MORTGAGE PAYMENT PROTECTION INSURANCE

Mortgage Protection Insurance WITH PREMIUMS AS LOW AS £2.45 per £100 of monthly cover
3 MONTHS FREE COVER FOR ALL POLICYHOLDERS
DAY ONE COVER THIS MEANS NO EXCESS PERIODS
SIMPLY Click here for AN INSTANT QUOTE

Explaining Mortgage Payment Protection Insurance Cover

Even those with supposedly good jobs can find that buying a home nowadays can account for virtually every last penny.

It would therefore be foolish not consider the issue of how you would continue to meet your mortgage payments if you lost your income.

Ill health can strike anyone like a bolt out of the blue and there are precious few who can be considered immune to the problem of unexpected redundancy.

Too many people mistakenly believe that the State will bail them out in their hour of need, but the support structure that it provides is barely worthy of the name.

It does not offer any help with capital repayments, only with interest payments on mortgages of up to £100,000. Furthermore, if your mortgage has been taken out since October 1995 this is not available for the first nine months.

More importantly still, the majority of homeowners will fail to qualify even for this limited assistance by virtue of the fact that they have either a full-time working partner or savings worth more than £8,000.

So it doesn’t take a genius to work out that, however comfortable we may feel, most of us are potentially only one stroke of misfortune away from having bailiffs knocking on the door or repossession orders dropping through the letterbox.

Mortgage payment protection insurance cover - which is also commonly referred to variously as mortgage protection insurance, payment protection insurance or accident, sickness and unemployment (ASU) insurance - can protect against such a nightmare scenario

Mortgage payment protection insurance cover typically pays out a monthly benefit for up to a year if you are unable to work due to injury, illness or involuntary unemployment, and mortgage payment protection insurance cover can be used to protect both capital and interest repayments together with other mortgage-related outgoings like insurance premiums.

Everyone pays the same flat rate, regardless of factors such as age, smoking habits and medical history, and, if bought from a competitive mortgage payment protection insurance specialist provider, the monthly premium cost can be less than £2.50 per £100 of monthly cover.

Be warned, however, that buying mortgage payment protection insurance cover through your mortgage lender is likely to work out far more expensive than this and may also secure you a markedly inferior quality of cover. For example, lenders’ mortgage payment protection insurance cover often don’t pay out for claims until after an initial 60 day exclusion period, but the specialist mortgage payment protection insurance providers can cover you from day one.

Make sure therefore that you don’t allow banks and building societies to hoodwink you into believing that not buying your mortgage payment protection insurance cover through them could in some way jeopardise your chances of being granted a mortgage.

But be aware that even mortgage payment protection insurance cover offered by the very best specialist providers is not necessarily suitable for everyone. The fact that health problems that already exist when you start your mortgage payment protection insurance cover are excluded can, for example, severely limit the product’s appeal to those with ongoing medical conditions.

Others who may feel mortgage payment protection insurance cover represents poor value include the self-employed, who can only claim for involuntary unemployment if they actually cease trading, and employed people who work in industries with high instances of voluntary redundancy – which is excluded.