Can I get mortgage protection with a pre-existing medical condition?

Yes, you can often still get cover, but a pre-existing medical condition changes the deal. Insurers may treat you as higher risk, which can mean a more expensive premium, a medical exam before they will cover you, or the condition being excluded from the policy altogether¹. Some conditions are simply not insurable: private health insurance, for example, may not cover a list of chronic conditions that includes diabetes, asthma, Crohn's disease, COPD, arthritis, multiple sclerosis, heart disease, hypertension, epilepsy, chronic kidney disease, Parkinson's disease, HIV/AIDS and cystic fibrosis².

The one thing you cannot do is stay quiet about it. You must tell an insurance company about any conditions you have before buying a policy³, and you will normally be asked about your current health, previous health problems and any major health problems in your family⁴. Leaving a condition out can void the policy or mean a claim is not settled, or not settled in full⁵.

If you are refused, or the price is too high, there is a state route that does not depend on an insurer at all. Support for Mortgage Interest is a government loan that helps homeowners on certain benefits pay the interest on their mortgage⁶. It is aimed squarely at people whose health got in the way of insurance, and it is worth understanding before you decide cover is out of reach.

What mortgage protection covers and why a medical condition matters

Mortgage protection insurance is a policy that covers your repayments if you become ill or lose your job¹⁰. More precisely, it can cover your mortgage payments for a time if you have lost your job, or cannot work because of an accident or ill health⁷. If you have lost your job or are too ill to work, it is worth checking whether you already hold mortgage protection insurance that covers your payments⁶. You might also be able to claim if your income has fallen because of illness¹¹.

That is the point of the cover: it is short-term help with the monthly payment while your income is interrupted, not a lump sum and not a payout for the diagnosis itself. It is one of a family of policies that pay out in different circumstances, alongside life insurance for terminal illness, critical illness cover and income protection insurance¹².

A medical condition matters because the insurer is pricing the chance that you will claim. Where you have a pre-existing condition, insurers may consider you high risk, which could mean your premium is more expensive, and they may require a medical exam before covering you¹. A pre-existing medical condition is defined as either a psychological or physical condition that you already have at the time you apply for insurance¹³. That definition is broad, and it catches conditions you may think of as managed rather than active.

It also matters at the point of a claim, not just at application. If your mortgage arrears arose because of illness or a medical condition that may prevent you from working or making payments for a period of time, a court will want a letter from your GP, consultant or medical social worker explaining your condition¹⁴. Medical evidence is central to both ends of the process.

How insurers treat a pre-existing condition when you apply

There is no single answer, because insurers handle pre-existing conditions in different ways depending on the product. The pattern across the market is that a declared condition is either priced, excluded, or both.

For income protection, it is not entirely accurate to say the cover never includes pre-existing conditions: sometimes it does, but there are usually conditions and higher premiums involved¹⁵. Pre-existing medical conditions may also be excluded or come with special terms, especially if you had symptoms or treatment¹⁶. An exclusion relating to mental health conditions may be applied for income protection¹³. Where you have a mental health condition, you may have to pay more because of a pre-existing medical condition, even without a diagnosis but after seeing a doctor for symptoms¹⁷.

For private health insurance, the treatment is harsher. Most health insurance policies do not cover you for pre-existing conditions, and a policy that does cover one carries a higher premium¹⁷. Some providers of private medical insurance do not cover pre-existing medical conditions at all¹³. Where a policy does accept them, you will usually not be charged extra to add pre-existing conditions, and the insurer will exclude those it cannot cover².

Critical illness cover sits somewhere in between: having a pre-existing condition does not mean you will be unable to find critical illness insurance¹⁸. And there is a version of private medical insurance, usually obtained through an employer, where the underwriting generally includes pre-existing conditions, so you can claim on medical conditions you already had before taking out the policy¹⁸.

Will a pre-existing condition be excluded from my policy?

Often, yes. Most of the payment protection policies the Financial Ombudsman Service sees exclude pre-existing medical conditions entirely. Others exclude them initially but cover them later if a consumer stays symptom-free for a defined period²⁰. Policies that are not individually underwritten can carry a blanket exclusion for all claims caused by, or related to, a pre-existing medical condition²¹.

The practical difference between those two approaches is significant. An individually underwritten policy looks at your health and decides what it will and will not cover, which can leave you with cover for everything except the declared condition. A non-underwritten policy applies the same blanket exclusion to everyone, which can leave you with far less than you expected.

If you are turned down: help with mortgage interest through benefits

If you cannot get cover, or cannot get it at a price that works, the state provides a route that does not involve an insurer. If you are a homeowner and getting certain benefits, you could get help towards interest payments on your mortgage²². This is called Support for Mortgage Interest, and it may help with paying the interest on a mortgage if you claim certain qualifying benefits, including Income Support, income-based Jobseeker's Allowance, income-related Employment and Support Allowance, Pension Credit and Universal Credit²³.

It is specifically designed with people in your position in mind. Help with mortgage interest payments through benefits is available to people with pre-existing medical conditions or HIV that prevented them from taking out mortgage protection insurance or receiving payment under a protection scheme²⁴. That is the exception category, and it exists precisely because insurers can and do refuse cover.

