If you lose your job, get sick, or are laid off, you might have a hard time making your monthly mortgage payments. If the product works for you, UK mortgage payment protection insurance could give you the money you need so that you don't have to worry or struggle.
Mortgage payment protection insurance (MPPI) could keep you from losing your home. Unfortunately, many homeowners think that the government could help them out in this situation. You can get help from the government, but the money you may be able to get is often very small and can't be counted on. If a policy fits your needs, it can make a big difference and give you a valuable safety net to fall back on.
When you get a mortgage in the UK, you can get payment protection insurance. You might think this is the easiest way to get insurance, but it is not the cheapest by any means. In fact, the Competition Commission just said that they will do everything they can to look at the books of high street lenders. It is thought that mortgage and loan payment protection makes the high street lenders up to 80% of their profits. If you want to save a lot of money on mortgage insurance, you need to get it from a specialist independent provider.
Independent specialists offer lower premiums and make sure to give you all the important information you need to decide if the policy is right for you. Most policies will not cover you if you are already retired, only work part-time, are self-employed, or have a long-term illness at the time you buy the policy. The provider can add exclusions, so you'll need to read the fine print in the terms and conditions before you buy.
A good UK mortgage payment protection insurance policy could start giving you tax-free money after you've been out of work for 31 to 90 days and keep doing so for 12 to 24 months, depending on the company. Again, you have to read the terms and conditions to find out when coverage starts and ends. When comparing premiums, you should also compare key facts because they can be different. One of the best things about a standalone provider, besides saving you money, is that they have experience. Lack of experience is what caused most of the mis-selling and problems in the payment protection sector.
Even though there are many problems, like a lack of information and high-interest rates from high-street lenders, this could soon change with the introduction of comparison tables in March 2008. The tables should help people decide if UK mortgage payment protection insurance is right for them. They will show what isn't covered and how much it will cost.
