Mortgage Protection Issue - Underlying Health Condition

almostover

Hi - hoping to get some advice from those who may have been in a similar predicament.

Girlfriend and I have put a €5k booking deposit on a new build in Cork as first time buyers. We're keen to get this property as we love the village that it's located in. We have a loan offer from KBC and have set about securing mortgage protection with a broker. No contracts received or signed yet. My girlfriend has a congenital heart condition, doesn't affect her but she gets regular check-ups and scan to monitor it. This was declared on our mortgage protection application. I have been accepted at ordinary rates but my girlfriend requires a private medical attendants report which was delivered by her GP. Unfortunately, during the mortgage protection assessment process my GF received notice that her most recent scan was assessed by a specialist panel and heart surgery is now recommended to repair the defect. This was disclosed to the mortgage broker and the insurance company and is being assessed as part of their decision. Our broker's opinion is that my GF will either have her cover postponed or declined by the insurance company and a similar decision would likely be reached by most insurance companies. In his opinion they were likely to postpone her cover regardless of the impending surgery due to heart conditions being viewed as a COVID risk factor. This would leave us in the situation of having to apply to KBC for a mortgage protection waiver to drawdown our mortgage, which is at their discretion to grant. Our broker believes they would grant this waiver given that I am the principle earner and I would only be €25k or so short of being able to take out this mortgage alone at 3.5 times my salary. My net salary is approx. 3.5 times the mortgage repayment amounts also.

This still leaves us somewhat in limbo. Not ideal to have this stress on the house purchase given the stress my GF is in facing heart surgery, but such is life.

I'm wondering if anyone on here has faced a similar scenario and has any advice? Our solicitor and mortgage broker have been very good in this regard but I'm wondering if anyone faced a similar scenario and could offer advice from their own situation as how they resolved it. In particular any advice on mortgage protection brokers who specialise in getting cover for people with health conditions would be greatly appreciated.

Thanks in advance!

hellojoe21

Hey! While not in the same situation as your partner, I'll be following this thread closely since I am being monitored by a specialist as a precaution as well and am currently applying for mortgage protection. Regardless of mortgage protection, I hope everything goes well for your GF.

Dolbhad

almostover wrote: »

Hi - hoping to get some advice from those who may have been in a similar predicament.

Girlfriend and I have put a €5k booking deposit on a new build in Cork as first time buyers. We're keen to get this property as we love the village that it's located in. We have a loan offer from KBC and have set about securing mortgage protection with a broker. No contracts received or signed yet. My girlfriend has a congenital heart condition, doesn't affect her but she gets regular check-ups and scan to monitor it. This was declared on our mortgage protection application. I have been accepted at ordinary rates but my girlfriend requires a private medical attendants report which was delivered by her GP. Unfortunately, during the mortgage protection assessment process my GF received notice that her most recent scan was assessed by a specialist panel and heart surgery is now recommended to repair the defect. This was disclosed to the mortgage broker and the insurance company and is being assessed as part of their decision. Our broker's opinion is that my GF will either have her cover postponed or declined by the insurance company and a similar decision would likely be reached by most insurance companies. In his opinion they were likely to postpone her cover regardless of the impending surgery due to heart conditions being viewed as a COVID risk factor. This would leave us in the situation of having to apply to KBC for a mortgage protection waiver to drawdown our mortgage, which is at their discretion to grant. Our broker believes they would grant this waiver given that I am the principle earner and I would only be €25k or so short of being able to take out this mortgage alone at 3.5 times my salary. My net salary is approx. 3.5 times the mortgage repayment amounts also.

This still leaves us somewhat in limbo. Not ideal to have this stress on the house purchase given the stress my GF is in facing heart surgery, but such is life.

I'm wondering if anyone on here has faced a similar scenario and has any advice? Our solicitor and mortgage broker have been very good in this regard but I'm wondering if anyone faced a similar scenario and could offer advice from their own situation as how they resolved it. In particular any advice on mortgage protection brokers who specialise in getting cover for people with health conditions would be greatly appreciated.

Thanks in advance!

