For most people, applying and gaining a mortgage is a highly stressful and daunting experience on its own. When you took out your mortgage you probably heard your lender talking about mortgage insurance protection or mortgage payment protection insurance (MPPI). Most people overlook it however and see it as an added complication and cost without fully exploring what it means and its benefits.
Mortgage insurance protection is an effective way of protecting yourself against the monthly mortgage payments in the event of redundancy, illness or injury. If you are unable to work due to any of the already mentioned reasons, it will become extremely hard to keep up with your mortgage payments without a decent income which was once not a problem. If you have a mortgage insurance protection plan, it will pay the monthly payments for you over a set period of time to allow you enough time to get back into employment and be able to pay the instalments on your own.
You do not have to take out MPPI with the same lender as your mortgage; they may not offer the best deal or service. There are hundreds of companies out there who are all striving for customers in a highly competitive market. It is essential to carry out comprehensive research in order not only to find the best deal but to find the policy which will fit your needs and situation perfectly. When a mortgage insurance protection policy is found, it is essential that you understand all aspects including the small print and the terms & conditions. Also make sure you ask for how long are you covered.
Not many people are in the know when it comes to mortgage insurance, it really could save you from receiving bad credit, going to court and ultimately your home being repossessed because a secured mortgage mean that the lender has a legal right over your property until the full amount has been repaid. Nobody can predict whether they will be suddenly made redundant, have a nasty accident which wasn’t you fault or fall very ill, all of these situations can occur out of the blue and won’t allow you any time to prepare for what will happen if you are not able to pay the monthly payments on your mortgage. Income support benefits or job seekers allowance are very rarely up to the amount of what you used to earn. A mortgage insurance protection policy will help support you and save a lot of distress and worry.