Mortgage Payment Insurance - Can You Really Do Without It?

If your income stopped for any reason – redundancy, illness, accident – would you be able to keep paying your mortgage?  Without mortgage repayment insurance, quite possibly not.

At the moment, with more and more businesses folding and more and more jobs being lost, this is a real issue.  Can you be sure you won’t be next?  If your employer goes bust, you may well not even get a redundancy payment.

Up until recently, many people were very wary of mortgage repayment insurance. It was often mis-sold or turned out to be a waste of money.  However, the government has forced a shake-up in the mortgage repayment insurance market, and now there are minimum standards that policies must meet or exceed.  You can now buy a policy with much more confidence that it will be suitable for your requirements.

So who are the people who should especially consider mortgage repayment insurance?

• You may have stretched yourself financially with your mortgage – many people in the past decade have been forced to do this in order to get on the property ladder at all. 

• You may have little or no equity in your property.  In fact if you originally borrowed a high loan-to-value amount and the value of your property has now fallen, you may well have negative equity.  If you suddenly lost your income, there would be no possibility of remortgaging to tide you over.

• If you are employed in a sector where demand is falling, or that is dependent on demand in other areas of the economy, you do need to take precautions against possible loss of income.  For instance, the automotive sector is reporting considerable reduction in demand.  If a local car manufacturer goes out of business or reduces output, this will affect dozens of other supplier firms in the area.  In turn this will affect other companies such as travel firms who are dependent on high employment for their own level of demand.  It’s no good waiting until there is an actual threat to your own job before taking out mortgage repayment insurance – it will then be too late.

• Does your employer have a proper sickness payment policy in place (i.e. one that continues to pay all or part of your salary when you’re off sick)?  If you’re not sure, ask – you’re entitled to know.  Talk to the Human Resources department or your union representative.  State sickness benefit will certainly not cover your mortgage payments, so if you won’t get sick pay you need insurance.

Remember you don’t need to get the mortgage payment insurance from your mortgage lender.  A standalone policy is likely to be more suitable and you should be able to find one to fit your individual requirements.  Talk to a broker who will help you shop around and find one that will give you value for money – and, of course, peace of mind!

Do first time buyers need mortgage payment insurance?

First time buyers are a rare breed in these current times. But do first time buyers need mortgage payment insurance?

The answer to this question is very much a personal one but first time buyers are generally more stretched financially than existing homeowners. After all they not only need to purchase the property, they need to pay the fees and also buy furnishings and white goods etc..  Additional funds such as savings to fall back on in hard times will have been spent.

For this reason it would make sense to consider mortgage payment insurance. Mortgage payment insurance will provide a tax free amount of money each month in the event of accident, sickness or unemployment. This money will help to pay the mortgage and other mortgage related insurance until employment is restored. Mortgage payment protection insurance or MPPI need not be expensive. Shop around for the best price and the best cover. Buying morgage insurance from a lender tends to be more expensive than purchasing an independent MPPI policy.

We offer mortgage payment insurance from British Insurance which has a 5 star Defaqto rating for quality of cover and prices. To view this policy please follow the link here: http://www.enhancedwealth.co.uk/asu/mppi/index.htm

Mortgage Payment Insurance

You have bought your dream home and have been granted a mortgage to finance the purchase; things are going well in work so the repayments won’t be too much of a problem, besides you got a great deal thanks to a mortgage broker.  Have you ever wondered what it would be like if things suddenly took a turn for the worst?  It is impossible to predict the future, no-one is invincible and no-one is 100% guarded against redundancy.  If you suffer an accident or fall ill which leaves you unable to work, income support is very unlikely to be as much as your wage.  If you are made redundant, unless you find a new job which does not happen overnight, you will only be earning job seekers allowance.  How will you pay your mortgage repayments is any of the unfortunate incidents above happen?

There is a way you can protect yourself against mortgage payments if you are unable to work due to injury, illness or redundancy.  The mortgage payment insurance will pay the monthly instalments on your behalf for a specific period of time.  Taking out a mortgage payment insurance policy will help with preventing serious debt, bad credit rating and general stress or worry.  You can take out mortgage payment insurance either with your mortgage company, or separately from one of the numerous financial companies who offer the service.  It is highly advisable to shop around for the best deal and a mortgage payment insurance policy which will fit your needs perfectly.  Most people think that it’s always the case that mortgage payment insurance policies are expensive, whilst this is true in some cases, there are some great deals to be had, and it’s all about finding them.

Mortgage payment insurance can also be known as mortgage payment protection insurance or MPPI.  They can be complicated to apply for and seem unnecessary, but there is no harm in asking for help with understanding all the aspects of MPPI’s.  For people who don’t bother with mortgage payment insurance, they are at high risk of getting into bad debt if they lose their job for some reason and cannot afford the mortgage repayments.  Even if they only lose their job for a short period of time, it can seriously affect one’s finances.  Mortgage payment insurance policies are available from high street banks, specialist finance firms and online financial companies.

Enhanced Wealth offer an award winning mortgage payment insurance policy from British Insurance. Full details are avaialable here http://www.enhancedwealth.co.uk/asu/mppi/index.htm

Mortgage Payment Insurance Why Do We Need It?

A person’s home is the most major purchase they will ever make in their lives. If we consider this singular statement we can see why it not only makes sense to take up an offer of mortgage payment insurance, but that it would also be foolhardy not to protect such a valuable possession as your home.

The UK has witnessed an ever increasing amount of repossessions each year over the last decade, with owners of the properties being repossessed defaulting on their mortgage payments, as the banks wait greedily to claim them. Many cases of repossession could have been avoided if the owners had possessed sufficient mortgage payment insurance. With the western economy becoming more unstable each passing year, and job security and consistent income no longer a foregone fact of life, nobody can afford not to protect their home by buying a good level of mortgage payment insurance.

Unexpected things happen in life, and none of us can be sure what is going to occur tomorrow. Ensuring that your home remains your home through whatever life may throw at you, is going to be the single most conscientious financial decision you will ever make. Mortgage payment insurance is fairly low cost; there really can be no reason why everyone does not protect their property by having an adequate level of mortgage payment insurance.

What is Covered by Mortgage Payment Insurance?

Mortgage payment insurance will usually cover the policy holder for three separate situations. The policy is sometimes referred to as an ASU (Accident, Sickness & Unemployment) policy for a good reason. Accident cover is supplied, so that if were are to fall foul of a life changing accident, then your mortgage payments will be made for up to 12 months. Next we have a portion of sickness cover, this is in place to provide you with protection if you are suddenly taken ill and are unable to work or generate income. Lastly the policy will cover unemployment, ensuring that your mortgage payments are maintained if you have no work.

Every mortgage payment insurance policy will be offered with a selection of claim periods, most normally 12 or 24 months will be made available. This is the maximum duration that a single claim will be paid for. Usually, there will also be a 30 day waiting clause, meaning that you cannot make a claim for the first 30 days of sickness or unemployment, although most companies offer a “back to day one” facility, where your claim will be backdated to the start of the 30 day waiting period once your claim becomes active.

In recent years the mortgage payment insurance market has become increasingly competitive, and many full featured and aggressively priced products are now available. Many will have added additional features to increase the overall value of the policy, in an attempt to bring something new and fresh to the marketplace.

Enhanced Wealth offers a Defaqto Five Star Mortgage Payment Insurance.