Other private mortgage default insurance?

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beingfleeced

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Hi I have an unusual requirement, My wife and I are getting divorced, I want her to remain on the mortgage deed because it is a Tracker and I do not wish to lose this mortgage product. What I am looking for is a type of Mortgage default insurance policy that would indemnify just my wife, if I default on the mortgage at some future date. I have the usual life insurance and mortgage protection policies in place, so the only risk to be covered is any liability my wife would have to the bank after the property would be sold in a default situation.
does such a policy exist anywhere? anybody know specialist brokers?
grateful for all help
 
Such an eventuality cannot be insured.

You are looking for a policy to pay/clear your wife's mortgage if you default????
 
My reading of the query is slightly different, but my conclusion is the same. From what I can see, the OP is seeking an insurance so that if he defaults on the mortgage, the property would be repossessed and any shortfall would be paid out by the insurance.

It doesn't exist.

The bank wouldn't agree to any such thing besides. If you wife is still a party to the mortgage then in the event of a default they will want to pursue her as far as possible to get the repayments. Repossession is always a last resort.
 
Thanks Guys,
quick browsing on the net suggests that such insurance policies exist in other countries, (USA private mortgage insurance) but rather it is the lender who takes out the policy with the insurer and the borrower pays the premium, in the event of default the policy pays the lender any short fall after a property has been sold, i guess this amounts to the same thing as the bottom line is my ex does not want to have to fork out! but that is USA don't know of any such schemes here!!!! looks like Ulster Bank will be getting a tracker of their books :-(((
 
I'm trying very hard at the moment for a similar product for commercial property, where my tenants are obliged to pay for the Insurance. Thought it would have been easy but now I have to go to Lloyds of London to have the risk insured. From my part I don't really care of the cost as long as the borrowings are covered.
 
beingfleeced said:
Thanks Guys,
quick browsing on the net suggests that such insurance policies exist in other countries, (USA private mortgage insurance) but rather it is the lender who takes out the policy with the insurer and the borrower pays the premium, in the event of default the policy pays the lender any short fall after a property has been sold, i guess this amounts to the same thing as the bottom line is my ex does not want to have to fork out! but that is USA don't know of any such schemes here!!!! looks like Ulster Bank will be getting a tracker of their books :-(((
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Mortgage Indemnity Bonds do exist in Ireland, or at least they used to. The lender took out the bond for the excess over a certain percentage, e.g. 80%. So if a house was worth €200,000 and the client got a mortgage of 90% €180,000 the bond might be for an insured amount of €20,000 (difference between 80% and 90%). In the event of a repossession, the bond would pay out if the sale price was less than the mortgage amount.

This wouldn't work for you because (a) I can see any issuer of MIBs offering one to the general public and (b) your wife's credit rating would still be damaged by any repossession, insured or not.
 
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