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Mortgage with Long Term Illness - Mortgage Protection Essential?

  • 15-10-2017 12:04pm
    #1
    MortgageQ2
    Registered Users Posts: 1 ✭


    Hi everyone,

    I've just started looking at mortgages with my partner and I'm trying get some advice on our situation.

    My partner has a long term illness which we knew would cause problems with the application at some stage in the process. We recently asked VHI to quote us for mortgage protection (prior to the mortgage application) and they accepted me but unfortunately, their underwriters rejected my partner. I'm guessing this will probably be the case no matter insurer we go to.

    I was wondering has anyone been through something like this before, where for one reason on another their partner has not been able to get Mortgage protection? Is it possible to still go through with a mortgage application process where only one of the applicants has mortgage protection cover?

    I'd be really interested to hear if anyone has been in a similar situation to us.

    Thanks guys


Comments

  • #2
    phormium
    Registered Users, Registered Users 2 Posts: 3,345 ✭✭✭phormium


    This sort of scenario has been discussed several times recently, have a search and you should be able to find the threads.

    Basically under the consumer credit act a lender has to ensure there is mortgage protection in place for the term and amount of the loan but there are exceptions to this and one is where a person either cannot get the mortgage protection or it is at a cost which is prohibitive.

    There is a system in place in banks where a customer can do a 'waiver' rather than the mortgage protection if they fit the exception criteria however banks are not compelled to offer this, it is at their own discretion or policies. Best thing to do is find out which banks are more open to allowing this before you apply. They will all be familiar with this sort of thing, it happens very regularly for many reasons.


  • #3
    Lu Tze
    Registered Users, Registered Users 2 Posts: 3,495 ✭✭✭Lu Tze


    This happened in our case, I have an unusual condition, and was rejected for mortgage protection, while my partner was granted it. The bank waived the requirement. However we had greater than 30% deposit, so I'm guessing that may have influenced the bank waiving the requirement


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