Archive for the ‘Mortgage Cover’

If you are looking for mortgage cover, then there are a number of considerations you have to make to ensure that you get the right deal for you.

However, before we discuss this, what exactly is it?

Mortgage cover – or mortgage payment protection insurance (MPPI) - provides invaluable protection against the financial distress caused by being made involuntarily redundant or being unable to work due to accident or sickness.

Should one of these events happen to you, the mortgage protection policy will step in and provide a tax free amount every month that can be used towards maintaining your monthly mortgage repayments. It can also help towards other mortgage related costs such as life and home insurance and utility bills.

It truly can be a financial safety net at an otherwise difficult time.

So, what do you need to consider when buying the mortgage cover? First of all, you have to read the terms and conditions of the policy you are considering, as they do vary from provider to provider, so always check the small print.

When can I make a claim?

Policy terms vary, so you can typically make a claim from one to three months after you are made unemployed or become too ill to work. Some providers will back date the mortgage cover to the first day of the claim, so you have to check the terms of the individual policy when comparing cover.

How long will I receive the benefits for?

Depending on the individual policy terms and conditions, a policy will pay out the benefits for 12 or 24 months, or when you return to work, whichever event is sooner.

Exclusions

Check out the policy terms and conditions to check that you would be eligible for the cover. There will be some exclusions and these would typically include any physical or mental condition, which you knew of or should reasonably have known about, at the start date.

And if you knew that you were going to be made redundant, again this would not be covered.

Most providers also ask that you have been in permanent full time employment for at least six months before you take out the cover.

People of retirement age would not be covered by most mortgage payment protection insurance policies.

The cost

You might think that taking out mortgage cover is simply another expense you cannot afford or do not need. However, mortgage cover does not need to be expensive.

By shopping around, you can find yourself affordable cover. When bought independently, from a standalone provider such as British Insurance, it can be extremely cost-effective.

Certainly, the price (and policy features and benefits)of mortgage policies do differ depending on where you choose to get a quote from. Historically, the high street lenders will charge more for the cover than the standalone providers. In some cases the difference can be quite a lot so shopping around in order to see what deals are on offer is essential. In the majority of cases, not shopping around could cost you up to 40% more than had you got a quote from a standalone provider.

Independent providers like British Insurance offer award-wining low cost payment protection insurance cover which regularly tops the ‘best buy’ tables of the finance press.

There is little doubt that mortgage cover can provide a financial safety net at a difficult financial time, so as long as you choose yours with care, you can enjoy full of peace of mind knowing that your home is safe no matter what life throws at you.

As things start to get tougher financially some families’ attention might turn to how they can cut a few corners and save a few pennies it in the current climate. More difficult times often mean broader and more creative thinking is needed and examining how assets and commitments are protected is a good start. Mortgage cover is a type of insurance policy which will step in if someone starts to struggle with repayments because they have lost an income through no fault of their own. As an economy slows down, it could provide peace of mind as to what would happen if someone were to be made redundant or lose their job for other reasons.

Also known as mortgage payment protection insurance, this type of product provides someone with cash handouts if they lose their job through involuntary redundancy, injury following an accident, or if they simply fall ill and have to be out of work for a very long period. This is helpful as those who face regular repayments could soon find themselves in difficulty if they were out of work for as little as a month due to redundancy, for example.

Some sick pay packages are also inadequate, and will not stretch to cover someone for over a long period out of action. Mortgage cover involves regular cash payments, tax free, from an insurer while someone tries to get back on their feet. After someone loses their income through no fault of their own they’ll need to make a claim to the insurer who will process it, and if it succeeds, start to pay the cash around a month after their initial claim. Some will backdate the money to the very first day someone was without a job.

It is important to say that a policy will rarely cover 100 per cent of each person’s regular monthly repayments but will instead cover a percentage. This level is agreed at the start of a policy and begins at around 50 per cent upwards. In this sense policies are quite flexible and customers can simply pay a slightly higher premium for a greater level of protection. Payments usually continue for 12 to 24 months or until the policyholder does not need it anymore and gets back into a job.

