Mortgage Protection Insurance

[AlastairSC]

It's not - both Monitum and LA are about the same in net terms allowing for their different methods. It's the comparison with my broker I'm bemoaning - I'd be paying him the full E1500 with no refund!

I guess my question is: what are others' views of paying this amount for compulsory mpi?

 

[KalEl]

It's not - both Monitum and LA are about the same in net terms allowing for their different methods. It's the comparison with my broker I'm bemoaning - I'd be paying him the full E1500 with no refund!

I guess my question is: what are others' views of paying this amount for compulsory mpi?

I just put your details into LA's website and came up with €87 per month (€1054 per annum) Plus you get 6 months of the premium refunded to you. That's competitive

 

[AlastairSC]

Very.....thanks for taking the trouble, KalEl. Just one thing - I can't get that quote . Obviously the exact details of our request won't be known to you, your quote is illustrative. Makes the point, though. Here's what I got:

LA 1418.90 p.a. - 851.34 = 567.56 payable
Monitum 1418.90 p.a. - 1135.12 = 283.78 payable

So guess it's Monitum. I've read the T&C's but cannot find anything about not being able to cancel this policy after 12 months and take out a fresh discounted one. Is this possible?

 

[Jolly Man]

hey guys, i am siging up for a mortgage and am very confused about what exactly i need, goin with EBS they gave me several forms so far i have just filled in the mortgage only! They gave me forms for mortgage protection plans and serious illness cover and house insurance. Am i better off just getting the mortgage through them and getting the mortgage protection through LA Brokers or the like? What other cover would i need and is it ok to have three or four different companies for different policies? I am gettin insurance for the self build through FBD also!

 

[ClubMan]

Am i better off just getting the mortgage through them and getting the mortgage protection through LA Brokers or the like?

Most likely yes.

What other cover would i need and is it ok to have three or four different companies for different policies?

Yes - but why would you have three or four different policies and what sort of policies would they be?

Have you read this thread?

Mortgage Protection and Mortgage Repayment Protection Policies

Note that only mortgage protection life assurance and buildings insurance are mandatory, the other insurance policies are optional and may or may not be suitable and good value for money and in many cases the cheapest form of mortgage protection life assurance (decreasing term) is best.

 

[Jolly Man]

So i will just need the two policies for now, the mortgage protection (does this include life assurance?) and the house insurance for the duration of the build, so in theory ill have a policy with LA Brokers and FBD for now and thats all i need? which will change to House insurance once constructed? Have read all the treads but im very confused.

 

[ClubMan]

So i will just need the two policies for now, the mortgage protection (does this include life assurance?)

Did you read the link that I posted? Mortgage protection IS a type of life assurance, just that it's assigned to the lender to clear the mortgage if you die before the mortgage is repaid.

and the house insurance for the duration of the build

I'm not sure what the insurance reuirements are for self builds. Check out other threads on the same issue and get independent, professional advice if necessary.

so in theory ill have a policy with LA Brokers and FBD for now and thats all i need?

I think so. In general the only cover that is mandatory for a mortgage owner occupied property is mortgage protection life assurance and buildings insurance and you will generally get a better deal by shopping around and (in most cases) choosing just a basic decreasing term mortgage protection life assurance policy. If you need general life assurance cover (e.g. because you have dependents) then think about keeping this separate from the mortgage protection life assurance.

 

[Jolly Man]

Excellent, thanks clubman that has helped to clear it up. Read the link alright had read it several times!

 

[Jolly Man]

Guys,

Im getting a mortgage approval for €320,000 for a self build we recieve 92% of the site vlue and 100% construction costs total of €308,000 my question is for the mortgage protection insurance do i need to insure the total value even if i wont be drawing down that amount from the provider?

 

[dublinli]

Guys,

Im getting a mortgage approval for €320,000 for a self build we recieve 92% of the site vlue and 100% construction costs total of €308,000 my question is for the mortgage protection insurance do i need to insure the total value even if i wont be drawing down that amount from the provider?

u insure for whatever the amount that you draw down from the bank

 

[Jolly Man]

But the protection has to be in place before you get the mortgage from the lender!

 

[PM1234]

You need mortgage protection against the total you intend drawing down from the lender.

 

[Jolly Man]

I intend drawing down €280,000 can they insist that i get protection for the sum approved ie the €308,000 and if i run over budget from the €280,000 can this lead to problems getting the rest of the money?

 

[LDFerguson]

Lender will probably insist that you insure for €308,000 if that's the approved amount, or reduce the amount on the loan offer to €280,000. There shouldn't be much difference in price between €308,000 cover and €280,000.

 

[Jolly Man]

Yes its only about €20 but i went away and had it organised for the €280K before i taught of it; will go back to the brokers to get the insured amount corrected.

Thanks for the help.

 

[LizardKing]

I recently paid off a lump sum to my mortgage to take time off the payments. Should I now re-qoute my m.p.i ? its over 5 years off the total ?

 

[ClubMan]

I recently paid off a lump sum to my mortgage to take time off the payments. Should I now re-qoute my m.p.i ? its over 5 years off the total ?

No harm in shopping around for alternative cover for the outstanding mortgage amount to see if you can save. If you find that you can then make sure to put the new policy (noting the lender's interest in the property) in place first before informing the lender and cancelling the original.

 

[LizardKing]

No harm in shopping around for alternative cover for the outstanding mortgage amount to see if you can save. If you find that you can then make sure to put the new policy (noting the lender's interest in the property) in place first before informing the lender and cancelling the original.

Would it cost me anything to cancel the original policy ?

 

[ClubMan]

Would it cost me anything to cancel the original policy ?

Shouldn't but check the terms & conditions of the policy before doing anything.

 

[LDFerguson]

Would it cost me anything to cancel the original policy ?

Check also with your lender if they will charge you any "admin fee" for changing your life assurance policy. I've heard stories of such practices creeping in. If they do, challenge it and tell them that unless they waive this fee, you'll consider switching your mortgage.