Mortgage Protection

[CorkHombre]

I have been working full time for the last 10 years in a company but now there is possibilities of redundancies.
I am also in the middle of buying a house. I was wondering if the mortgage protection will kick in if I get laid off within a month of paying my first repayment on the mortgage.
I have not got the Mortgage protection yet but I still have not signed for the mortgage so there is still time to go for it. My mortgage is with AIB.

 

[ClubMan]

Presumably you are referring to mortgage repayment protection as opposed to mortgage protection life assurance? The terms & conditions of the policy should clarify when and for how long it pays out. Some such policies are very restrictive in these respects and represent poor value for money with the premiums sometimes inflated through high charges/commissions. If you are worried about meeting mortgage repayments while unemployed then don't forget that you may qualify for Unemployment Benenfit/Assistance, other welfare payments and, if necessary, some more general form of insurance (e.g. salary protection insurance, PHI etc.) may be a better idea than MPP depending on your circumstances, risk factors, occupation etc. The following thread might be of interest to you:

Mortgage Protection and Mortgage Repayment Protection Policies

 

[CorkHombre]

Clubman,
You are correct I am referring to mortgage repayment protection.
Is there any specific Unemployment Benenfit/Assistance that you can get to help you pay off your mortgage?...
I am look at Mortgage repayments of 1800 a month so if I was made redundant I would need all the help I could get... what sort of assistance would you be getting from the Social welfare .... as I was saying I have been in full in employment in Ireland for the last 10 years


thanks
Paul

 

[ClubMan]

Is there any specific Unemployment Benenfit/Assistance that you can get to help you pay off your mortgage?...

Depends on your circumstances. See OASIS for example on and .

I am look at Mortgage repayments of 1800 a month so if I was made redundant I would need all the help I could get... what sort of assistance would you be getting from the Social welfare .... as I was saying I have been in full in employment in Ireland for the last 10 years

If you have been paying Class A PRSI for that time then you would at least be entitled to UB. As I mentioned MPP can be poor value for money due to the charges/commissions levied and due to the limited circumstances and length of time that it will pay out. Note that some policies will only pay out for a limited period of time in total. You should at least consider if you might be better off "self insuring" saving a few month's worth of mortgage repayments and other living expenses which you can fall back on if you became unemployed while you find a new job. You should also weigh up the chances of finding it hard to gain any sort of employment since there will often be something out there that you can do even to tide yourself over.