Mortgage Protection Insurance UK

Unfortunately some people have found the answer is ‘no’ to the above question only when they have come to make a claim on their policy and found that due to the exclusions within their policy they aren’t eligible to make a claim. It is essential that you ask yourself the above question before you buy your mortgage insurance cover, not after.

Mortgage insurance cover is an insurance policy that, when bought correctly, can provide you with a monthly fixed income which is tax free and which would start to pay out after you have been out of work, typically after 30 days, due to accident, sickness or unemployment. The majority of policies pay out for up to 12 months and in some case for up to 24 months, depending on the provider and policies can be taken to protect against unemployment alone; accident and sickness only; or for all three.

However, you have to make sure that you would be eligible to claim against your mortgage insurance cover policy and this means making sure you read the small print which contains the exclusions and the terms and condition of cover.

The mis-selling of protection policies, of which mortgage insurance cover is one, was highlighted in early 2005 after a super complaint was made to the Office of Fair Trading by the Citizens Advice. Following this an investigation by the Financial Services Authority (FSA) cumulated in several well-known companies being fined for the mis-selling of protection policies.

Mis-selling of the protection included not making sure the consumer understood the product before they purchased their policy - such as any exclusions. Examples of this include selling protection to those who are retired, those who are self-employed and not making sure that the consumer understood that any pre-existing medical conditions at the time of taking out the policy would be excluded.

Along with this, some high street names were found guilty of coercing their customers in to buying the insurance and not making it clear that the cover can be purchased independently, often for a much cheaper cost.

Mortgage payment cover can be an essential product as it could make the difference between you losing your home if you haven’t got an income with which to meet your mortgage repayments or keeping the roof over your head. When purchased sensibly it can do the job it’s supposed to do, but it is essential that you take the time to shop around for the cover and choose to buy it from an independent specialist provider.

A specialist can save you a lot of money on the premiums for the mortgage insurance cover along with selling you a quality product and giving the essential advice needed in order for you to make the right decision over the policy’s suitability for your circumstances. Always make use of this advice and never be afraid to question the lender if you are unsure of anything before you commit yourself to mortgage insurance cover.

With the mortgage and payment protection insurance sector still currently under review it is now more essential than ever that you be aware that you can shop around for the your mortgage insurance cover UK policies and get cheapest premiums along with the best advice possible.

After it was found that payment protection insurance policies, including mortgage insurance cover UK policies, were being mis-sold, the Citizens Advice made a super complaint to the Office of Fair Trading (OFT). Following this many big high street names were fined by the Financial Services Authority. The sector was then referred onto the Competition Commission who conducts in-depth inquiries into the regulation of major regulated industries. The review is set to conclude by February 2009 by which time it is hoped that fairer treatment will be ensured for the thousands who wish to protect their mortgages with a mortgage insurance cover UK policy.

Mortgage insurance cover in the UK is taken out to protect against becoming out of work due to redundancy, sickness or accident, and so losing your income. As your mortgage repayments are the biggest outlay, and of course are essential to keeping the roof over your head, you should do all you can to protect them. Mortgage cover UK policies can, when purchased correctly, give you a tax free monthly income to cover your mortgage repayments and typically would start after you have been out of work for around 30 days. The cover would continue for up to 12 months which is usually ample time for you to get back on your feet again although some providers will pay out for up to 24 months.

Quotes for mortgage protection will vary from provider to provider and of course will depend on how much you want to be insured for and how old you are at the time of applying for the cover. It will also depend on whether you want the cover to protect against just unemployment through involuntary redundancy or to protect against coming out of work through accident or sickness. Or, if you wish, you can take protection to cover against accident, sickness and unemployment. Mortgage insurance policies are also called mortgage payment protection insurance or ASU insurance.

Many people who have a mortgage wrongly assume that the State would step in and give a helping hand if you lost your income. While in some cases you can get help, the financial assistance you get is very little even if you qualify. Unfortunately this means that you stand a real risk of losing your home if, through no fault of your own, you cannot afford to keep up your mortgage repayments. This is where a good mortgage payment protection policy can come into its own providing of course that you understand the exclusions and have made sure a policy is right for your circumstances.

The best way to ensure that you get all the information needed to make a decision about a mortgage insurance cover UK policy’s suitability is to go to a standalone provider for the policy. A specialist provider will always ensure that they give not only the best information but will often provide the best quality product along with offering the cheapest premiums for mortgage insurance in the UK.