Getting hold of a policy is quite simple and similar to setting up other forms of insurance cover. However, there is the risk of ending up with a poor value policy, possibly through accepting one which is offered up front by a mortgage lender who is selling you your home loan. Shopping around is as essential with this type of cover as with many other types of product. Consumers might be able to save themselves a considerable sum of money by opting for a more independent firm like protection specialist British Insurance. Company managing director Simon Burgess said: “Mortgage cover can be a vital safety net in more uncertain times. Why not get a quote from us and see just how cheap peace of mind can be?”

Losing your income as a result of unemployment or incapacity could leave you with a huge struggle on your hands to find the money needed to continue meeting the repayments of the mortgage each month. However if you had the foresight to have taken out mortgage cover against these events you would have an income for the duration of the policy to fall back onto.

If you insure a portion of the mortgage repayment with British Insurance, which they would agree with, against unemployment or incapacity they would pay back this sum of money if you became a victim to one of these events. The income would be paid back from the 30th day of you being made redundant or from being incapacitated and British Insurance would date back the benefit to the first day when you became unemployed or unable to work. British Insurance also offer cover for 12 months or 24 months depending on what you need and you can choose the level of protection needed.

While you can choose to protect against accident sickness and redundancy together you could just take out a mortgage payment protection insurance policy for unemployment or for incapacity alone. This would go towards determining the cost of the premiums for the policy along with how old you are at the time of taking it out and the amount you choose to protect up to the amount specified by the provider.

Covering the mortgage repayments with mortgage cover is a far better solution to being able to maintain them then relying on being able to claim an income from the State towards the mortgage repayments? Firstly you would have to be eligible to claim benefits from the State and even if you were you would find that you could only claim money towards the interest of the mortgage. You would only get help with up to so much of the repayment and even then you would have to wait for many months before seeing any money and by this time you could already be behind on the repayments.

The majority of mortgage lenders will allow you to reach an agreement with them to continue paying your mortgage each month while at the same time catching up on the payments missed. However in order to do this you would of course have to have money coming into the home and as you would not know how long you might be unemployed or incapacitated an agreement could be impossible. If no agreement with them can be made they would take court proceedings to have you removed from your home. Even one month of missed payments could be the beginning of problems and the lender would send out a letter reminding you that you have missed a payment. Mortgage cover can prevent any of this from happening and if you take it out with independent payment protection provider British Insurance you would save up to as much as 40% on the premiums.

Meeting the demands of the monthly mortgage repayments is essential. If you should fall into mortgage arrears and be unable to catch up the lender would seek repossession of your home by taking you to court. One way of ensuring that you would have some money towards financing the payments is if you protect the repayments with mortgage cover. A policy would allow you to insure against losing your income due to being involved in an accident, if you fell sick or if you became unemployed by such as redundancy. You would then have something to rely on if the worst should happen and you did lose your own income, at least for the term of the policy.

You take out mortgage cover by pre-agreeing with the provider to insure up to so much of your mortgage repayment and then claim this sum back if you were to become unemployed or incapacitated. The money can make a great deal of difference to you and your family as it would stop you from having to struggle and make drastic cutbacks to try and find the mortgage payment each month.

Mortgage payment protection insurance would begin to provide you with an income once you had been unable to work or were made redundant for so many days and would payout for a period of time before ceasing, dependent on the provider. Leading payment protection specialist British Insurance offer a policy that is dated back to the first day of you losing your income to the events insured and you can claim from the 30th day. Once you had begun to receive an income from the policy you would have 12 months to get back to work or to find another job. Shopping around could reveal protection that would continue paying out for 24 months but you have to read the small print to find this out. You would also have to check the policy to see when you would be allowed to make a claim as with some providers this could be as long as 90 days.

Many homeowners believe that the State would step in and help them to continue meeting their mortgage demands. While some homeowners might be eligible to claim benefit, the income they would receive would only go towards so much of the interest part of the mortgage repayment. At the present time you would also have to wait for several months before making a claim and by this time you could already be in mortgage arrears. Mortgage cover can be a better solution to rely on than turning to using savings as a means of maintaining your mortgage repayments. You would not know how long you would have to turn to savings to get by as it could take many months for recovery or to find work again. At least with a protection policy behind you, you would have the money insured for the term of the policy to fall back onto and this brings security and peace of mind.

