Bank Waiver - Mortgage Protection Insurance

CoconutSky

Hello,

I have been postponed life assurance by three providers over the past two months and just wondering if the same has ever happened to anyone else on here? I have three postponement letters from the insurance companies, which I have submitted to Bank of Ireland. They have issued me a full loan offer for a mortgage (sole applicant) and I have applied for a waiver. It’s been a week and still no decision. I’m absolutely bricking it, now it’s Xmas week I’m sure I won’t hear back until first week in January. Anyone have similar experiences and have they heard of Bank of Ireland granting waivers?

Bananaleaf

CoconutSky wrote: »

Hello,

I have been postponed life assurance by three providers over the past two months and just wondering if the same has ever happened to anyone else on here? I have three postponement letters from the insurance companies, which I have submitted to Bank of Ireland. They have issued me a full loan offer for a mortgage (sole applicant) and I have applied for a waiver. It’s been a week and still no decision. I’m absolutely bricking it, now it’s Xmas week I’m sure I won’t hear back until first week in January. Anyone have similar experiences and have they heard of Bank of Ireland granting waivers?

You won't hear at this stage until Jan now.
May I ask what a waiver entails? Does this mean that you don't have to have the life assurance? How could this be allowed? (I'm not saying that in an argumentative way, I'm genuinely curious)

Good luck

CoconutSky

Section 126(2) of the Consumer Credit Act 1995 sets out the circumstances where a lender may waive the requirement for a borrower to hold mortgage protection insurance.

One of those circumstances is if the borrower cannot get a quote from three separate providers. It’s at the discretion of the bank however. I understand some banks are more lenient than others and I suppose I’m wondering has anyone heard of Bank of Ireland ever granting such a waiver?

Victor

CoconutSky wrote: »

I have been postponed life assurance by three providers over the past two months

What do you mean by "postponed"? Do you mean declined?

CoconutSky

They said they would be willing to reassess again in one years time or in two years time (in one case)

Vetch

There's a company called Pulse Insurance that works with people who've been declined. Some old threads about them. I don't know a thing about them, but they're there. Maybe also talk to a broker. If you're only approved by BOI maybe talk to other banks and explain about the refusal to see if it would be worth your while applying to them. I don't think a week is a long time for BOI to be considering this and the timing of Christmas is unfortunate.

Browney7

Bananaleaf wrote: »

You won't hear at this stage until Jan now.
May I ask what a waiver entails? Does this mean that you don't have to have the life assurance? How could this be allowed? (I'm not saying that in an argumentative way, I'm genuinely curious)

Good luck

Would imagine the loan characteristics will have a bit to do with it. If you have 90% LTV versus say 50% you'd be a lot riskier for instance

CoconutSky

I’ve 84% LTV

It’s such an anxiety inducing time, I can’t seem to relax. I haven’t heard of many people being granted a waiver I heard Ulster Bank grant them if you have 3 refusal letters but unsure of Bank of Ireland. I could do with some good news!

CoconutSky

How would I go about strengthening my case? If they come back a refuse the waiver, what are my options?

Bananaleaf

Can you afford to wait it out a while and try to increase savings? Would that be an option?

Would making a joint purchase with someone else help your case?

Toots

BOI does do the waiver with 3 declines, but it probably gets assessed on a case by case basis. I don't know what their stance is on postponement as opposed to declines.

Bananaleaf

Toots wrote: »

BOI does do the waiver with 3 declines, but it probably gets assessed on a case by case basis. I don't know what their stance is on postponement as opposed to declines.

Does this work in the same way car insurance does? Except, with car insurance you end up with hefty premiums. In this case, does 'waiver' mean that you don't need to have the mortgage protection at all?

q85dw7osi4lebg

I was postponed by Zurich then approved by New Ireland. Asked about waiver and both solicitor and mortgage advisor reckoned if I had the 3 postponement letters than I'd be approved for the waiver.

I sympathise with you as that was a mental stressful few weeks trying to get sorted! Hope it works out.

q85dw7osi4lebg

Also that was BOI.

Toots

Bananaleaf wrote: »

Does this work in the same way car insurance does? Except, with car insurance you end up with hefty premiums. In this case, does 'waiver' mean that you don't need to have the mortgage protection at all?

I'm not 100%. I know when I took out my mortgage my Dad was on as borrower in name only, so we could get a higher multiple. He was 60 at the time, and despite being in good health, the life insurance companies wouldn't touch him, but the mortgage was approved because it was never intended that he'd be the one paying it back, so if God forbid he passed away, my husband and I would still be paying the mortgage.

johnny66179

I got a waiver from ulster bank, both kbc and aib declined the waiver. I wasnt able to get insurance as I had a transplant a couple of years ago. It helps if you have a good death in service benefit from your work pension, mine was 8 times salary

Bananaleaf

Ah, ok. So the life assurance can be declined because of age?

I was under the impression that the only reason for it being declined was poor health. I wouldn't ever wish to see somebody told that they couldn't buy a home, but I was curious as to why, if a bank won't provide you with assurance because you're too risky, they would then give you a waiver.