Not exactly the same but my cousin was sale agreed recently on a house with BOI. Turned out as they went about the life policy, she was diagnosed with breast cancer and needed surgery. Her husband was the bigger earner so were able to drawn down with the mortgage on both salaries but she had to get a waiver for her life policy and only he is covered.

It was a second hand house so they once the waiver was granted they drew down funds to close.

She was told maybe in a few years once in remission she could apply for life cover then.

almostover

hellojoe21 wrote: »

Hey! While not in the same situation as your partner, I'll be following this thread closely since I am being monitored by a specialist as a precaution as well and am currently applying for mortgage protection. Regardless of mortgage protection, I hope everything goes well for your GF.

Thanks for your kind sentiments! Hope everything works out for you too. It's been a tough time for those with underlying health conditions.

almostover

Dolbhad wrote: »

Not exactly the same but my cousin was sale agreed recently on a house with BOI. Turned out as they went about the life policy, she was diagnosed with breast cancer and needed surgery. Her husband was the bigger earner so were able to drawn down with the mortgage on both salaries but she had to get a waiver for her life policy and only he is covered.

It was a second hand house so they once the waiver was granted they drew down funds to close.

She was told maybe in a few years once in remission she could apply for life cover then.

Thanks for your input, sounds like we are in a similar situation to your cousin. Its reassuring to hear that the mortgage worked out for them and hopefully all will go well with the cancer too.

Dolbhad

almostover wrote: »

Thanks for your input, sounds like we are in a similar situation to your cousin. Its reassuring to hear that the mortgage worked out for them and hopefully all will go well with the cancer too.

You to with your girlfriend! I can’t imagine the extra stress it is on you. Hope you are both doing okay.

They had to be rejected by 3 life insurers to get the waiver. They were asked if they had any death in kind benefits with work but they didn't.

When will the new build complete?

As long as you have the loan clause in, you should be able to proceed with contracts.

almostover

Dolbhad wrote: »

You to with your girlfriend! I can’t imagine the extra stress it is on you. Hope you are both doing okay.

They had to be rejected by 3 life insurers to get the waiver. They were asked if they had any death in kind benefits with work but they didn't.

When will the new build complete?

As long as you have the loan clause in, you should be able to proceed with contracts.

We're a bit punch drunk the last few days but we will be fine. She's 28 and has no other health issues so she'll manage the surgery fine. Our mortgage broker has also said to us that we will need at least 2 refusals to apply for the waiver. We both have death in service benefits with work which hopefully will help our case. Our solicitor was going to do a will for us regardless so that will entitle each of us to the other's death in service benefit. And yes, we will certainly be asking our solicitor to include a loan clause. She is fully informed on the situation and has been excellent, the mortgage broker has been very good too. Having good professionals managing one's affairs is a huge advantage.

The build is due to complete in May but with the COVID restrictions on construction we've been informed that they can't give an accurate estimate of completion date right now. That's fair enough, the situation is unpredictable.

Thanks for your concern and advice!

Dolbhad

almostover wrote: »

We're a bit punch drunk the last few days but we will be fine. She's 28 and has no other health issues so she'll manage the surgery fine. Our mortgage broker has also said to us that we will need at least 2 refusals to apply for the waiver. We both have death in service benefits with work which hopefully will help our case. Our solicitor was going to do a will for us regardless so that will entitle each of us to the other's death in service benefit. And yes, we will certainly be asking our solicitor to include a loan clause. She is fully informed on the situation and has been excellent, the mortgage broker has been very good too. Having good professionals managing one's affairs is a huge advantage.

The build is due to complete in May but with the COVID restrictions on construction we've been informed that they can't give an accurate estimate of completion date right now. That's fair enough, the situation is unpredictable.

Thanks for your concern and advice!

It makes the difference having professionals like that. My cousin was the same. The work benefit should help. The bank was concerned if something happened to my cousin, her husband would have to continue to pay the mortgage but on one income with two kids. But if there was a payment out, that could be used against the mortgage. It might have been a different outcome if my cousin was the bigger earner than her husband. They would have just had to proceed on his income alone and would have only received a smaller mortgage.

But I have my fingers crossed the waiver will be allowed and everything will be okay for you both. Remember to take care of yourself also.

May also isn’t so far aware and hopefully sites can re-open if lockdown extended.