Could You Benefit From The Safety Net UK Mortgage Payment Protection Insurance Provides?

Posted by Nick Niesen on October 29th, 2010

If you should lose your income then you could be left with a big struggle on your hands when it comes to meeting your monthly mortgage repayments if you should find yourself out of work due to having an accident, sickness or be made unemployed. If the product is suitable then UK mortgage payment protection insurance could give you the income needed so you would not be left struggling or worrying.

Mortgage payment protection insurance (MPPI) could mean the difference between you losing the roof over your head and unfortunately many homeowners think that the State would be able to step in and help. While you are able to get help from the State, the financial assistance that you may be entitled to is often very little and cannot be relied upon. Providing a policy would be suitable for your needs then it can make a huge difference and be a valuable safety net on which to fall.

UK mortgage payment protection insurance is offered when you take out the mortgage and while you might think this is the easiest way to take the cover it is not the cheapest by any means. In fact the Competition Commission has recently announced that they are doing everything in their power to take a look at the high street lenders books. It is thought that the high street lenders are making up to 80% profits on selling mortgage and loan payment protection. If you want to make huge savings on mortgage cover then you have to take out the cover with an independent specialist provider.

Independent specialist providers offer cheaper premiums along with making sure that they give you the key facts needed so you are able to determine the policies suitability. Common exclusions in all policies include being of retirement age, if you only work part time, are self-employed or suffer from an ongoing illness at the time of taking out the cover. Exclusions can be added by the provider so you will have to read the small print defined in the terms and conditions before buying.

A quality UK mortgage payment protection insurance policy could begin to give you a tax free income once you had been out of work for between 31 and 90 days and continue for 12 to 24 months depending on providers. Again you have to read the terms and conditions to determine when cover would begin and end and when comparing premiums you should also compare key facts as they can differ. One of the biggest benefits besides saving you money is the experience that a standalone provider can give; a lack of experience is what led to the majority of mis-selling and problems for the payment protection sector.

Although there are many problems including a lack of information and high street lenders charging huge premiums this could soon change with the comparison tables being introduced in March 2008. The tables should help consumers to decide if UK mortgage payment protection insurance is suitable and will highlight the exclusions and tell the consumer how much the cover would cost.

Nick Niesen

About the Author

Nick Niesen
Joined: April 29th, 2015
Articles Posted: 33,847

Fold - Earn free bitcoin when you shop
Earn bitcoin cashback rewards when you shop at top retailers, including Amazon, Uber, Starbucks, Chipotle, and more. Download the app, sync your payment method and start earning bitcoin today!
Claim 1 FREE Stock! No Purchase Necessary!
You have a 100% chance of receiving one free stock! Click to claim and have a chance to get one share of Facebook, Visa, Microsoft and others for free!
FREE App - Earn up to 25/gal cash back on gas!
Download this FREE app and earn cash-back when you buy gas, groceries and food! 100% FREE to join and FREE to earn cash back on your everyday purchases!
Quality Office Furniture USA Shipped Direct - Madison Liquidators
Nationwide vendor of quality office furnishings including Desks, Office Chairs, Conference Tables, Cubicles and more!
Earn HNT Tokens with a Helium Hotspot!
Pre-Order a Helium hotspot and earn HNT tokens that are redeemable for USD. Set it and forget it!
Lolli: Earn Free Bitcoin When You Shop Online!
Lolli is a rewards application that gives you bitcoin for shopping at your favorite online stores.