Mortgage Protection Insurance UK

It is vital that you get several mortgage payment protection insurance quotes if you are to get the best quote for your policy premiums. The cheapest quotes will be found with the standalone provider and the dearest end of the scale is with the high street lender, so shopping around could end up saving you thousands in total for the advantage of having peace of mind and security when it comes to your mortgage repayments.

Mortgage payment protection insurance (MPPI) is considered to be a lifeline that could make the difference between you losing the roof over your head and comfortably managing to carry on making your monthly mortgage repayments. Providing your lifestyle fits the policy then it would start to pay out after you had been out of work for 30 days or more due to having an accident, suffering an illness or through unemployment such as redundancy. A policy will generally continue to provide you with a tax free income for up to 12 months (in some cases for up to 24 months) which is more than enough time for you to get back on your feet.

While getting the cheapest mortgage payment protection insurance quotes is essential this isn’t the only reason for shopping around and going with a standalone provider for the protection. High street lenders have come under fire in the past for not giving out the essential information regarding policies and the exclusions within them. An investigation into the sector materialised after a super compliant by the Citizens Advice to the Office of Fair Trading. Following this, several high profile companies were fined. They were fined for not giving out essential information and ensuring that a policy was in the consumer’s best interest.

The sector is still under the watchful eye of the Financial Services Authority (FSA) and also the Competition Commission, who hope to have their review completed by February 2009.

The mis-selling of policies have been wide spread and it is hoped that many changes for the better will be the result of the ongoing investigation and review. One recent change has been the way that mortgage payment protection insurance is sold online. Until recently companies relied on pre ticked boxes as a way of including the insurance with a mortgage. However some consumers didn’t realise they had to un tick the box if they didn’t want the cover which resulted in them buying policies that they didn’t want and wouldn’t have been able to claim on. While this is a step for the better there are plenty of more factors that need resolving and one of them is the fact that the majority of consumers don’t even realise they can shop around for the cover and buy it independently.

Consumers do have the option of shopping around and this is essential, not only can you get the cheapest mortgage payment protection insurance quotes but you are also provided with the essential information that you need to make the decision over whether a policy is in your best interests.

If you have taken any notice of the negative side of taking out a mortgage payment protection insurance UK policy then you might think twice about purchasing the cover. However, mortgage payment protection insurance as a product can be a lifeline if you have made sure that a policy is suitable for your needs and you fit the criteria outlined.

Mortgage payment protection insurance UK policies are taken out if you have a mortgage and are worried that either through accident, sickness or unemployment you might be out of work and therefore suffering from a lost income. A policy could provide you with a tax free sum of money each month - typically after you have been off work for 31 days - and continue to pay for up to 12 months, and in some cases, up to 24 months. However it isn’t a lifeline for those that are ineligible for claim as, with all insurance, there are exclusions within all mortgage payment protection insurance UK policies.

Finding this valuable information so that you can ensure a policy is suitable for your needs can be harder than it sounds unless you know where you look to get it. Buying your policy alongside your mortgage from the high street lender is not the way to go as they give very little information at the time of purchase. In fact, high street lenders are notorious for making huge profits on the sales of all payment protection policies, of which mortgage payment protection insurance is just one. Due to this they monopolise the sector and sometimes do not give out essential advice but often mislead the consumer into believing the cover has to be taken with them at the time of purchasing a mortgage.

Certainly, some companies have been fined for the lack of information the give and not ensuring that a policy is in the best interests of the consumer. This was highlighted by a super complaint by the Citizens Advice which sparked an investigation into the sector by the Financial Services Authority (FSA). Following this investigation several companies were for not having the consumer’s best interest at heart.

There are alternative ways of buying a mortgage payment protection insurance UK policy if you want a financial lifeline. The best way to ensure you get a quality product is to shop around for the cover and get several quotes from standalone providers. A standalone provider will be more ethical than his high street counterparts and will ensure that you have access to the vital information needed to make a decision. One of the main causes of mis selling was due to the many exclusions within mortgage payment protection insurance UK policies. For example, if you don’t work full time are retired or self employed then a policy is a waste of money. However, mortgage payment protection insurance UK policies have been sold to people such as this because they weren’t aware of the exclusions. If you want mortgage payment protection insurance in the UK to give you a financial safety net, then shop around, learn as much as possible about the key facts and exclusions in a policy and buy your cover with the certainty that you could claim should you need to.