Brokers warn mortgage applicants that COVID pandemic period will be miserable. The diagnosis of COVID-19 can lead to serious delays in mortgage protection insurance. Therefore, brokers have warned homebuyers that the risk of securing a home is at risk if infected with the corona virus.
This will be a lesson for those who walk with the view that the virus will not affect them, and that it will only affect others. People who think this way take the virus lightly and do not take any Covid precautions. But broker Michael Dowling says such people should consider their potential financial costs.
Covid is on the rise among young people in Ireland. Dowling says this could turn out to be the reason for the mortgage rejection. He warned that confirming the virus to mortgage applicants would cause it to delay their application.
He added that life companies are unaware of the long-term effects of the corona virus and therefore have a specific COVID-19 question about mortgage protection.
‘If a prospective customer has COVID-19 symptoms, has been advised to get tested, or has been diagnosed with it, we will need to wait until full recovery and a period thereafter before providing cover,’ stated in a life document provided by Mr. Dowling.
But he says the mortgage protection application can be processed relatively quickly if an applicant fully recovers and enters the job. However, Mr. Dowling added that this would depend on their long-term effects from COVID-19.
‘Around 80% of people who develop COVID-19 only have mild symptoms, so fully recover,’ said Carol Brick, managing director of CWM Wealth Management.
Life insurers should be able to offer acceptance terms within one to three months in most cases once symptoms have fully resolved with a full return to normal work or other activities. If they have not been able to return to work or were treated as an in-patient, then the situation would be different, Ms. Carol Brick said as if to correct what Mr. Trolling had said.
‘We have had a number of applicants for all types of life cover who tested positive for COVID-19 and recovered fully and all were approved with no issues,’ she added.
At the same time, delays in processing mortgages for applicants at risk with pre-existing conditions also face a nine-month delay.
Nick McGahan of broker Lion.ie. said more people are losing out on mortgages than is generally known because of the COVID-19 pandemic.
‘If you fall into any of the (high risk) categories, it’s going to be tricky to get life insurance or mortgage protection.’ Martina Hennessy of financial advisers Doddl.ie warned.
Instead of terminating the contract, Ms. Martina advises clients to start the cover before signing the contract and reduce the risk but later expand the policy if necessary.