price of mortgage and house insurance.

Hi all,
we've been talking to our mortage broker and we've decided to go with TSB for our own reasons. We got qouted a monthly repayment on a fixed rate but have been told by the broker that it will be almost 133 euro less a month due to tax relief (?). We thought, thats great news... then the broker said we needed to get mortage/life and house insurance and that people generally use this tax relief money to pay the insurance every month... My query is... does it usually cost the full amount of tax relief money a month for the average insurance payment? as this amount seems a fair bit to my fairly ignorant ears... and what are the general categories we should be looking towards regarding insurance?

thanks in advance

Re: price of mortage and house insurance.

It costs nothing like €133 per month to pay your mortgage protection and house insurance.

It sounds to me like your broker might be trying to get you to purchase them through him/PTSB.

You will find most people on this site recommend shopping around rather than just taking out mortgage protection insurance and/or house insurance through your mortgage provider, as they often tend to be very uncompetitive.

Take a look at the Best Buys section for more info.

The two main insurances are those listed above, i.e. mortgage protection insurance and house insurance.

Re: price of mortage and house insurance.

The cost of life cover depends on your age, the loan amount, your smoker status and the term of the loan. The household (fire) insurance will depend on the rebuilding cost of the property as determined by the valuer and the level of contents cover you take (which isn't mandatory but makes sense to have a combined buildings and contents insurance policy). The sum of the two policies could easily equal the benefit of the tax relief - when I quote for a mortgage I always work on a gross basis on this assumption. If the actual final cost is less all well and good.

Sarah

www.rea.ie

For general info on mortgage related insurances see this thread.