Mortgage Protection Insurance

T

Tigger

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Hi can anyone tell me if mortgage protection insurance is mandatory? Also my bank have started repossession proceedings....Just wondering am I mad continuing to pay this insurance and buildings insurance if they are going to take it from me?
 
In relation to the Mortgage protection insurance if it is in relation to your private residence it is mandatory and not so if it is an investment property.
In relation to the house insurance it will be a condition of your mortgage contract to hold house insurance for PPR and Investment property
 
I tried to end my mortgage protection insurance on my buy to let when the bank repossessed the property near two years ago.
The bank IBRC wouldn't let us and I'm still paying it today.
 
I cannot see how they can continue to enforce it. Consumer Credit Act 1995 Sec 126 deals with this matter.

Summation of this section in relation to your question would be as follows:

Where the mortgage is taken out in respect of a property that is not the principal private residence no life insurance is necessary .
 
Can you not just cancel the direct debit? Policy won't be long about lapsing if it isn't being paid.
 
I will have to look at it again so,thanks.
I've noticed in the past few months that Irish life have combined the two debits on my account. Where as before they were separate.
 
If reposession proceedings have commenced against you, cancel the policy DD. The fact that the property is being reposessed means that you are in default of the loan agreement. Whether or not you are in further breach by cancelling the policy is a moot point and will not exasperate the position.
 
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