payment Protection Plan - mandatory?

Hi,

Just got an letter of offer on a top-up loan and the next steps sheet attached says that a payment protection plan is required as well as Life Assurance and Home Insurance.

Is this a legal requirement? I've got the MPP and home insurance but didn't need PPP before.

Any help appreciated,

N.

The only thing (from a legal point of view) you need to do is increase your MPP (not required if one of the names is over 50) to cover the top up. You should talk to your solicitor as he will also be involved.

Assuming MPP = Mortgage Payment Protection I would read this as Mortgage Repayment Protection rather than Mortgage Protection Life Assurance which is presumably what you actually mean. Have a read of this thread for a good overview of the different insurances applicable to mortgages with the only mandatory one being (in the vast majority of cases) Mortgage Protection Life Assurance.

Thank you both.

I've sorted the increased Life Assurance (MPP).

What AIB call a Payment Protection Plan (PPP) is something which covers the mortgage repayments for up to 12 months if I'm unable to work. Sounds like income protection which I didnlt think was mandatory.

Can someone confirm?

Thanks,

Noobie

no it's not mandatory

no, correct eimear, its not

Definately not mandatory....

Thanks to you all.

I think AIB's checklist is misleading then. They have a section listed with the requirements for a loan (top-up or otherwise) and it lists 3 things, MPP, Statement of Marital Status and PPP. But when you read further they seem to contradict themselves by closing the section on PPP with a "...we recommend you take out PPP..." (I'm paraphrasing here).

Looks like they just want to get more dosh from the punter. Normal business protocol I guess.

Anyhow, thanks again.

Noob.