Mortgage protection dual application single income

s7ryf3925pivug

We have a mortgage protection application open since May. The delay is from multiple requests for medical information about my wife. It seems a bit irrelevant because our mortgage application is based on my income only - her medical records have no bearing on our ability to repay the mortgage. Is this something they should be taking into account?

phormium

No, it's not relevant to the bank, joint mortgage joint mortgage protection from their point of view. Under consumer credit act they have to have it in place before drawdown other than for some specific reasons.

Since May is a hell of a long time, what is causing that much of a hold up? Are the docs not sending back forms or what or is there an outstanding issue such as tests etc that have not yet happened or something?

If the insurance company have deferred her for some reason you can ask the lender for a waiver on her.

s7ryf3925pivug

The doc has been on leave some of the time, and they keep needing more info.

Can they use the existing info to provide a life insurance policy for me individually, if that was needed and acceptable? Or would the process need to start again?

phormium

The bank can only allow you use a waiver for a few reasons, basically if you are over 50, the house is not your principal residence, you cannot get life cover at all (declined or deferred) or you can only get it at a cost that is too high.

So while not knowing your circumstances I presume the first two reasons are out so the last two would be the basis for a waiver but it doesn't look like you even have a decision yet from the insurance company that could give you this option.

Chase someone to sort it out, just keep ringing doc/ins

s7ryf3925pivug

phormium wrote: »

The bank can only allow you use a waiver for a few reasons, basically if you are over 50, the house is not your principal residence, you cannot get life cover at all (declined or deferred) or you can only get it at a cost that is too high.

So while not knowing your circumstances I presume the first two reasons are out so the last two would be the basis for a waiver but it doesn't look like you even have a decision yet from the insurance company that could give you this option.

Chase someone to sort it out, just keep ringing doc/ins

Thanks. I'd already read about the waiver tbh. I was wondering about the possible case where the application is rejected. You'e right that the first two scenarios dont apply. The last also shouldnt as i understand the maximum loading possible would still be affordable, even if annoying to have to pay it.

Getting stressed out by it taking so long. Worried house purcgase will fall through. Sale agreed since May also and expected to have closed by now.

Henry Ford III

Who sold you this policy? They should be chasing this and getting it resolved. It's what they are paid for.

s7ryf3925pivug

Dealt directly with the insurance company. No need to name them I've no idea if they should be blamed for the situation. They're heavily underwritten apparenty but also have a high payout rate... My chances of needing a payout are close to zero tbh so not hugely relevant to me though.

I asked in a post above about whether I'd need to start an individual application from scratch. The answer to that is no, I personally am approved for coverage.

It sounds like we might be given a waiver for my wife if they come back with a no, though we need to provide multiple rejections... I guess the thing to take from this is to make multiple applications for mortgage protection from the start.

Trish56

Usually you only have to provide a lender with one decline letter and based on the fact that mortgage was approved on your income only there should be no problem waiving mortgage protection for your wife.

You need to contact the Life Company and ask what is the delay in getting a decision as the policy is required urgently to draw down a mortgage. If it's your Doctor is delaying the process then you need to ring the surgery and ask them to send in report etc. They normally get 10 working days to respond.

Henry Ford III

Eleanor Angry Muslin wrote: »

Dealt directly with the insurance company. No need to name them I've no idea if they should be blamed for the situation. They're heavily underwritten apparenty but also have a high payout rate... My chances of needing a payout are close to zero tbh so not hugely relevant to me though.

I asked in a post above about whether I'd need to start an individual application from scratch. The answer to that is no, I personally am approved for coverage.

It sounds like we might be given a waiver for my wife if they come back with a no, though we need to provide multiple rejections... I guess the thing to take from this is to make multiple applications for mortgage protection from the start.

No many deal "direct" like that. Someone with an LARC number was responsible for the sale. They should be chasing this for you.

s7ryf3925pivug

They are awaiting a response from the doctor. He is on holiday. I inquired and they cannot move forward without his response. This is in fact the second time they have asked him for info and he has been on holiday.

Unfortunately I think I would have caught him before he went on holiday, only I was misinformed that they had everything they needed when I called earlier last week. So another thing to take from this is to try to talk to the person in charge of your applucation if possible, not just whoever answers the phone in tbe same department.

There was no sale yet, to clarify. This is about the application.

That's reassuring to hear that there should be no issue with a waiver, if it comes to that. Might even be preferable I guess since I expect there will be a heavy loading if it is accepyed, but there is in fact almost zero risk.

s7ryf3925pivug

Thanks again for the replies. The waiver was approved without fuss.

phormium

Excellent!

Now you can move ahead with the purchase and then be chasing up life cover in your own time, you now have the option if you get a high premium quote to opt for a lower amount or shorter term or whatever makes it affordable as it's not tied to the mortgage and at least that would give some level of cover for security.