Having problems getting mortgage protection

T

trishka

Guest
Hi,

My brother(27) has planning permission on a site and is hoping to build in the foreseeable future but is hitting a brick wall when it comes to getting mortgage protection. He had a hole in the heart when he was born and although he had operations then has been healthy since. Now he does have yearly hospital checkups and is on tablets for his heart but he is also working full time and enjoying a healthy life but no bank/building society will quote him for mortgage protection therefore he can't finalise a mortgage. Can anyone who might have been in a similar situation advise of any insurance company or bank that could organise mortgage protection for him.

Thanks a mil.
 
Has your brother actually completed a proposal and been declined after the medical files have been looked at, as this condition is not a straight out decline. Is he just being told this by the banks.
 
trishka said:
Hi,

My brother(27) has planning permission on a site and is hoping to build in the foreseeable future but is hitting a brick wall when it comes to getting mortgage protection. He had a hole in the heart when he was born and although he had operations then has been healthy since. Now he does have yearly hospital checkups and is on tablets for his heart but he is also working full time and enjoying a healthy life but no bank/building society will quote him for mortgage protection therefore he can't finalise a mortgage. Can anyone who might have been in a similar situation advise of any insurance company or bank that could organise mortgage protection for him.

Thanks a mil.
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is this for the mortgage protection or the life cover ?

you don't need the mortgage protection on most mortgages (you do on first active 100%)
 
I presume it was the mortgage protection life policy that tishka is referring to as opposed the repayment protection. We generally refer to the life policy as mortgage protection in the life assurance industry
 
He has had several proposals declined after they have recieved his medical files/doctor reports. Although none of the insurance companies who have declined the insurance will give him a letter comfirming that they have declined his application for mortgage protection, he was told by a girl that works in MABs that if he gets three letters from different insurance companies confirming that they decline to offer him the mortgage protect that the banks are obliged to offer him the mortgage he needs without the mortgage protection!is this for the mortgage protection or the life cover ?

Jhegarty, as far as i know it is Mortgage protection, basically the insurance to cover the lender if the person dies before they repay all of the mortgage?
 
Trishka,

If your brother has applied to a life assurance company for Mortgage Protection life assurance and been declined, he has a right to get this in writing from them.

The cover you describe is called Mortgage Protection life assurance - it pays off the outstanding loan in the event of death. The other type is called, confusingly, Mortgage Repayment Protection and is entirely optional.

Even if he gets one decline letter from a life assurance company, this should be sufficient for him to waive the requirement for life assurance and get his mortgage, as long as the mortgage is to build a home for his own occupation.

Liam D Ferguson
www.ferga.com
 
We had the same problem as you as my husband previously had heart problems and even though healthy since for 6 years has been declined life asurance.
I have life assurance and my husband had to sign a waiver form stating he was refused life cover.
I tried loads of companies and some said they might review again at a later stage.
This was not a problem getting a mortgage in our case.
 
LDFerguson said:
Even if he gets one decline letter from a life assurance company, this should be sufficient for him to waive the requirement for life assurance and get his mortgage, as long as the mortgage is to build a home for his own occupation.
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I presume that the bank would reposses in the case of death if there was no cover in place? Or would it have a claim on the deceased's estate? If this was a single person, with no dependents, I guess this would make sense, but if the person was married or co-habiting, then there are obvious pitfalls, yes? i.e. the spouse/partner would be faced with servicing the mortgage on their own.
 
Yes - for this reason most lenders will insist that the prospective borrower takes specific legal advice on the matter of waiving life assurance cover before a loan is granted.
 
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