stop paying mortgage protection? consequences?

D

dominic

Guest
hi all, my mortgage protection insurance is due for renewal. i was considering not renewing it. i am concerned about the consequences of this though, my main concern would be that i could lose my tracker mortgage. does anyone know is this a possible consequence of having no mortgage protection insurance? any advice apreciated. thanks
 
The lender will see not renewing your mortgage protection as a breach of the terms and conditions of your mortgage contract and may use this to renegotiate and take you off the tracker. Don't give them the chance.

If finances are tight then try and cut back somewhere else, mortgage protection should not cost you too much per month. Shop around and see if you can get a cheaper quote.

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dominic said:
hi all, my mortgage protection insurance is due for renewal.
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Just to be clear, are you sure you're talking about mortgage protection insurance? This doesn't usually fall for renewal, in that you take it out for the full term of the mortgage and it only pays out if you die.

Could you mean mortgage repayment protection, that pays your mortgage if can't work e.g. made redundant, ill etc?
 
I look around every year for the best quote for Mortgage Protection - but i find that you generally get the best deal if you pay the once off payment If you can manage it. This year i got a very reasonable quote from - It worked out at €534.00 for €300K - i was paying €94.00 per month before i started shopping around.
 
No Moneyhoney - a lot of people take out the mortgage protection with their lenders and it is included in the mortgage monthly payment, but in fairness the mortgage protection policys are quite costly when taken out with the lender - because you mind is taken up with organising the loan and getting the house etc.. people tend not to look at it too closly at the time but it pays to take a look at what the cost of your police is actually costing you - i was paying €1140.00 per year, last year i got an 80% reduced for first year policy and this year i have gotten 50% reduced policy - it pays to shop around
 
Is it not also the case that the older you get, the more expensive MP insurance is? Do you not get to a point where it's more expensive to move?

Also OP said his policy was "up for renewal" - MP policies do not usually fall for renewal.
 
This is correct moneyhoney, it's all well and good getting a refund of commission for the first year but if the premium is even slightly more expensive than the policy you are already on then in the long run it won't make much sense.

e.g
age 31 - MP is 500 for the year x 30 year term.
Total premiums of €15,000

age 32 - MP is 510 for the year but you get 50% discount in year one.
€510 x 30 = €15300 - €255 discount = Total premiums of €15,045
 
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