In the FT today, Sarah O’Connor reports that it’s costing 64,000 euros annually to protect 10m euros of senior financial debt.

In simple terms; if you have a mortgage with a mortgage lender that has to pay this insurance, your mortgages will not only have gone up because of interest rate rises, you will be hit twice because the lenders will have had to have paid more for the insurance against you going into arrears.

It’s bizarre. The insurance companies get paid more than a mortgage adviser receives for arranging the entire mortgage in the first place, and they get this amount each year the mortgage is on the books!

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