so the actual mortgage loan amount borrowed is not decreasing.

Mortgage Protection is a low-cost life insurance benefit that declines annually along with the value of your mortgage while maintaining constant premiums for the duration of the policy. It is best suited for mortgage loans that are capital and interest payments, meaning your loan with the lender will be zero at the end of the mortgage term.

If your mortgage is interest-only the non-decreasing life insurance plan will likely be more suitable as the level of cover on this plan remains the same throughout the term, just like your interest-only mortgage.

Read more:

1. 1. What Happens If I Want to Top-up My Mortgage?
2. 2. Income Protection: What does it do?
3. 3. How Long is the Typical Payout Term for an Income Protection Policy?