ONLINE MORTGAGE PROTECTION INSURANCE

UK MORTGAGE REPAYMENT PROTECTION INSURANCE

Questions to ask Mortgage Payment Protection Insurance providers

When taking out a mortgage you will almost always be given the hard sell to buy Mortgage Payment Protection. It may even be rolled into your mortgage without your knowledge, increasing your monthly repayment. You have to ask your mortgage lender the right questions.

What is Mortgage Payment Protection Insurance?

Mortgage Payment Protection Insurance is designed to cover debt repayments in the event borrowers are made redundant or are unable to work due to illness or accident. Policies pay out after a deferred period of either, one month, three months or even six months after you stop working. Then pay out for up to 12 months if you are unable to work.

Is Mortgage Payment Protection Insurance compulsory?

Absolutely not. The Mortgage Payment Protection Insurance offered by most lenders is expensive. You are entitled to refuse it. Mortgage providers are wrong to include it in your quote without telling you.

Do I really need Mortgage Payment Protection Insurance?

It depends on what savings or other provision you have and also what cover your employer may offer in the event of redundancy or illness. For dual income couples, the risk is reduced.

How do I know if Mortgage Payment Protection Insurance has been included with my mortgage?

Before you sign up for a mortgage always ask the lender if it has included Mortgage Insurance as part of the package. Some providers will quote your repayment amounts including Mortgage Payment Protection Insurance and fail to tell you.

Always ask to see what your mortgage repayments would be without mortgage payment protection insurance added so you can see the real cost of the cover. And never sign a mortgage agreement before reading the small print.

Do I have to buy Mortgage Payment Protection Insurance from my lender?

No. Lenders cannot force you to take out their mortgage payment protection insurance cover, though many will offer incentives, such as reduced interest rates on mortgages, if you do. However, tied cover offered by mortgage provider is unlikely to be the cheapest. If you really want Mortgage Payment Protection Insurance, you will do better to take out a separate policy.

Where else can I get Mortgage Payment Protection Insurance?

There are many insurance providers who offer Mortgage Payment Protection Insurance cover on a standalone basis. Policies start from as little as £2.45 per £100 of cover a month.

You can tailor Mortgage Payment Protection Insurance to your individual needs. For example, you can choose to have just accident and sickness cover without unemployment protection. Some employers will continue to pay sick or injured staff for a certain length of time - so always ask your employer first to make sure you're not buying cover you won't need.

I plan to increase my mortgage could I be caught out?

This depends on the nature of the insurance and the mortgage contract you have signed. Many policies allow you to pay for MORTGAGE PAYMENT PROTECTION INSURANCE on a monthly basis so you can cancel the payment at any time - check with your provider. However, if you have signed a contract to say you will have MORTGAGE PAYMENT PROTECTION INSURANCE for say 12 months you may not be able to terminate payments.

If I redeem my mortgage early can I have my MORTGAGE PAYMENT PROTECTION INSURANCE premiums back?

Not necessarily. Again this depends on what sort of contract you have signed. But if you agreed a mortgage amount upfront, where MORTGAGE PAYMENT PROTECTION INSURANCE costs were included, you could be liable to repay the full amount.

This website is owned and operated by Burgesses Ltd who are authorised and regulated by the Financial Services Authority and members of The British Insurance Brokers Association.

resource directory