Mortgage Payment Protection Insurance
During the term of any mortgage loan, the property is charged to the lender as security, meaning the lender has rights over your property. This is why we see the warning “your home is at risk if you do not pay your mortgage”
When things are going great in your life, job, relationship, health, it is human nature to feel somewhat invulnerable in terms of finances. Below are some figures, which might just get some alarm bells ringing:
- Every day in Britain, around 600 people in the UK become unemployed. In the current economy this figure is expected to grow rapidly.
- Each day around 100 families have their home repossessed, the major being financial problems associated with unemployment.
If you can’t pay your mortgage, get into arrears and can’t get the account in order fast enough, you could easily lose your home.
Many people pick up arrears, but don’t fall victim to repossession before they return to work, however succumb further down the road. This is because, either credit is not available due to adverse credit or where it is the cost is crippling; eventually creating a financial crisis.
Of course at this time, the limited state benefit of the interest being paid on the first £100,000 of your mortgage, after nine months is not available, because you are working. It simply appears to be a case of over commitment.
Well if your family home means as much to you as most people, you might well want to spend a little money on making sure that you do not become a statistic.
This can be achieved fairly easily, at the stroke of a pen, and for very little money; if you buy right. It’s called a Mortgage Payment Protection Insurance Policy, known as MPPI.
If you should suffer involuntary unemployment, which means that you lose your job through no fault of your own, a Mortgage Payment Protection Insurance Policy, will start to pay a monthly benefit to cover your mortgage, for up to 12 months or your earlier return to work; whichever is sooner. Some Mortgage Payment Protection policies will not only cover your monthly mortgage costs, but will also contribute to other costs associated with running your home. In addition, one of the other main causes of repossession, which is the loss of an income due to incapacity, due to accident or sickness can be built into the policy and covered quite cheaply.
Shopping for a Mortgage Payment Protection Insurance Policy could not be easier; two tips though:
Avoid the Banks or your existing lender, they love to overcharge.
Watch out for the price comparison websites; these are middle men and someone has to pay!
Best look on “Google yourself”