Protecting a mortgage with an insurance policy might be a new concept to some home loan borrowers, but to others it is the valuable safety net designed to ensure they stay afloat in the event of a sudden financial crisis. Think for a moment, if you have a home loan, about how you would repay it if you were suddenly out of work through no fault of your own, perhaps due to suffering a long-term illness. People without substantial savings or the guarantee of family support are likely to struggle very quickly and could find the threat of repossession arrives soon after if they fail to get back into a job within a month or so. This why some people opt to pay premiums in exchange for mortgage cover, a kind of financial insurance.

Mortgage cover is also sometimes known as mortgage payment protection insurance (MPPI) cover and is a way of ensuring cash help should someone find themselves out of work through circumstances like accident, illness or involuntary redundancy. Once a successful claim has been made, the insurance provider will begin paying cash sums to the policy holder after an initial 30-day period after a claim, although the initial wait can vary from one provider to another. The financial support will also arrive tax-free and in a bank account in the same way any other kind of transfer or payment would.

The purpose of the cash is to make sure someone can keep up with the payments and face less pressure from the bank while trying to get better or find new employment. It will rarely cover 100 per cent of each monthly repayment but will cover a portion which is agreed at the start of the policy. This will normally be about 50 per cent although more can sometimes be arranged depending on the insurer.

Some flexible and useful policies also include cover for someone should they have to leave work in order to become a full-time carer, perhaps for a loved one who is ill and needs looking after – a useful feature for anyone who feels they would have to give up work if someone close to them faced a long-term lay off. Payments for most policies will normally continue for between 12 and 24 months, or until the policy holder no longer needs it due to returning to work.

Getting a policy is quite simple, although the amount of firms offering forms of mortgage cover can seem baffling. There are the usual high street lenders and high street insurance companies, but cover is also available from the likes of protection specialists British Insurance. Firms like this can sometimes provide cheaper premiums and in some cases can save consumers around 40 per cent on mortgage cover – a big discount on a type of policy which can provide valuable help and support in times of financial crisis.

As with anything you buy if you shop around for it you can make great savings and mortgage cover is the same. Each year homeowners wanting to protect their mortgage repayments pay well over the odds for protection by having it added in with the mortgage at the time of borrowing. If they were to shop around online and take a quote from ethical payment protection provider British Insurance they could save as much as 40%.

A policy can be taken by protecting up to so much of your monthly mortgage repayment, which your provider would pre-agree upon when you take out the policy, against the possibility of being unable to work through accident, sickness or unemployment. This sum of money would then be paid back as an income each month for the term set by the provider.

The income you received would go a long way to allowing you to keep on top of your mortgage repayments and stop you from falling into mortgage arrears. Mortgage arrears can lead to you losing your home if you are unable to come to an agreement with the lender to repay. Most lenders will give you some leeway by allowing you to payoff what you owe as long as you are able to continue meeting the agreed repayments. However without an income coming into the home this would not be possible and they would take steps to seek repossession of your home.

Some providers such as ethical British Insurance will offer mortgage cover with no excess. They backdate the benefit to day one of you being unemployed or from suffering incapacity and allow you to claim from day 30. You would then be secure for 12 months as this is how long British Insurance would supply your income. When shopping around for the protection always check to find out when you would be able to claim as there are some providers that could ask you wait as long as 90 days. You also need to check to find out how long you would receive payments as some providers would continue providing you with benefit for 24 months.

Mortgage cover is a better lifeline compared to relying on State benefits to provide you with the sum to maintain your mortgage repayments. You would have to meet certain requirements set out by the State in order to be eligible to claim and even if you were you would only get a sum of money towards paying the interest part of the mortgage repayment. Currently you would also have to wait for several months before you would see any benefit and by this time you could already have fallen into mortgage arrears. If your safety net is savings then again you should think twice as savings might have to be relied upon for many months and they might not last.

