Deed of Assignment

cilldara34

I have my morgage about 5 years with the same bank and my solicitor is asking me to sign a Deed of Assignment of life assurance can anyone explain what this is and what would happen if i didnt sign it if anything at all.
Thanks

Pablo Sanchez

A deed of assignment gives the bank an interest in your life insurance policy, ie if you die, they will receive the proceeds to clear the loan. You say you have already had the mortgage for 5 years so im not clear on why you need to sign it at this point, can you give some more information?

broker2008

When a mortgage is drawn down and life policy issued ,the bank make sure that their interest is noted in the property with this deed of assignment so if you die they get the proceeeds of the life policy. But in the last number of years, financial institutions got very lax in this area - some didn't even check to see if life cover is in place.

Solicitors all over town are going through their or the bank's files to ensure that this has or was put in place so I would imagine they are just trying to have in place what should have been done 5 years ago.

cilldara34

what would happen if i didnt sign it

Pablo Sanchez

cilldara34 wrote: »

what would happen if i didnt sign it

Tecnically you could be in breech of your mortgage contract with your lender.

broker2008

And technically they could then exercise any of the t&c's including calling in the loan.

cilldara34

what terms and conditions

Pablo Sanchez

When you accepted your mortgage, the contract stated you must (amongst other things) maintain sufficient life and house insurance, these would have to be assigned to the lender. Your Solicitor would not have allowed you sign for the mortgage without these in place.

westendgirlie

Sorry to butt in. B/friend got of these toady too. Posted from PO Box 1761 Dublin 6.

There is no covering letter or comp slip just an application form. Irish Nationwide is noted "authorised signatory" but no signature. Never received a form without standard "please contact me if you need assistance bla bla bla" before.

If you have read thread I started yesterday about life insurance then update is, he has requested copies of original applications today and this form arrived in post today. Very weird goings on

broker2008

All part of tidy up I would say. Irish Nationwide (or PTSB) have realised that Deed of Assignment had not been signed and now they are looking to rectify.

Life cover /serious illness policy is part of all this (with Irish Life) but if you are planning to replace with a cheaper alternative do it now so the new policy is assigned as it will be more difficult to cancel. Remember you will be replacing with a life only, reducing mortgage protection policy so get an uptodate outstanding amount on mortgage and match with policy.

cilldara34

my mortage is with the ebs. I have life assurance and mortage protection all up to date but at the end of the day what can they do if you dont sign it.

broker2008

- Effentually bring you to court and take your house.

You borrowed money from them and one of conditions of the mortgage was that you had to take out sufficient life cover to pay off the mortgage in the event of your death until the loan ceased.

Another condition was that you had to assign a policy (that satisfied the above) to them - i.e they get first call to the money in the event of death as opposed to a spouse or a creditor. Any residual would be added to the estate or given to the person or institution that had second charge on a deed of assignment.