A mortgage insurance policy could save your home
- 23RD DECEMBER 2007
With repossessions on the increase it is essential that some thought is given to protecting your mortgage repayments in case you should lose your income. A mortgage insurance policy can give you a replacement income if you should find yourself out of work if you suffered an accident, from sickness or unemployment through no fault of your own.
The cover can give a tax free income each month once it has started, which can be between 31 days of being out of work and the 90th day depending on the provider. Policies can continue to provide an income for between 12 and 24 months, again depending on the provider, but you do have to make sure that it would be in your best interests as there are exclusions which could mean it would not be suitable.
Exclusions usually include being in part time employment, being retired, suffering a pre-existing medical condition or if you are self-employed. While these are the most common there can be others and they are found in the small print, which must be read before buying the cover.
By choosing to purchase a mortgage insurance policy independently from a standalone provider such as British Insurance you can gain access to the information needed to make an informed decision. Along with this you can also get the cheapest possible quote, which with British Insurance can save you 40% when compared with the high street lender.
While a mortgage insurance policy can be taken out alongside the mortgage, the premiums charged by the high street lender are often huge and the policies suitability is rarely checked which is what led to the majority of recent and highly publicised mis-selling. Sticking with an ethical specialist is the best way all-round to be sure you have a quality but cheap mortgage insurance policy which could help to save the roof over your head.
