|Mortgage Payment Protection Insurance
Buying a house is one of the biggest investments you are likely
to make in your life. Your mortgage lender is likely to insist
that certain insurance policies, such as buildings insurance
and life insurance are taken out before they lend you the money.
This is to protect their investment. It should naturally follow
that as the owner of the house you wish to insure your investment
and the money you owe on your debts. However, the latest figures
from the Council of Mortgage lenders show that only a fifth
of all homeowners have mortgage payment protection insurance!
Predicting the future is impossible, but you can put contingency
plans in place to reduce the impact of an unexpected event
occurring. For example, it is difficult to predict if you
will become unemployed or suffer a serious injury preventing
you from working.
Mortgage payment protection insurance will enable you to
meet any financial commitment during an enforced period of
unemployment (usually up to one year). Payments are limited
to this term to ensure that you have suitable enough motivation
to return to work! It is important to note that for your claim
to be successful, you cannot have any foreknowledge of your
Many homebuyers are still caught in a time warp believing
the State will help with any payments during a period of unemployment.
Since October 1995 new mortgage borrowers have received no
State help for the first nine months of unemployment or disability.
Existing mortgage borrowers receive nothing for the first
two months, 50% for the next four months and then full benefit
for mortgages of up to £100,000 provided they qualify
for Income Support. The Government themselves estimate that
70% of mortgage borrowers will not get Income Support due
to their level of savings, their income, or because they have
a working spouse or partner.
The message is clear; don't rely on the State and make your
own provision for your debts on your investment.
The insurance products and services mentioned on this page
are introduced by Insurancewide.com Services Ltd, which is
authorised and regulated by the Financial Services Authority.
service is subject to its terms and conditions.