In 2012 I took out a joint insurance policy on my mortgage. The policy is with Irish Life and is a reducing Life Mortgage Cover - it will pay the mortgage off in full on the death of either myself or my husband.
The policy is currently assigned to pay EBS in the event of death, as the mortgage is with EBS.
I am now considering switching mortgage to AIB (or elsewhere) to avail of a better interest rate.
I would hope to keep the same insurance policy and not go through that application process again. The monthly payment is very cheap.
I rang Irish Life and they said that the banks may have a problem or cause difficulties in carrying the policy over.
They explained it to me as follows:
1) EBS have the original policy deed and they will not release it until the mortgage is paid in full,
2) AIB will not take over the mortgage until they have the policy deed.
3) I'm stuck in the middle.
Can anyone advise how this works in a mortgage switching situation?
Irish life said the banks may come to an agreement between themselves. I don't really want to go down the switching route if I can't carry over the original insurance policy.
The policy is currently assigned to pay EBS in the event of death, as the mortgage is with EBS.
I am now considering switching mortgage to AIB (or elsewhere) to avail of a better interest rate.
I would hope to keep the same insurance policy and not go through that application process again. The monthly payment is very cheap.
I rang Irish Life and they said that the banks may have a problem or cause difficulties in carrying the policy over.
They explained it to me as follows:
1) EBS have the original policy deed and they will not release it until the mortgage is paid in full,
2) AIB will not take over the mortgage until they have the policy deed.
3) I'm stuck in the middle.
Can anyone advise how this works in a mortgage switching situation?
Irish life said the banks may come to an agreement between themselves. I don't really want to go down the switching route if I can't carry over the original insurance policy.