Refused Mortgage Protection

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nadinedublin

Registered User
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Where to start. My partner and I have a mortgage in place but unfortunately we are finding it incredibly difficult to find mortgage protection due to his diabetes condition. He has been refused cover from both Zurich and Irish Life. We were offered cover from a UK Pulse Insurance but they only cover a max of 10yrs at a time. We are waiting to hear back from the creditors but it does not look promising.
Everyone we have spoken to for help is in complete shock, as are we, that it can be so difficult.
Any advice would be greatly appreciated. As we seem to be at a dead end.
Thank you
 
Do you need insurance, what type of insurance exactly are you looking for? In mortgage cases where cover is impossible or extremely high the banks can waive the requirement for life insurance.
 
This is not at all uncommon, my brother in law has diabetes and failed to get life cover when they were taking out their mortgage, the bank just allowed them do a waiver. Now it's not ideal from my sister's point of view but there is no alternative, any cover available was astronomical.

It's not limited to diabetes, many health issues prohibit people from getting cover, I think the feeling that you are a bad risk and somehow the companies expect you to pop off anytime or earlier than normal is the more hurtful bit. It's just statistics and business to the insurance company but I know how it made my BIL feel at the time, bad enough to be living with the restrictions of a condition without the kick in the teeth of something like this. Try and not take it personally, it's just a general policy based on statistics and has no reflection on how his particular illness is managed, the computer doesn't him.
 
Thank you for replies and ideas.
When our bank realised we were having problems with finding mortgage protection they asked us to fill out a disclaimer, which we both thought was a waiver. But unfortunately they came back stating my salary was not high enough so satisfy the creditors and underwriters alone.
To be honest we feel we are trying our best even looking to UK insurance companies at higher loading.
We are still waiting to hear back from our creditors at the bank if they will agree to the terms of Pulse Insurance and a 10yr policy to reapply in a further 10yrs.
No feedback yet from our bank.
 
nadinedublin said:
But unfortunately they came back stating my salary was not high enough so satisfy the creditors and underwriters alone.
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Very strange. This is a common issue with MPP and generally bank will provide a waiver to protect themselves and then progress the mortgage on original basis. It makes no sense that they are now excluding your partners income from the proposal. You need to write and complain to them and ask for a formal response on why they are doing this. Also try another bank! Lack of available MPP on 1 party should not be a deal breaker!!
 
Yes Brendan we thought the same. But the banks response was "sorry it is out of their hands".
As from both Insurance companies. We were never offered covered even at a premium or loading just blank refusal at standard rate.
 
Are you using a Broker to search for Mortgage Protection cover or approaching insurance companies directly yourself ? Some Broker firms may be more experienced in sourcing cover in circumstances as you describe.
 
Skyfall said:
Some Broker firms may be more experienced in sourcing cover in circumstances as you describe.
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If he was refused from two life companies, there is a slim chance that he will get cover elsewhere, but it may be possible. Get your broker to phone Royal London's underwriters, they are usually quite lenient.

A lot will be taken into consideration. What type of diabetes does you partner have? How heavy is he? Does he have other medical history?
Underwriters are concerned of all the other illnesses that may come on as a result of diabetes.

Even if the banks do waive the need on life cover for your partner, take up the cover. Sorry to be blunt, but he was refused because statistically, his life expectancy will be shorter than the average life. No harm in listening to what they say and getting some insurance just in case they are right.

Steven
www.bluewaterfp.ie
 
The point is.. he is finding it difficult to get insurance. Just a quick letter of refusal due to medical conditions. No talk of loading or premiums which we were prepared for. Just refusal.
 
He is finding it difficult because he has diabetes. You haven't disclosed what type of diabetes he has, how bad it is, is there a weight issue, how is being maintained, how long has he got it etc.

Underwriters have to make commercial decisions and they won't go on cover for cases where someone has a pre existing medical condition that shortens their life expectancy. It doesn't make commercial sense.

You can request they write to your GP with the exact reasons for the refusal and appeal it if you think they are incorrect.

Steven
www.bluewaterfp.ie
 
nadinedublin said:
. My partner and I have a mortgage in place

We are waiting to hear back from the creditors
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1. When you say you have mortgage in place - do you mean you have been mortgage approved? Is this pre approval or an actual mortgage offer?
2. Have you contracts for a property signed?
3.. What do you mean by creditors - you mean the bank.
4. It seems the bank has now stated that really you're not eligible for a mortgage, not because of life insurance but because of salary?
 
So what about your comment about your salary not being enough? (what about my other questions?)

Have you tried a good broker for the insurance?
 
Does your partner have death in service benefit with his employer? It may make the bank more inclined to waive requirements.
 
1.We are trying a broker at the minute.
2. This was the banks answer as they would not give a waiver.
3. Yes my partner does have Death in Benefit but according to the bank it is not legally permitted to cover mortgage.
 
Is the real issue here your salary, they are ok with the mortgage because of his salary, but were somethign to happen him and there was no life insurance in place you would be unable to pay a mortgage. (Nadine you are not making it helpful here in trying to figure it out but I think now this is it, and it ties in with the banks comments to you on your salary)

If that is the case then I can well see why they would refuse.

Can you tell us both salaries and mortgage amount please. Also job stability.
 
While you are waiting for the broker I would be applying to other banks for a mortgage, ask them first if their policy is to accept waivers in your situation, it's not uncommon.
 
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