The General Council of Mediators has sent a legal circular to its members in which he recalls that the “only legally obligatory insurance linked to a mortgage loan is fire, natural events and damage to the mortgaged asset. What’s more, the client can freely choose the insurance company with which to contract the insurance”.
Council communication responds to the increase in questions and doubts registered by the Colleges regarding the obligation to take out certain insurances when a user goes to a bank to request a personal or mortgage loan.
In the circular sent to the Associations, it is noted that “it is still common for financial entities to also require the contracting of other types of insurance, especially life insurance.” According to data from the General Council, the most common branches linked to contracting a mortgage loan are Life (72%), followed by Home (59%).
Prepayment of the loan
In the case of early repayment of the mortgage loan, the client is entitled to a reduction in the total cost of the loan, which will include interest and transaction costs. One time canceled the loan, the insurance is extinguished unless the client expressly communicates to the insurer his desire to maintain the validity and designates a new beneficiary for it, having the right to a refund of the part of the premium not consumed by the person who received it.