It might be a good idea to think carefully about mortgage protection insurance in Manchester.
The facts of life are simple – if you don’t keep up with your mortgage payments you could easily lose your home. That phrase is often seen printed as a warning but we can all perhaps become a little too familiar with it and forget that it refers to very real situations and possibilities. What are they?
1. If you lose your income through say redundancy or are unable to work through accident or sickness, you may quickly find that you’re struggling to meet your monthly repayments.
2. In such circumstances it is usually advisable to contact your mortgage lender without delay and ask them what if any assistance they can offer.
3. Your lender MAY agree to a period of interest-only payments on the mortgage. Not all lenders will be able to offer this facility. This is the stage where you will probably start to receive the first warning letters relating to arrears and possible repossession of your home.
4. You may also wish to contact the government to see if you are eligible for help in paying the interest-only component of mortgage. The government’s scheme does assume that you do not have significant savings (if you do you will have to use them down to specified minimum level before the government will help).
5. If you are eligible for government help, it will only be a proportion of the interest payments due and you will have to find the balance yourself.
6. At this stage, depending upon how the various parties above have responded and how long the situation has gone on, it is possible that your mortgage lender will commence repossession activities.
As can be seen from the above, the government’s help in these situations may well be limited and come with conditions. You could see your lifetime’s savings being eroded or wiped out as you try to keep the roof over your head or even worse, you may find your home is repossessed.
There is an alternative to all this if you have in place a policy that provides mortgage protection insurance in Manchester.
Mortgage protection insurance in Manchester is one of a family of products designed to help people who have lost their income through no fault of their own. In such situations, your insurance policy could pay your mortgage directly to the lender for a period of up to 12 months or possibly even 24 months in some cases.
The amount payable each month could be as high as 50% of your gross monthly income or 1500 pounds – whichever proved to be the lower of the two figures. This could be invaluable in keeping your mortgage up-to-date, protecting your savings and allowing you to concentrate on finding new income.
Of course like all insurance, mortgage protection insurance in Manchester comes with its own conditions.
One of the most important of these is that as a matter of principle it covers involuntary losses of income only and won’t pay out for situations you have created. If you:
• Resign
• Lose income through pregnancy
• Take voluntary redundancy
• Opt for career breaks or return to education
• Get dismissed (in some circumstances)
Then you won’t be able to claim. To obtain the insurance, you need to be in verifiable permanent employment and working more than a specified number of hours per week. You may also find it difficult to get cover if you are occupied in some forms of self-employment or spend time working outside of the UK.
It’s also not uncommon for these policies to have a qualification period – in other words you may have to have held the policy for 6 or 12 months before you would be able to claim on it.
These policies can protect you against redundancy only or for a little extra you could add cover against sickness and accidents. If you do opt for sickness and accident protection then you may find it more expensive and/or difficult to get this type of insurance if you suffer from an existing serious medical condition.
Policies of this type are often offered for sale by mortgage lenders but their costs are far higher (typically up to 4 times more expensive) than similar mortgage protection insurance in Manchester purchased in the open insurance marketplace.
There are specialist providers of various forms of payment protection insurance that operate on the Internet. Their prices are usually very attractive and their cover will be as good or perhaps even superior to that offered by the mortgage lenders. If you are thinking about mortgage protection insurance in Manchester then it may be advisable to have a quick look at their sites. You may be surprised at how much money you could save and how much peace of mind you could gain.
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