Home Refused mortgage protection insurance, what's next??

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VicMas2

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Hi everyone
I have been refused mortgage protection life cover by 2 insurance companies due to my body mass index (bmi). I have no other underlying health problems. My husband was approved though. How can we go around this massive obstacle as we were about to draw the mortgage?? Shattered!!
 
Ask your bank if they will allow a waiver? This is not uncommon, many people can't get cover for one reason or another, there is provision in the consumer credit act that obliges a bank to have a mortgage protection policy in place for people who can't get it but it's up to the individual bank whether or not they will accept the waiver, ask, it's the only way of finding out.

It's not the first time they will have been asked the question.
 
Monbretia said:
there is provision in the consumer credit act that obliges a bank to have a mortgage protection policy in place for people who can't get it
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What? There is a provision whereby the lenders can waive the requirement to have mortgage protection in place. But I haven't heard that there is an obligation on the lender to have mortgage protection.

Brendan
 
Vic

Have you gone to a broker? There might be a life company which offers insurance at higher rates for higher risk.

But Monbretia's suggestion is best. Ask the lender to waive the requirement on you. What is the Loan to Value? They probably won't do it for a 90% LTV mortgage but might do it for a lower mortgage.

By any chance do you have an ordinary life insurance policy in place already? Although it wouldn't cover the full mortgage, it might give the lender some comfort.

Brendan
 
Provide the bank with the two letters showing that you were declined cover and ask them to waive the mortgage protection requirement on your life.

If you lose weight in the future, you can always apply for cover to ensure that your family are protected from premature death (please note, that insurance companies view sudden weight loss as unsustainable. They want to see steady weight loss over time which shows a change of lifestyle habits rather than crash diets).


Steven
www.bluewaterfp.ie
 
Thanks so much for the advices. Kindly note that my husband's salary can still pay the mortgage payments every month without my salary included. Will this carry weight with regards to the waiver decision?? The bank has also asked if i have death in service benefit of which i do for one year. Will this help?
 
Hi Red

That is the normal wording. They must have insurance in place - but not for people who can't get it, which is the bit which surprised me. They are not obliged to have mortgage protection in place for people who can't get it.

Brendan

126.—(1) Subject to the provisions of this section, a mortgage lender shall arrange, through an insurer or an insurance intermediary, a life assurance policy providing, in the event of the death of a borrower before a housing loan made by the mortgage lender has been repaid, for payment of a sum equal to the amount of the principal estimated by the mortgage lender to be outstanding in the year in which the death occurs on the basis that payments have been made by the borrower in accordance with the mortgage, such sum to be employed in repayment of the principal.


(2) Subsection (1) shall apply as respects all housing loans except—


(a) where the house in respect of which the loan is made is, in the mortgage lender's opinion, not intended for use as the principal residence of the borrower or of his dependants,


(b) loans to persons who belong to a class of persons which would not be acceptable to an insurer, or which would only be acceptable to an insurer at a premium significantly higher than that payable by borrowers generally,


(c) loans to persons who are over 50 years of age at the time the loan is approved,


(d) loans to persons who, at the time the loan is made, have otherwise arranged life assurance, providing for payment of a sum, in the event of death, of not less than the sum referred to in subsection (1).


(3) A person who does not belong to a class referred to in paragraph (b) of subsection (2) shall not be required by virtue of this section to undergo a medical examination as a condition of a policy but nothing in this section shall prevent a person belonging to such a class from being required to undergo a medical examination.


(4) A policy under this section may, in the case of a loan made jointly to two or more borrowers, apply to such of the borrowers as may be designated by the mortgage lender, due regard being had to the wishes of such borrowers.


(5) Where the proceeds of a policy under this section exceed the amount due to the mortgage lender on the loan, any such excess shall be payable to the surviving borrower or to the estate of the deceased borrower as the case may be.
 
That's what I meant Brendan, they are not obliged to have it in place if the person can't get it, my grammar and wording could possibly have been better :)
 
Heart felt appreciation goes to you all for your kind advice. I managed to get a second refusal latter from another insurance company and sent it to the bank. The bank made a waiving request to the creditors which was successful, so it mean they can approve the mortgage. We are ecstatic. New year resolution is to hit the gym.

Thanks again gies
 
VicMas2 said:
Heart felt appreciation goes to you all for your kind advice. I managed to get a second refusal latter from another insurance company and sent it to the bank. The bank made a waiving request to the creditors which was successful, so it mean they can approve the mortgage. We are ecstatic. New year resolution is to hit the gym.

Thanks again gies
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A bit of advice on that, get the help of a personal trainer. They work with you on your diet, which is the first thing to sort out. They will also design a programme that works for you. Finally, they will make you accountable. It's easy to step on the scales with no one looking. If you have someone tracking your progress, you will be much more determined to make it work.

Best of luck


Steven
www.bluewaterfp.ie
 
VicMas2 said:
Hi everyone
I have been refused mortgage protection life cover by 2 insurance companies due to my body mass index (bmi). I have no other underlying health problems. My husband was approved though. How can we go around this massive obstacle as we were about to draw the mortgage?? Shattered!!
Click to expand...


Hi Vic. Can I ask what bank you managed to get the waiver from and if it was difficult myself and my husband are currently having problems with mortgage protection. I was approved and his was postponed. If you have any advice I would appreciate it.
 
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