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Looking for the best mortgage protection insurance options?
For most of us, the monthly mortgage payment is our biggest expense. But what happens if our financial situation changes and we struggle to meet this cost? Mortgage protection insurance eliminates that worry, taking over the payments when the unexpected happens. If this sounds like the safety net you’re looking for, use Quotezone’s independent comparison toolto compare mortgage insurance.
Do I actually need mortgage protection insurance?
A mortgage lender won’t normally insist that you take out mortgage payment protection insurance, but it’s still something to consider.
If you were suddenly to find yourself unable to work or made redundant, do you have the savings or alternative income streams in place to consistently pay your mortgage for months?
If you know you’d struggle, this type of insurance offers you peace of mind.
How much will mortgage protection insurance cost?
On average, you can expect to pay around £25 per month for mortgage payment protection insurance cover.
If you have a small mortgage, you may find a deal for as little as £10 per month, whilst larger mortgages could cost around £40 per month to cover.
An insurer takes the size of your monthly mortgage payment, your age, salary, and line of work into consideration when they calculate your premium.
How does mortgage insurance work?
If you lose your job through no fault of your own or become unable to work due to injury or illness, your insurer will cover your full mortgage payment each month.
When you take out your policy you will be asked to choose a payment period (how long the insurer will keep covering your mortgage). This is normally 12-24 months, but some also offer shorter periods.
How quickly do mortgage protection insurance payments start?
When you take out your policy, you will agree on a deferred period – a timeframe where you won’t receive payments, which can be between one and six months.
Think carefully about how you’d manage your mortgage payments immediately after losing your job and use this to inform your decision about the length of your deferred period.
What is the maximum a mortgage payment protection insurance policy will cover?
Most insurers set a limit on the size of mortgage payment they will cover, but you will find policies that offer up to £2000 a month.
Can the self-employed get mortgage insurance?
Yes, and it’s a very good idea to do so, since the self-employed don’t enjoy all the financial benefits of an employee (such as sick pay).
If you’re a contractor, double-check that you’re definitely covered, as this is sometimes an exemption on mortgage insurance policies.
If it’s time for you to protect your mortgage, compare mortgage protection insurance quotes now.
“Some mortgage companies require homeowners to safeguard their mortgages by taking out mortgage protection insurance or life insurance, but even if your own lender doesn’t have this clause in their mortgage agreement it is still worth considering if you are a homeowner. But whether or not you do opt for this kind of cover, at the very least you should have a plan for how you’ll manage the repayments if you’re involved in an accident, made redundant or diagnosed with a serious illness.” – Greg Wilson, Founder of Quotezone.co.uk.
