Couple can't get mortgage protection due to husband's successful treatment for cancer

Irish Cancer Society welcomed the new Insurance Ireland code of practice but said it will continue to work for the 'right to be forgotten beyond cancer'. Stock picture

The wife of a man successfully treated for cancer has spoken of her family’s despair at being refused mortgage protection insurance leaving them unable to buy a house even after passing financial tests.

A new code of practice for insurance companies, enacted just this month, means insurers must disregard a cancer diagnosis in cases where an applicant’s treatment ended more than seven years previously.

But that does not apply to Valentina Neacsu’s husband who had a tumour removed in February and is now back at work.

Parents of two young children, the accounts payable specialist and health & safety officer recently began looking to buy as the apartment they rent will be sold next year.

However, having received mortgage approval in principle and going sale-agreed on a house, they were shocked to reach an unexpected barrier.

“We soon hit a wall due to my husband’s diagnosis,” Ms Neacsu said.

“A few insurers refused to offer him mortgage protection. We can’t draw down the mortgage without mortgage protection and we can’t get this for him due to the cancer diagnosis.”

Mortgage protection insurance pays off a mortgage in full if the person dies before it is fully paid.

“The system is just wrong. No one told us this might be stopped,” she said. 

Why were we asked to provide all the documents, find the house, solicitor, surveyor, if the mortgage protection is the first thing the bank should look for before giving their approval in principle?

Having contacted insurance companies, they were told to return in two years.

“Is it not enough suffering and stress to be punished like this after all we’ve been through?” she asked.

“Probably we will lose the house.” Their mortgage broker is approaching a new bank as a waiver can sometimes be given.

Last year, the Irish Cancer Society (ICS) met politicians and Insurance Ireland about research which shows 75% of people affected by cancer feel treated unfairly when buying financial products.

  “Refusal and unfair treatment were the greatest reported difficulties,” a spokeswoman said. 

Senator Catherine Ardagh brought forward the Central Bank (Amendment) Bill 2022. While this did not progress, the ICS welcomed the new Insurance Ireland code of practice.

“We want to make sure that a person can make plans for their life beyond cancer, and although we welcome the progress that has been made, we will continue to work on the 'right to be forgotten beyond cancer',” ICS said.

The ICS echoed Valentina Neacsu’s frustration, saying they believe “transparency is required for people starting their journey to access financial services”.

They called for “publicly available policies and guidelines” so cancer patients know what will be asked of them.

The Irish Examiner asked insurance companies for comment, but only the VHI did so. 

A spokeswoman said every case is assessed on its merits, taking into account medical history, age, smoker status, and the sum insured.

In “a small number of cases” the application is declined or postponed to a later date.

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“There are instances where no insurer is in a position to offer mortgage protection cover,” she said. 

“In these instances, under the Consumer Credit Act 1995, there is an exemption from the requirement to have mortgage protection cover in place at the lender’s discretion.”

• Contact the Irish Cancer Society support line on Freephone 1800 200700, or by email to [e-mail].