Without mortgage payment protection insurance, home insurance may be redundant in the case of some individuals. Unfortunately, every eligible homeowner needs mortgage payment protection insurance, whether they know it or not. There are more hazards in society than ever these days and anyone with significant investment in their own home should definitely consider the peace of mind that mortgage payment protection insurance can bring to a household.

The likelihood is that mortgage costs will rise into the future. House prices are already astronomical and are still increasing. Although this is pricing individuals out of the market, it is stretching the homeowners who do go ahead with their mortgages to the limits. If one member of the household was to develop a severe illness or become redundant then how would his or her partner be able to make ends meet without mortgage payment protection insurance?

It is only when you envisage how you would feel in that situation that you begin to understand that a great product mortgage payment protection insurance is. Couple that with the recent interest rises and it definitely makes for grim reading! With premiums taking up a higher percentage of a home’s income, the home itself needs to be protected, and only mortgage payment protection insurance can achieve that.

Simon Burgess is Managing Director of the award-winning British Insurance, a specialist provider of mortgage payment protection insurance, loan protection insurance and income protection insurance.

©2010 Mortgage Insurance. All Rights Reserved.

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”

©2010 Mortgage Insurance. All Rights Reserved.

An illness or redundancy can strike at any time and without warning. By having an MPPI policy in place you have increased peace of mind that should the worst happen you have some breathing space to get things back on track.

A typical MPPI policy will pay up to twelve months mortgage payments in the event of a valid claim, some with no deferred period, therefore offering you “back to day one cover”.  Not all mortgage payment protection insurance policies offer back to day one day one cover so if this aspect is important to you then check the policy before buying. With back to day one cover you will generally need to be off work for 30 days, after this the insurance company will back date your initial payment to the first day of the claim. After this payments will be made monthly in arrears.

The mortgage insurance policy will pay, 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 give you an extra percentage towards other household costs, for instance like life insurance or other mortgage related insurances.

The level of cover you can choose under these policies differs from each provider. Most will allow £1500 per month with some going as high as £3,000 per month. This figure includes the actual mortgage payment and any additional insurance policy premiums you want to protect against accident, sickness or unemployment.

It is estimated that 24% of mortgage payers have Mortgage Payment Protection Insurance, unfortunately sold heavily through their mortgage lenders. The lenders find these products an easy “bolt on” to the mortgage sale; well who wouldn’t purchase a product that good from a Bank or Building Society? Well if you are smart, you would not. The lenders like to sell these heavily commission loaded, generally inferior products at the point of sale, at a time when your mind is on other things.

People forget the golden rule; spend time shopping around before buying.

It gets worse though; the lenders get to make a packet from you on the sale of an overpriced the MPPI policy, whilst simultaneously reducing their exposure to risk. Why? They are involved in a clever cost containment exercise by selling you a policy to make sure that you do not go into arrears with them!  Brilliant idea.

Don’t fall for it; get on the internet, and pick up a quality Mortgage Payment Protection Insurance for a good price from a respectable provider. There are some excellent MPPI policies to choose from with some having received a 5 star rating from Defaqto, this means they provide excellent cover at competitive costs.

©2010 Mortgage Insurance. All Rights Reserved.

UK mortgage payment protection insurance can give you an income which would make sure that you would have the money with which to continue repaying your mortgage and so not get into arrears on the repayments and risk losing your home to repossession. You cannot rely on the income that the State offers as even if you do qualify for the help it usually isn’t enough to give the peace of mind that UK mortgage payment protection insurance can give – providing you are eligible to claim of course.

The UK mortgage payment protection insurance cover would begin to give you an income so that you could pay your mortgage repayments each month once you had been out of work for a certain length of time and this can vary from provider to provider. Cover can begin to pay from the 31st day of being out of work but it can be as long as the 90th day before the cover kicks in. However the majority of UK mortgage payment protection insurance policies will be backdated to the first day of coming out of work.

The cover will continue to payout and give you peace of mind and security for up to 12 months although some providers will pay for up to 24 months.

Exclusions which are common to all policies and which could mean that a UK mortgage payment protection insurance policy wouldn’t be suitable for your circumstances include if you are only in part time employment, if you are retired or if you have suffered from an illness within the past 2 years. You do have to make sure that you check out the small print of UK mortgage payment protection insurance policies as they can differ slightly from provider to provider and the best way to buy the cover is with a specialist provider of payment protection.

Simon Burgess is Managing Director of the award-winning British Insurance, a specialist provider of uk mortgage payment protection insurance, loan protection insurance and income protection insurance.

©2010 Mortgage Insurance. All Rights Reserved.