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Why are so many people overpaying for mortgage protection insurance?

Why are so many people overpaying for mortgage protection insurance?
Mark Whelan

Mark Whelan

Staff Writer

Mortgage protection is one of the most under-switched products in Ireland, but there are potentially thousands of euro to be saved by switching. Not convinced? Stay with us here...

Do you have a mortgage? If you do, then you have mortgage protection insurance, right? Well, the chances are, you’re paying more than you have to. Uh oh!

But don’t worry though, we’re here to explain how you can get on the cheapest rate out there and potentially save a few thousand euro over the lifetime of your loan. Not bad, eh?

What is mortgage protection insurance?

Before we get to the savings bit, let’s quickly explain what mortgage protection insurance actually is.

If you take out a mortgage and pass away before it’s paid off, your mortgage protection will kick in to pay the remainder of your mortgage back to the bank. And it'll allow the deeds of your house to be passed on to your next of kin.

So basically, it’s there to protect the bank and your loved ones and is compulsory for all residential mortgage holders in Ireland. Makes sense, right?

Why do so many people overpay?

So, why are so many people overpaying for such a simple, boring bill? Well, the answer is pretty straightforward actually.

As someone who has gone through the gruelling process of getting a mortgage, you’ll remember just how tedious all of that paperwork was. And the chances are you had a few sleepless nights and moments of mild panic along the way too.

So, when your bank told you that you needed mortgage protection insurance as well as everything else, and that they’d be happy to arrange it, you probably breathed a sigh of relief and let them at it. Totally understandable of course!

But by letting your bank arrange your mortgage protection, you may have missed out on potentially much cheaper options that could have been found by shopping around.

Can I switch now?

Now that we've explained how so many Irish people have ended up accidentally overpaying for mortgage protection, let talk about how fix things!

The good news is that it’s never too late to shop around and get on a cheaper rate.

Your bank won’t mind you switching, the process is straightforward and we’re here to help you along the way in case you have any questions or concerns.

Our research shows that average Irish households can save €190 a year by switching, and households with smokers can save €379. Over the course of a full mortgage term, that can really add up.

How to switch

If you're interested in switching, the first thing to do is find out how much you'd save by doing so. And that's super simple to do.

On our Compare Mortgage Protection page, you can get a quote in a matter of seconds. And all you have to provide are a few personal details and some very basic information about your mortgage, such as the remaining amount and term.

You might discover that you’re not actually overpaying by very much, but the likelihood is that you’ll find a quote that’s much lower than what you’re paying at the moment. And then you can go right ahead and begin the switching process.

A simple way to lower your monthly outgoings

Despite recent rate cuts from the likes of KBC, variable mortgage rates in Ireland are still higher than the EU average. And you don’t need us to tell you how big a chunk of your monthly budget goes on your repayments.

Switching your mortgage protection is a very straightforward way of taking matters into your own hands and lowering your monthly outgoings, instead of waiting for mortgage rate cuts that may be a long time coming.

A massive 48% of Irish households have never, ever shopped around for cheaper mortgage protection. It's time to highlight the savings available to those who switch and to put a stop to the overpaying.


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