If you’re in the process of buying your first home, you’re probably in the thick of mortgage lending rules, solicitor’s fees, surveys and stamp duty.
Mortgage Protection never features too high in the minds of prospective buyers in the early stages but can often be the stumbling block to getting your mortgage approved and drawn down further on in the process.
Many people are often under the illusion that you have to take out your mortgage protection with the bank that’s giving you your mortgage.
Going down this route means that people are missing out on huge savings by not shopping around.
What is Mortgage Protection?
Mortgage protection or mortgage life insurance, is insurance that will pay off any outstanding balance on your mortgage should you die before the mortgage has been paid off. It means that the bank is satisfied that the mortgage loan will be repaid and it gives your dependants peace of mind to know that nothing will happen to their home. Having mortgage protection is normally compulsory in Ireland
Do I have to take out mortgage protection with the bank?
Banks will usually suggest that you take out their own mortgage protection when you are drawing down your mortgage. It may appear to be the most convenient option to go with the same company for both your mortgage and your mortgage protection; however you are under no obligation to take out both with the same lender or bank.
Opting not to go with your bank for your mortgage protection will not affect your mortgage application in any way and it is often the cheaper and quickest way to secure mortgage protection.
The reason why it is usually cheaper to shop around is because banks are tied to a sole life insurer, and normally can offer you just one price for mortgage protection. However if you go with a broker like Citywide Financial, we compare prices across multiple insurers to find the best cover to suit your needs.
You can get a quote in minutes and we’ll stay with you right through until your policy has issued.
What is the cheapest mortgage protection?
Buying your first home can be a stressful period. There are lots to do and often people put off arranging mortgage protection until the very last minute.
However if you take the time to shop around and compare the best prices, you can really save over the longer term.
Your mortgage protection policy will run alongside your mortgage for the entire term of your mortgage which could be over 30 years. Paying a small amount extra may not seem much over a year or two but if it’s over 30 years, the amount you could save really adds up.
If you have any questions about mortgage protection or indeed about getting a mortgage, we’d be happy to help. Get in touch by emailing info@citywidefinancial.ie or calling us on (01) 513 87 10
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