Can I cancel Mortgage Protection?

sector_000

Hiya!
I have 7 years left in my mortgage. It's a tracker ... with a balance of ~€90K. My missus and I are healthy.... I am thinking about cancelling the mortgage protection and trousering the approx €2,200 premium due for remainder of the mortgage term.

We'd have enough to pay the mortgage off tomorrow if push came to shove.... besides I think there is a less than 1% probability either of us will kick the bucket in the next 7 years.

Question.... is there a legal obligation to maintain paying a mortgage protection policy?

If I cancel it, would I have to notify the mortgage company? Or would the mortgage protection company (different) automatically notify them??

Nialloo24

The life company will automatically notify the bank/building society once cancelled or not renewed. As far as I know you have to have a life policy in place for the duration of the loan.

sector_000

Nialloo24 wrote: »

The life company will automatically notify the bank/building society once cancelled or not renewed. As far as I know you have to have a life policy in place for the duration of the loan.

Hmmm.... look at http://www.citizensinformation.ie/en/housing/owning_a_home/buying_a_home/mortgage_protection.html

It says "When you get a mortgage to buy your home, you will generally be required to take out mortgage protection insurance..... In most cases, the lender is legally required to make sure that you have mortgage protection insurance before giving you a mortgage, with some exceptions:
You do not have to take out mortgage protection insurance if:
• You are aged over 50 or
• The mortgage is not on your principal private residence (your home) or
• You cannot get the insurance, or can only get it at a much higher premium than normal or
• You already have enough life insurance to pay off the home loan if you die
However, some lenders may insist on it as a condition of giving you a mortgage."

If true, the above appears to apply when you take out the mortgage. But I am wondering whether midway you can drop the mortgage protection.... say for example when you hit age 50.

Any experts out there?

murphaph

What age are you both? Smokers? 2200 seems very expensive to me for 7 years. Have you looked at getting a new quote before just cancelling? You're required to maintain cover so long as it's your family home anyway, but look for a better deal.

tomdempsey200

I cancelled when money got tight
few years back
never heard a word about it
mortgage of 50k left

sector_000

50, non-smokers.
I tried to get better quotes in recent years... but new insurers load me due to a "rogue" health issue I had a few years back... so it didn't pay to change at all.

Fred Swanson

This post has been deleted.

Trish56

It was a condition of your loan approval that you take out a mortgage protection policy at the time and if you cancel it you are breaching your contract with the bank.

You mentioned you were both healthy but in a further post you mentioned a health issue.

You need to ask yourself if either one died would the survivor be able to comfortably make the mortgage repayments over the next 7 years. Your premium of €26.19 per month is not huge for the peace of mind it gives. You also need to take into consideration what life insurance you both have currently.

sector_000 wrote: »

Hiya!
I have 7 years left in my mortgage. It's a tracker ... with a balance of ~€90K. My missus and I are healthy.... I am thinking about cancelling the mortgage protection and trousering the approx €2,200 premium due for remainder of the mortgage term.

We'd have enough to pay the mortgage off tomorrow if push came to shove.... besides I think there is a less than 1% probability either of us will kick the bucket in the next 7 years.

Question.... is there a legal obligation to maintain paying a mortgage protection policy?

If I cancel it, would I have to notify the mortgage company? Or would the mortgage protection company (different) automatically notify them??