Bank wont relesase me from mortgage protection insurance

OMG_OMG

Registered User
Messages
49
I have a tracker mortgage .75% above ECB on an investment property.
The place is worth €200k and there is €52K outstanding.
Im trying to do some tidying up in my finances.

I have an insurance policy that I took out over 20 years ago when I got the mortgage. It paid a specific sum on death and increased with inflation.
This year policy costs €105 pm and pays out about €300K on death. If I cancel there is about €10k in the insurance fund that would be paid to me.
Now I dont need that insurance anymore as the property is leased to the council and I have plenty of insurance elsewhere, so I asked to cancel it.

And thats my problem. The insurance company contacted the bank and the bank said no, so the insurance company wont cancel it.
I would stop paying except that they owe me about €10k.

How can I get rid of this expensive insurance? I dont mind replacing it with a cheaper insurance if I have to (would be about €10pm), but the insurance company wont do it without the banks say so, and ive no idea how to contact the bank about it or what to say to them. The bank is PTSB and they have never made anything easy?

Thanks in advance for any advice.
 

Coldwarrior

Frequent Poster
Messages
248
You'd need to assign another policy worth 52k or more before they'll release your current policy and you can then cancel. So either take out a new mortgage protection policy for 52k for the remaining term of the mortgage and assign that or if you already have other unassigned policies (>52k and lasting longer than the mortgage term) assign one of them.
 

OMG_OMG

Registered User
Messages
49
Thanks coldwarrior.
Im just worried if i take out a new one and then assign it they wont let me out of either.
They are less than helpful when answering my queries.
 

OMG_OMG

Registered User
Messages
49
Thats what I thought too.
But PTSB wont release it and insurance company wont cooperate either.
Its a right pain.
 

Monbretia

Frequent Poster
Messages
1,875
Why can't you just cancel the direct debit? Who owes you the 10k, the insurance company?
 

Monbretia

Frequent Poster
Messages
1,875
I though MPP aren't required on BTL.
[
A BTL is one of the reasons that the mortgage protection requirement does not need to apply under the Consumer Credit Act, however the bank can decide it's own policies on this and if they require an MP policy to grant the loan that's their perogative. Same situation as waivers, the exception is allowed for in CCA but bank doesn't have to agree to it.
 

Cervelo

Frequent Poster
Messages
503
I had one of these type policy's with BOI got it in 97 and increased the cover in 03 and
IIRC it was around €105 a month as well and hears how I stopped it in 12 with a balance of €11k
Contacted the bank and asked for a partial encasement €10k
Cancelled the DD when I received the 10K
The policy takes the monthly premium from the fund balance
When the fund can no longer pay the premium the policy is automatically cancelled shortly afterwards
Bank used to write to me twice a year to inform me there is no policy attached to the mortgage but did nothing else
I cleared the mortgage sometime in 2017
Not sure if it would work for you but it did for me
 

OMG_OMG

Registered User
Messages
49
Thanks Cervelo. I will try that. Hate giving them money.
I think I would nearly rather pay it all off than let them keep acting like this.
 
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