Mortgage protection - Year 1 offer and move?

I am shopping for mortgage protection. I have been offered various amounts, but a few are offering say 70% discount year 1. Can I take one of these policies, take the big discount in year 1, and then just move it to a different provider next year? Would I have to pay the discount back if I did this? The providers have been coy about answering this.

Rules changed recently so if there is a large drop off in business for the broker then with claw backs etc they will go out of business. This could be a stumbling block for ones who started recently.

The provider isn't giving the discount.

On your side if you churn the business year after year then itsn't there something in the declaration dealing with misrepresentation? If last year the base premium was say €300 a year and this year its say €290 a year then I can't see a problem because there is justification but if you churn and keep locking into a base premium that is higher than your previous one that could be a problem.

Another thing to be wary of is your premium will more than likely increase every year as you get older so once you run out of life companies to switch between, you could end up paying a higher premium for the remainder of your cover than if you had stayed with the first insurer.


www.moneybackmortgages.ie

norfbank said:

another thing to be wary of is your premium will more than likely increase every year as you get older so once you run out of life companies to switch between, you could end up paying a higher premium for the remainder of your cover than if you had stayed with the first insurer.


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+1

ankles1972 said:

I am shopping for mortgage protection. I have been offered various amounts, but a few are offering say 70% discount year 1. Can I take one of these policies, take the big discount in year 1, and then just move it to a different provider next year? Would I have to pay the discount back if I did this? The providers have been coy about answering this.

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Thats what we are doing too, both of us are quite young so the rates wont go up that much. It seems the best way to do it.