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It's time to beat the UK mortgage protection racket
as most mortgage borrowers are paying far too much...
You can change your mortgage protection insurance policy
anytime, so make sure your not paying to much.
Most people tend to take out their insurance cover plan
when they take out their mortgage. What they don't realise
is that they are paying far too much when they don't have
to... check out our mortgage
protection comparison table to see just how much you
can save.
Explaining Mortgage Protection Cover
The price you pay for mortgage protection is determined
by the
size of your monthly mortgage repayment, with the premium
per £100 of cover
multiplied accordingly.
So, for example, if your monthly repayment is £600
and you pay the £6 or more per £100 charged
by Abbey National, Alliance and Leicester, Halifax, HSBC
and the Woolwich, the monthly cost of mortgage protection
will be about £36.
But if you haven't reviewed how much cover you are paying
for since taking out your mortgage protection policy, you
would easily be paying well over £100 a year too much.
Why? Because none of the top ten lenders automatically
adjusts premiums in line with changes in monthly mortgage
repayments that arise as a result of the interest rate
changes. So if, for example you took out a £100,000
standard variable-rate
mortgage five years ago when your monthly mortgage repayment
was about £800, the cost of mortgage payment will
still be based on this amount rather than
the £625 or so that your mortgage is costing you now.
What Mortgage Protection Insurance Aims To Do
Also known as MPPI or accident, sickness
and
unemployment (ASU) cover, aims to meet your mortgage payments,
and sometimes other mortgage related bills for a minimum of
12 months if you lose your job or your earnings suffer as
a result of illness or accident.
Disability and unemployment considerations
However, if your ability to meet your monthly mortgage
repayments would be
unaffected by illness or unemployment / redundancy, you
have sufficient savings for
example, or you could rely on a partner's income, you can
probably do
without mortgage protection. It's not worth paying for mortgage
protection
if you are over the age of 64, or if when you took out the
mortgage
protection policy, you were already out of work (or aware
of subsequent
redundancies), or a part-timer working fewer that 16 hours
per week, since
you are technically ineligible for mortgage protection and
any claims you
make are likely to be rejected.
Paying too much in the UK fo decent mortgage
insurance plan
Paying for mortgage protection cover you don't need is
a waste of money and
highly likely if you have a mortgage protection policy from
one of the top
ten lenders.
Depending on your lender, paying only for the mortgage
protection cover that
you need should save you between £6 and £15
per month on any plan you choose, but you could save even
more by switching to a stand-alone mortgage protection policy
from an independent provider such as ourselves who charge
only £ 3.95 per £100 of cover
an average saving of just over £10 per month compared
with the mortgage protection on offer from the big lenders.
Click Here
for your online quote and to save money.
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