Mortgage free, but trapped?

Marilynmonroe85

Hi all 👋

My husband and I have been mortgage free since 2017. We were able to pay off the mortgage due to criticall illness cover paying out when I was diagnosed with cancer. In that time we have taken out a loan to upgrade our house and have approx 9k left to pay on that. We were thinking of possibly moving again this summer once I would be able to get insurance but unfortunately I was diagnosed with another new cancer earlier this year. I very much doubt I will be able to get life insurance or critical illness cover again now, I haven't enquired but I know it can be a minefield after cancer.

This has left us really disappointed as we would like to move into the next county closer to where our disabled child goes to school. We feel trapped in this house and it's all my fault 😪. In our previous experience you had to have insurance when getting a mortgage. So that would leave only my husbands wage taken into consideration, and he wouldn't be able to get a big mortgage on his wage alone.

We feel like we could only move if the new house was a similar price to our own, or only slightly more and its getting us down. We want to move for the sake of our childs school commute, but there are no houses suitable for our price range in that area. We would have a LTV rate of 50% or more but don't know if this affects things? We are not first time buyers anymore as already own a house outright, and trying to find out the impact/legalities of being in this situation is difficult, as all guides are aimed at first time buyers or remortgages. 

I've rambled on a bit, sorry. If anyone has any experience of buying a new house when mortgage free and could explain how it works I'd be so grateful. Then I can look at if we could be granted a new mortgage on husbands wage alone. TIA

user1977

Marilynmonroe85 said:

In our previous experience you had to have insurance when getting a mortgage.

You haven't for a long time. Decades, really. So it's your own decision whether you'd want to take the risk of your income ceasing.

thegreenone

Nothing is your "fault".  Please don't think of this situation along those lines.  As user1977 says - I know a few who don't have life insurance and have a big mortgage.

If you think you may have to give up work, at some point and you need to clear the 9k, can you look at something just on hubby's salary.  Although there's nothing out there now, keep looking but I realise you may need adaptations for your child.  Good luck.

dancing_star

I have a mortgage (LTV about 67%) and don't have life insurance, I have no spouse or children so couldn't care less what happens to my house after I snuff it. I don't have critical illness cover either, they wouldn't give it to me as I have a medical condition (not cancer). I Don't worry and don't think of anything as your fault. I hope your health is much improved. Good luck.

Bluebell1000

A mortgage broker would be able to give you some advice on how much mortgage is possible, so I think it would be helpful to have a chat with one and see where you stand. Good luck.

Giddypip

I've never had life insurance or critical illness cover and it's never been a condition of my mortgages (first mortgage 2006).

boxer234

I’ve never had life insurance you might be ok.  This isn’t your fault at all.  

peterhjohnson

I've never had insurance on my mortgages and I started back in the 1970s!

Marilynmonroe85

Thank you everyone. Perhaps it was just our previous mortgage provider that insisted on the life insurance, I assumed it was the same for all. That's really helpful, thank you and gives us some hope! 

bpj

We are with HSBC. They did not require insurance, but did ask something about serious medical conditions - apologies I don't remember the exact wording, and I don't know how it would affect the application. Best of luck.

meeemee

With nationwide, was talked into taking it for the first five years that we signed up to then when we renewed we didn’t take out the insurance and wasnt asked why or who we would swap to so sure they know we haven’t got any and they don’t seem to care!