Mortgage protection refusal

[biker]

Hi...my son has been refused mortgage protection on health grounds...he is now trying other companies...any thoughts or suggestions...I found a previous post from 2012 covering the topic but things may have changed since then...
He is a joint mortgage applicant with his partner, who has been approved for insurance, and mortgage ltv less than 60%....

 

[jpd]

Hae he tried a mortgage or insurance broker?

 

[Brendan Burgess]

Hi biker

Ask the lender if they will waive the requirement for mortgage protection. They can do so when the borrower can't get it or when it's too expensive.

Brendan

 

[biker]

Hae he tried a mortgage or insurance broker?

Ta, he has but waiting for response...broker not hopeful...

 

[biker]

Hi biker

Ask the lender if they will waive the requirement for mortgage protection. They can do so when the borrower can't get it or when it's too expensive.

Brendan

Thanks Brendan...any risk of lender withdrawing loan offer if you look for a waiver, that's his fear....

 

[LDFerguson]

Thanks Brendan...any risk of lender withdrawing loan offer if you look for a waiver, that's his fear....

A lot depends on how important his income is to the mortgage application. If his partner's income is sufficient to pay the mortgage alone, he stands a reasonable chance. Or if he has other life insurance cover elsewhere, even if it can't be assigned to the bank, e.g. death in service cover at work.

What's the nature of the medical condition that has caused this decision? What his broker should be doing is sending a detailed submission around the various life insurance companies to get an opinion before he sends in multiple applications.

Regards,

Liam
www.FergA.com

 

[biker]

A lot depends on how important his income is to the mortgage application. If his partner's income is sufficient to pay the mortgage alone, he stands a reasonable chance. Or if he has other life insurance cover elsewhere, even if it can't be assigned to the bank, e.g. death in service cover at work.

What's the nature of the medical condition that has caused this decision? What his broker should be doing is sending a detailed submission around the various life insurance companies to get an opinion before he sends in multiple applications.

Regards,

Liam
www.FergA.com

Many thanks Liam,
His broker is now pursuing as you suggest...he does have other life cover, so waiver option could be pursued if broker is unsuccessful....fingers crossed!

 

[LDFerguson]

Many thanks Liam,
His broker is now pursuing as you suggest...he does have other life cover, so waiver option could be pursued if broker is unsuccessful....fingers crossed!

Another option to look at is the possibility that his existing life cover might have conversion / extension / increase options which would allow him to adjust the cover to suit the mortgage without evidence of health. Some life cover products have such options; some don't. Worth an enquiry.

 

[lff12]

Would suggest getting broker to go through to application for other lenders.
To be fair, think there's been a big jump in risk aversion - I heard back from underwriting yesterday on my application and they loaded me because of health. But not turning me down. I did look around and noticed in general others were charging for more on basic quote without going to underwriting, so probably would get same from another other insurer (I work for my insurer so I get a 20% discount).

 

[biker]

Another option to look at is the possibility that his existing life cover might have conversion / extension / increase options which would allow him to adjust the cover to suit the mortgage without evidence of health. Some life cover products have such options; some don't. Worth an enquiry.

Thanks again Liam, broker is also pursuing that option now....

 

[biker]

Would suggest getting broker to go through to application for other lenders.
To be fair, think there's been a big jump in risk aversion - I heard back from underwriting yesterday on my application and they loaded me because of health. But not turning me down. I did look around and noticed in general others were charging for more on basic quote without going to underwriting, so probably would get same from another other insurer (I work for my insurer so I get a 20% discount).

Ta, probably worth looking at that...

 

[Mam1996]

Hi...my son has been refused mortgage protection on health grounds...he is now trying other companies...any thoughts or suggestions...I found a previous post from 2012 covering the topic but things may have changed since then...
He is a joint mortgage applicant with his partner, who has been approved for insurance, and mortgage ltv less than 60%....

Hi Biker, just wondering how your son got on? I'm after finding myself in the same situation and while my husband's income will cover the mortgage I'm worried that they'll pull our approval.

 

[biker]

Hi Biker, just wondering how your son got on? I'm after finding myself in the same situation and while my husband's income will cover the mortgage I'm worried that they'll pull our approval.

Hi Mam1996...just as a follow up, (with apologies for delay!) my son got a waiver, no issue, just had to produce 3 refusals...seemed simple enough, though as mentioned, low ltv prob helped.....good luck with yours!

 

[Mam1996]

Hi Mam1996...just as a follow up, (with apologies for delay!) my son got a waiver, no issue, just had to produce 3 refusals...seemed simple enough, though as mentioned, low ltv prob helped.....good luck with yours!

Thanks Biker! I got lucky in the end, had a policy with medical convertion so I was able to extend the term and assign it to the new mortgage without further medical questions, phew!