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Arranging a suitable mortgage protection policy for mortgage clients is a key part of the process. Lending institutions will tell you that the item that most frequently holds up a smooth mortgage closing, is the absence of a suitable mortgage protection policy. Typically we will need to advise you on this part of the transaction at or just before the time of mortgage approval. This gives us a time frame of a couple of weeks to organise the policy on you, the client’s behalf.
Very significant savings can be made in the area of mortgage protection for clients.
We hold seven life agencies to enable us, to obtain the cheapest quote and the most suitable product on the market place. This is a choice that you cannot avail of when you go directly to a financial institution for your mortgage and ask them to arrange the cover. This is because they can only tell you about their own branded products. Usually at a significantly higher price. We use the “best advice” system to find the cheapest quote. Additional benefits, where appropriate can be added onto a mortgage protection policy, we undertake to give you comprehensive advice in this area, to ensure that you choose the best policy for you. The consumer credit act 1995 out lines the circumstances in which borrowers must arrange mortgage protection etc. It is usually prudent for any large loan balance taken out to be protected by an appropriate life policy for the amount and term of that loan.
Section 116 of the consumer credit act sets out the circumstances in which a lending institution may at their own discretion issue a mortgage to applicants where mortgage protection cover has not been put in place. There are exceptional circumstance set out below for your information:
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Where the borrower(s) are over 50 years of age |
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Where the borrower(s) have received a letter from a life insurer postponing or declining their application for life cover |
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Where the applicant has received a letter from a life company offering cover only at a price significantly higher than standard |
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Where the property on which the loan is being secured is not a family home |
In circumstances where clients have difficulty in obtaining appropriate cover we will advise them on how to proceed and provide the necessary paper work to complete the transaction.
The life assurance agencies held by Frank Lenny Financial Services Ltd. are listed below:
1. Hibernian Life and Pensions
2. Irish Life
3. Friends First
4. Canada Life
5. New Ireland Assurance
6. Eagle Star
7. Caledonian Life
For a competitive protection quote please contact Lorraine Cooke at Lorraine@franklenny.com.
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