The waiver must be subject to some kind of collateral, no? If not, it seems pretty reckless on behalf of everyone involved.

CoconutSky

I have death in service benefit but it only amounts to twice my salary. The mortgage I want is only 165,000. I have went sale agreed nearly two months now, this has to be the most stressful experience ever! I hope BOI will grant me a waiver otherwise I’ll be screwed.

Bananaleaf

johnny66179 wrote: »

I got a waiver from ulster bank, both kbc and aib declined the waiver. I wasnt able to get insurance as I had a transplant a couple of years ago. It helps if you have a good death in service benefit from your work pension, mine was 8 times salary

To get a waiver, do you have to have someone willing to take on the mortgage in the event of your death?

Ps: delighted to hear you got a mortgage and hope you are well now.

johnny66179

Bananaleaf wrote: »

To get a waiver, do you have to have someone willing to take on the mortgage in the event of your death?

Ps: delighted to hear you got a mortgage and hope you are well now.

If it's a joint application and your partner can't afford the repayments then the bank will take the property. If it's a sole application the bank the take the property as nobody will be making the repayments.

I'm in very good health these days, insurance companies won't cover you until about five years post transplant though hence my need for a waiver. In my case, I asked for a waiver for myself while my wife took out insurance as normal.

To look for a waiver both you and the bank are taking a risk. For me, we felt it was okay due to my good death in service benefit from work and the fact that I will probably look for insurance anyway in a couple of years. The bank are obviously taking a risk too but you can increase their willingness to grant the waiver by reducing the LTV, having good death in service benefit or if having a joint application your partner can cover a decent portion of the mortgage.

Best of luck with the process. In our case we knew I would be declined so we asked for the waiver at the beginning of the application process. It was still a stressful time waiting for the official approval though.

CoconutSky

If I offered 20% deposit, would that make the bank look more favourably on me? I could just about stretch to 20% at a push...

johnny66179

CoconutSky wrote: »

If I offered 20% deposit, would that make the bank look more favourably on me? I could just about stretch to 20% at a push...

Its down to the bank underwriters at the end of the day, it's worth asking though if reducing the LTV would make any difference

Victor

Bananaleaf wrote: »

Does this work in the same way car insurance does? Except, with car insurance you end up with hefty premiums. In this case, does 'waiver' mean that you don't need to have the mortgage protection at all?

Without the protection of the insurance, the bank might up the interest rate and/or reduce the offer amount.

CoconutSky

I think I’d be okay with a higher interest rate. Hope it doesn’t come to that though. Also prepared for a 20% deposit

Bananaleaf

Oh I understand it a lot clearer now, thanks all.

Coconut Sky - I don't think you should have to pay higher interest on the mortgage - that would be unfair. Maybe higher rate on the mortgage protection, or, as you said, the waiver. But, making you pay a higher rate on the mortgage wouldn't be right.

Are you a sole applicant?

CoconutSky

Yeah I’m a sole applicant. I’m trying to stay positive but my mind is racing. If they refuse the waiver, I may look into Pulse insurance in the UK, but I hear that is like taking out a second mortgage + 4 week waiting time to get my G.P. to complete another PMA

Bananaleaf

CoconutSky wrote: »

Yeah I’m a sole applicant. I’m trying to stay positive but my mind is racing. If they refuse the waiver, I may look into Pulse insurance in the UK, but I hear that is like taking out a second mortgage + 4 week waiting time to get my G.P. to complete another PMA

And would a cheaper property (to make your death benefit stretch further) make a dent? Can a relative gift you more money towards a deposit?

Apologies, I'm sure these are all things you've already thought of, but I know from experience, sometimes just discussing the matter (even if you're not getting anywhere) can help to alleviate the anxiety a bit.

CoconutSky

It’s my dream property so it would be very painful to fall at the last hurdle. I’m stubbornly independent so won’t ask for financial assistance from anyone. I want to do this all on my own and preserve a little bit of autonomy and dignity.

Reputable Rog

CoconutSky wrote: »

I’ve 84% LTV

It’s such an anxiety inducing time, I can’t seem to relax. I haven’t heard of many people being granted a waiver I heard Ulster Bank grant them if you have 3 refusal letters but unsure of Bank of Ireland. I could do with some good news!

I think you will most likely get a waiver. But have you tried Irish life, they're quiet reasonable about pre existing conditions, which I'm assuming is the reason for postponement, apologies if I'm jumping to conclusions.

CoconutSky

Mental health difficulties but nothing that has caused me to miss any time off work or that has resulted in hospitalization. I would have thought being responsible and seeking treatment for my issue would have been a positive but alas it seems it is being used against me, the stigma is real!

Reputable Rog

CoconutSky wrote: »

Mental health difficulties but nothing that has caused me to miss any time off work or that has resulted in hospitalization. I would have thought being responsible and seeking treatment for my issue would have been a positive but alas it seems it is being used against me, the stigma is real!

Sorry to hear that, it is indeed a disgrace that mental health is still being singled out from physical health. The car can't work without the engine.