Products Your Mortgage Advisor Will Try And Sell You
When me and Luke recently went to apply for our mortgage we were a little surprised with how much we were sold to. The actual mortgage application took barely any time at all. But the add on’s took plenty of time. No one had mentioned that the mortgage advisor will try and sell you things. In all honesty, most of them were things we had planned to buy anyway. So for ease’s sake, we did buy some through our mortgage advisor. This would save us time looking around for deals. And all of the prices looked about what we’d factored into our budgets for.
So I thought I’d run through what your mortgage advisor/ broker is likely to try and sell you. It’s worth having a think about whether you want the products beforehand. This way you won’t make any rash decisions on the day. Although if you do agree to them when you apply for your mortgage and change your mind before completion you can cancel them. As they’ll only begin from this date.
Buildings and contents insurance
You’ll only be granted a mortgage if you have buildings insurance. This covers in case of any major damage to the building. And the mortgage company need this to know their investment in your property is safe. This is something we knew about beforehand and knew we’d be taking out. Contents insurance is something we wanted to add as well. And it made sense to get both from the same insurance provider. The costs we were offered for this were around what we’d looked out outside so we went with both. For contents insurance, it means we’re covered if there’s a burglary. Or something gets damaged as we opted for damage protection.
Your mortgage advisor will try and sell you life insurance
We’d already discussed beforehand and getting Luke life insurance. As he’s self-employed in what’s deemed as a risky job it makes sense. It’s something he should have set up years ago, but moving into a house seemed like a good chance to get this sorted. We had to fill in quite a lengthy questionnaire in terms of our jobs and health to set up.
When we first applied for it with Aviva it did get referred as we needed to provide more information but it got fixed very quickly.
Income protection
Along with life insurance, we were offered income protection which would help in the case that one of us couldn’t work for a period of time. For us, this was most important for Luke again as he’s self-employed. As opposed to mine as I have pretty good sick pay at work. For the one we chose it covers us if we’re off for more than 4 weeks and it pays out the mortgage cost each month. This means if Luke was off we know the mortgage would be covered. Again we had to disclose work and health-related things to get income protection.
We did initially apply for this for me but sadly they wouldn’t insure me due to my height and weight. If ever there’s a bigger incentive to lose weight then this is it!
Wills
Again this was something we’d discussed before going to get our mortgage. But we had no idea that we could to do it when we did our mortgage. For us, as we’re unmarried if one of us passed away the house wouldn’t automatically go to the other person. So for that reason as much as anything else it made sense to get wills to make the process easier if the worst were to happen.
To be honest we were pretty happy with the items we were offered and took everything we had originally planned to get anyway. There’s going to be enough other things to worry about when we move than searching around for deals on insurance etc.
If you’ve got a mortgage did you take out any of these things?
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19 responses to “Products Your Mortgage Advisor Will Try And Sell You”
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Rhian Westbury
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I remember when I went to visit a mortgage advisor – they will try and sell you the Earth if possible. A lot of the things you probably already have or do not actually need, but that is where they make their commission. When I used to work in sales, we had to upsell as much as humanly possible… it’s very irky! 🙁 Sim x
i think the hardest thing is when you’re unprepared for what they’ll try and sell you. Like we’d have liked to have a private conversation to chat about it but it’s hard when you’re sat at their desk x
We got all of these things. There are no guarantees of anything and I’d always rather be protected.
This is really interesting to know – we haven’t got a mortgage yet but we are planning on getting one in the next few years.
This post is very helpfull for all that are planning to buy property. Thank you for sharing!
I hope it was still as painless an experience as it could’ve been. I work in insurance so often deal with customers in a similar situation, panicking about setting up buildings & contents to comply with their mortgage.
Thank you so much for this Rhian! One of my next projects is to buy a flat and nobody I know who bought one ever mentioned that mortgage advisors will try to sell you these add ons. It’s definitely important to come prepared so you know in advance what you want and DON’T want x
Yeah it’s good to think about rough prices for things to see if what they offer is competitive as well x
I can remember getting our first mortgage (many moons ago) and were talked into getting insurances etc through them. However, it was cheaper to get these elsewhere so moved them after a year. So important to do your research ahead of time.
Yeah i think for ease we were happy to do it this time, but I may look into things a bit more next year when it comes to renew x
That’s a lot of insurances! I had no idea that you need to have so many when you apply for a mortgage. I know that building insurance is compulsory but I didn’t know about life or a will!
I think it’s more about whether you think you need them. As Luke is self employed it was important for us to take income protection as he wouldn’t get sick pay if he was off like I would x
This is great to know about ready for when I start looking into getting a mortgage.
I haven’t got a mortgage but would consider buying these extras through a mortgage advisor for ease. Great to know what things they try to sell so you could be prepared with any questions or quotes to compare.
Great things to share. There’s so few things out there that actually tell us things such as this.
Menna x
We got sold wills when we got our mortgage, still haven’t sorted it though #oops
I’ve just kept ours for when we actually move as then we’ll have the right address, but for us it’s quite important as we’re not yet married x
I am not in a position to even get a mortgage yet. Might even end up renting for life. But I do get loads of phone calls from people trying to sell me life insurance though.
I’ve talked with plenty of people trying to sell life insurance and you need to be firm or else people be trying to sell you plenty of things. This was quite helpful especially for people planning on getting mortagae.