What is Mortgage Protection?
Whether you are nearing the end of a new property purchase (congratulations!) or simply looking to save money on an existing policy which you took out with one of the banks, you’ve come to the right place to secure a hugely discounted policy. We keep it very simple.
We quote you the absolute lowest quote we can offer first time and we think you’ll be very pleased with both the price and the standard of advice received. We pride ourselves on it.
You can also add Illness Cover to this type of plan which would pay all or a portion of the mortgage on the diagnoses of an illness covered by the plan.
For more information on Illness Cover please click here.
These are the essentials, but as I always say, you should not go ahead with any policy until speaking with an advisor to ensure it fits your requirements exactly. Feel free to give me a call on 01 539 44 50 for a quick chat. Ken.
The banks will generally require everyone taking out a mortgage for their home to hold a policy with sufficient cover to cover the loan amount as a condition of granting the mortgage. The policy is designed to ensure that the mortgage is paid off in full and that this burden is not left to your next of kin in the event of your death. Of course, for the banks point of view, they require this to be in place to ensure that the mortgage is redeemed in full in this circumstance and that the property as an asset does not need to be sold in order to redeem the loan. The property is then left mortgage free in whatever manner you have expressed in a will or in line with The Succession Act if no will is in place. Where it is a joint mortgage, a Joint policy will pay down the mortgage leaving the property, mortgage free, to the surviving party with the policy cover ceasing at that point. If you have a Dual Mortgage Protection Policy, the cover continues for the surviving party with a second pay out being made where the second death takes place within the policy term also.
A Mortgage Protection Policy provides cover on a decreasing basis and aims to ensure that there is enough cover in place at any point in time to pay the remaining mortgage balance should a claim be made. The price already takes into account that the cover will reduce and is fixed for the policy term.
It is also possible to use a standard Term Life Cover policy which remains level (i.e. not decreasing in line with your mortgage) and assign this to your mortgage. Any residual balance after repaying the mortgage is left to your estate. This is not as cost-effective as a decreasing mortgage protection policy but can be perfect in certain circumstances such as where you have an interest-only mortgage.
Where the mortgage applicant is over 50, have been turned down for cover a number of times due to medical issues or where the mortgage is for an investment property, the bank may not require a policy be put in place. Whether it is required or not is at the discretion of the bank.
Where you have been declined for cover previously or feel that you could be declined due to any medical issue, please get in touch as with our knowledge of the cover offered by the various providers, often a solution can be found.