Mortgage payment protection is a form of insurance that you take out when you become a homeowner and have a mortgage. For example, if you were enable to pay your monthly mortgage repayments due to job redundancy then a mortgage protection policy would protect you in these kinds of situations.
Why should I consider mortgage payment protection?
It is very important that you realise that becoming a homeowner takes a
lot of responsibility and for many this will be your single most valuable
item you are ever likely to purchase. Unlike most purchases where
instant payment ensures you clearly own your purchase.
A property purchase involves payments that are spread over quite a lengthy period and therefore you need to take into account that over that time your individual circumstances could change. The idea behind mortgage payment protection is to involve a mechanism that could help and protect yourself if you are unable to keep up with your regular monthly mortgage repayments.
Falling behind on your monthly payments can have serious consequences, in fact you could end up having your home repossessed.
What does mortgage payment protection cover?
Mortgage payment protection is designed to protect you against unforeseen situations such as illness, losing your job or even an accident the does not permit you to work.
Depending on the exact level of cover you have taken your monthly mortgage payments are paid for by the insurance policy.
Where can I get mortgage protection cover from?
Whilst taking out your mortgage, the provider will normally introduce you
to mortgage protection cover and tell you all about what they have
to offer and the costs involved. It is important to understand that
you are not obliged to take out a policy with the mortgage loan
Mortgage protection cover is quiet a large market in itself therefore many specialist organisations including high street banks and building societies along with brokers will offer you varying types of cover.
Mortgage Payment Protection - Key Considerations
Before you make any firm commitment ensure you have obtained at least 3
like for like quotes where all companies are offering the same level of
protection and benefits. Insurance of this type are quite detailed
and may contain lots of exclusion and special circumstance.
Take your time to digest the small print and fully understand all the terminology. The last thing want is to be facing a situation where the insurer will not pay your monthly commitment due to some technical details that you were not aware of. If in doubt it would be advisable to check with the company that has provided the insurance quote.