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The Financial Column

Welcome to the Financial Column in association with the award winning local financial services company – Money Plus, Bridge Street, Boyle.

Recently we have had a number of clients applying for mortgages and also an increasing number of calls with queries about what is required in order to increase the likelihood of securing a mortgage.
As part of this process we point out to prospective borrowers, that, in the case of taking out a mortgage to buy their own home, their lender require clients to have life cover to protect their mortgage in the event of their death and that this life cover needs to be in place before they drawdown their mortgage.

In most cases, clients will opt to take out mortgage protection life cover, also known as decreasing term life assurance. This is the cheapest and most basic type of life cover.
For example, if you are taking out a mortgage of €150,000 over 25 years to buy your home, then your lender will require mortgage protection life cover of €150,000 over the 25 year term at a minimum. Under this type of life cover the idea is that the amount of life cover reduces over the term more or less in line with your mortgage.

Therefore the amount of life cover will reduce to zero over the term of the policy.

An important point to note is that you don’t have to take out mortgage protection life cover through your lender – you can use any provider and then assign the policy to your lender.
There can be quite a variation in premiums between providers so it pays to shop around.

For advice on mortgage protection life cover and other types of life cover please consult Belinda McCauley at Money Plus, your local independent financial broker. Belinda and her colleagues at Money Plus, Bridge St, Boyle would be delighted to help you. Belinda can be contacted at 071-9194000/ 086-7847827 or by email: [email protected]

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