Mortgage Payment Protection Premium

xi

Has anybody else's premium increased

Mine has by €15 from €45 to €60 pm for a possible €900 pm claim for 12 months

Has anybody managed to renegotiate

Edit...

Insurance policy with Bank of Ireland, I have been paying the premium for the past 7 years, permanently employed in the same company for over 10 years, thankfully no sign of increased risk of involuntary redundancy, long/short term illness etc.

brian ireland

I always assumed mine was fixed until the duration of the loan. The risk is decreasing so why can it go up?

xi

brian ireland wrote: »

I always assumed mine was fixed until the duration of the loan. The risk is decreasing so why can it go up?

Unfortunately this is not so, the premium seems to be (at least with BOI) community based as opposed to risk, it seems the few barely privileged employed are now paying for those who are not.

Even those who have not found themselves employment also have to pay the increased premium to continue receiving the claim.

I would have been better off investing the monthly payment in the SSIA then into a 30 day notice account.

Andymfinancial

the premium is reviewable and it is based on claims experience of all policy holders not just yours, the increase in redundancy claims has sent the premium rocketing, mind you i think you are getting good value because some of them are costing over 100mth for 900mth protection!

LoLth

I got a letter from AIB Credit Card services yesterday telling me that due to the increase in payment protection claims they have to put up my payment protection premium from 60c per €100 to 79c per €100

so, what about the payment protection these people were paying up to the point where they lost their ability to repay their credit card loans? I'm not sure its fair for a service that I subscribe to willingly for years to be hiked up just to protect the banks bottom line and my choice is accept it and pay more or dont accept it and lose the "insurance" i've been paying up to now.

I'm telling them where to go, on principal.

never even thought of the mortgage premium... feck.

brianwalshcork

A perfect example of why an insurance company is never going to loose, and why payment protections sound great - right up until you need them.



As for credit card payment protection, I don't understand why anyone would have payment protection on a credit card balance.

At 79c per €100 euros per month it works out at €9.48 per €100 per year - or 9.48%.
Your credit card interest rate is probably anything from 9.9% to 14% ....so by taking out the insurance you could be up to doubling the cost of borrowing on the credit card.

If you loose your job and you need to use the payment protection, it will only make the minimum payment, which is usually a very small percentage of the balance - around the same amount as the interest charge.

Assuming that you would hope to get new employement within 6 months, in my mind, you would be better off not paying the payment protection, and putting the 79c / 100 into a savings account for 6 - 9 months and using this to make the minimum card payments while you are unable to pay from your current income.

Or am I missing something?

Dempo1

Sadly its a consequence of the enormous amount of claims for the above due to redundancies and job losses that has seen increases across the Board. I was informed last October that my company where not only increasing premiums but also conveniently changing some terms and conditions on the Policy. My mortgage is with PTSB and insurance with Genworth, their reasonably new underwriters.

Unfortunately i had to avail of the Policy and thankfully prior to the changes in the Policy. Its a minefield but after two months it kicked in. A lot of new mortgage holders in the past 3/4 years did not avail of such a policy and in some cases where not advised or offered it, these people who perhaps have 100% mortgages could face major difficulties if they loose jobs etc.

My policy was in existence for 9 years, thankfully i have a small mortgage.