UK Mortgage

UK Mortgage Insurance is a great way to safeguard your self from the uncertainties in life. Mortgage Payment Protection Insurance is designed to protect you from getting into debt or missing the mortgage payments due to unemployment. If you are living in a country like UK mortgage insurance is extremely important to protect your self from getting into ever increasing debt. In case you are not able to make the mortgage payments on account of various reasons like unemployment due to ill health or old age etc, having the Mortgage Payment Protection Insurance or mortgage insurance really helps.

Earlier, the government used to pay the interest on the mortgage if you were unemployed. In the UK mortgage insurance was recommended by the government to the home owners. For millions of people in UK mortgage insurance is now becoming an essential part of their financial planning.

In UK mortgage insurance was brought into the market as a substitute to government help. The intention is to cover the UK mortgage payments in case of non-ability of the insured to make the monthly mortgage payments. Just like any other policy, the insurer has to pay a monthly premium depending upon the mortgage amount. In case of unemployment, the UK mortgage insurance company will make the payments on your behalf. There a many mortgage insurance policies available in the market. Many UK mortgage companies provide you with mortgage insurance. If you want to go for a mortgage insurance of your choice, then you can approach another UK mortgage insurance broker independently.

Choosing the right UK mortgage insurance

There are many UK mortgage insurance policies available in the market. Choose the one that suits your needs and requirements perfectly. A mortgage insurance policy that covers a wide range of circumstances for accepting claims should ideally be picked. The mortgage insurance companies offer all kinds of covers like life insurance, handicap, ailment and severe illness.

The UK mortgage insurance policy should be carefully scrutinized. Read the fine print and understand the terms and conditions of the policy properly. There can be various conditions and clauses under which the mortgage insurance company is not liable to pay. Majority of the mortgage insurance companies do not pay out in the initial three months. Even afterwards, most of the mortgage insurance companies take around 60 days for a payout. So you will have to make arrangements for the mortgage payment during that period. Some UK mortgage insurance companies take around 90 to 120 days for a payout. Such mortgage insurance companies can be avoided.

The Premium

The premium for a mortgage insurance policy depends on the clauses and conditions it has. In the UK mortgage insurance quotes vary from £2.45 to £9 per £100 of the covered amount. The Association of British Insurers recommends a premium of £4.50 per £100 of the amount covered under the mortgage insurance. There are various deals and offers from the mortgage insurance companies all year around so you should do some research work before choosing a mortgage insurance policy.

Some mortgage companies offer a complimentary mortgage insurance policy along with the mortgage. Many people take the offer as they don’t have to pay any premium during the initial period. Although it might be beneficial to some extent, it should not be the deciding factor for choosing a mortgage insurance policy.

Also Read:
Mortgage Payment Protection.

MPPI

UK mortgage payment protection insurance MPPI isn’t the easiest of products to work out for yourself and unless you know the ins and outs of mortgage payment protection insurance MPPI then you could find yourself holding a policy that you wouldn’t be able to claim against in your time of need.

UK mortgage payment protection insurance MPPI is taken out to ensure that if you should come out of work after suffering from an accident, sickness or unemployment through involuntary redundancy then you will still have an income with which to get you through this time without adding stress to an already stressful time.

If you go to a standalone provider then they will ensure that you are given all the essential information regarding the key facts in a UK mortgage payment protection insurance MPPI policy and will also make you aware of the exclusions which exist in all mortgage protection policies.

A UK mortgage payment protection insurance MPPI policy will pay out providing that you meet the circumstances of a policy and it suits your needs. If you are self-employed, retired, are only working part time or suffer from a pre-existing medical condition then you would not be eligible to claim.

If a policy is suited to your needs then it would begin to pay out after you have been out of work usually for 30 days or more. It would then continue to pay out a tax free income for up to 12 months and with some providers for up to 24 months; however you have to check the small print in a policy to ensure that it meets you needs.

One of the biggest reasons when it comes to mis-selling of payment protection is a lack of information and this was the main reason why the Financial Services Authority fined several well known financial organizations after it was found that they didn’t have the consumer’s best interest at heart when selling UK mortgage payment protection insurance MPPI policies. If you want to be sure that UK mortgage payment protection insurance MPPI is right for you then shop around for the best, and the cheapest, quote for you.

Also Read:
Mortgage Payments Vs Rent Payments.

cheap mortgage deals

cheap mortgage deals insurance can give you peace of mind and the income needed to continue repaying your mortgage without worry of losing your home if you were to become without an income. If you were to find yourself out of work due to an accident or becoming ill or if you were unfortunate enough to be made redundant the cover could be a safety net until you got back to work.

The majority of policies would start to provide you with a monthly income which would be tax free once you had been out of work for between 31 and 90 days, this depends on the provider. It would then continue for between 12 and 24 months. While taking out cheap mortgage deals protection can give peace of mind you do have to make sure that it is suitable for your circumstances because there are exclusions.

If you are only working part time, are self-employed, suffering a pre-existing illness or you are of retirement age then mortgage insurance would not be in your best interest. While these exclusions are the most common to all payment protection policies there can be others which are defined by the provider. This means it is essential that you have to read the terms and conditions outlined in the policy before taking out the cover.

Mortgage payment protection insurance (MPPI) and cheap mortgage deals has earned itself a bad reputation along with the rest of the family of protection policies but it is not the actual products themselves which should be blamed. When taken out with the correct information so you can make sure it is suitable for your circumstances a policy will do the job it is supposed to do. Mis-selling of policies occurred due to providers using poor selling techniques with the majority being sold alongside a mortgage. Not only do you not get the information needed but buying cover this way is also the dearest way of buying protection. Problems were highlighted within the sector in 2005 after a super complaint was made to the Office of Fair Trading (OFT) and the Financial Services Authority began an investigation before the OFT referred the sector to the Competition Commission who is currently conducting an in-depth review.

cheap mortgage deals
Some consumers are not even aware that they can take out the cover independently from a standalone provider and shop around for the cheapest premiums. Premiums for the cover are based on the amount of cover you need for your mortgage and your age at the time of taking out the cover but it does vary from provider to provider. An independent standalone provider will always offer cheap mortgage deals protection and should also include the information and key facts of the policy so you are able to determine if it is suited to your circumstances.

Just as the cost of the cover varies with providers so does the exclusions and terms and conditions so it is essential that you compare every cheap mortgage deals protection policy you are thinking of taking out not just for the cheapest quotes. Until the comparison charts appear in March 2008 which should open up the cover and explain the exclusions, the cost of the cover and which cover is most suitable, going with a specialist is your best option.

Also Read:
Private Mortgage Insurance Rights and Responsibilities.