Mortgage Protection Insurance is mandatory when taking out a new French mortgage.
Non-resident borrowers are normally required to take out a life and disability insurance cover. In the event of a claim, mortgage instalments or the outstanding capital of the French mortgage will be paid by the insurance company. Mortgage insurance policies must be assigned to the lender.
In a recent study, Les Echos, a French leading quality newspaper, has reported that borrowers can achieve significant savings by choosing a mortgage insurance cover other than the lender's own block policy.
The analysis conducted by the newspaper shows that a 35 year old couple of non-smokers can achieve savings of up to €19,480 on the cost of a 20 year mortgage.
Independent insurance companies such as AFI-ESCA, APRIL, METLIFE or Mutlog offer competitive products tailored to the needs of non-resident individuals.
The article concludes that borrowers should compare policies both in terms of cover and pricing before selecting the lender's in-house mortgage insurance cover.
An authorised insurance and mortgage broker will be able to advise borrowers and assist them with the sourcing of the most appropriate mortgage protection insurance.
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