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Mortgage Protection Problem

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  • 13-09-2014 12:27pm
    #1
    Help I need Somebody
    Registered Users Posts: 3 ✭


    I am having an issue closing on a mortgage, we have received formal loan offer and signed this but just before we are to receive the cheque the bank have decided to re consider due to the fact one of us dont have mortgage protection (which we informed them of months ago)

    I wonder would anyone have any advise on what to do?


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    #2
    ravima
    Registered Users Posts: 848 ✭✭✭ravima


    Why can't the other party get MP?


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    #3
    coylemj
    Registered Users Posts: 25,329 ✭✭✭✭coylemj


    If you can't get MP insurance to cover both of you then you have a serious problem because as far as the lender is concerned, the death of either party requires the loan to be paid off.


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    #4
    Help I need Somebody
    Registered Users Posts: 3 ✭Help I need Somebody


    coylemj wrote: »
    If you can't get MP insurance to cover both of you then you have a serious problem because as far as the lender is concerned, the death of either party requires the loan to be paid off.

    We have cover for 1 of us but not a second cover.. ( heart op at birth and has lived with it fine for years no issue but for some reason not willing to take a risk) We were under the impression that banks would accept refusals from mp providers and as long as there was one cover which covers the price of the house we would get a waiver??

    The bank gave us this waiver we signed it plus contracts and now the banks are looking at pulling at the last minute, its not dead in the water yet but I dont know what the hell is gonna change their minds back to giving it out as it seems this is a change of heart on their part??

    Any suggestions for what could be put in place instead of MP?


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    #5
    coylemj
    Registered Users Posts: 25,329 ✭✭✭✭coylemj


    I have no idea why the bank changed their minds, it sounds like they screwed up in the first place because I imagine that the policy nowadays is that both lives must be covered by MP. The problem as they see is that if one of the people dies and there are children of the relationship/marriage then there's suddenly going to be a massive bill for childcare which along with the mortgage could financially cripple the surviving partner.


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    #6
    SBarrett
    Registered Users Posts: 160 ✭✭SBarrett


    If you can't get life cover due to medical reasons, you do not have to have cover but the bank can reassess the loan application.

    If the refused person is the main bread winner, they may feel that the risk is too high to give out a loan if the person is uninsured.

    Pulse insurance specialises in getting cover for those deemed uninsurable by the main players. Maybe look into them?

    Steven


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    #7
    RachelNic
    Registered Users Posts: 4 ✭RachelNic


    I am in exactly the same situation, due to my husband having a long-term health problem, that he can live perfectly well with. We are about to lose the house we paid a deposit on 6 months ago as the bank will not issue the cheque. We have asked for a waiver and are perfectly aware of the risks to the surviving party but it seems to be making no difference.
    What is more frustrating is that we were open and upfront all the way through about his health and paid a deposit on a property in good faith, thinking everything was in order.

    The vendor has also waited and given us huge space to be able to finalise the loan and he is being messed around also.

    A definitive answer one way or the other is what I am hoping for now just to put it to rest for a while - it is so stressful.


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    #8
    Help I need Somebody
    Registered Users Posts: 3 ✭Help I need Somebody


    Hi Rachel,

    Unfortunately it did not work out for us an we are still going through other avenues now to see if theres anyway other banks will accept waivers..

    Can i ask what way you went about things? Did you use a broker and what bank refused you? Or did you go directly through a bank?

    I really hope things work out for you and can fully see where you are coming from its been an awful and stressful year for us as I can imagine it is the same for you


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    #9
    peteb2
    Registered Users Posts: 1,813 ✭✭✭peteb2


    RachelNic wrote: »
    We have asked for a waiver and are perfectly aware of the risks to the surviving party but it seems to be making no difference.
    What is more frustrating is that we were open and upfront all the way through about his health and paid a deposit on a property in good faith, thinking everything was in order.

    Its not about whether you are perfectly aware of the risks, its whether the bank will get their money back in their opinion.

    Being upfront with the bank has nothing to do with it. The bank arent being unfair. They arent the one refusing you cover.


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    #10
    RachelNic
    Registered Users Posts: 4 ✭RachelNic


    peteb2 wrote: »
    Its not about whether you are perfectly aware of the risks, its whether the bank will get their money back in their opinion.

    Being upfront with the bank has nothing to do with it. The bank arent being unfair. They arent the one refusing you cover.

    You are absolutely right. I didn't intend to imply otherwise. It is an intensely frustrating process.


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