When you borrow a significant amount of money, say to buy a home, the lender needs reassurance that you can keep up with the repayments. Regardless of your personal circumstances.
If you lose your job, become too ill to work, or face other financial difficulties, Mortgage Protection Insurance is there to help you keep up with your commitments. Until you can get back on your feet.
Read on to find out more about Mortgage Insurance and how it may help you.
Mortgage Protection Insurance is a specialist insurance product that protects your mortgage repayments in the event that you lose your job, become too sick to work etc.
This product is also known as ‘Mortgage Payment Protection Insurance’, ‘Mortgage Insurance’ or MPPI.
Many mortgage providers will ask that their loan applicants take out some form of financial insurance to protect their mortgage payments, in order to be accepted for the mortgage. However, it is also worth noting that it is not a legal requirement for you to take this form of insurance. Further, you may be recommended a product by your mortgage lender. If this is the case, you also have the choice to go with another MPPI provider, if you wish.
Many of these plans fall into three main categories of protection. These include;
When making a claim, the payout on these policies, in many cases, may be capped to around £1,500 a month to £2,000. Therefore, if you need a higher amount per month to pay your mortgage, you may wish to look at other forms of insurance in this area. The funds will also be sent, in most cases, directly to your mortgage provider. Unless you seek a policy in which the funds are transferred to you (as is the case for those who opt for additional cover).
Sally is searching for financial protection, as she has just been accepted for her first mortgage. She has just turned 30 years old and her mortgage is worth £124,000. Her monthly mortgage repayments cost £650 a month and she earns £28,000 a year as a textile designer.
After speaking to an independent insurance broker, she was able to secure a mortgage protection plan which costs around £23 a month. With this level of cover, Sally will be able to make her mortgage payments in times of sickness and serious injury. She opted out of redundancy cover because she can work freelance.
To find out more about Mortgage Protection Insurance and to get a free, no-obligation quote, get in touch with an insurance broker. All you have to do is fill in a short form to get started.
I needed life insurance and critical illness for myself and my wife. I got a number of quotes from some of the big brands and was very happy with the final price. Mike Davidson, Birmingham
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* Life insurance from 20p per day is an illustrative figure only and may not be available to you. The figure is based off of a 25 year old non smoking female taking out £150,000 of term assurance over 25 years on a level term basis and available from Beagle Street. Figure accurate as of 19/03/2015.
* Life insurance & Critical Illness from 35p per day is an illustrative figure only and may not be available to you. The figure is based off of a 25 year old non smoking female taking out £150,000 of term assurance over 25 years on a level term basis along with £50,000 of critical illness cover and is available from Beagle Street. Figure accurate as of 19/08/2015.
THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT.
IF YOU ARE THINKING OF CONSOLIDATION EXISTING BORROWING YOU SHOULD BE AWARE THAT YOU MAY BE EXTENDING THE TERMS OF THE DEBT AND INCREASING THE TOTAL AMOUNT YOU REPAY.
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