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Mortgage Protection

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  • 27-08-2018 9:10am
    #1
    jack842
    Registered Users Posts: 54 ✭✭


    Finding it difficult to find an answer to this question.Can anyone advise?


    If you take out mortgage protection policy with the bank providing your mortgage is the policy tied to that mortgage provider?
    If you decide to switch mortgage provider after a few years can you just transfer the existing mortgage protection policy to the new provider?

    or do you have to take out a brand new policy?
    Is there any way around having to taking out a new policy every time you switch?



    Thanks


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    #2
    Peregrinus
    Registered Users Posts: 26,511 ✭✭✭✭Peregrinus


    You should generally be able to switch the policy, provided the new mortgage isn't going to run for a longer term than the old.


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    #3
    jack842
    Registered Users Posts: 54 ✭✭jack842


    Peregrinus wrote: »
    You should generally be able to switch the policy, provided the new mortgage isn't going to run for a longer term than the old.




    Thanks, that's what i was thinking but we asked our mortgage provider
    they told us that the current mortgage provider will not release the policy
    until the mortgage is cleared and in turn the new mortgage provider will
    not issue funds to clear the existing mortgage until a policy is in place.

    So a catch 22.. Is that right? There must be way around it?


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    #4
    Fol20
    Registered Users Posts: 3,624 ✭✭✭Fol20


    You could get a term insurance where the total insurance policy will remain at a set amount for x amount of years. That way let’s say if you are getting a 30year mortgage for 200k. You could then go for a 35 year term policy so that within next 5 years, you could change provider and you would still have a policy that would pay out 200k and also be covered for another 30 year mortgage


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    #5
    What Username Guidelines
    Registered Users Posts: 2,139 ✭✭✭What Username Guidelines


    Yes you can move mortgages. Generally the product is by a 3rd party via the bank. So the bank sell it to you but someone like Irish life are the ones who actually provide the cover.

    It is correct that the original bank will not release “interest” in the policy until the mortgage is cleared. Most banks will understand this as it’s all part of the moving mortgage process. For me, AIB just wanted confirmation there was a policy in place first, and then confirmation after draw down that PTSB had released interest in the policy.

    For some reason, the policy could not be moved to AIB, all they could do was remove PTSB from it, but AIB were fine with that as long as there was a policy.


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