Mortgage Protection Insurance UK

Mortgage cover UK policies – also known as mortgage payment protection insurance policies - can be taken out to ensure that if you should find yourself without an income due to being unable to work because of redundancy; if your suffer an accident; or have a prolonged illness, then you would have a monthly income with which to repay your mortgage commitments.

If a mortgage cover UK policy is suitable for your circumstances then it would provide a tax free amount of money after you have been out of work for 30 days and would continue to pay out for up to 12 months or with some providers a policy can be taken out to pay out for up to 24 months. There are different policies; you can take out one just to cover you against coming out of work due to becoming unemployed, a policy to cover against you being out of work due to an accident or sickness, or one to protect you against all three.

The quotes for mortgage cover in the UK vary greatly from lender to lender and for this reason it is essential that you shop around for the insurance. Quotes can vary by hundreds of pounds so it is really worthwhile getting several quotes, making sure that you get them from specialist providers as they are very often the cheapest when compared to the high street lender.

The majority of people who have a mortgage are mistaken in thinking that help by the State would be given to help you in your time of need, however very little financial help is given even if you are entitled to receive it. This means that it is down to you to protect the roof over your head against the unknown and mortgage payment protection could be the answer providing you meet the requirements of a policy.

Another misconception the consumer is under is that mortgage cover UK policies have to be taken out alongside the mortgage from the same lender; however this is dearest way to purchase peace of mind. High street lenders often charge way over the odds for the premium and often know very little about the products they are selling. As such the consumer gets little advice - if any - regarding the product’s suitability, and this led to many consumers buying a policy that they didn’t need and wouldn’t be able to claim on due to exclusions it.

The mis-selling of payment protection insurance products, of which mortgage cover is one, was brought to light after a super complaint by the Citizens Advice in early 2005 to the Office of Fair Trading (OFT). Following this an investigation by the Financial Services Authority, lead to many big names receiving fines and the sector was passed on to the Competition Commission. The Competition Commission conducts in-depth investigations into major regulated industries and it is thought the review will be completed by February 2009 by which time changes for the better will be made when buying mortgage cover.

For the time being, if you wish to purchase a quality, cheap mortgage cover UK policy, then go with a standalone and specialist provider after getting several quotes and make use of the information that they will give regarding the exclusions and key facts within mortgage cover policies to ensure that a policy is right for you.

While mortgage insurance could be a lifeline if you should find yourself out of work it can also be nothing but a waste of money if you haven’t ensured that a policy is suited to your needs. If you want peace of mind by taking out mortgage insurance then it is essential that you make sure you understand the product before making the purchase.

A mortgage insurance policy (also called mortgage payment protection insurance -MPPI) can provide you with a tax free sum of money each month to pay your mortgage repayments if you should become out of work due to an accident, sickness or unemployment and once you have been out of work for 30 days.

Good value policies will be backdated to the first day that you came out of work and will continue to provide you with an income for up 12 months and, with some providers, for up to 24 months. If you want to cover your mortgage repayments for just the possibility of coming out of work due to unemployment through being made redundant then you can. You also have the option of taking out the mortgage insurance cover to protect against just accident and sickness or you can cover for all three. Mortgage insurance is also called ASU, accident, sickness and unemployment benefit.

A mortgage insurance policy can be a worthwhile product to have if you should find yourself without an income through being out of work as the Government will give very little help even if you have should qualify for financial assistance. When it comes to your mortgage, without cover you are putting the roof over your head at risk if you can’t find the money to continue paying your mortgage.

When it comes to mortgage insurance, premiums vary widely from lender to lender and the cheapest premiums are often offered by a standalone and specialist provider of the insurance. The difference in quotes from a specialist provider and the high street lender is often huge and of course the specialist provider will know their products inside out and will give good advice regarding the exclusions within a policy.

Exclusions mean factors that could mean you are ineligible to make a claim on a mortgage protection policy and the most common include not working full time, being self-employed, retired or suffering from a pre-existing condition at the time of taking out the policy and trying to claim for this condition. The exclusions are usually within the small print of a policy and it is essential that you read the terms and conditions.

A standalone provider will always make clear the exclusions within a policy along with giving you the key facts regarding a mortgage insurance. It is essential that you don’t take any chances with mortgage insurance and you ensure that a policy is suitable for your needs. If not then you will not only have wasted a great deal of money but you are also at risk of losing your home.