DCC Mortgage Protection Query

S

seforin

Registered User
Messages
6
Hi there,

I have applied fro 100% mortgage with DCC. I asked about getting my own mortgage protection insurance as DCC is quite high.

DCC said that I must go with them for Mortgage Protection Insurance.

Can I go with my own or do I have to go with them.

Appreciate if someone can help me as I have to have all documentation in by Friday

Regards,
Seforin
 
The Consumer Protection Code prohibits linked selling like this. See [broken link removed]

Firms must not: When they provide a product or service to you, make it a condition that you must buy another separate product or service from them.
Click to expand...

That said, I don't know if DCC is a "financial services firm" in this context and so I don't know if the Consumer Protection Code applies to it. It would strike me as unfair if the rules didn't apply given that you're getting a mortgage, but that's just my opinion.

I'd suggest you ring one of the numbers at the bottom of the leaflet and check.

Please let us know how you get on.
 
Seforin ; I assume DCC is Dublin City Council?
Ld Ferguson is correct again.

However , since you are applying for loan as distinct from having loan approved be careful for now.

1. Get the approval In DCC , is it not unusual to get 100% mortgage?
2. For now run with their insurance. You can always change it in a month or two.
3. If you get the loan approved , it will be in writing .
4. On the approval I doubt if it will state you must have their insurance.
5. It will probably be denied anyone said you must take their provider.

As I say get the loan through before creating issues(even though you are right!)

Keep us posted please.
 
Hi Gerry,

DCC is Dublin City Council. I'm currently SharedOwnership and transferring over to 100% mortgage with Dublin City Council.

They approved me for the 100% mortgage but upon reviewing the breakdown of mortgage repayments I found that the Mortgage Protection Insurance is high.

I was thinking that once approved, I could transfer the mortgage to a bank and then get cheap mortgage protection insurance

Regards,
Seforin
 
Seforin;

Mortgage protection policies are normally not too dear and I would take Brendans knowledge on board.
If at end of it you have been (conned), the worst you will be caught for is a couple of months on price difference on a policy.
 
seforin said:
I was thinking that once approved, I could transfer the mortgage to a bank and then get cheap mortgage protection insurance

Regards,
Seforin
Click to expand...

I'm not very familiar with the ins and outs of the Shared Ownership scheme, but can you not go straight to a bank if you qualify on income / open-market house value etc.? It strikes me that you'd be paying a fair amount in legal costs to get a new mortgage with DCC and then another new mortgage with a bank shortly after.
 
I complained to the Ombudsman about this a few years back with no luck.

Basically, the cost is high because the policy includes things that ordinary policies don't include. So you're really covered for the kitchen sink. If you were to buy a policy from a third party that covered all the same things, it would cost a lot more than it costs from DCC.

Arguably you don't really need all those things and that is the main source of contention. If you were buying privately you probably would buy a policy with less coverage. Unfortunately DCC will not allow you to do this.
 
Will a bank sell a mpp to anyone simply asking for it? I think with the level of arrears they are very particular about selling this product. Otherwise anyone who was getting into trouble such as being laid off could take one out and their problem could be solved. as such, I'm not sure I would buy the DCC policy first and hope to change thereafter.
 
Deas said:
Will a bank sell a mpp to anyone simply asking for it? I think with the level of arrears they are very particular about selling this product. Otherwise anyone who was getting into trouble such as being laid off could take one out and their problem could be solved. as such, I'm not sure I would buy the DCC policy first and hope to change thereafter.
Click to expand...

Don't mix up Mortgage Protection life insurance which is compulsory - pays off the loan if you die - and Mortgage Repayment Protection which is not compulsory - pays your repayments for a period if you're sick or made redundant.

Anyone in reasonably good health can get the first from a variety of companies. As you say, insurance companies are choosy about who they'll take on for the latter. In fact I'm not sure if there are many insurance companies offering Mortgage Repayment Protection these days at all.
 
Deas,

Banks will sell anything that pays them commission.
Problems are NOT solved by taking out a policy, since they only cover so much for so long.

Policies can all be changed but from what Brendan says , it looks like a comprehensive policy.
Maybe keep it a few months and Review it if it appears to give more cover than you require.
 
You must log in or register to reply here.
Back
Top