Hi all,
My wife and I are joint mortgagee's on our house, we're aged 48 and 47 respectively, don't smoke and we both work. I have modest hypertension (being managed for over 20 years) but other than that we're fit (exercise regularly etc) and in good health.
We have an interest only tracker mortgage (one of the Celtic Tiger idiots here) whereby the principal remains constant until the end of the mortgage in 2042 (35 year mortgage taken out in 2007 [broken link removed] ) at which point (assuming we're still alive in our mid 70's) we sell the property, pay off the principal and pocket the equity. The only upside to this story is that we are not in negative equity now and with any degree of appreciation/inflation over the next 26 years should produce a decent amount of equity on exit. A good dose of inflation over a prolonged period would be our friend!!
We have kids etc so don't have much ability to pay down the principal at this point or to build up a savings fund but that will change in 5-10 years time as the kids make their own way in the world.
We both intend to work as late into life as possible, not because we'll be obliged to but out of choice. We both enjoy what we do and age is not an impediment to earning in our chosen fields, in fact it can be an advantage to be "silver haired". Both of us have family members who spent their lives working and saving and promptly died within 12-18 months of retirement at +/- 60 so we want to continue working albeit on a reduced basis right into our 70's.
So today I got a notice that basically says if I want to maintain the current level of cover the premium will effectively double and this seems like a good time to check the market for alternative quotes and to see what my options are.
The first question I have is where is the best place to go looking for a quote? Some of the online aggregation type sites where you answer some questions and they spew out a few indicative quotes from whatever providers they have agencies for or should I go to a broker and if so (providing its not against the forum rules) can anyone recommend a good broker anywhere on the south side of Dublin who specialises in Life Assurance/Mortgage Protection? (Are they one and the same thing?)
The next question I have is two fold. 1) do I really need to maintain a life assurance/mortgage protection policy on both our lives to comply with the mortgage? I see from the Consumer Finance website (can't post links as a newbie) that if the "principal balance of your mortgage is scheduled to fall to 80 percent of the original value of your home" you can apply to remove the requirement for private mortgage insurance. Given the original Loan to Value principal on the mortgage was 80% does that mean I could drop mortgage insurance all together? 2) if I can't dropmit all together could the life assurance be limited to just one of us?
What would ultimately happen, in real rather than theoretical terms, if I didn't renew the Life Assurance policy? The mortgage documentation says my home is at risk if I don't keep up repayments but it doesn't say my home is at risk if I don't maintain the life assurance policy but I'm sure if I'm in breach of any of the terms of the mortgage it would open the door to the building society revoking the mortgage and demanding full repayment which would be a disaster. Are there any examples of people who continue to make monthly payments being kicked out of their house for not having a life assurance policy in place?
Lastly, what is "Indexation"? The reviewed proposed premiums are on the basis that I "accept indexation of 5.00% at 1 December 2016".
The likelihood is I'll just suck it up and pay the increased premiums but before I do I'd appreciate any helpful thoughts/suggestions.
I know I'm a tool for over extending myself in 2007 and with hindsight and all that I'd make a different decision but I am where I am so please try not to scold me too much. I'm on here looking for a little help/steer if possible.
Over to you.
My wife and I are joint mortgagee's on our house, we're aged 48 and 47 respectively, don't smoke and we both work. I have modest hypertension (being managed for over 20 years) but other than that we're fit (exercise regularly etc) and in good health.
We have an interest only tracker mortgage (one of the Celtic Tiger idiots here) whereby the principal remains constant until the end of the mortgage in 2042 (35 year mortgage taken out in 2007 [broken link removed] ) at which point (assuming we're still alive in our mid 70's) we sell the property, pay off the principal and pocket the equity. The only upside to this story is that we are not in negative equity now and with any degree of appreciation/inflation over the next 26 years should produce a decent amount of equity on exit. A good dose of inflation over a prolonged period would be our friend!!
We have kids etc so don't have much ability to pay down the principal at this point or to build up a savings fund but that will change in 5-10 years time as the kids make their own way in the world.
We both intend to work as late into life as possible, not because we'll be obliged to but out of choice. We both enjoy what we do and age is not an impediment to earning in our chosen fields, in fact it can be an advantage to be "silver haired". Both of us have family members who spent their lives working and saving and promptly died within 12-18 months of retirement at +/- 60 so we want to continue working albeit on a reduced basis right into our 70's.
So today I got a notice that basically says if I want to maintain the current level of cover the premium will effectively double and this seems like a good time to check the market for alternative quotes and to see what my options are.
The first question I have is where is the best place to go looking for a quote? Some of the online aggregation type sites where you answer some questions and they spew out a few indicative quotes from whatever providers they have agencies for or should I go to a broker and if so (providing its not against the forum rules) can anyone recommend a good broker anywhere on the south side of Dublin who specialises in Life Assurance/Mortgage Protection? (Are they one and the same thing?)
The next question I have is two fold. 1) do I really need to maintain a life assurance/mortgage protection policy on both our lives to comply with the mortgage? I see from the Consumer Finance website (can't post links as a newbie) that if the "principal balance of your mortgage is scheduled to fall to 80 percent of the original value of your home" you can apply to remove the requirement for private mortgage insurance. Given the original Loan to Value principal on the mortgage was 80% does that mean I could drop mortgage insurance all together? 2) if I can't dropmit all together could the life assurance be limited to just one of us?
What would ultimately happen, in real rather than theoretical terms, if I didn't renew the Life Assurance policy? The mortgage documentation says my home is at risk if I don't keep up repayments but it doesn't say my home is at risk if I don't maintain the life assurance policy but I'm sure if I'm in breach of any of the terms of the mortgage it would open the door to the building society revoking the mortgage and demanding full repayment which would be a disaster. Are there any examples of people who continue to make monthly payments being kicked out of their house for not having a life assurance policy in place?
Lastly, what is "Indexation"? The reviewed proposed premiums are on the basis that I "accept indexation of 5.00% at 1 December 2016".
The likelihood is I'll just suck it up and pay the increased premiums but before I do I'd appreciate any helpful thoughts/suggestions.
I know I'm a tool for over extending myself in 2007 and with hindsight and all that I'd make a different decision but I am where I am so please try not to scold me too much. I'm on here looking for a little help/steer if possible.
Over to you.