Mortgage cover can be taken out for protection against a loss of income due to unemployment or incapacity. Without an income coming into the home you would have to struggle to find the repayments. With cover to fall back on you would have money coming into the home towards being able to maintain those repayments. You would take out this valuable protection by insuring your monthly mortgage repayment up to the amount specified by the provider which would be pre-agreed upon at the time of taking out the cover.

This would be the sum of money that you got back as a tax-free income, every month, if you should need to make a claim. You would have to wait a period of time once you had become unemployed or were incapacitated and this would depend on the provider. The provider would also state how long the protection would payout before it would cease.

If you were to get a quote with independent payment protection specialist British Insurance there would be no excess as they would back date the benefit to the first day of your unemployment or from you being incapacitated. You would be able to put in a claim after just 30 days and then receive a payment each month for up to 12 months if you needed to claim for that long. If you decided to compare other provider’s terms you could find that some might state you have to wait for at least 90 days before making a claim. You would also have to read the small print of the policy as there are some providers that could extend payments up to 24 months.

Mortgage cover would also have to be checked for exclusions. Ethical specialist British Insurance offer protection that comes with few exclusions but other providers could add in many more. These must be checked against your personal circumstances before taking out the protection as they could stop you from being eligible to claim and so protection would be useless. Once you have determined that you would benefit from taking out mortgage payment protection it would be a safety net to fall onto as a way of keeping the roof over your head.

It is essential that you do not fall into arrears with the mortgage repayments and mortgage cover goes a long way towards ensuring that this does not happen. Just a couple of months of missed mortgage repayments and no money coming in to assure the mortgage lender that you can catch up, and they will take you to court to seek repossession. If the judge sides with the mortgage lender then you could be evicted from your home. Of course you could rely on the State stepping in to provide you with an income to meet the mortgage repayments. You would have to meet certain criteria to be eligible to claim and even if you could claim, the money you would receive would only go towards paying off the interest part of the mortgage repayment. At the present time you would also have to wait for many months before you would begin to see any benefit.

Mortgage cover would allow you peace of mind that your mortgage repayments were insured against the possibility of you losing your income after falling ill or suffering from an accident. The cover would also take away the worry of you becoming unemployed as the result of unemployment and it would mean you would not be left struggling to find the income to service the mortgage each month.

It works by providing a tax free income every month which you can use to help meet your mortgage repayments and any associated costs such as home insurance.
You would save money on mortgage cover protection for the mortgage if you chose to take out a policy independently as opposed to having it included with the cost of the mortgage at the time of borrowing. You would be able to insure up to a pre-agreed amount of your monthly mortgage repayment and this sum would be paid back to you if and when you had to make a claim. The sum of money would go a long way to ensuring that you are able to keep the roof over your head which would allow you to make a recovery without worry of where to find the money or gives you time to search for work.

You would have to wait for a period of time after you lose your job or become too ill to work before you would be able to put in your claim. You would also be paid back for a certain length of time and the cover would cease. Choosing British Insurance for your mortgage cover means you would be able to stake your claim after the 30th day from being unemployed or from being incapacitated. They would back date to day one of you being unable to work or from you being unemployed and would then supply you with an income for up to 12 months if it was needed. If you chose to shop around for the protection then you would have to look into the terms of the cover to find out when it would begin as some providers can state that you would have to be unemployed or unable to work for a period of at least 90 days. You also need to check how long you would be able to rely on the cover as with some providers you might get 24 months cover.

There are many advantages to choosing ethical payment protection provider British Insurance for your mortgage cover. One is that you can save as much as 40% on the cost of securing an income allowing you to meet your mortgage repayments without worry. Another is that you can choose to take out the level of cover most suitable for your needs. You could choose to take protection against accident, sickness and unemployment together. However you could also just choose to protect against unemployment only or incapacity alone. Your age when applying would also be taken into account and this means that the younger you are the bigger savings you would make and cover is affordable for those who have tight budgets due to their huge mortgage repayments.

