Mortgage borrowers get more time before repossession

The Chancellor yesterday provided a lifeline to those homeowners who are struggling to meet their mortgage repayments. He confirmed that some of the biggest mortgage lenders had agreed not to repossess properties until at least 3 months after borrowers first go into arrears.

Alistair Darling said that repossession would only be sought as a last resort after other alternatives. Many lenders will accept an arrangement to pay whereby the borrower enters a formal agreement to pay less than the required amount for a certain period of time. Whilst this does not remove the mortgage arrears problem, it does provide some time.

45,000 homeowners are expected to be repossessed by the end of 2008, with increasing unemployment partly contributing to the rise. Many economists have predicted that unemployment could rise to more than three million by 2010 and the number of mortgage borrowers in arrears is expected to reach around 200,000 by Christmas 2008.

The Council of Mortgage Lenders (CML) said that not everyone would be protected by the three month “moratorium” on repossessions because only a handful of lenders had agreed to implement it. Sub prime or buy to let mortgages from smaller lenders could still be repossessed within three months.

More people than ever are now looking to protect themselves in the event of redundancy or unemployment and sales of redundancy insurance are rising. These types of mortgage protection policies or income protection policies will pay a fixed amount each month in the event of redundancy, up to a maximum of 12 months. Click here to view redundancy insurance policies.

Can morgage insurance help in these difficult times

The financial world is in turmoil and many people now more than ever are questioning how safe their job is.

Redundancy causes not only financial problems but emotional issues as well. If you have a morgage then will be rightly concerned over how you will maintain the monthly payments. By taking out a morgage insurance policy you will have helped to prevent the stress of paying your mortgage whilst being unemployed and without a regular income. Morgage insurance policies are designed to payout a monthly tax free amount to help maintain your mortgage while you are out of work.

Mortgage payment protection insurance or MPPI can offer cover of upto £3000pm in the event of an accident, sickness or unemployment. Typically they will payout the insured amount for a maximum of 12 months while you get back on your feet.

If you are worried about paying your mortgage if redundancy strikes then having some morgage insurance cover will certainly help in a most difficult time.

Where to find mortgage repayment insurance

Where can you find mortgage repayment insurance?

Mortgage repayment insurance will protect your monthly mortgage payments from a period of unemployment due to incapacity or redundancy. Mortgage repayment insurance can be obtained from a variety of sources including your mortgage lender.

Mortgage payment protection insurance or MPPI is rarely good value if bought from your mortgage lender. Whilst the MPPI policy might provide a good level of cover the premiums are not generally competitive.

Buying mortgage repayment insurance from an independent company will give you greater choice of cover and premiums. It also has the added advantage that your mortgage insurance policy is not tied to your lender. These independent mortgage repayment insurance policies compete on price and cover and so need to have excellent overall benefits for you. They also do not include huge commissions that the mortgage companies demand.

Mortgage repayment insurance policies provide a tax free monthly benefit when you claim, a lifeline when your income stops due to sickness or unemployment. For more details on the Mortgage repayment insurance we offer please visit our MPPI insurance page here: http://www.enhancedwealth.co.uk/asu/mppi/index.htm

Mortgage unemployment insurance

Mortgage unemployment insurance is also known as mortgage payment protection insurance or MPPI. These types of policies are used to protect your mortgage payments against accident, sickness or redundancy (unemployment). Should the worst happen then at least you know the monthly mortgage payments are taken care of for up to 12 months. This gives you time to get back on your feet.

You may already have a mortgage payment protection insurance policy or you may be offered one by your mortgage company. Before committing yourself take a moment to review what’s on offer. Mortgage lenders make a lot of money by selling Mortgage unemployment insurance policies and their cover is rarely the best. In addition, the premiums are not always competitive due to high levels of commission.

You are perfectly entitled to search out the best Mortgage unemployment insurance for yourself and buy this as an independent policy. This leaves you with the best cover and the flexibilty of having a mortgage that is not tied to an MPPI policy.

For more information please visit http://www.enhancedwealth.co.uk/asu/mppi/index.htm

Mortgage payment protection insurance - Are you covered yet?

Mortgage payment protection insurance is designed to protect your mortgage payments in the event of accident, sickness or unemployment. There are many policies that cover accident, sickness or unemployment together and they are commonly referred to as ASU policies.

Where ASU policies are designed to cover a mortgage there are some differences. A mortgage unemployment insurance plan can protect the monthly mortgage payment as well as other regular household expenditure. You can increase the cover amount by 25-30% to include other important home insurances.

In these uncertain times it makes sense to insure and protect your income against the worst. A mortgage payment insurance policy provides just that protection. If the worst does happen then the MPPI policy will maintain your mortgage payments for up to 12 months, giving you time to get back on your feet.

We offer Mortgage payment protection insurance from British Insurance and their Mortgage payment protection insurance policy has a five star rating from Defaqto, it also allows you to insure upto £3000 per month. This excellent policy also offers age related premiums and back to day one claims.

If you would like to find out more then please visit http://www.enhancedwealth.co.uk/asu/mppi/index.htm where links to the free quote and full policy details are available.

Get your mortgage payment protection insurance today

Ask yourself these following questions. What is the single most expensive thing you have ever purchased? What is the single most important thing for you to continue living a comfortable life? What has been the most serious investment you ever made? For almost everybody the answer to all three of these questions will be the same, their home. So if we have identified that for most people, their home is the most valuable asset in their lives, how come so many people neglect to protect it sufficiently? Mortgage payment protection insurance (MPPI) is available cheaply and easily from a whole range of sources, so why do people still refrain from insuring their home?

In the UK, statistics gathered over the last three decades show us that: Three out of every ten people will suffer from a serious illness leaving them unable to work for an extended period. Four out of ten people will find themselves unexpectedly unemployed for a period of six months or more. One in one hundred people will be the victim of an accident so severe that they will never be able to work again. For most people who confront these situations without mortgage payment protection insurance it means one thing only, the repossession of their home by the establishment that furnished them with a mortgage.

There really can be no reason why any home owner does not take out some form of mortgage payment protection insurance, it is neither costly nor difficult to acquire. Typically you will be protected for anything from 12 months up to 24 months should you fall unemployed or suffer a long term illness, and in the case of a bad accident, you may find that your mortgage will be paid off in full, although this very much depends upon the nature of the accident and the quality of your mortgage payment protection insurance policy.

A series of letters are used to define a mortgage payment protection policy. A is used to signify accident cover, S is used to signify sickness cover and U is used to signify unemployment cover. The most common form of mortgage payment protection insurance is therefore known as an ASU, although it is quite possible to obtain cover for just accident and sickness (AS) or any other possible combination if you already have an active insurance policy covering you in one or more areas.

We live in unstable times, anybody who has made a major effort and capital investment to buy  their own home, needs to take mortgage payment protection insurance seriously. There is no reason for anyone to lose their home should they become unemployed, fall sick or be involved in an accident, when modern mortgage payment protection insurance products are well priced, increasingly consumer focused, and available to almost anybody through a simple application process. If you require more information about mortgage payment protection insurance, you should speak to your insurance broker, who will be able to offer best advice and help you obtain the right protection for your home.