Mortgage Payment Protection guarantees your mortgage payments and associated costs if you are unable to work due to accident, sickness or unemployment.
What is Mortgage Insurance?
Mortgage insurance plans are ultimately designed to help protect your mortgage loan from the risk of default by covering you for accident, sickness, unemployment and even death. It is likely that your home is the largest investment you have ever made, and as such it is important to ensure that you have adequate mortgage protection insurance to cover you for these life risks.
Total Mortgage Protection is available by combining Mortgage Payment Protection Insurance (MPPI), Mortgage Life Insurance and Critical Illness Cover. By combining these mortgage insurance policies your home would be covered for:
- Short-term sickness or injury which resulted in you having to take time off
work with associated loss of earnings (for up to 24 months); - Short-term unemployment as the result of forced redundancy (for up to 24 months);
- The unfortunate event of death during the term of the mortgage loan;
- Diagnosis of a serious or critical illness such as cancer, heart attack or stroke.
The reality is that these events do happen. Fortunately the UK mortgage insurance market is well developed and there are affordable policies available to cover most eventualities.
Mortgage Life Insurance
Life insurance for mortgages is designed pay off the outstanding balance on your loan should die within the policy term. If you have taken out a mortgage with your partner it is possible to take out joint life insurance, which would payout should either partner pass away.
- Decreasing Term Life Insurance - If you have a principal repayment mortgage loan this is usually the most suitable option. With such a mortgage protection life insurance plan the level of cover declines over time aligning with the amount outstanding on your loan.
- Level Term Life Insurance - If you have an interest-only mortgage then a level term insurance policy is usually the most suitable option. With this type of mortgage life insurance cover the level of protection remains fixed throughout the life of the plan.
- Critical Illness Cover - With both types of mortgage life cover it is possible to include critical illness insurance, which means that the plan would also payout if you were to suffer a serious illness or injury. Plans usually cover over 35 medical conditions, including cancer and heart attack.
Mortgage Payment Protection | MPPI
This type of home mortgage insurance covers your monthly loan repayments from the risk of accident, sickness and unemployment (forced redundancy). If you are unable to work for any of these reasons the plan pays a monthly benefit until you either return to work or reach the full benefit term of either 12 or 24 months.
It is possible to cover 100 per cent of your monthly repayments plus an
additional 25 per cent cover for other monthly home costs, such as council tax and utility bills. If you have a joint loan each you can apply for joint mortgage insurance covering the full repayment each or split the mortgage insurance protection proportionately to each partner's contribution to household income.
additional 25 per cent cover for other monthly home costs, such as council tax and utility bills. If you have a joint loan each you can apply for joint mortgage insurance covering the full repayment each or split the mortgage insurance protection proportionately to each partner's contribution to household income.
Mortgage Life Insurance provides a cash lump in the event of death. With cover available designed specifically for both interest only and repayment mortgages.
The Financial Services Authority overseas the mortgage insurance industry to ensure that customers are treated fairly and regulations are abided by.
The ABI is the industry trade body for the UK insurance industry. The website contains mortgage insurance related information, research and news.
The CML is the trade association for UK mortgage lenders. The website contains mortgage lending related information, research and news.
Other useful sites created by Drewberry to help make insurance simple and affordable.
Income Insurance
A dedicated resource to help you protect your income against illness and injury.
A dedicated resource to help you protect your income against illness and injury.
Private Health Insurance
A dedicated resource to help you protect your health.
A dedicated resource to help you protect your health.
With the large volume of policies will deal with every year and our access to a wide range of products means we are able to acquire you better rates than you are likely to achieve going direct.
Mortgage Cover Comparison Services
We are an independant mortgage protection broker and can therefore search for the most competitive rates from all top insurers. We will only include insurers and life and payment protection policies that we deem to be of a high standard and consistent with our own and the Financial Services Authority's principle of treating customers fairly.
Mortgage Protection Insurance Advice
We are experts in the mortgage protection insurance market and can discuss the ins and outs of your situation and identify the most appropriate policies for your needs.
We are UK based independent mortgage insurance broker providing impartial advice completely free of charge as part of our service to you.
Insure your mortgage payments against accident, sickness and unemployment.
Protect up to the lesser of £2,500 or 60%
of your gross (pre-tax) earnings.
of your gross (pre-tax) earnings.
Choose a length of cover which will either pay out for up to 12 or 24 months.
Cover up to an additional 25% of your mortgage payments for associated costs.
Protect your loved ones with a tax free
lump sum should the worst happen.
lump sum should the worst happen.
Choose the length of cover to fit with the
term of your mortgage.
term of your mortgage.
Choose either a level or decreasing plan
depending on your mortgage.
depending on your mortgage.
Joint policy options for those with a
mortgage in joint names.
mortgage in joint names.
Include critical illness cover for
additional protection.
additional protection.
