Is my life insurance linked to my mortgage?

We can’t directly link your Life Insurance Plan to your mortgage. However, your mortgage lender may register an interest in a portion of the proceeds to cover the remaining cost of the mortgage if you were to die before it's repaid. But this only acknowledges a third-party interest, and your cover amount still won’t be directly linked to whatever’s left to pay on your mortgage. If you pay off your mortgage early your policy won't automatically end.

So while your life insurance policy with decreasing cover might decrease broadly in line with your capital and interest repayment mortgage, there’s no direct link between the value of the policy and the amount that's outstanding on your loan.

You can check if your mortgage lender has an interest in your policy by contacting us.

Remember, it's important to regularly review your cover to check it's meeting your needs. If you're unsure, you can speak to a financial adviser. If you don’t have a financial adviser, you can find one at unbiased.co.uk. Please be aware that you may need to pay for this advice.