Do any of you have Mortgage Repayment Insurance?

I took out my repayment insurance when I got my mortgage. I'm currently on a half-price insurance deal which will end in June. After June, the full insurance will cost about £30 a month.

At work, after being on a number of fixed-term contracts, this summer I'll be moved onto an open-ended contract, so basically, my question is... should I stop paying the insurance once my job is secured or is it in my best interests to continue to pay the mortgage repayment insurance for the life of the loan (bearing in mind that I'll be paying out £30 a month for 24 years, which equals a total of: £8,640)?

Any advice is welcome!

Lib1

I think these insurances are a waste of money, but that's easy for me to say because I'm in a very secure job!

However, my sister and her fiance were forced to take a policy out by their bank as a condition of getting the mortgage approved. He's in and out of work but earns more each year than I do. The bank wasn't interested when he showed them his earnings on his P60s for the last few years though.

When it came to claim on the insurance during one of his 'between contracts' periods they couldn't because there were so many clauses which gave them an excuse not to pay. Must be a very profitable business to be in!

My SO lost her job a while ago when a contract that was supposed to be ongoing was terminated.

The mortgage cover paid out for the 6 months it took for her to find a new job in engineering. It actually paid out more than just the cost of the mortgage (although less than she would have earnt), so gave her a bit of breathing space to find the right job rather than just the first job.

Mortgage repayments insurance is usually a form of insurance to cover accident, sickness and unemployment, as long as you were not aware of any impending redundancy when you took the policy out, it usually pays out. I am a mortgage adviser for the Halifax and I regularly have to advise people about their insurance needs.

This can be a very useful form of insurance, for example if you become ill and have to take a considerable amount of time off work, this policy will pay your mortgage for you during that period of time. If you'd like some specific advice about you policy please PM me.

Hmmm, I was hoping that I'd be able to save some money each month- but from the advice of Jen13kd and Cyclone, it looks like I'm better off 'playing it safe' by continuing to pay the mortgage repayment insurance once my job is secure.

Oh well...