Repurpose old Joint Mortgage Protection?

B

beddington

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Some time ago I co-owned a property with a sibling and we took out joint Mortgage Protection.

After the property was sold we retained the policy, not really sure why but we did.

Now I am about to purchase a home of my own (no sibling) and will require Mortgage Protection.

The question is can I use the old policy for the new mortgage, and if I can should I? Is that a dumb idea for some reason?

In case it matters note that in the event of my demise the only potential beneficiaries would be my parents and the sibling.

Thanks
 
You would need mortgare protection only in the names of those on the mortgage and agree to sign it over to lender.
 
Two things you need to look at...

(1) Is the amount of cover and the expiry date on the existing policy suitable for the new mortgage? If, for example, the policy expires before the new mortgage does, it's not suitable.

(2) Get a quote from somewhere like www.labrokers.ie for a new policy covering just you for your new mortgage. Is it cheaper than your existing policy? If so, then I don't see much point in trying to use the existing policy, except for the slightly strange side-benefit that if your sibling dies, a claim will be paid out which could pay off your mortgage (even though your sibling is not a party to this mortgage.)

A lender should have no major problem with having an unrelated person on the Mortgage Protection policy as long as you are fully covered too.
 
Dont cancel the original policy until you have new cover in place. If a lot of time has passed you may now have picked up red flags on the health front and the other policy may help with a waiver.
 
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