Mortgage protection

Hi all,

There's a significant possibility that I won't be approved for mortgage protection. Health reason. We have a sale agreed on a house. All is well otherwise with regards to the mortgage and so-on. The vendors want to move quickly. Is this going to scupper our chances of getting our mortgage and thus buying our house? What do people do in this situation? Can you get a mortgage without protection?

I'm gutted about it tbh.

Hi Kitabu
If you are refused mortgage protection, or if the premium you would be charged for same is unreasonable a bank will usually require you to sign a waiver saying same. Your partner will be required to have mortgage protection for the full amount. You should get a letter from the life assurance company/ies stating you have been declined as the bank will require this.

Also some banks will deem you to be a higher risk and may transfer this into a higher rate of interest on your loan.

Unfortunately there's no obligation on a bank to offer you the mortgage if you can't get life cover. They will take into account various factors in deciding whether or not to proceed, including the LTV and whether or not your partner would be able to service the mortgage without you.

Have you tried several life assurance companies? Depending on the health issue itself, some might be more willing to offer terms than others, albeit at an increased premium.

Hi,

My sister and her husband were in the same position. The bank made him sign a waiver and she took out the protection policy for herself. The bank didnt raise their interest rate

Thanks a million for the replies. This has been such an unexpected stumbling block. Hopefully we'll get the mortgage. It's a bit of a rollercoaster but fingers crossed...