Mortgage Protection your lender offers 1.

Customers of AIB, Bank of Ireland, EBS, KBC, PTSB and Ulster Bank, do not have to take out the mortgage protection or life insurance their lender offers and are free to shop around for a cheaper policy.

Most mortgage lenders offer to arrange mortgage protection insurance for you when you apply for a mortgage and it may be convenient for you to arrange your mortgage protection insurance through your lender as you can pay your premiums as part of your mortgage repayment.

However, be aware that if you buy the policy through your lender, you are insured under the lender’s group policy. This may restrict you if you want to switch your mortgage later on as your lender will automatically cancel your mortgage protection insurance when you move your mortgage. This means that you will have to buy new mortgage protection insurance when you move your mortgage and the older you are, the more it will cost you. If your health has dis-improved since you took out your mortgage, you may not be able to get new mortgage protection cover.

You do not have to take the mortgage protection policy your lender offers you and you are free to shop around for a suitable policy. Your lender cannot refuse you a mortgage just because you don't accept the policy they recommend.

 

If your lender makes you feel compelled to take out one of their own policies then you may wish to point out that your rights are fully protected under the Consumer Credit Act 1995.