# Mortgage protection refusal



## Sheelah (7 Apr 2006)

Know any insurance company that will give mortgage protection to someone with  potential bad health. Friend has high cholestrol and been turned down by 2 companies.  Cannot move house as he is main wage earner. Sheelah


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## JohnnyBoy (7 Apr 2006)

I'm curious about this.Did you say he was turned down simply because of a high cholesterol result,there must be more to it than that.If not ,a choleterol result can be so misleading.There is a standard error of +/- 1 with each result & you also have to fasting for ~ 12hrs.Also ,the LDL fraction is far more important than the total cholesterol.If it's still a problem & you need to get it down fast,consider medication.
One thing is this for your life assurance or mortgage protection?-


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## asdfg (7 Apr 2006)

I think if you are turned down or the insurer imposes special terms or increased premium you can ask for a waiver form to be issued. You can also get the mortgage protection insurance in your name only which should satisfy their requirements/conditions. 

Have you tried LAbrokers here They are not taking new business until 24 April but try calling them.


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## RainyDay (8 Apr 2006)

Are they trying to remortgage or do an equity release? There is a provision in the Consumer Credit Act which means the lender cannot refuse to loan where insurance is refused for medical reasons. Contact a good broker to review your options.


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## woods (8 Apr 2006)

I do know someone who has been refused recently for the same reason. He was told to come back in 12 months but his doctor tells him that if he starts on medication immediatly then he should show results in weeks rather than months. So now he is going to slowly poison himself with drugs to satisfy a bank requesting something that they have no legal right to ask for.


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## harvey (8 Apr 2006)

You need advice and you haven't given enough info.


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## upport (8 Apr 2006)

Sheelah said:
			
		

> Know any insurance company that will give mortgage protection to someone with potential bad health. Friend has high cholestrol and been turned down by 2 companies. Cannot move house as he is main wage earner. Sheelah


 
Hi Sheelah,if your friend has personal life cover or life cover through work already set up the lender might accept that if it were suitable.Alternatively he can request the lender to waive the life cover  but they are not oblidged to and often don't if its family home/main earner scenario.


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## RainyDay (9 Apr 2006)

upport said:
			
		

> Alternatively he can request the lender to waive the life cover  *but they are not oblidged to and often don't if its family home/main earner scenario*.



This is not true. Check out the [broken link removed] which excludes the requirements for mortgage protection insurance for ;


> ( b ) loans to persons who belong to a class of persons which would not be acceptable to an insurer, or which would only be acceptable to an insurer at a premium significantly higher than that payable by borrowers generally,


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## upport (9 Apr 2006)

Rainday.....in practice the Act does not work as it reads....in 2005 a friend,equal income on a joint application,was refused her mortgage at drawdown because she could not provide life cover.Her solicitor and mortgage advisor made representation to the lender but the lender would not proceed.When an exsisting policy which was in excess of the loan amount was produced by my friend,the loan issued.Therefore,it must be at the lenders descretion whether to abide by the act .The lender,in my friend's case, is a high profile high street bank.


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## RainyDay (9 Apr 2006)

I confess that I've little practical experience on this issue, though my own lender did mention the possibility of waiving insurance when I experienced some insurance cover issues during a remortgage. 

If lenders are not sticking to the Act, I would strongly recommend that borrowers report the issue to the Financial Regulator for action.


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## orka (10 Apr 2006)

It may not be in Sheelagh's friend's best interest to force the lender to lend with no insurance - the whole point of insurance is to provide cover if something goes wrong - and as the main earner, the family would be in a very precarious situation if he died with no life cover.  While banks are very reluctant to reposess a family home, the reality will be that they are owed money, accruing interest, which there is little chance of being repaid without the house being sold - the last thing a widow(er) will want to deal with having lost their spouse.
So while the act may make it theoretically possible to force a lender to waive the loan requirement, I think it's really bad advice for the main earner on a family home loan.


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## Sheelah (11 Apr 2006)

thanks everyone for the various replies. Will  get him to try Ladbrokes after the 24th and see if he can get anywhere.  Dont know the real medical reason that my friend was turned down for so cannot comment.  I would be advising him as he is the main wage earner to have cover just in case as he has 3 small children so the risk is too much.


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## CCOVICH (11 Apr 2006)

Sheelah said:
			
		

> Will get him to try Ladbrokes after the 24th and see if he can get anywhere.


 
I don't think Ladbrokes will be of much help, but if you stick €50 on a 100/1 shot, then you won't have to worry about a mortgage or mortgage protection.

LA Brokers  are the firm to talk to about mortgage protection.


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## harvey (12 Apr 2006)

CCOVICH said:
			
		

> I don't think Ladbrokes will be of much help, but if you stick €50 on a 100/1 shot, then you won't have to worry about a mortgage or mortgage protection.
> 
> LA Brokers are the firm to talk to about mortgage protection.


 

If the poster cannot get cover from 2 insurers, how can a discount broker help ?

They are execution only and while they would offer a discount if cover was offered, the poster needs help & advice as to how they might best go about obtaining the cover.  Am _I_ missing something here ?


