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Remember life insurance when remortgaging

Date: Tue, 07 Jun 2005

Homeowners thinking of remortgaging their property must remember to ensure they take out life insurance cover.

A new survey from Abbey concludes that many people are remortgaging their home in order to finance a change in lifestyle rather than to repay debts. However, consumers are being urged to factor in the cost of life insurance premiums in order to ensure relatives are looked after if the worst should happen.

Abbey discovered that 48 per cent of homeowners have remortgaged their property at least once in the past five years - with a significant increase in those planning to use the extra money to support a change in lifestyle such as purchasing a new car, pay for a holiday or start a new business.

"More and more people are now remortgaging to help them change their lifestyle or career and to own their own home quicker, not just to reduce their monthly repayments," said Gary Hockey-Morley, Abbey's director of mortgages.

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