Level Term Assurance for mortgage protection

[Suzy~Q]

[Suzy~Q]

Sorry - typed the title but not the question... Duh! Question is: what is the best way to insure for mortgage protection in the following situation?
•interest only mortgage
•tenants in common (divorced couple)
•one is living in the property and paying the interest, etc
•house will be sold in next few years - before mortgage period comes to an end

We're not sure if we should opt for Joint Life First Death Level Term Assurance; Joint Life Second Death Life Assurance; separate single life policies, etc. Can anyone suggest please?
.

[bushbaby_de]

We have an interest only mortgage but we went with a decreasing term insurance policy as it was so much cheaper and we are making overpayments each month. If you are only paying off the interest and don't have any other investments to pay the difference you might be better off with level term. We actually took out one policy each because if you have a joint policy it will only pay out once and then neither of you are covered thereafter.

Have a look at the LoveMoney website, they have lots of articles on the pros and cons of differnent types of mortgage insurance.

[bushbaby_de]

vibra, i did say we are making overpayments! hence we are paying it off at repayment rate even though it is technically interest only