A large amount of UK homeowners never consider mortgage payment protection insurance (MPPI) when taking out their home loan. Although MPPI is not compulsory it should be a priority for anyone with a mortgage.
For people who may have stretched themselves financially with their mortgage it is probably even more important to be covered in the event of unforeseen unemployment. Good policies will cover any bills related to your mortgage - including interest and repayments.
The state benefits for people in this situation are limited and they are means tested, so if you have savings you would be expected to use them first. Payouts can also take around 9 months to be made.
A good MPPI policy will start to pay one month after you are out of work (either through illness or redundancy) and typically last for 12 months. The one year period is the time expected to be taken to find other employment or recover fromm illness or injury.
Insurance payments should start once you inform your provider that you are out of work and this is verifed. Payments are usually made directly to your mortgage lender, although in some cases payments are made to the customer.
Due to the variations available on this type of policy please contact us for a personal quote.
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For Mortgage payment protection insurance we offer products from a selected panel of providers.
