Borrowers unaware of protection choice
Almost half of mortgage holders feel they were put under pressure to take out their bank's protection policy, new research has found.
Most of the country's main residential lenders use Irish Life for their mortgage protection policies with AIB, KBC Bank Ireland and Permanent TSB all signed up. Bank of Ireland use their own wholly-owned subsidiary, New Ireland.
According to a study by online broker Low.ie, 47pc of people claimed they felt pressurised into accepting their bank's policy. Almost three- quarters of those surveyed had already taken out mortgage protection cover with a bank, while 57pc said they were never told they could shop around for cover.
The figures were compiled through independent research company iReach, which surveyed 1,000 mortgage holders.
Low.ie founder Peter O'Reilly said Irish Life had a minimum premium of €13 per month, which differed to that of other companies such as Zurich Life and Royal London, whose base premium started at €10 a month.
O'Reilly said mortgage holders can save an average of €2,800 over the lifetime of a mortgage by switching their protection provider.
"Many people will automatically take out a mortgage protection policy with the bank where they have received their mortgage loan as they feel almost grateful to have been given a mortgage," he said.
"They are under absolutely no obligation to do this and they should not be rushed into signing up for mortgage protection."
Low.ie, which was established in 2014, employs 11 people and has found new protection policies for more than 7,000 customers with savings of more than €1.5m accrued.
Sunday Indo Business