Mortgage Protection Query

cossy09

Hi

I was wondering if someone could advise best course of action. I bought my house in 2000. with my sister . In late 2005 I re mortgaged the house and bought my sister out. I took out a mortgage protection policy with Aviva for 250k in my own name (mortgage in my name) In July 2008 I got married and we did an equity release of €35k and again took out a mortgage protection policy with AVIVA for 35k . The mortgage remains in my own name . My wife is not on the deeds or mortgage. If I die the policy should repay the mortgage and it is willed to my wife. However if my wife dies I am not "protected" If I cancel my mortgage policies in my own name and take out joint life first death policy is this possible ? Is there an insurable interest issue with doing this?. I am paying circa 32 euro per month on first policy and 110 per annum on second policy. I am 43 in good health no children

Any help/advice very much appreciated

Atlantic Dawn

As far as I know the bank won't allow a joint first life death policy unless both policy holders are on the deeds. Best option would probably to take out a life policy on your wife for €285k or whatever you feel you need should the worst happen. €285k for a 41 year old non smoker for 20 years is about €35 or less a month. If you were to transfer the home in to both your names it would cost about €5k to change the deeds to joint ownership.

cossy09

Thanks very much for the reply I will look into that

3DataModem

You should be able to take out a mortgage protection policy on your wife alone, much cheaper than a 285k non-reducting policy.

cossy09

3DataModem wrote: »

You should be able to take out a mortgage protection policy on your wife alone, much cheaper than a 285k non-reducting policy.

Even if she is not on the mortgage?