I am looking to buy a house with my husband and two children buy have hit a snag and am wondering if you can help me?
We have been mortgage owners for some 12 years or so but I have recently learned my husband has contracted Lupus. At the moment it’s in a mild state but I am aware that the condition can worsen over time.
At a recent meeting with our mortgage provider we were told that they would no longer be able to continue offering us a mortgage when our current term expires. This leaves us in rather a pickle as the mortgage expires in 6 months and at the moment we don’t have another unsecured mortgage. I look at our life assurance and other insurance policy and sure enough we are not covered for Lupus.
I recently heard though that some companies are now offering niche life assurance policies that insure the holders for illnesses such as Lupus in a sort of ‘bolt-on’ policy. I’m wondering where I can find a policy like this?
Once we are sorted with critical illness life insurance cover I believe it should be relatively straight forward to continue with our mortgage. Is there any advice that is known about regarding the existence of insurance policies that cover critical illnesses like Lupus?
Whilst I was attending a meeting on the general subject of insurance and life assurance several days ago, and interesting question came up: Is it possible to get a mortgage and therefore get a house if you have Type 1 Diabetes?
It’s an interesting question because Type 1 Diabetes is related to shorter life expectancy – so 20 years historically, but not the life expectancy is getting longer.
So, how will a bank or building society who are lending you money over 25 years to buy your house going to react when they hear you have Type 1 Diabetes and your life expectancy is significantly shorter than it would have been? Will they even give you a mortgage?
How to get a mortgage with Type 1 Diabetes
We look to life assurance to help us here. There are many different types of Life Assurance and depending which company you go with, you may have cover or you may not.
This has caused a new type of life cover to arise – critical illness life assurance. This is where your condition is added to the Life Cover and you pay a premium for the privilege. But at least you are now covered and can go and get that mortgage and buy that house.
An example: Bill aged 30 has Type 1 Diabetes and wants to buy a house. His current life assurance monthly premium is £25. Some life assurance companies don’t want to know anymore and will not insure him. Others, will add £15 per month onto his life cover, which now costs £40 instead of £25, but Bill now has a mortgage and a house.