Changing Mortage or should I just stay?

M

MoneyM

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My two year fixed rate it up next month with PTSB, going from their website there new rate is going to be 5.36% (that's one year fixed!) so going to be a BIG jump than what I was on!

My mortgage at the minute is 230k cost of house is 360k

My question now is last year I was diagnosed with early stages of Cancer but was given the "all clear" four months later.....

If I do in fact switch mortgages (to get a better rate) will I have to get another Mortgage protection and therefore have to deal with a medical with them and therefore be loaded as I was diagnosed with Cancer?

Sorry my post seems stupid and like I don't know anything but am due my baby in a few weeks, and I'd really like to get this sorted before I head into hospital and motherhood.

Thanks for any advice!
 
MoneyM,

As long as your new mortgage is for the same amount and term as the old mortgage, I think you can leave your mortgage protection policy in place and have it assigned to your new lender. (I'm open to correction on this!)

However, this is not the case if you got your policy through your lender's group scheme. If your policy is part of the lender's group policy, it is usually cancelled and you would have to go and get new insurance, medicals etc. as you outlined in your post.

However, if you are not tied to a group policy and not topping up your mortgage, or changing the term, you can hold onto your policy.
 
Ring your current bank, ask to speak to 'retentions' (as in retaining your business) and simply ask for a better rate. Worked for us, we're with IIB and got a lower rate than they advertise just by asking!
 
You should be able to get a tracker rate with Permo of 4.8%, as your loan is less than 80% LTV. I know you run the risk of another rate hike, but you would still be better off than if you went with their 1 yr fixed option they have offered you.
and it is just as likely (if not more likely) that rates will come down again slightly at some stage next year. by being on a tracker you would benefit from this.
 
Just to let you know they will send you an offer letter, I came off a fixed rate on the 31st of October and they offered me a tracker rate of 4.8%
 
Use a broker to shop for a better rate. Check which lenders do a free switcher offer. Most lenders will accept a life cover waiver, for individuals unable to get insurance cover. Check if your existing policy can be assigned to a new lender.
 
over2u said:
Most lenders will accept a life cover waiver, for individuals unable to get insurance cover.
Click to expand...

This is not necessarily true. In my experience, many lenders will not advance a mortgage if the borrower cannot get mortgage protection insurance. Also, I think the OP's problem would be very expensive life cover, rather than not getting it at all?
 
I'm not sure if this helps..
but I just rang PTSB about mine.
My current variable rate is 5.3; they just reduced it to 5.1% as they said I can have the LTV rate.
 
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