Mortgage Protection – why you shouldn’t leave it to the last minute

Mortgage Protection – why you shouldn’t leave it to the last minute

Mortgage Protection is not something you want to leave until the last minute, particularly if you have any previous medical history of note.

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Mortgage Protection – what is it?
  • Mortgage Protection is a type of life cover that you take out to protect the lender in the event of you dying during the term of your mortgage
  • For example, if you take out a mortgage of€300k over 30 years, you need to take out a mortgage policy that matches these terms
  • The policy is designed to reduce in value over the term of your mortgage, in line with the reducing balance on your mortgage
  • At all times during the term of your mortgage your policy should have enough cover to pay off your mortgage in the event of you dying prematurely
Do I have to have it?

Yes.  And if you are making a joint application, both of you will be required to have it

What if I have a complex medical history?

Talk to a Financial Advisor early on in your mortgage journey to ensure you have enough time to get cover in place, or to flag any issues that are likely to arise

Can I use a Life Policy I already have?
  • Yes, but that may not be the best decision if that policy was taken out for another purpose i.e. if you took out life cover to protect your family financially in the event of your untimely death, that should remain the purpose of that policy and you should look to take out a separate mortgage protection policy. It is important that you refer to a financial advisor to discuss this
  • If you have Death in Service cover through your job it is typically not possible to use it to cover your mortgage, as it is not assignable to the lender
How much does it cost?

It varies depending on your age, mortgage amount, term of mortgage, smoker status and health, to name but a few factors

How can I take it out?
  • Talk to a Financial Advisor who has access to multiple life assurance companies.
  • If you take your policy out with the lender you’re borrowing your mortgage from you will be limited to one life assurance company, meaning you’re not necessarily ensuring you get the best price, best advice and underwriting terms


For the full set of tips on making yourself mortgage ready, download our Top Tips for First Time Buyers guide – 17 pages of knowledge from years of helping people get the mortgage they want.


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