Mortgage Protection Waiver

My partner has been received two postpone decisions for mortgage protection insurance. We spoke to a broker who advised that my partner will most likely not get cover at the moment so we should seek a waiver from the bank. We are selling our current home to buy another and are sale agreed on both, but haven’t signed contracts yet. The mortgage we are seeking is €500k over 30 years. We already have a mortgage insurance policy worth €244k over 28 years and it is not assigned to our current house/mortgage, so we can shorten the term of our new mortgage to 28 years and offer to assign it to the bank. The shortfall after applying our current policy would be €256k which is an amount I would be eligible for if I were applying for a mortgage on my own. My partner also has €400k of death in service benefit, which I understand cannot be assigned to the bank, but would be worth €273k after inheritance tax which I theoretically could use to clear the shortfall should the worst happen. I can get full cover and we have no dependents. What are our chances of being granted a waiver based on the above? Has anybody else been granted a waiver using an existing policy to cover part of a new mortgage?

cadonn said:

My partner also has €400k of death in service benefit, which I understand cannot be assigned to the bank, but would be worth €273k after inheritance tax

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Or €400k if you were married? If your partner has a life-limiting illness and you have substantial assets and liabilities, you should take an afternoon off and visit the Registry Office.

That’s the plan in the future, but I don’t think it’ll happen in time to help this situation. It’s not a life limiting illness thankfully, it’s abnormally high cholesterol with no known cause (non-smoker, normal BMI, early thirties) the insurance companies are postponing until underlying cause can be found…which the GP said could take multiple investigations and considerable time.

Best to try all the lenders for the waiver to see which will give it. A waiver is given for the full amount, there isn't an option in the forms/legislation to say we have have the cover just not the lot but the fact that you have some level of cover is usually a benefit from the lender point of view.

I normally don't have much good to say about UB but they were one of the best for waivers, once you could tick the box they usually gave it without hassle.

Try Royal London if your still seeking insurance. They may request additional medical diagnostics but will offer cover at a weighted premium if you can satisfy them.

Just a quick note to let everyone know that the bank granted the waiver within a few days. It was all very straightforward.