House buying checklists are daunting - mortgage loan costs, solicitor, surveyor and auctioneer fees - but small concerns may become of more importance after the fact.

Banks and building societies require borrowers to take out a protection policy over the term of the mortgage to cover premiums in the event of the borrower's death. At the time, it may seem like less hassle to take the policy out with the lender's insurer but mortgage holders are free to purchase a mortgage protection policy from any life company.

Unfortunately, mortgage protection policies are often chosen without shopping around for the best deal. Although these basic policies are directly comparable there may be a huge difference in premiums.

REA Mortgage Services' Ms Sarah Wellband says: "One policy may come in at double the cost so it's important to get independent advice."

The most inexpensive policy is a basic mortgage protection policy or decreasing term insurance. The life cover gradually decreases over the term of the policy unlike more expensive investment-based protection policies where coverage remains the same over the policy's life.

Monthly premiums depend on the person's age, whether they are smokers or non-smokers and the value of the policy. Policies are underwritten on individual lives so a 40-year-old male smoker will be more expensive than a 25-year-old female non-smoker, she said. Premiums usually range from £10 (€12.70) a month to £40 a month.

The cheapest mortgage protection policy providers on average tend to be Guardian, Norwich Union, Eagle Star and Standard Life, says Ms Wellband.

Some lenders do provide inexpensive insurance with their tied insurer as it may be cheaper and easier since the premiums may be collected with the repayments. Before signing up to a policy, shop around and then ensure that the chosen lender and insurer do not impose additional fees if you later decide to take out insurance elsewhere.

According to an independent insurance broker in Dublin, Mr B, a young couple came to him recently hoping to reduce their protection policy payments. The pair arranged their mortgage last autumn with First Active and decided to take their life policy with Friends First, the lender's tied insurer.

Many credit institutions are tied to one or more particular insurers. This means they may only offer customers products from that company. ACC Bank and TSB/Tusa are not affiliated with a particular life company. Most of the larger lenders have life assurance arms. For example, Bank of Ireland has Lifetime and Ark Life is part of AIB.

Although the lender is tied to the insurer the customer is not and may choose any life company. Mr B says: "In my experience, many borrowers particularly first-time buyers feel that they have to take their insurance with their lender. In some cases, people don't want to `rock the boat' and will take the insurance with the lender with the intention of switching it later."

The couple wanted to reduce their premiums on a decreasing policy by switching to a similar Irish Life policy but the broker was told by First Active that changing policies incurred an administration fee of £70 plus a £10 assignment fee. All institutions must pay the £10 for a government stamping fee to reassign policies over a certain threshold amount.

Ms Wellband believes First Active's switching fee is excessive compared to the rest of the industry. As shown in the accompanying chart, Bank of Ireland is the only other lender surveyed by Family Money that charges a switching fee. However, the charges have been approved by the Director of Consumer Affairs in both lenders' notification of current charges under the Consumer Credit Act, section 149.

Although First Active had stopped this charge a number of years ago it was reinstituted in September. A spokeswoman for First Active, Ms Ann Gaffney, says all First Active customers are free to choose the company to have their life policy with. "The £70 we charge for switching is because there is an awful lot of administration involved. We do it in-house with our own legal team. Other companies send you to a solicitor and you would have solicitors' fees."

First Active customers may use their own solicitors to handle the deed of assignment and the £70 fee will be waived. However, the policy has to be released from the deed and there is a £35 charge to release the deeds to the customer, she said.

"It's a real cost to us, we have two people employed full time to do this and the workload is increasing, not decreasing," she said.

In addition to shopping around before choosing a mortgage protection policy, it is important to examine commissions if you should decide to switch later on using a broker. If a broker or insurance intermediary suggests that you switch from one policy to another find out their commission on the new product. Investment or endowment life policies have a high level of commission, while straight decreasing mortgage protection policies do not.

If your reason for switching the policy is to reduce monthly premiums, calculate the amount saved on the new policy plus the broker commission and spread the cost over the term of the policy. Are you still saving money? If so, it may pay to switch.