There are limits worth knowing before you rely on it. You may not receive Support for Mortgage Interest even if you are eligible for it⁹. It cannot help you pay for any missed mortgage payments, which are called mortgage arrears⁹. And it cannot help you pay the amount borrowed, only the interest, nor anything towards insurance policies you have, nor any part of your mortgage taken out for other purposes⁹.

If you have taken out a loan to pay for repairs or home improvements and you are receiving Guarantee Pension Credit or certain other benefits, there is separate help with the interest payments on that loan²⁵. If you own your home with a mortgage, you may be able to apply for a Support for Mortgage Interest Loan for help with the mortgage interest²⁶.

Is Support for Mortgage Interest a loan or a benefit?

It is a loan, and that distinction matters more than almost anything else on this page. Support for Mortgage Interest is a government loan scheme helping with the interest costs of mortgages and certain home loans²⁷. It is paid as an interest-bearing loan, secured against the property and recoverable from the estate²⁸. Since April 2018 it has been delivered as an interest-bearing loan secured against the property, replacing the non-repayable benefit it used to be²⁸.

So the help is real, but it is borrowed money secured on your home, and it is recovered later. That is a different proposition from an insurance payout, which you do not repay.

What it covers is narrow by design. It can help towards mortgage interest payments for a mortgage, for a loan to buy, and to improve your home²⁹. It helps pay the mortgage interest payments on your home⁹. It does not touch the capital.

Who can get Support for Mortgage Interest after being refused cover

Eligibility runs through the benefit you claim, not through your medical history. To qualify, you must be getting one of Income Support, Jobseeker's Allowance, Employment and Support Allowance, Pension Credit or Universal Credit⁸. Homeowners, or people treated as liable for owner-occupier payments, who are entitled to one of the listed benefits can apply³⁰. If you receive certain benefits and are struggling to pay your mortgage, you might be able to get a loan from the government³¹. If you are receiving other benefits, you may be eligible to get help with the cost of the interest on your mortgage payments³².

There are exclusions that catch people out. You cannot get Support for Mortgage Interest if you also receive Statutory Sick Pay, Statutory Maternity Pay, Statutory Paternity Pay, Statutory Adoption Pay, Statutory Shared Parental Pay, earnings from employment or self-employment, or a tax refund⁹. That means a return to part-time work, or a period on sick pay, can end the help.

There is also a waiting period. For people in the exception categories, there is no help for the first eight weeks²⁴. Planning for that gap matters if you are relying on this route.

If you are in hospital, how long you can get help with your mortgage for while you are in hospital depends on your circumstances³³. If you are caring for someone with a long-term condition, poor health or a disability, they may be able to benefit from additional financial support³⁴.

Other ways to protect your mortgage payments

Mortgage protection is not the only product that can stand behind a mortgage payment, and the alternatives behave differently.

Life insurance is the one most closely tied to a mortgage. If the mortgage lender required life insurance, it may pay off the full amount of the loan; if there is no insurance, or for second mortgages not covered, the property may have to be sold³⁶. Life insurance usually pays out only when you die, so a diagnosis of cancer on its own will not automatically pay anything³⁷. Insurers cannot cover certainties, so they are legally entitled to refuse cover where the medical prognosis is that you will die during the policy term¹. If you have or have had cancer, you might find it difficult to get life insurance, and if you can get it you are likely to pay more than the average monthly premium³⁷.

Critical illness cover pays out if you are diagnosed with a serious illness, which can include types of cancer, sometimes depending on the stage or grade of the cancer³⁷. Private medical insurance bought after a diagnosis may not cover that cancer, though any health condition you get after you buy the policy should be covered³⁷.

For joint borrowers, protection has a second job. It is likely to be important to have mortgage protection insurance to pay off the loan if one of you dies³⁸.

One product that is not protection for you at all is a mortgage indemnity guarantee. It protects the lender against loss if you borrow a high proportion of your property's value and cannot repay the mortgage³⁹. It benefits the lender, not the borrower.

Where to get independent help

If you are refused cover, or a claim is turned down, there are free and impartial routes.

If you think an insurance company has discriminated against you because of a mental health condition, you can get free expert advice from the Equality Advisory and Support Service⁴⁰. Specialist insurers do exist for pre-existing mental health conditions, but there is no guarantee you will be accepted for a policy with anyone listed, and each case will be considered individually⁸.

On the mortgage side, free legal support is available for homeowners whose home is at risk³⁵. Legal aid can help with things like stopping or delaying eviction from a tenancy, repossession because of mortgage arrears, illegal eviction and landlord harassment, challenging a council decision on a homeless application, and sometimes serious repair problems for renters⁴¹. You might get free legal help if you have a serious housing problem and get benefits or have a low income⁴¹.

If you are living with cancer, there is help with health costs, which can include prescriptions, wigs and fabric supports, dental treatment, eye treatment, special equipment or aids to help you live at home, and care home or care at home charges⁴².

If you are struggling with debt because of long-term sickness, debt advice charities can help you work through the options⁴³. And if you are in arrears, the earlier you talk to your lender and take advice, the more options tend to be open.