Hi there,

I am in the process of buying a house but have been declined by the insurance company for Mortagage Repayment Cover (although have been approved for Buildings and Contents, and Critical Illness.

I also have Critical Illness and Business Insurance through being a director of a limited company. Would this have anything to do with being declined for the cover?

Can anyone enlighten me on why I may have been declined?

Many thanks

Andy

Hi Andy, and sorry to hear you're having problems. I've got to admit, I've found myself as a sole director that banks tend to view me as a risk, regardless of my earnings record, so I would think it's more likely that you're employing yourself through your own company, rather than being employed by someone else's company, that is causing the issue.

That's my initial thought anyway, not least from being fed up with being treated as a credit risk by short-sighted high street lenders. Funnily enough, if I were a sole trader again, they'd be falling over themselves to give me credit, but because I pay myself via dividends....