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Cancelling a Mortgage Protection policy

  • 22-02-2016 7:07pm
    #1
    Yorky
    Registered Users Posts: 1,485 ✭✭✭


    Has anyone any knowledge / experience of voluntarily cancelling a mortgage protection policy for a Danske Bank LTV (ECB plus 0.5%) mortgage in order to save the cost of the annual premium?

    The mortgage is not in arrears and there's circa fifty percent equity so if the mortgage holder were to die the house would be either sold or the mortgage would continue to be paid.

    My concern is if the lender discovered there was no policy in force, they'd call in the loan or impose the SVR.


Comments

  • #2
    Fred Swanson
    Closed Accounts Posts: 21,730 ✭✭✭✭Fred Swanson


    This post has been deleted.


  • #3
    newacc2015
    Closed Accounts Posts: 2,379 ✭✭✭newacc2015


    Fred Swanson wrote: »
    This post has been deleted.

    I wouldnt risk it with Danske. They are calling BTL with 2 missed mortgage repayments. If they can get a customer off tracker, you will be guaranteed they will do it.

    OP call a broker and see if you can get a better price for mortgage protection


  • #4
    Trish56
    Registered Users, Registered Users 2 Posts: 1,256 ✭✭✭Trish56


    I agree with the poster above, it was a condition of your loan offer that you take out a Mortgage Protection policy to cover the loan and o/s term. As rates have decreased and it may be possible that you were a smoker when you took out the original policy, contact a broker and ask for a quote for the balance and term remaining.


  • #5
    coylemj
    Registered Users, Registered Users 2 Posts: 25,476 ✭✭✭✭coylemj


    You can also shop around for an MPP quote, all of the major life companies will quote you on their websites. I'm not sure I'd go to a broker, they will get bugger all commission on an MPP because rates are relatively competitive and the risk is that they get you to sign up for some poxy insurance linked investment scheme and be worse off than you were before.


  • #6
    Trish56
    Registered Users, Registered Users 2 Posts: 1,256 ✭✭✭Trish56


    I would advise you to go to a mortgage broker as there are discounts available to brokers at the moment that may not be available online. One Insurance Company are allowing 5%, 10% and 15% discount off protection premiums up to end of April. Another is giving 10% of all MPP Insurance and Free Best Doctors.

    You need to stress to the Broker that you are looking for cheaper premium than what you have at the moment and I would be surprised if they started trying to sell you an Insurance linked Investment Scheme. There are lots of good honest brokers out there that provide a very professional service and who are regulated by the Central Bank.

    You should also ensure that you've had a clean bill of health since you took out the original policy.


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  • #7
    Henry Ford III
    Moderators, Business & Finance Moderators Posts: 17,725 Mod ✭✭✭✭Henry Ford III


    coylemj wrote: »
    You can also shop around for an MPP quote, all of the major life companies will quote you on their websites. I'm not sure I'd go to a broker, they will get bugger all commission on an MPP because rates are relatively competitive and the risk is that they get you to sign up for some poxy insurance linked investment scheme and be worse off than you were before.

    Nonsense.

    A broker will get 150% commission (or more in certain cases).


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