We are switching our mortgage from Bank of Ireland to KBC. We want to retain our existing mortgage protection policy. I have read on this forum before that switchers were able to do this but always wondered how that would work in practice.
The life assurance company have advised the following:
We will require a release deed of assignment from existing bank noted on file, this is a letter to confirm the current bank on file has no interest in policy.
We will then require a letter from new bank to confirm the new bank want to have an interest in policy, this is called a Notice of Assignment.
Our solicitor has advised as follows:
The Bank of Ireland may not release the original Deed of Assignment before the mortgage has been paid off.
This will have to be sorted out with KBC as they usually require the policy to be assigned before they will release money, but the bank of Ireland will want the mortgage to be repaid before they will release the Assignment.
Can anybody tell me how to get around this conundrum, i.e. BoI won't release their interest in the policy before the mortgage is paid off but KBC won't release the funds to pay off the BoI mortgage unless the policy is assigned to them?