Can You Get A Mortgage If You Have, Or Have Had Cancer?

by | Friday 2nd Dec 2022 | Mortgage Insights

A cancer diagnosis can seriously impact people's finances

A cancer diagnosis can seriously impact people’s finances

When someone is diagnosed with a serious illness like cancer, there are a multitude of questions that swirl around people’s heads. Am I going to be ok? Will I get better? Will my family be ok? Will I be able to keep earning an income? How will this impact my quality of life? Unfortunately, a lot of people’s main concerns when they are diagnosed with a serious medical condition are around financial worries. Things life job security, depletion of savings, inability to keep up with credit commitments, and general financial stability keep people diagnosed with cancer up at night. In this blog, we will answer some of the web’s most searched questions about cancer, mortgages and general personal finance.

Can You Get A Mortgage If You Have Cancer?

By far the most commonly googled question is ‘can you get a mortgage if you have cancer?’ or ‘Can you get a mortgage if you have had cancer?’. A very valid question that may seem like it has a very simple answer. In some ways it does and in other ways it is a little more complicated. The simple answer is that a mortgage lender wouldn’t and shouldn’t normally discriminate anyone due to them being diagnosed with cancer. If you have the disease and are still earning an income and haven’t gotten into any financial issues such as missed payments and incurred defaults, you should be fine to secure a mortgage. Subject to the normal lender criteria and affordability tests.

Where you may struggle to get a mortgage is when the diagnosis has made a serious impact on your financial situation. By this we mean either you have become unable to work or have experienced financial issues due to your diagnosis that has impacted your credit file. Sadly, for a lot of people, a cancer diagnosis can mean that you are no longer able to work and earn a living, depending on the severity of your diagnosis. If you do not have a job or an income, most mortgage lenders will not accept your application. This is purely because most lenders will need you to have an employed or self-employed income as part of their standard criteria.

Not Covered By The NHS

Battling a cancer diagnosis is a tough fight, and it can be an expensive one if you don’t have the right insurances in place. Some of the expenses you might need to consider are any treatments not covered by the NHS, any accommodation you might need to arrange if you need to travel for treatment, and medication that you might need to pay for, a loss of earnings if you are signed off from work long term.

If you are not properly prepared for the financial impact of having cancer, you could find yourself falling behind on other credit commitments and incurring defaults on your account. If you have a mortgage already and your finances are depleted by cancer, mortgage payments can sometimes become difficult to keep up with and missing your mortgage payments is categorically something that a new lender will not accept.

Applying For A Mortgage With Cancer

Couple discuss finances

Couple discuss finances (Source: THANC guide)

As we have already mentioned, a mortgage lender will not discriminate against you simply for having cancer. But if your credit score or income has been affected by the cancer, the lender will more than likely not accept your application. The same goes for if you are sadly not going to recover from your cancer.

If you are diagnosed with a terminal disease, a mortgage lender will not lend to you due to the fact that you will not be around for the entirety of the mortgage term. Other than that, if you are still earning an income and are coping with your financial commitments, you will be in a good position to look at getting a mortgage or remortgaging. You will just have to meet the lender’s standard criteria, whatever it may be.

Mortgage Help

When it comes to serious or life-threatening illness, the important thing is to prepare before it happens. You can never prepare to early for anything like that by securing personal insurances. If you don’t have any insurances in place and are diagnosed with cancer, unfortunately it can often be too late and you may struggle to secure insurance at the levels you need or at all.

But, if you speak to a professional insurance advisor before anything serious happens, they can help you to set up some policies that could support you financially if the unthinkable happens. Things like income protection and life insurance can give you and your family cash pay outs that could really make a difference. Other insurances can provide you a monthly income whilst you focus on getting better so that you won’t need to worry about keeping the wolf from the door if you are unable to earn as much as you once did.

Does Your Mortgage Get Paid Off If You Have Cancer?

It can do! If you get the right insurance policy and for the correct sum of money. Some policies will pay out a lump sum if you get ill or sadly pass away so that you or your family can clear your mortgage balance, or you can generally use it for anything you want to make life easier for you or your family in such a tough period.

There is also a type of protection that you can get called mortgage payment protection insurance which is pretty self-explanatory. The protection is arranged by a broker, and you will pay a monthly premium for it. Then, the insurance will be there in place in case you become ill and are unable to earn money and pay your mortgage. The protection will make your mortgage payments for you until you are back on your feet again. This type of insurance also often helps people who are made redundant and are unable to pay their mortgage. This will generally last until you either get a new job or start to receive another regular income.

Can You Get Mortgage Protection Insurance If You Have Cancer?

There is nothing that says you can’t get protection of any kind if you have HAD cancer, however unfortunately due to the risk of you getting cancer again or developing a serious condition as a result of your cancer, your monthly premiums will be a lot more expensive than someone who has never had cancer. The best thing to do is speak to an insurance broker and they will be able to help you get the best insurance product based on your circumstances.

An insurance broker will often have a selection of insurance providers that they work with and access to a variety of insurance policies, each tailored to your wants and needs and based on your health history. If you have or have had any serious medical conditions, your advisor will take time to understand your condition and will discuss in detail with the insurance provider to make sure that they a) will be willing to insure you and b) will be able to provide you with exactly the right cover that you and your family will need.

Speak To An Insurance Advisor Today

In a harsh economic climate, getting a critical illness like cancer can be devastating to people and their families if they don’t have the right insurances in place. Call our friendly, experienced, and helpful team today if you need to arrange some insurances or need to re-evaluate the policies that you currently have. We are here to help.

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