Advice on Mortgage Cover and Switching Mortgage provider

[Sarenco]

I would see no issue here other than specific policy limitations, which per OP are not restrictors to re-assignment according to Irish Life. re-assignment of policies is a minor issue in the process of mortgage transfers and the security Depts of all banks are well used to dealing with them.

I think that's quite clear. What seems to be less clear is whether there are likely to be any specific policy limitations.

From your own experience, would you agree with Monbretia that it is very unlikely that any mortgage protection policy written in the last 10-15 years was arranged as part of a block policy?

 

[44brendan]

From your own experience, would you agree with Monbretia that it is very unlikely that any mortgage protection policy written in the last 10-15 years was arranged as part of a block policy?

From my limited experience I have never come across these "block policies" other than in a buildings cover scenario. I agree that there is a low possibility of the OP holding such a policy and following his/her discussion with Irish Life it appears that there is no restriction on re-assignment of the policy in question.

 

[Monbretia]

One of the advantages of the block policy from I suppose both the bank and the lenders point of view was that the cost was debited directly to the mortgage so that even if you had no money the policy would not lapse, yes your mortgage balance would be increased by the monthly cost but God forbid should something happen it was still in place. Whereas when people have to pay the payments separately it is often something that is allowed lapse when funds run out.

I dealt with a few cases of lapsed policies like this where one party then died, mortgage left remaining and having to be paid by survivor.

 

[michaelm]

I would hope to keep the same insurance policy and not go through that application process again. The monthly payment is very cheap.

As Monbretia suggests you would imagine that the solicitor should be able to sort it out. In the event that the solicitor can't resolve it might you have other unassigned life assurance which would cover the amount, duration & lives required which you could assign to the new mortgage? Then, when the dust settles, you could decide whether to swap the assignment over or just leave it as is.

I'm in the middle or a re-mortgage and have assigned an existing unassigned policy to the new mortgage. I'll decide later whether to keep or cancel my old reducing mortgage policy.

 

[kittykatg5]

Late, late post but I just came across this in my search. Leaky did you get sorted? We're insured through Royal London with EBS so wondering if it you were able to switch the policy?

 

[Neek01]

I'm curious about this also as would like to switch. I have insurance policies taken out through the current lender for life cover and payment protection. Can I bring these with me to a new lender?