Brendan Burgess
Founder
- Messages
- 54,690
This letter was sent by Cork County Council to its Shared Ownership customers
10 August 2009
[FONT="]New Premium Rate[/FONT]
[FONT="]I am pleased to inform you that a new lower premium rate of 0.5615% has been secured as well as providing improved benefit cover.
...
[/FONT] [FONT="]In addition, the rental portion of a shared ownership loan is now covered - optional for existing shared ownership borrowers and mandatory for new borrowers. The premium will be 0.3369%.[/FONT]
Mortgage Protection Insurance on Loan Equity
[FONT="]Extra Benefits[/FONT]
[FONT="]1. Full disability cover will be provided to both parties of a joint mortgage up to the age of 65. The higher earner could only claim previously.[/FONT]
[FONT="]2., Life cover will be extended to age 75 years (previously 70 years.)[/FONT]
[FONT="]A borrower who had been declined for Life or Health Insurance will not be eligible for the Scheme. However, all borrowers are required to have mortgage protection cover. New borrower who have been declined for this scheme are required to show evidence of mortgage protection cover from[/FONT]
[FONT="]another insurer to their lending local authority.[/FONT]
Mortgage Protection Insurance on Rental Equity
[FONT="]As you are aware, you purchased a share of your dwelling with the help of a local authority loan and you rent the remaining share under the terms of the shared ownershop scheme. An important issue that we now wish to address is the question of insurance protection for the rented share.[/FONT]
[FONT="]As things stand, the share of your house that you have purchased is covered by the existing local authority mortgage protection insurance scheme and you pay a monthly premium on this. However, the rented element is not covered by this insurance. From our experience, this has the potential to cause serious problems and we want to help you avoid these difficulties. .[/FONT]
[FONT="]Extension of cover to Rental Equity[/FONT]
[FONT="]We have now extended the Mortgage Protection Insurance to cover the rented portion and we wish to offer you the opportunity to avail of the revised scheme. [/FONT][FONT="]Cover will be available from 1st JulV 2009. A new premium of 0.3369% [/FONT][FONT="]will be applied to the rental portion of Shared Ownership repayments.[/FONT]
[FONT="]The benefits of availing of rented equity cover are as follows:-[/FONT]
[FONT="]The revised scheme will provide for life cover for bothe the mortgage [/FONT][FONT="]and[/FONT][FONT="]rented elements in the event of death of the borrower(s) on the agreement (up to age 75 or the end of the mortgage[/FONT] [FONT="]term whichever is earlier).[/FONT]
[FONT="]In the event of the borrowerts) being unable to work for more that 91 days due to disability, both the monthly mortgage [/FONT][FONT="]and[/FONT][FONT="] rent payments will be paid for the duration of the disability (up to age 65 or the end of the mortgage term whichever is earlier).[/FONT]
[FONT="]Rented Equity cover is only available [/FONT][FONT="]to [/FONT][FONT="]existing borrowers aged under 55.
Increase in monthly premium[/FONT]
[FONT="]You should be aware that your monthly mortgage protection insurance premium will increase and the amount of the increase will depend on the size of the rented portion. [/FONT][FONT="]This will result in an overall increase to your monthly repayment on your loan. [/FONT][FONT="]For example, if the rented element of your shared ownershop agreement is €50.000, your premium will increase by €3.24 per week.[/FONT]
[FONT="]First 3 months are free[/FONT]
[FONT="][/FONT]
[FONT="]
[/FONT]
[FONT="]Friends First Life Assurance Co Ltd will offer 3 months free cover on the premium attributable to the rented portion. Cover will commence on the day you consent to the addition cover, however the additional premium will only be added to your Mortgage Protection Insurance premium 3 months from the commencement of cover date.[/FONT]
[FONT="]What to do if you wish to apply for mortgage protection insurance cover on your rental equity[/FONT]
[FONT="]If you are happy to extend the mortgage protection insurance to cover the rented element you should complete the attached form.[/FONT]
[FONT="]As an existing shared ownershop purchaser, it is not obligatory to avail of this scheme. [/FONT][FONT="] The completed form must be returned to your local authority b re 1st September 2009 You will not be able to avail of this option after that date.[/FONT]
10 August 2009
[FONT="]New Premium Rate[/FONT]
[FONT="]I am pleased to inform you that a new lower premium rate of 0.5615% has been secured as well as providing improved benefit cover.
