refused mortgage protection

Ariel2701

I was just wondering if anyone could help been refused mortgage protection 3 times now due to Chronic Kidney Disease (stage 2) and was wondering whether anyone else suffering from this has had any luck in securing mortgage protection? any advise/help would be much appreciated

RachelNic

Hi there,
I have just joined Boards for this reason. My husband has been refused 3 times also following a mild stroke a few years back. we are in the process of trying to secure a waiver but we don't have any news yet.

It is an appalling waste of time - 6 months to get to this point and the house we had paid a deposit on is being re-advertised.
I see you posted your message a few months back so I would really appreciate if you would let me know if you have had any luck since then.

colrow

I don't know if this is any help, but due to ill health my life insurance for a mortgage was excessively expensive, so I used the info below to not have it

Why do I need mortgage protection?

Under the Consumer Credit Act 1995 ( as amended) a Mortgage lender is obliged to ensure that a Life insurance policy is in place to cover the balance due on a mortgage, in the event of the death of a borrower, or in the case of a joint mortgage, in the event of the death of one of the borrowers.

The principal exceptions to these requirements are:
Where the mortgage is taken out in respect of a property that is not the principal private residence, no life insurance is necessary .
No mortgage protection is required where the borrower is over 50 at time of Loan approval.
It is not mandatory where the premium is excessive due to medical issues.
Important note. The fact that mortgage protection is not required under the exceptions noted above, should not stop you from seriously considering taking out a policy in these circumstances.It is also at the lender's discretion wheteher or not to insist on a mortgage protection policy as a condition of a mortgage.

Aurora Borealis

Can I ask what companies you've tried? I have MS and I'm at the very initial stages of making enquiries re life cover for a mortgage so very eager to hear others experiences.

up for anything

colrow wrote: »

It is not mandatory where the premium is excessive due to medical issues.

That is interesting. Our insurance lapsed during the bad years because we couldn't pay it at times. It was then €124 a month. When I tried to renew it the cheapest I could get a quote for was €500 per month because I was on Methotrexate and my then husband on something similar. Apparently because MXT can be fatal I was loaded to the hilt and my ex the same. The mortgage bank gave me a lot of hassle for a while over getting a policy but then dropped it. I wonder was the above the reason they stopped getting on my case.

colrow

My repayments for a 7 year 115k mortgage were 1k per month, and they wanted 1.6k per month insurance premiums on top of that. So I thought that was ridiculous.

I managed to pay the mortgage off in 4 years by working abroad, and I'm so glad I never gave them all that money, and I'm still looking forward to a few more years.