You can find cheap mortgage payment protection insurance (MPPI), but you have to know where to look. Coverage that comes with mortgages from a high street lender can add hundreds or even thousands of pounds to the cost of the mortgage that wouldn't be there if you went with a specialist in payment protection products instead.
Cheap mortgage payment protection insurance is something you can get if you want to protect yourself in case you lose your job because of an accident, illness, or something like being laid off. If this happened, you would still have to pay your mortgage, which would add stress and worry at a time when you don't need it. If you get cheap mortgage payment protection insurance that fits your needs, it would ease your stress and worry by giving you a tax-free income after a certain amount of time without a job. This varies from provider to provider, but it's usually between the 31st and 90th day of being out of work, and most insurers will pay from the first day.
The insurance company would continue to pay out each month for up to 12 months, and with some companies, for up to 24 months. You do, however, need to look at the things that aren't covered to make sure that cheap mortgage payment protection insurance is right for you. Some of the most common reasons why you might not be able to make a claim are if you work part time, are retired, or are sick at the time you buy the policy.
When the Financial Services Authority investigated and fined several well-known high street names in recent years, many of the problems were caused by the exclusions. This was before the Office of Fair Trading gave the sector to the Competition Commission. The Competition Commission is looking into the sector in great detail, and their investigation will end in February 2009.
If you want the safety net that cheap mortgage payment protection insurance can give you, get quotes from a specialist and make sure you understand the terms and conditions of a policy before you buy it.
