If you bought your mortgage protection from a high street lender or bank, you are probably paying way too much for it. The good news is that you might be able to get rid of your policy and get insurance from a separate company.
Mortgage protection is a big business, and high street banks and lenders know this. They know this so well that they often sneakily add mortgage payment protection to your mortgage. Some people might try to convince you that the cover is necessary for you to get the mortgage. But it's not required right now, and you can choose to buy it on your own if you want to. Most of the time, the best way to get mortgage protection is from a company that works on its own. They have some of the cheapest policies and high-quality products, and a good provider should give you good advice that keeps you from getting ripped off.
A mortgage payment protection policy is taken out in case you can't work because of an accident, illness, or being laid off. It will pay out for a set amount of time, usually up to 12 months but in some cases up to 24 months. If you haven't worked for about 30 days (or 90 days with some lower-quality policies), the cover will make sure you have enough money to pay your monthly mortgage payments, so you won't lose your home.
Aside from the lower premium rates that a standalone provider charges, one of the best things about them is that they know their business. If you need a loan and want the best rates, you should go to a high street lender. But if the insurance is going to cover the mortgage, it has to be from a separate company.
So, when you go to the bank for a mortgage, you should get the best deal they can offer, but you should also do your research and insist that you will pay for the mortgage insurance cover yourself and go elsewhere. If you don't, you might be paying too much for the insurance on your mortgage.
