Obtaining mortgage protection with a serious illness

Hi

I was just wondering if somebody could advise on the following situation. Friend has land and is applying for a mortgage to build a new house. Friend was recently diagnosed with MS and we are now wondering is it possible to obtain mortgage protection cover with MS and also if you own your land do you need mortgage protection i.e does every mortgage have to have mortgage protection.
Thanks

Query 1

Hi there,

The lender has to (legally) make sure that the person getting the mortgage has mortgage protection insurance (mpi) in place EXCEPT in certain circumstances & one of the is if the person getting the mortgage can't get mpi. However, that is not to say that they have to give your friend the mortgage either - they can refuse to give an otherwise approved mortgage on that basis.

Your friend might do well to talk to a few brokers (or someone here may be able to advise) to find out which lenders will waive the mpi requirement in case where borrower cannot get it.

Mortgage protection cover is not required if the house is being built as an investment.

You do not say if this is going to be her home or if this is an investment property. If this is her home, banks would want a mortgage protection policy. However should she be thinking of building with a partner/husband they will look at her case more leniently if there are two parties applying for it. At the end of the day it is up to the discretion of the bank to accept the mortgage without the life cover.