Mortgage repayment protection insurance is also know as MPPI and is a form of protection for your mortgage repayments costs in the event of the borrower becoming unemployed or incapacitated. Taking out a mortgage is a big financial long term commitment. If you are in full time employment, most of the time the mortgage repayments are not a problem, but what would happen if you were suddenly made redundant, sick or injured to an extend where you would be unable to work. Without a reliable monthly income coming in, you may default on your mortgage repayments and get yourself into a large amount of debt along with ruining your credit rating. This is where mortgage payment protection insurance (MPPI) comes in.
If you have taken out an MPPI policy whilst in full employment, you will be covered if you become redundant or unable to work due to sickness or injury. The mortgage payment protection insurance will pay the monthly repayment costs of the mortgage. These types of policies give borrowers piece of mind and excellent protection in case anything beyond your control goes wrong. Protecting yourself with an MPPI means your mortgage will not land you in large amounts of debt because of loss of income and your credit rating will not be severely effected which can influence the decision and interest rates of future loan and mortgage applications.
The cost of a mortgage payment protection insurance policy can very greatly depending on the company enquired to and personal circumstances of the applicant. Different companies have different terms and prices on their MPPI policies, this is why shopping around and carrying out extensive research is important. Personal circumstances can also affect the price of the quote; the applicant must decide what percentage of the repayment they want to cover against, this can be up to 100%. Also the amount you need to insure against is a contributory factor towards the price; the amount is calculated by the total monthly mortgage payments. Even a person’s age is taken into account for some MPPI policies making the premiums cheaper for younger lives.
A mortgage carries such financial pressure that if something would happen and you were unable to repay the monthly payments it could lead to a whole host of problems in the immediate and long term future. A mortgage payment protection insurance plan will guard you against the problems and stresses of defaulting on mortgage repayment.
Enhanced Wealth offers an award winning mortgage payment protection insurance from British Insurance. Full details are available here http://enhancedwealth.co.uk/asu/mppi/index.htm