Life/Mortgage cover

[danole]

Can anyone tell me if one life is declined cover,should this cause a problem when trying different providers?We've the top-up mortgage all ready to go,but seem to be in difficulty getting cover.Thanks!

 

[Kitty Kat]

Sorry to hear about your situtation, but it will definately cause a problem with other insurers. One question which is on all life applications is, have you been rated or declined by another insurer. And even if it was not, rating of over 50% (could be 75% but I think it is 50%) and cases who are declined are placed on a register which is viewable by all insurers. Notwithstanding this, I have seen a couple of cases which were declined by one insurer but accepted by another, albeit rated, all depends on the insurance companies reasoning as to why the life was declined.

In relation to your loan, your lenders must let you complete even thought you cannot get cover, ask them for the waiver form which covers this. The risk is yours at the end of the day and both parties to the loan must sign the waiver.

 

[danole]

That seems a bit scary-no mortgage cover.Not panicing JUST yet-hopefully we'll sort something out.I just didn't think we'd run into difficulty in this area.Thanks for your help,KittyKat.

 

[Molly]

you may be able to waive the cover on the top up, depends on the lender and the amount
but it may prove difficult if its the higher earner who has been declined life cover.

 

[snatch]

You should try John at labrokers.ie - I used him last year when we had difficulty getting cover and found his expertise in the area very useful.

PS I have no connection with above business

 

[CathyK]

Most of the banks will let you sign a waiver if you have been declined for life cover, however I have recently found out that START mortgages will not give you the mortgage if you have no life cover for the mortgage.

 

[asdfg]

have recently found out that START mortgages will not give you the mortgage if you have no life cover for the mortgage.

AFAICR this is actually illegal. Can't find reference to it now. I do know if one of the names on the mortgage is over 50 then mortgage protection cover is not required at all.
Also if both have been declined for mortgage protection and prohibitive term imposed.
There are others but can't remember them now.
A waiver can then be signed.

 

[CathyK]

Its not illegal, they can impose this rule and do, I think they are the only ones in the market that are this strict with this, but at the end of the day they wont move on this rule at all, I have checked with the financial regulator and they said that they are within there rights to apply this rule, after all they are the ones giving out the loans

 

[Potblack]

Life cover must be arranged by a lending institution under a group scheme on mortgages for a private principle residence under the Consumer Credit Act 1995. However there are exemptions in the Act which include, if the borrower is over 50, declined or loaded excessively, or have thier own life cover that they can use.

Even if one of the names on the loan is over 50, the lender can insist that the other party takes out life cover.

A lender is not obliged to lend money on a private residence, if the consumer does not have life cover, they are entitled to insist life cover is put in place or the loan offer withdrawn.

However in many cases they will allow waiver of the life cover.

What asdfg might be reffering to is the "linking of services" which is prohibited under the Consumer Credit Act. i.e a Lender cannot say "we will give you a loan but you must take life cover/house ins/payment protection etc out through us.