mortgage advice needed

starfruit2510

I'm a FTB, I've had an offer excepted on a house, I have AIP from the bank and I am hoping to get letter of loan offer this week, I have also got a solicitor, so my query is how soon do I get house insurance and mortgage protection, also is a medical required for mortgage protection?

Henry Ford III

House insurance can be done quickly - online if you wish.

Get proper advice on life assurance. Propose now and activate it maybe 10 days before drawdown. A medical isn't normally required, but underwriting applies and it's always a possibility, depending on whats on the proposal form.

Geuze

starfruit2510 wrote: »

I'm a FTB, I've had an offer excepted on a house, I have AIP from the bank and I am hoping to get letter of loan offer this week, I have also got a solicitor, so my query is how soon do I get house insurance and mortgage protection, also is a medical required for mortgage protection?

Do not buy the MPP from a bank.

Check a discount broker like www.labrokers.ie

They will sell you the same policy with much lower fees/commissions.

Henry Ford III

Geuze wrote: »

Do not buy the MPP from a bank.

Check a discount broker like www.labrokers.ie

They will sell you the same policy with much lower fees/commissions.

I agree stay away from a bank.

labrokers will be cheap certainly but what if effecting mortgage protection isn't the best advise?

Get proper advice OP.

Merowig

What does a mortage protection do? In case you die, the bank is paid by the insurance provider. Quite a simple product I would claim.

I wonder what kind of advise would justify higher fees....
Alternatively discuss your requirements with a broker - see what quote "advise" (sales pitch) he produces - and compare then the quote with the one you get from LA brokers. I would be surprised that there are much differences except the price....

Trish56

Once you get a loan offer your Solicitor/Broker/Mortgage advisor should guide you on this as the conditions on the Loan Offer needs to be complied with. Standard Conditions should be : Mortgage Protection, Home Insurance, Direct Debit, Deed of Assignment, legal requirements. Your Solicitor will make an appointment for you to meet to sign contracts and sign acceptance of loan offer and should be able to tell you the closing date. Then you need to put life and home insurance in place in time for closing.

starfruit2510 wrote: »

I'm a FTB, I've had an offer excepted on a house, I have AIP from the bank and I am hoping to get letter of loan offer this week, I have also got a solicitor, so my query is how soon do I get house insurance and mortgage protection, also is a medical required for mortgage protection?

Geuze

Henry Ford III wrote: »

labrokers will be cheap certainly but what if effecting mortgage protection isn't the best advise?

What?

You write as if MPP is an option?

It isn't.

If you get a mortgage for a PPR, you must buy MPP.

bmwguy

Mortgage protection is a life assurance policy. You must assign this to the bank (that's what turns a life assurance policy into what we refer to as mortgage protection). It must be at least equal to the amount of the mortgage and have a term at least the duration of the mortgage.

Typical policies assigned to mortgages are decreasing policies, I.e. they decrease in cover as the mortgage decreases and hence are cheaper than policies that keep the same level of cover throughout the term. But they are not the same. So go talk to an advisor about this away from the bank.

Henry Ford III

Geuze wrote: »

What?

You write as if MPP is an option?

It isn't.

If you get a mortgage for a PPR, you must buy MPP.

No you don't.

Geuze

There are some exclusions, okay, if you are refused a MPP due to ill-health.

But otherwise, you must buy an MPP.

Henry Ford III

Geuze wrote: »

There are some exclusions, okay, if you are refused a MPP due to ill-health.

But otherwise, you must buy an MPP.

Again you are incorrect.

Merowig

You could simply have stated the exceptions...

http://www.citizensinformation.ie/en/housing/owning_a_home/buying_a_home/mortgage_protection.html

Exceptions to legal requirement

You do not have to take out mortgage protection insurance if:
•You are aged over 50 or
•The mortgage is not on your principal private residence (your home) or
•You cannot get the insurance, or can only get it at a much higher premium than normal or
•You already have enough life insurance to pay off the home loan if you die

However, some lenders may insist that you take out mortgage protection insurance as a condition of giving you a mortgage, even if there is no legal requirement in your case.

So basically you have to buy MPP if the bank insists on it.

Henry Ford III

Merowig wrote:

So basically you have to buy MPP if the bank insists on it.

No you don't.

bmwguy

Henry Ford III wrote: »

No you don't.

Do you want to make a valid contribution Henry. You are like the opposition in the Dáil. Disagree with everything and offer nothing.

Sub prime lenders often don't stipulate it as a requirement I know that for a fact

Merowig

Henry Ford III wrote: »

No you don't.

I have provided a source. And what is your source for your statement?

Yourself isit

Henry Ford III wrote: »

No you don't.

You've been very helpful and informative on this thread. Keep the information flowing.

Merowig

bmwguy wrote: »

Do you want to make a valid contribution Henry. You are like the opposition in the Dáil. Disagree with everything and offer nothing.

Perhaps as he is a financial advisor he expects money for any statement made - if so I wonder why he posts at all excepts for advertising to go to a finanical advisor in most of his posts.

Henry Ford III

All I'm suggesting is that a cut price policy is not always the best value. Each case should be looked at individually.

For example a couple buying a house with say a young dependent and without existing life assurance in place.

The difference in premium between the cheapest basic MPPA and Dual Life Level Term Assurance is €6.25 p/m. (m & f age 25 nb - €200k s.a. x 25 years).

The difference in value however is huge.

So once again this rush to the bottom price wise can be a foolish attempt at penny pinching.