In what instances can a Waiver be obtained on Life Cover, for a Homeloan?

[MrEarl]

Hello,

In what circumstances can a waiver be obtained, with regards to the requirement for life cover, to secure a Homeloan?

Can a waiver be obtained if one of the joint borrowers has been declined for life cover, for example ? In this instance, one borrower has been approved, but one declined for cover.

Assuming the answer is yes, that a wavier can be obtained, is it automatically granted by the lender, or is there a risk that they'll withdraw the homeloan?

The reason for the life cover having been declined was on medical grounds, but there is no immediate risk to life, the condition is just being monitored, with slow signs of recovery. The person is active, working full time etc.

Many thanks,

 

[RedOnion]

If a borrower has been refused cover, or if its prohibitively expensive, you can apply to the lender for a waiver.

Its not automatic; not all lenders will give one, and it's down to the underwriting team to assess on a case by case basis. If the borrower has some other firm of life cover, they may be able to assign to the bank instead.

This is becoming more common in the last year, as some people at high risk if they contract Covid are being refused life cover. So the banks are getting more used to seeing it.

I don't usually recommend going with a broker, but for something like this I would, but pick a good one.

You might find a few previous cases on the forum if you do a search for 'waiver'