If you look online you are able to find a cheap mortgage protection quote which with some providers could mean you make savings of as much as 40% on the premiums. Lenders will usually offer you cover for your mortgage repayments but this can be one of the dearest ways of taking out the protection. When you take your policy with the payment protection specialist you not only make savings but also have options regarding your protection.
One of these options is how much of your mortgage repayment you want to protect. The amount you choose to cover, which the provider pre-agrees to, is the amount that is given back to you if you need to make a claim. You would have to wait for a period of time before putting your claim in with the provider and this can be between 30 and 90 days of unemployment or incapacity.
You would then have a certain amount of time during which you would receive a payment each month and this will either be 12 months or 24 depending on the terms offered. When the cover reaches its term it then ceases regardless of whether you have got back to work or have made a recovery.
If you were to take mortgage cover that is offered by the lender you would not be given a mortgage protection quote. Instead the lender will usually work out how much the protection would cost over the full term of the mortgage. This amount is then generally added into the mortgage which means you would be paying interest on not only the amount you borrow but also the payment protection itself. In this case you could be paying hundreds of pounds more than you need to if you had chosen to take your policy independently.
Mortgage payment protection with the independent provider would also come with the choice of cover needed. While you can take the protection against unemployment and incapacity together you can also tailor this to suit your lifestyle. If your employer pays you a generous amount of sick pay then you might just want to consider covering your mortgage repayments against the possibility of losing your income after being made redundant. However if you are worried about how you would manage if you lost your income after falling sick or suffering an accident then you could just take out protection against incapacity. Providers take this into account when determining how much you pay for the premiums along with your age and the amount of your payment you choose to protect. As the premiums are based on age this means the younger you are when applying the cheaper you get the insurance. An age based mortgage protection quote means that protection is affordable for the younger generation who often stretch their budgets to the absolute maximum.
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