Servicing your mortgage repayments each and every month is a must if you do not want to fall into arrears and risk losing your home to the lender through repossession. One way of protecting against a lost income due to accident, sickness or unemployment is by taking mortgage protection. Cover does not have to work out expensive if you take it with independent payment protection provider British Insurance as they save you as much as 40% in comparison to high street lenders.
Mortgage protection will pay you a tax free monthly income in the event that you lose yours through redundancy or incapacity. The sum of money that you received back from the mortgage payment protection insurance (MPPI) would then go towards your monthly mortgage repayment and this would stop you from mortgage arrears.
If you were to get into arrears by just a couple of months it would mean you coming to an agreement with your mortgage lender to repay what you owe and of course you would be expected to be able to continue servicing your regular mortgage instalments. Without an income coming into the home it would be impossible to make such an agreement so the lender would have no choice but to start proceedings to repossess. In just a few months a judge could issue an eviction date and you would have to leave everything behind. A small premium payable each month with a standalone provider would go towards ensuring that this did not happen.
British Insurance would pay out on your mortgage protection once you had been unemployed or incapacitated for a period of 30 days. They would offer to payback on the protection to day one of you becoming unemployed or from being incapacitated and you would then receive an income for up to 12 months if necessary. If you chose to shop around with other providers and obtain quotes you might find that some would payout for up to 24 months so you would have to check the small print of the cover. You would also need to check when you would be able to make the first claim on the protection as some providers could ask for a period of deferment up to 90 days from you becoming unemployed or incapacitated.
The terms and conditions of mortgage protection would also need checking for you to be sure of being eligible to put in a claim. With British Insurance you can find these on their website. Once you have checked them against your lifestyle you can then take out the cover with British Insurance there and then. You would need to decide which level of protection you wanted to take out and how much you wanted to cover as these would determine how much the premiums would be, as would your age.
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