Mortgage Payment Protection Insurance
AKA
Accident, Sickness and Unemployment
How
to get a quote
What is Mortgage Payment Protection Insurance?
Not too long ago the state would give you quite a lot of help if you lost your job and couldn't afford your mortgage payments but that's changed.
Anyone who has mortgaged - or remortgaged - since 1st October 1995 is now only eligible for state assistance nine months after becoming unemployed or disabled. Even then any state assistance would be means tested and will only cover the interest payments i.e. not endowment payments or capital repayments.
If your mortgage is for more than £100,000 you won't get any help at all.
What you need to
cover you is Mortgage Payment Protection Insurance.
At the time of writing only one in five mortgage payers
has this type of policy - though there are now moves by
the government to make them compulsory.
What you're looking for is;
- When do the payments start - usually after an "excess" of 30 to 60 days.
- How long do they last for - usually only for 12 months but sometimes 24 months.
Cost
At
the time of writing, a fair price for a Mortgage Payment Protection
policy would be around £2.50 a month for every £100 of monthly
payments for 12 months cover. This would start after an "excess"
of 30 days (i.e. it would start being paid after 30
days).
That
means protecting an £800 monthly repayment should cost
a maximum of £20 a month.
Watch out for rip off prices as these really
will add to the cost of your mortgage. For example £5
a month on the above basis adds £240 over
a year
Over the life of a 25 year mortgage it adds up to a difference
of £6,000
Whatever the price,
you would have to make sure that it would cover what you'd
need.
Apply
for a free quote now
If
you want a quote we would recommend British Insurance, who specialise
in providing top quality mortgage payment protection insurance
policies for the best price possible.
They
constantly top the best buy surveys and have won many awards like
Mortgage Magazine ‘Best Insurance Broker’,
and ‘Best MPPI Provider’ from both Mortgage
Introducer and What Mortgage.
To get a quote now from their website click
here
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here to see your Latest Best Buy Mortgages
