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You asked: Is my life insurance linked to my mortgage?
Your policy cannot be directly linked to your mortgage but your lender may register an interest in a portion of the proceeds; this is usually to cover the remaining cost of the mortgage if you were to die before it's repaid. This kind of assignment is only to acknowledge a third party interest and does not imply that your cover amount is linked directly to the outstanding figure remaining on your mortgage.
So, whilst the cover amount on a life insurance policy with decreasing cover could decrease broadly in line with your repayment mortgage, there is no direct link between the value of the policy and the amount that's outstanding on your loan.
You can see if your mortgage lender has an interest in your policy by calling us on 0800 092 5367.
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