Mortgage Protection
NMS reviewed mortgage protection in the Irish market and found that with a bit of shopping around, you can save a considerable amount over the course of your mortgage.
Most banks are ‘tied agents' of an insurance company, which means that they can only sell that company's insurance. Others may act as an agent for a few companies only – look for an independent broker like National Mortgage Services, who can really shop around for you. Have a look at the examples below.
Mortgage Protection Example 1: €369.42 per
annum
Louise and Mark are both 29 year olds, both non-smokers,
and are buying a home with a mortgage of €190.50 over 30 years. They wanted
their insurance to cover them in the event of either death or a critical
illness. By shopping around we saved them €369.42 per year or a massive €11082.52
over the term of the mortgage.
Example 2: €148.74 per annum
John and Mary are both 40 years old and are both smokers. Their
budget was limited so they decided to get basic mortgage
protection (the minimum required by their lender). They chose life cover
of €127000
for their 20 year mortgage on a decreasing basis. Searches among the
main lenders showed prices ranging from €54.52 to €66.92 per
month for the equivalent cover. That's €148.74 per year or €2974.85
difference over the mortgage term.
Example 3: Saving €70.41
per annum
Paul is 35 (smoker) and Sarah is 37 (non-smoker). They decided
not to move, but to extend their home and re-mortgage. They
took this opportunity to pay off their car loan, bank loans and credit
union loans,
to reduce their monthly payments. This left them with a mortgage
of €111760
over a 15 year term. Quotes for insurance varied from €22.26 to €28.13
for equivalent cover– a difference of €70.41 per year or €1056.13
over the term of the loan.
These are typical examples of savings that can be made. You may not save
as much as the couples above (although many of you will), but chances are
that you could save some money. Why not try us out. Fill in the form It
will only take you 2 minutes. Would you prefer the extra money to be in
your pocket, or in the insurance company's bank account?
For more information call 1850 700 777.
Simon Harris - Dublin
"The NMS team helped remortgage my home efficiently and effectively. Their expertise we're extremely helpful and in a market where so many mortgage companies fail to deliver, NMS is a highly professional breath of fresh air."
