Mortgage protection for Parents as Guarantors

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santoro

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Im in the middle of purchasing an apt for 250,000. The mortgage lender explained that becuase both my parents are going guarantor they must have mortgage proection of 55,000 for the first five years. After the lender realised it was a 1 bed apt they then wanted mortgage protection for my parents (both 55yrs)to now be 95,000. I was quoted €147 per month to cover them on this amount. it seems quite alot to me. I said i would be paying their part of the mortgage protection for going guarantor in the 1st place.

basically im asking what are my options?

if the lender is looking to have this in place for the first five years is there any way i can have this taken off quicker??
 
Hi Santoro,

Firstly I'm assuming the premium is for a term of 5 yrs only. Depending on your parents age the premium will be relatively high. Have you shopped around for other quotes.

If your parents have other life policies they may be able to have these assigned instead of taking out new policies. (Something which should/may have to be discussed and agreed with parents/siblings).

The premium quoted seems excessive. If you feel it is you could approach your lender and ask if they could waive it on the grounds of cost. This decision will be made at the discretion of your lender.
 
Hi

it seems the insurance company my broker was going through the cover was going over a 30yr period instead of 5yrs which lender wants cover for. so premium is now working out approx 35euro p.m.

In my own investigations i noticed the on-line mtg protection companies offer discounts for the 1st year premium.In yr 2 are still cheaper than what my broker could get me.
 
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You are free to take life cover wherever suits you. You do not have to go with the quotes/recommendations provided by your broker.
 
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