What Happens to Your Mortgage Protection When You Switch Lenders in Ireland? The Complete 2026 Guide

What Happens to Your Mortgage Protection When You Switch Lenders in Ireland? The Complete 2026 Guide

Switching mortgage lenders has surged in popularity among Irish homeowners, with switching activity increasing by 91% year-on-year. The appeal is obvious—lower interest rates, cashback incentives of up to €3,000, and potential savings of thousands of euros. But one critical question often gets overlooked: what happens to your mortgage protection insurance when you switch lenders?

This isn't just a technical detail—it's a legal requirement that could delay your switch or cost you significantly more than necessary. Many homeowners make costly mistakes during this process because they don't understand their options or receive incomplete advice from their new lender.

This guide explains exactly what happens to your life cover for mortgage when switching lenders and why your switch might present a golden opportunity to save money on your mortgage life insurance.

The Short Answer: Can You Keep Your Existing Mortgage Protection?

Yes, you can typically transfer your existing mortgage protection policy to your new lender if:

• The mortgage amount stays the same or decreases
• The mortgage term remains unchanged or shortens
• The policy covers the same individuals as before
• Your existing policy allows reassignment to a new lender

If these conditions are met, simply contact your insurance provider and request a reassignment to your new lender. This administrative change typically takes 1-2 weeks. Your premiums remain unchanged, and your cover continues uninterrupted.

However, if you're increasing your mortgage amount, extending the term, or changing who's covered, you'll need to arrange new or additional mortgage life cover.

The Reassignment Process: Step by Step

For homeowners whose circumstances haven't changed, transferring your existing mortgage life insurance is straightforward:

Contact Your Insurance Provider - Inform your insurer you're switching lenders. They'll verify your policy and confirm if reassignment is possible.

Complete the Reassignment Form - Your provider sends you a form that legally transfers the policy to your new lender. You'll need your new lender's details.

Coordinate with Your Solicitor - Your solicitor will coordinate with both lenders and your insurance provider for documentation.

Update Direct Debit - Set up a new direct debit if needed. Many homeowners prefer paying mortgage protection separately from their mortgage.

The process takes 2-4 weeks, and your cover remains in force throughout—there's no gap in protection.

When You Need New Mortgage Life Cover

Several common scenarios require arranging new or additional life cover for mortgage protection:

Increasing Your Mortgage Amount - If you're releasing additional equity for home improvements or other purposes, you'll need additional cover for the increased borrowing. You can either take out a second policy for the additional amount, or replace your entire policy with new cover—the latter is often simpler and more cost-effective.

Extending Your Mortgage Term - If you're extending your mortgage term, your existing policy may not cover the extended period. You'll need to either extend your current policy or arrange new cover for the full term.

Adding or Removing a Policy Holder - Life changes like marriage or separation that affect who's covered require new underwriting and a fresh policy.

Bank-Tied Group Policies - Some policies purchased through your bank are group policies that cannot be transferred to another lender. Always check whether your policy is portable before beginning the switching process.

The Hidden Opportunity: Why Switching Could Save You Money

Here's what many mortgage advisors won't tell you: switching lenders presents the perfect opportunity to reduce your mortgage life insurance costs. The mortgage protection market has become significantly more competitive, with substantial price reductions available.

If you arranged your mortgage protection five or more years ago, you're almost certainly overpaying. Here's why this is the ideal time to review:

Market Competition Has Intensified - More insurers are competing aggressively for business, driving prices downward. Comparing quotes across all providers is essential.

You May Qualify for Better Rates - Medical advances and improved life expectancy mean today's pricing may be more favourable than anticipated, even though you're older.

The Cancer Survivors Code Now Applies - Since December 2023, insurers must disregard cancer diagnoses if treatment ended more than seven years ago (or five years if you were under 18 at diagnosis). This applies to policies up to €500,000 for your principal private residence.

Improved Policy Features - Modern policies often include valuable benefits that weren't standard years ago, such as free GP consultations and mental health support services.

Common and Costly Mistakes to Avoid

Assuming Your Bank's Quote Is Competitive - Your new lender will offer you mortgage life cover, but banks are tied to a single insurer and cannot compare the market. Always obtain independent quotes.

Failing to Review Your Existing Policy - Even if reassignment is straightforward, obtaining fresh quotes could reveal substantial savings.

Not Checking Policy Portability - Some policies purchased through your original lender cannot be transferred. Check early in the switching process to avoid delays.

Leaving Your Old Direct Debit Active - Remember to cancel your old direct debit to avoid duplicate payments.

Missing the Timing Window - If you need new cover with medical underwriting, approval can take 4-6 weeks. Start early.

Your Action Plan for Switching Mortgage Lenders

6-8 Weeks Before: Locate your existing policy, confirm if it's portable, and obtain fresh quotes to compare market rates.

4-6 Weeks Before: If savings are available, begin a new application. If transferring existing cover, initiate reassignment and complete any medical requirements.

2-4 Weeks Before: Provide proof of cover to your new lender, coordinate with your solicitor, and set up your new direct debit while cancelling old ones.

Important New Regulations for 2026

From March 2026, under the updated Consumer Protection Code, lenders must provide clearer information about mortgage switching options, including estimated savings and reminders about refinancing opportunities. While these changes make the switching process more transparent, ensuring adequate mortgage life insurance remains your responsibility.

Conclusion

Switching mortgage lenders is an excellent opportunity to reduce borrowing costs and review your mortgage protection insurance. The mortgage protection landscape has transformed dramatically—more competition and better pricing mean you can now secure comprehensive cover at historically competitive rates.

If you're planning to switch mortgage lenders, take action now on your mortgage protection insurance. A few hours invested in comparing quotes and understanding your options could deliver substantial savings whilst ensuring your family remains protected.

Ready to see how much you could save on your mortgage life cover? Get a free mortgage protection quote today, or call our expert team on 01 539 44 50 to discuss your mortgage switching insurance needs.

Northstar Financial Planning Limited trading as QuoteLeader is regulated by the Central Bank of Ireland, registration number 190060.