your repayments if you are involved
in an accident, sickness that affects
work, or are made redundant.
What is Payment Protection Insurance?
Mortgage payment protection insurance, or MPPI as it is sometimes referred to, is a type of insurance policy which covers your mortgage repayments if you are unfortunate enough to be involved in an accident or sickness which affects your ability to work or are made redundant.
With this type of payment protection insurance, you can often cover an additional 25% of your mortgage repayments to cover other expenses such as bills and, if a claim should arise, you’ll receive a monthly payment for up to either 12 or 24 months, depending on the insurer and the policy.
If you are looking to purchase mortgage payment protection insurance, it can be beneficial to speak to a trained professional who can help you find the right policy – Town & Country Mortgage Services have a specialist team of brokers who can advise you.
Payment protection insurance which caters specifically to your mortgage payments provides peace of mind that your mortgage will continue to be paid, even if you’re unable to work as a result of unforeseen redundancy, illness or injury.
MPPI provides flexibility depending on the type of risk you want protection from. You can protect yourself against the risk of illness, injury or redundancy as standalone policies, or you can combine them.
It’s also worth noting that mortgage payment protection cover, and mortgage life insurance are different products. MPPI is designed specifically to pay out a sum of money each month that is the equivalent of your mortgage repayments if you are unable to work because of losing your job, through no fault of your own, as a result of an accident or if you become ill. These payouts typically last for a short period, such as 12 or 24 months. Your policy will then come to an end. Mortgage life insurance is designed to pay out a single lump sum that is the equivalent to your outstanding mortgage balance if you should pass away. *Payment Protection Insurance is optional. There are other providers of Payment Protection Insurance and other products designed to protect you against loss of income.
Why Do I Need Payment Protection Insurance for My Mortgage?
Mortgage payment protection insurance isn’t compulsory if you get a mortgage, but there are many reasons why it’s valuable to purchase a policy that protects you. With one in four people estimated to have less than £500 in savings for emergencies, making a mortgage payment could be impossible for many people if they suddenly find themselves without a consistent income.
If you think that you would struggle to pay your mortgage for a long period of time if you were put in a difficult financial situation, then a mortgage payment protection policy could be beneficial to you. A broker, such as Town & Country Mortgage Services, can help you find the right policy for your needs and circumstances.
Speak to one of our award-winning mortgage advisors
The cost of this type of cover can vary considerably between insurers and is based on a range of factors, such as your age, how much cover you need, and the length of cover you require. It’s a great idea to work with professionals who can provide insight and advice.
Whether you’re buying your first home and getting your foot on the property ladder, or you’re moving home and taking on a larger mortgage to fund your move, mortgage payment cover can protect you. As mortgage payments are the biggest expense most people need to make each month, it’s wise to have protection in place to ensure you’re not struggling to make those payments if you lose your income.
Town & Country Mortgage Services are brokers who can offer comprehensive advice to help you choose the right insurance for your circumstances. We have many years’ expertise in this industry, and we have access to the whole market, so we’re able to help you find the right deal. We have a separate insurance team within the business, so the advisors you speak to will be experts who fully understand the process of applying for mortgage payment cover and how to best assess your situation.
If you want more information or you’d like to speak to a member of our team to purchase payment protection insurance for your mortgage, contact us today.