Payment Protection

S

suspect

Guest
Quick question, have just received a form from our Mortgage Provider that we have been asked to fill out. It is basically saying that we were offered Mortgage Payment Protection for our mortgage but decided against it. I rang the bank and asked why we had to fill out the form and they said it was basically to clarify the situation if it ever came up in the future. I know Mortgage Payment Protection is optional so if I don't take out a policy why would I try to use it sometime in the future??

My question is, why do we have to fill out this form? Does anyone know whether or not it is a legal requirement? Thanks a million.
 
The banks will try hit you for payment protection if they can ( In my opinion its not worth the paper its written on!!) You have to formally decline the offer of it, so that the bank wont be hassling you about it forever more!
 
Its not a legal requirement.

They are closing the loop on the process to avoid the situation that if you needed it (and did not have it) but there was a dispute as to your intentions. It kills that. (It also acts a subtle pressure ..you really sure ???).

Objectively I think it is 'expensive' although if you work for any North American firm, you may be glad you did have it.

Another option is to place the premium you would have paid into the highest earning account you could find.
 
dont think mortgage protection is such a bad thing.was made redundant from last job.was in a state of shock.worried about money etc......mortgage protection company were excellent.paid mortgage for 3 month peroid no ques asked.saved me 1500 euro.big load of my shoulders.was worth it for the small outlay every month 19euro approx.advise every one to consider it.we cant see in to the future.
 
The most important thing to remember re: Mortgage Repayment Protection (the optional one) is that if you opt not to take it, you CANNOT ask for it later, without re-mortgaging.

It is for that reason that the bank covers itself by asking you to formally decline the cover.

Took out mortgage in late 2000, took no cover at the time, downturn came, looked for cover, could not get it, made redundant and 'lost' 10k because of the lack of cover. I would not think twice about taking it up next time, but that's just me.
 
You can have mortgage payment protection through a different company other that your mortgage. Can be hard to get but Friends First offer a good one that is tax and PRSI deductable as well. It can be taken out anytime, its like a PHI cover for your mortgage.
 
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