Mortgage Protection

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nightdude

Registered User
Messages
15
Hi,

I am a bit unsure, but was just wondering in these uncertain times if you could please help with the following -

1. I have mortgage protection. My wife works full-time & I have been reduced to P/T hours. If we get into difficulty, can we use our mortgage protection if we fall into arrears?
2. I am with first active. Is it easy to deffer payment (mortgage break) & if so, how will this implicate re-payments on a 30 year mortgage?
3. What fees are involved if you transfer your mortgage to another lender?

Cheers
 
If by mortgage protection you mean life cover, then no you cant use it for being out of work. If you mean mortgage payment protection this will only kick in if you are made redundant, or out sick due to accident or illness. It will not cover reduced working hours.

In reply to how easy to reschedule, people who are out of work receive priority for breaks, you will have to prove that your reduced hours are having a major impact on your ability to repay and you should also be able to show where you have made cut backs in other areas. If you have other unsecured loans those lenders should be approached first.
 
In response on your third question, the fees involved with switching to another lender are the legal fees and the cost of the valuation. The legals will depend on the solicitor and the amount of work involved, but €1,000 is a very rough guideline figure. The valuation should cost €130 - €150.
 
Hi,

We have our mortgage protection with Eaglestar for the last 3years. Its due for renewal at the end of June and i just wanted to learn a little bit more about it. First of all, is it something you can shop around for every year for a better price? Presently the broker we use takes a direct debit once a year. We pay slightly over €500 per year.

Secondly, we are both public servants and whilst i would hope we have security in our jobs, would it be worth changing to mortgage payment protection in the event that we did loose our jobs?

Would be grateful for any advice as Im a bit green on this.

thanks
 
You are free to shop around every year though premiums may increase as you get older. Eagle Star/Zurich are quite competitive on mortgage protection but no harm shopping around.

If you lose your jobs then obviously mortgage protection repayment will be worth having. There are many exclusions to the policy though so read through the t & c's as ever.

If you think you may be made redundant then this will exclude you, there will also be a deferral period of 90 - 120 days, if you are let go in this period the policy will not pay out.

Mortgage repayment protection can be quite expensive to take out on an existing mortgage, one company has a premium of €6.60 per €100 of mortgage repayment.
 
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