...
[/FONT] [FONT="]In addition, the rental portion of a shared ownership loan is now covered - optional for existing shared ownership borrowers and mandatory for new borrowers. The premium will be 0.3369%.[/FONT]
Mortgage Protection Insurance on Loan Equity
[FONT="]Extra Benefits[/FONT]
[FONT="]1. Full disability cover will be provided to both parties of a joint mortgage up to the age of 65. The higher earner could only claim previously.[/FONT]
[FONT="]2., Life cover will be extended to age 75 years (previously 70 years.)[/FONT]
[FONT="]A borrower who had been declined for Life or Health Insurance will not be eligible for the Scheme. However, all borrowers are required to have mortgage protection cover. New borrower who have been declined for this scheme are required to show evidence of mortgage protection cover from[/FONT]
[FONT="]another insurer to their lending local authority.[/FONT]
Mortgage Protection Insurance on Rental Equity
[FONT="]As you are aware, you purchased a share of your dwelling with the help of a local authority loan and you rent the remaining share under the terms of the shared ownershop scheme. An important issue that we now wish to address is the question of insurance protection for the rented share.[/FONT]
[FONT="]As things stand, the share of your house that you have purchased is covered by the existing local authority mortgage protection insurance scheme and you pay a monthly premium on this. However, the rented element is not covered by this insurance. From our experience, this has the potential to cause serious problems and we want to help you avoid these difficulties. .[/FONT]
[FONT="]Extension of cover to Rental Equity[/FONT]
[FONT="]We have now extended the Mortgage Protection Insurance to cover the rented portion and we wish to offer you the opportunity to avail of the revised scheme. [/FONT][FONT="]Cover will be available from 1st JulV 2009. A new premium of 0.3369% [/FONT][FONT="]will be applied to the rental portion of Shared Ownership repayments.[/FONT]
[FONT="]The benefits of availing of rented equity cover are as follows:-[/FONT]
[FONT="]The revised scheme will provide for life cover for bothe the mortgage [/FONT][FONT="]and[/FONT][FONT="]rented elements in the event of death of the borrower(s) on the agreement (up to age 75 or the end of the mortgage[/FONT] [FONT="]term whichever is earlier).[/FONT]
[FONT="]In the event of the borrowerts) being unable to work for more that 91 days due to disability, both the monthly mortgage [/FONT][FONT="]and[/FONT][FONT="] rent payments will be paid for the duration of the disability (up to age 65 or the end of the mortgage term whichever is earlier).[/FONT]
[FONT="]Rented Equity cover is only available [/FONT][FONT="]to [/FONT][FONT="]existing borrowers aged under 55.
Increase in monthly premium[/FONT]
[FONT="]You should be aware that your monthly mortgage protection insurance premium will increase and the amount of the increase will depend on the size of the rented portion. [/FONT][FONT="]This will result in an overall increase to your monthly repayment on your loan. [/FONT][FONT="]For example, if the rented element of your shared ownershop agreement is €50.000, your premium will increase by €3.24 per week.[/FONT]
[FONT="]First 3 months are free[/FONT]
[FONT="][/FONT]
[FONT="]
[/FONT]
[FONT="]Friends First Life Assurance Co Ltd will offer 3 months free cover on the premium attributable to the rented portion. Cover will commence on the day you consent to the addition cover, however the additional premium will only be added to your Mortgage Protection Insurance premium 3 months from the commencement of cover date.[/FONT]
[FONT="]What to do if you wish to apply for mortgage protection insurance cover on your rental equity[/FONT]
[FONT="]If you are happy to extend the mortgage protection insurance to cover the rented element you should complete the attached form.[/FONT]
[FONT="]As an existing shared ownershop purchaser, it is not obligatory to avail of this scheme. [/FONT][FONT="] The completed form must be returned to your local authority b re 1st September 2009 You will not be able to avail of this option after that date.[/FONT]