Mortgage protection insurance

shangri la

I have been told that between february and august there will be a large number of mortgages that for the previous 3 years have had the majority of the mortgages payments covered and will be coming to the end of their eligibility. In most of these cases the mortgage holder will not be able to take on the full repayments. Are there any estimates how many mortgages will be affected and how this will impact on the market?

Gareth2011

What exactly are you asking? Majority of mortgage paymnets covered? are you talking abou the mortgage interest supplement given by state or what? Your mortgage protection is there is one of the people on the deeds of property dies and the mortgage gets paid off direct to the bank.

shangri la

Insurance that covers part/all of your mortgage payments if you are made redundant for a period of time, maximum 1-3 years.

Basically the theory that was given to me is that there are a lot of policys that will be coming to the end of their term in the next few months.

Gareth2011

Ah right gotcha now. No idea how it will impact the market. You mean its regarding people that have had their part or full mortgage repayment made for them by their mortgage insurance provider? Well I guess they will just have to do like the rest of the people who can't pay their full repayment and come to an agreement with their bank for a reduced amount. The banks can't really bully people anymore so there shouldnt be an issue with coming to an agreement when you can no pay the amount you were.

phormium

I don't think this is the case, I have not come across a repayment protector policy that pays out for more than 12 months so this is happening on an ongoing basis over the past few years. No reason to believe there is suddenly going to be a huge glut of them finishing up in those months.

Tayla

Like phormium said, 12 months is the norm. Never heard of the insurance company paying out for 3 years before!