Remortgage & Life Policy

L

Lyndan

Registered User
Messages
250
Hi All,

Looking for some advice.

We are currently are in the process of remortgaging with ICS. We spent a year with AIB and had our life policy and morgage protection with New Ireland.

Our mortgage advisor tried to sell us a new policy and said that thats what you usually have to do when you remortgage however I want to stay with New Ireland as it was a lenghty process due to some health issues to even get the cover in the first place.

I called New Ireland who said we are on a flexible policy so we could stick with them if we wanted, all they needed was confirmation of the new bank we will be with and then they will send the new bank confirmation of cover. I told this to our mortgage advisor who said the new bank ICS will want the original policy to be placed with the deeds before they issue to cheque so we will need to speak to our solicitor. I have mailed our solicitor but just wanted to see if anyone here has any experience of the above scenario?

Cheers
 
Can New Ireland increase the cover on the existing policy or do you need to take out additional cover for the excess?
 
based on the amount they said we dont need to increase the amount on the existing policy so we dont need to take out any additional cover
 
Eh? You are taking a mortgage of €x and have life assurance for €y but y < x (viz. x = y + 15K). Sounds very odd that a lender would be happy with that...
 
well they said that we had a flexible life policy and with the amount we are taking extra we wouldnt need to increase repayments with New Ireland.

They will of course state they will cover us for the full amount (inclucing the additional 15k)
 
Sorry - but are you really sure about that? Why would a life assurance provider provide incremental cover for free? Why would a lender accept less cover than the mortgage amount?
 
Perhaps this policy is a whole of life policy that was assigned to the mortgage lender when the loan was taken out. The sum assured maybe above the mortgage amount. That may explain it.
 
According to Lyndan above they are remortgaging for €15K more than the cover provided by the policy.
ClubMan said:
Is your mortgage protection life assurance level term? If so are you remortgaging for less than or equal to the amount covered?
Click to expand...
Lyndan said:
Nope we are remortaging for 15k more!
Click to expand...
 
ok let me check this out again.

Ok say we did have to increase our payments to New Ireland...I am still wondering how we get the original policy? Or is this something New Ireland issue

Sorry if i am being dizzy but I havent a clue!
 
You should probably ring ICS and New Ireland (in that order) just to double-check everything, so as to avoid unnecessary delays when the deal goes through.
 
We remortgaged earlier this year from Ulster Bank to NIB for €25k more than our old mortgage. Our life assurance was also with New Ireland (decreasing cover over the life of the mortgage). New Ireland made us take out a complete new policy for the full new amount. Again for health reasons we wanted to stay with New Ireland rather than go through the hassle of medicals and doctors letters etc. Although our life assurance sum increased by 25k, our monthly premium only went up by a tiny amount (cents) as I believe costs for life assurance have come down since we first took out our policy.
You may find that you'll need a new policy as well, but just be warned it can take a lot longer to get it sorted than you'll think, particularly if they ask your doctor to fill out a PMA (medical report).
Did you get the policy through a broker in the first place? If you did go back to them and they should be able to help you out again.
 
thanks Marg - ill give them a call again tomorrow just to make sure. We did the whole medical report thing the last time so thats why we want to stick with them, i figure they wont make us do them again? I dont actually mind paying more to stay with them...

Ill report back tomorrow!!
 
If you dealt with a broker go back to them or a call to New ireland will confirm the death benefit and premium.
 
Marg may have had to take out a new policy because you she a mortgage protection policy ie decreasing. Most level cover policies now have an 'increase' option, meaning that the policy holder can increase their cover under certain circumstances without having to provide medical evidence. This saves the policyholder having to apply for a new policy. It is unlikely that they would do this without increasing the premium, unless maybe the original policy was for a minimum premium and even with the additional cover the premium is still within their minimum premium?
 
ok I phoned New Ireland again!

They are sending me out a new quote, as even tho we are getting an additional 15k on our mortgage our life cover was actually for more then the original mortgage, so there is only a difference of 500€

So we will have to pay an additional €4.32 a month! and they will send me out a new quote to amend the existing policy.

New Ireland said that I will need to give my new bank the policy scedule which I should have, i said that i think that went to my solicitor and he gave it to my original bank - they said they have not been informed that its with the bank as far as they are concerned I have it!

So i need to find out off my solicitor who has the policy...
 

I have absolutely no doubt that a broker would sort this out for you in a matter of minutes with no charge.
 
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