Free unemployment insurance for new mortgage customers at HSBC

HSBC is offering free unemploy-ment cover for new mortgage customers if life insurance is also taken out.

The move follows the launch of HSBC’s split mortgage that allows borrowers to fix a proportion of their loan, with the remainder on a lifetime tracker rate.

All borrowers are being offered unemployment cover if they take out LifeChoices2 cover.

The lender is also offering new borrowers 12 months for the price of nine on new home insurance policies taken out with mortgages.

Last week also saw British Insurance launch a mortgage payment protection insurance policy with unemployment-only options.

It has options for unemployment, accident or sickness or all three, and covers up to £2,000 worth of mortgage payments including related expenses such as endowment savings plans.