We believe a significant proportion of the over 68,000 families who have restructured their mortgage may not have reflected these changes in their mortgage protection cover, and therefore have become underinsured as a result.
There are 22,731* homeowners that are in long-term arrears (over two years) and are therefore likely to have a far greater shortfall in their mortgage protection, assuming that they’ve maintained the premiums on their policy.
Barry finished by saying: “We know that the impact of the pandemic has tested the financial resilience of many Irish homeowners who may have dipped into their savings or lost out on earnings over the past two years.
Being underinsured on their mortgage protection could come as a nasty surprise to homeowners at a time when it’s needed the most. That’s why we have previously highlighted this issue, which can potentially affect thousands of homeowners, in the media. In doing so, we hoped to prompt mortgage holders who may not have realised that they may be underinsured before now to speak with a Financial Broker.
That way they can ensure they have the appropriate and adequate financial protection in place for themselves and their family. And when it comes to ensuring they have the best mortgage protection available in the market, our award-winning mortgage protection is the obvious choice.” Royal London won the award for ‘Best Mortgage Protection’ at the bonkers.ie National Consumer Awards 2022.
This was its fifth time winning this award and its customer-focused approach, competitive pricing and unmatched benefits were commended.
* Central Bank of Ireland, Residential Mortgage Arrears and Repossessions Statistics: http://www.centralbank.ie/polstats/stats/mortgagearrears/Pages/Data.aspx
** Central Bank of Ireland, Residential Mortgage Arrears and Repossessions Statistics: Q2 & Q3 2021: https://www.centralbank.ie/docs/default-source/statistics/data-and-analysis/credit-andbankingstatistics/mortgage-arrears/2021q2-q3_ie_mortgage_arrears_statistics.pdf?sfvrsn=5
*** Central Bank of Ireland, Residential Mortgage Arrears and Repossessions Statistics: Q2, 2013: https://www.centralbank.ie/docs/default-source/statistics/credit-and-banking-statistics/mortgage-arrears/gns-6-2-2-4-2013q2_ie_mortgage_arrears_statistics.pdf?sfvrsn=4
^ Mortgage runs down monthly at 3.5% p.a. and the mortgage protection policy runs down monthly at 6% p.a.