Refused life assurance

hairyslug

We are in the process of getting a mortgage, all is looking well, we are looking to get 15k less than what we were originally offered.

Anyway, I've been ok'ed for the life assurance, my wife has been refused. How likely will this affect our mortgage application. Is there anyway around this or can we contest it.

MrDerp

The mortgage provider is unlikely to make funds available for draw down without Life cover in place, unless your wife is already not working for the same reason. Perhaps if you can demonstrate ability to pay on your salary alone?

When you say refused, do you mean by a particular provider? I would go through a broker for life cover anyway. And sometimes individual brokers are unsuccessful.

Ring around the brokers, someone will price your wife's risk, whatever that may be, and give you a (high) quote. It's all about getting a good broker to get your case in front of an actuary.

Atlantic Dawn

Have you tried other insurers outside the banks for life cover for your wife?

iainBB

MrDerp wrote: »

The mortgage provider is unlikely to make funds available for draw down without Life cover in place, unless your wife is already not working for the same reason. Perhaps if you can demonstrate ability to pay on your salary alone?

When you say refused, do you mean by a particular provider? I would go through a broker for life cover anyway. And sometimes individual brokers are unsuccessful.

Ring around the brokers, someone will price your wife's risk, whatever that may be, and give you a (high) quote. It's all about getting a good broker to get your case in front of an actuary.

The more you fill in on the life cover application the less likely you will get cover and the price also goes up. Insurance works by covering unlikely event while advertising likely ones.

Shop around. the goal is to get the mortgage remember.

Paulw

Mod Note: You may get better assistance in the banking and insurance section.

Trish56

It depends on why she was refused, Life Companies regularly load a policy premium however a complete refusal is worrying. Ask your broker to shop around. There is also a Company called Pulse Insurance in the UK that may take on the risk but at a higher premium and the policy is acceptable in Ireland. This will have to be arranged through a broker.
Regarding the mortgage do you need your wife's income to qualify if not it may not be a big issue. If you do need her income you may need to organise a split package mortgage.

hairyslug wrote: »

We are in the process of getting a mortgage, all is looking well, we are looking to get 15k less than what we were originally offered.

Anyway, I've been ok'ed for the life assurance, my wife has been refused. How likely will this affect our mortgage application. Is there anyway around this or can we contest it.

bleary

You don't have to have life assurance to get a mortgage but the bank have to agree to waive the requirement. It happens quite a bit so don't panic yet. Get two refusals and ask for it to be waived. As long as you are both comfortable to proceed. My broker advised it's usually only a problem if it's the sole earner who can't be insured and would leave a family home with no income which would be difficult to sell to clear the debt