If you lose your job and can't pay your mortgage, mortgage cover could be a financial lifeline if it fits your situation. If you lost your job because of an accident, illness, or being laid off, you might have trouble paying your bills. In the worst case, you could lose your home to foreclosure. However, this doesn't have to happen if you've thought about getting cheap mortgage cover as protection.
Cheap mortgage insurance would give you a tax-free income after you had been unemployed for 31 to 90 days straight. The policy could then keep giving you tax-free money for another 12 to 24 months, depending on the company. You wouldn't have to worry about not being able to pay your mortgage if you had the money. You wouldn't be at risk of losing your home through no fault of your own.
But, like with any insurance policy, you need to read the terms and conditions. All types of payment protection insurance exclude people who are self-employed, retired, have a long-term illness, or only work part time. These are just the most common ones. There could be more, so it's important to read the cover and make sure you know the important facts. The good news is that independent specialists will give you access to this information so you can make an informed decision about how well it fits your needs.
Cheap mortgage cover has gotten a bad name because there isn't enough information about it. This has caused many homeowners to lose faith in the product and leave them without protection. Even though the cover was sold wrong, it's important to remember that the problem is not with the products, but with the people who sell them without the right training. People have policies they can't use because of how they were sold, and most of them were sold along with a mortgage by a high street lender.
It's important to know that the cover doesn't have to be bought at the same time as the mortgage. It can be bought on its own. Buying mortgage insurance at the same time as your mortgage may seem like the easiest choice, but it can also be the most expensive. High street lenders charge high premiums for the protection which can boost up the cost of the mortgage considerably, the high street lender earns around GBP4 billion a year in profits from payment protection cover sold alongside loans and mortgages.
A good independent specialist in payment protection insurance will always put the customer's needs ahead of making a lot of money. They will sell affordable, high-quality mortgage coverage and make sure the person knows what isn't covered. Along with having some of the cheapest coverage, they will also have information and advice about the policies they sell. This makes it less likely that you will be a victim of the mis-selling scandal.