If you had taken out mortgage cover and became unemployed as the result of an accident, illness or unemployment caused by redundancy then you would not be at risk of losing your home by falling into arrears. You would have an income that was tax-free which would be the sum of money that you insured against and was pre-agreed when taking out the cover. This income would then be used towards you being able to maintain the mortgage payment.

Usually when you take out a mortgage the lender will try to get you to take the mortgage cover with them. This is because selling payment protection products brings them in around £5 billion in profits each year due to the high cost associated with protection from the lender. You are able to get protection for a lot cheaper if you choose to shop around and get your quotes from an independent provider. One such provider is British Insurance who is able to save you up to as much as 40% on the cost of the premiums.

Premiums with British Insurance are based on your age when you apply for the protection, the amount you insure against and the level of protection needed. While you can choose to take out protection against accident, sickness and unemployment you can choose just to cover accident and sickness only or unemployment only, depending on your circumstances. As the policy is age based this means that even younger first time buyers of homes can now afford to cover their mortgages and the possibility of losing them if they fall into arrears.

Arrears are a huge worry and even one missed mortgage payment should be cause for concern. The lender would get in touch with you and if you missed more payments an agreement would be needed to be made to catch up while at the same time continuing with your normal payments. As you have not got an income coming into the home this would be impossible and the next step would be for them to take you to court and seek possession of your home. With a policy behind you this would not happen as you would be able to maintain your mortgage payments.

Mortgage cover with British Insurance would begin to payout an income once the policyholder had been unemployed or incapacitated for a period of 30 days. The benefit would be backdated to the first day of unemployment and it would then continue paying out for up to 12 months. During this time you would be able to concentrate on making a recovery and getting back to work or in the case of unemployment you would have time to search around and find work. When taking on any kind of insurance there are certain conditions that you need to check against your circumstances. These are called exclusions and they can stop you from being eligible to make a claim on the protection. British Insurance supplies this information on their website so that you are able to check and ensure that you would have a safety net to fall back on by way of your policy.

Many homeowners take out insurance for the belongings in their home and also for the shell of their home in case the worst should happen. However many never give a thought to protecting their mortgage repayments with mortgage cover, or mortgage payment protection insurance to give it its full name. Cover in the past has been known to be expensive and of course those who are aware of the protections existence cannot afford to pay the high prices that lenders charge for the protection. Lenders do not make you aware that you can shop around for the cheapest premiums as they make around £4 billion by tagging protection alongside the mortgage. If you choose an independent provider such as British Insurance you will get cover for around 40% cheaper.

Mortgage cover is taken out with the provider by insuring a pre-agreed sum of the mortgage repayment and then claiming this sum back, which is tax-free, if you become unemployed or incapacitated. This sum of money would then be used towards you being able to service your mortgage each month and so you would not be at risk of falling into arrears and losing your home.

Mortgage payment protection is more reliable than risking being able to claim benefits from the State. Even if you are eligible to claim for help with the repayments you would only receive money to go towards the interest part of your mortgage repayment. You would also have to wait for a period of time before your benefit would payout. Mortgage insurance is by no means clear cut; you would have to check some exclusions which the provider should ensure you are aware of. However once you have checked these against your lifestyle you would then have protection that could be relied upon.

You would be able to put in a claim on the cover once you had been unemployed or incapacitated for between 30 and 90 days, 30 days with British Insurance. British Insurance will also pay back the benefit to day one of you becoming unemployed or from being unable to work. The protection would then payout an income each month you were to continue being unemployed or incapacitated for up to the 12 month and with some providers for up to 24 months.

During the period of time you were receiving mortgage cover there would be no worries about you falling into mortgage arrears. You would be able to relax and concentrate on being able to find work again or to make a recovery and get back to earning a living. Mortgage arrears can have a devastating effect on your life and that of your family as in the worst cases of arrears you might be taken to court and the lender could have you evicted from your home. Just by getting into arrears with one missed mortgage payment you would have to catch up and if you did not and continued to miss payment the lender would want to see you and you would have to be able to agree to catch up while at the same time paying your normal payment. If you have not got an income to fall back on then making such an agreement would be next to impossible.