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## CCOVICH (13 Apr 2006)

It was just that LA Brokers were mentioned by somebody else and I was correcting the fact that they are called LA Brokers and not Ladbrokes.

And certain brokers can generally negotiate more favourable terms-although I'm not sure if this extends to underwriting.

You mention help and advice and a specialist-fair enough, but as a matter of interest, do you know any brokers/advisors who specialise in 'high risk' cases such as this one?


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## F. Kruger (13 Apr 2006)

This has got nothing to do with the (regular) Broker and possibly not even the Insurer. The call would have been probably with a re-insurer, with the guidance of the chief medical officer of the insurance company.

As far as I know, most of the Insurers use the same Re-Insurer here in this country so it would be unlikely that a product provider would get preferential terms over another.

I have a vague recollection of one of the large general insurance (specialist) brokerages offering terms for high risk life cases but I can't for the life of me remember who they are.

My only memory is that the cost made no sense whatsoever and I would say that if your friend was presented with the same scenario they would probably not pay for the cover.

Is your friend a member of a company pension scheme and could there possibly be some form of death in service benefit?

High cholestrol can be controlled and unless there is a woeful family medical history on the ailment they may be able to reapply once it's under control.


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## CCOVICH (13 Apr 2006)

F. Kruger said:
			
		

> As far as I know, most of the Insurers use the same Re-Insurer here in this country so it would be unlikely that a product provider would get preferential terms over another.


 
No, I know of at least one insurer that uses reinsures with 3 or 4 different reinsurers.


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## harvey (13 Apr 2006)

CCOVICH said:
			
		

> It was just that LA Brokers were mentioned by somebody else and I was correcting the fact that they are called LA Brokers and not Ladbrokes.
> 
> And certain brokers can generally negotiate more favourable terms-although I'm not sure if this extends to underwriting.
> 
> You mention help and advice and a specialist-fair enough, but as a matter of interest, do you know any brokers/advisors who specialise in 'high risk' cases such as this one?


 
LOL. That explains where Ladbrokes came from !

By definition, an execution only, discount broker cannot give advice and therefore could not direct a client to an alternative insurer unless instructed.

Not all brokers, and not necessarily AA's (!) will have the expertise,  as opposed to agencies, to advise the direction a client should take. As you rightly point out there are a number of reinsurers operating within the Irish market and there are also different reinsurers within individual companies. The OP hasn't given enough information - they might not be aware of the full facts anyhow - to give further advice. 

An example would be where one company does not rate for asthmatics where another does systematically. Diabetics can be rated by different amounts with different companies also.  Some companies have different reinsurers dependent on the product chosen and could be rated for Mortgage Protection and not Level Term ! An experienced practitioner would be able to navigate a client through this maze. If the poster gives more info including companies applied through, someone may be able to direct them.


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## mimi (18 Apr 2006)

*Re: Mortgage Protection Insurance*

Hi Folks,

Anybody know how I might be fixed if I am refused mortgage protection Insurance based on medical grounds. I have a few things wrong but I am perfectly healthy however the fact that its been 12 weeks since my origonal application, I think its possible I might be refused (not to mention that I have only 2 days left to complete the deal on the house or lose it!!). Thanks,


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## asdfg (19 Apr 2006)

Does Rainydays post #8 in this tread above help.


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## Biggles (20 Apr 2006)

I have a similar issue to Sheelah but while I have been able to get mortgage  protection cover with 'special acceptance terms' it has been heavily loaded due  to:
  (a) The fact that I'm learning to fly - which is fair enough as it's my own  choice.
  (b) Family history of Heart Disease, mother had a mild stroke at 59 and  made a full recovery and father had a bypass at 58 (alive and well 11 years  later). I myself have mildly elevated cholesterol which is to be managed with  diet/exercise, otherwise I'm fit, active and healthy (and have also passed the  aero-medical with no issues). 

  If anybody knows any specialist brokers/advisers who may be able to offer a  more competitive premium I'd appreciate their details - Thanks.


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## lucylou (3 May 2006)

Hi all,
Not sure if i should start a new thread...
I'm having probs with my insurance at the mo, which is possibly going to have serious implications with my house, im due to sign pretty soon. Basically the insurance company sent a letter saying they are unable to offer me life assurance at this time, for medical reasons. I got on to the bank who are reviewing at the mo if we can go down the route of a guarantor for me, and my partners life assurance. 
I got a phone call today from the bank wanting to know if i would share with them the reason for being refused, and could i not try another company. they said i didnt have to answer them of i didnt want. I told them it was personal. Now they have gone off to review again. 
Anyone got any advice or experience of this? I have a guarantor no problem, so should they not just accept this, according to the Consumer Credit Act?


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## asdfg (3 May 2006)

See RainyDays post # 8 above. If they refuse you the loan as a result of your medicial condition quote the above paragragh from the consumer credit act and tell them that you an exempt from mortgage protection insurance. Also put it in writing to them. 

Also complain to the governing body IFSRA. A call to IFSRA for their view on the exemption might help your case.


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