Have you given any thought to how you would be able to pay the mortgage repayments if you should lose your own monthly income? Many homeowners believe that the State would help them to continue meeting the demands from the mortgage lender. Some rely on savings they have accumulated; however both could be a huge let down. Savings could run dry if you were unemployed or incapacitated for any length of time and State benefits often fall short of the help you think you would get. A better solution could be to take out mortgage protection cover.
With State benefits you would have to meet certain criteria, you would not have to have savings over a certain amount and not have a partner in full time work living with you. Even if you are able to get a payment from them it would only goes towards paying the interest on the mortgage repayment and then only so much of it. You could also be waiting several months before you see any benefit and this could be too long as you would already be in arrears.
With a mortgage payment protection insurance policy you would get a monthly tax free sum that would help towards meeting your mortgage commitments, taking away some of the worry associated of being off work due to redundancy or illness.
Of course mortgage protection cover does also come with some exclusions. However all ethical providers will make you aware of these and allow you to check them on their website. Once you have done this you will then have a policy that will provide the income you insured against when you took out the cover and this will pay up to a pre agreed amount as defined by the lender.
You would have to wait up to a period of time before you would be able to put a claim in on the policy. If you take out a policy with ethical payment protection specialist British Insurance this would be from day 30 of you being incapacitated or unemployed and you would then receive benefit for up to 12 months if it was needed. There may be providers that would extend the payout to 24 months and some might state that you would have to wait up to 90 days before putting in your claim.
The consequences of falling into mortgage arrears could be devastating. If you are unable to reach an agreement with the mortgage lender to pay back arrears and continue paying the mortgage repayments they will take you to court. A repossession order will be given and you would have to leave your home on the date the judge sets. As mortgage payment protection with British Insurance comes with savings of as much as 40% it is affordable. Do not be tempted to take out the protection alongside the mortgage with the lender as you would no doubt have to pay far more for the protection. Often very little information regarding the policy is given which can lead to you not only paying a lot more than you should but also of you having cover you cannot claim against.
If you want a safety net that mortgage protection cover can provide then buy your policy from an ethical standalone payment protection provider.
Related Posts
- Get mortgage protection against unemployment
- You could make savings on mortgage cover if you chose to shop around
- Mortgage protection cover sold online cheaper
- Mortgage protection cover could stop your home from being repossessed
- Mortgage protection insurance UK policies can help you maintain the repayments