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Guest · Posted: Tue May 03, 2005 5:31 am Post subject: mortgage unemployment insurance

I am about to loose my job here in the UK. I am looking for a mortgage unemployment insurance company? Do you have experiences with a good one which will actully pay.

I called several but they did not fit my mortgage unemployment insurance profile.

Will I loose my house if I do not have mortgage unemployment insurance ?

I found two types of unemployment insurance :
Accident, sickness and unemployment insurance (ASU)
Mortgage Unemployment Insurance, MUI can also cover some ery basic utility bills.

Any help on the topic much appreciated

sunny · Posted: Fri Jun 03, 2005 4:17 pm Post subject:

Hi,

You have been busy checking into insurance companies to insure you against something you already know is likely to happen, however this is at the very least unethical and possibly illegal.

Meanwhile have you at least spent as much time looking for a new job as you have for an insurance company?

Do you have enough savings to cover your mortgage bills for a few months while you are job hunting? If not consider asking for a mortgage break/holiday for a few months. Some mortgage companies are willing to do this, you will have to make up the payments later on either by increasing the number of payments or the amount you pay.

Another alternative is to ask at your unemployment benefits office, in some countries (the UK is one) they will help you to pay your mortgage while you are claiming benefit and looking for work.

~ sunny

Carole · Posted: Sat Jun 04, 2005 9:06 am Post subject:

I think you'll find that the benefits agency won't actually help pay a mortgage but that they'll help pay the interest. For this to be acceptable, you'd need to contact your mortgage provider and explain the situation.

As Sunny said, they may well be happy to give you a couple of months' break from the mortgage while you get back on your feet (find a new job) but if they're not happy to accept any kind of break in repayments then you may well have to sell your house if your unemployment continues over more than a few months and claim housing benefit on rented accommodation. I know this isn't a good situation to be in but unfortunately, nothing's ever certain in this life.

If you're in the UK, I'd suggest you contact your local CAB for advice. They're in a far better position to help you than anybody here on this board.

Also, I agree with what Sunny wrote about looking for insurance as being unethical at this point. I think you'll also find that most mortgage insurers will have a clause to the affect that you'll need to have held the policy for at least 6 months before any claim can be made. This is to protect them against people like yourself who already know that unemployment is likely. Also keep in mind that if they find out you already knew about your company's situation, they can refuse to pay out.

Spend your time looking for work instead. It'll pay you far greater dividends in the long run.

Carole

PS: Remember that no matter what the weather's like right now, it's liable to change.

know a little bit · Guest

The experts are right.
To make a successful claim on an unemployment insurance policy, the insurer will need certain forms filled in.
One goes to your ex employer asking if you had prior knowlendge of the intending redundancy, and when.
If this predates your application then they wont pay out, as you knew about it already.
It's a bit like being told by the doctor you have a serious illness then trying to take out private medical insurance.
Another of the forms goes to the employment office to ascertain that you are signed on and actively looking for work - so taking a gap year wont work either.
As to whether all this is illegal, I feel sure the insurer wouldn't try to take you to court, they simply wouldn't meet the claim.
They may be even entitled to hang on to the premiums you,ve paid already, as you tried to decieve them, but this is unlikely, as it casues bad publicity.
For anyone genuinely looking for mortgage unemployment insurance that does pay out, and is less than the mortgage lenders charge for their own policies, you could do worse that to try here:
http://www.aandalifeinsurance.com/index.html
It won the Which? magazine award for fair play and value.

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