A specialist provider offers the cheapest mortgage insurance quote
- 13TH OCTOBER 2007
If you want the cheapest mortgage insurance quote then you have to go to the specialist providers and avoid the cover that is offered alongside the mortgage from the high street lender. While it might seem like an easy option to take it with the mortgage lender, it is actually the dearest way to buy mortgage payment protection insurance (MPPI). Also, the high street lender often doesn’t give very much information regarding the exclusions with a policy, so you could end up buying cover that you cannot claim against.
If a policy is suitable then it will provide an income which is tax free once you had been out of work for at least 31 days and up to 90 days, depending on the provider. The cover would then continue to pay an income for up to 12-24 months, so that you can be sure of keeping up with your mortgage repayments even if you aren’t working.
Not only does the specialist provider offer you among the cheapest mortgage insurance quote but they will also give you the advice that you need to know beforehand so that you can make an informed decision regarding the suitability of the cover. Some of the exclusions which exist in most policies include being in part time work, suffering from a pre-existing medical condition, being retired or self-employed.
A standalone provider such as British Insurance offers both the cheapest mortgage insurance quote and comprehensive information; they are headed by Simon Burgess who is considered to be one of the “good-guys” in the sector and is always pushing for the cover to be more open and easier for the consumer to understand.
Simon welcomed the investigation into the sector in 2006 by the Financial Services Authority which then resulted in fines being handed out to several high street names. The sector is in the hands of the Competition Commission at the moment and the inquiry will end in February 2009. However while some changes have resulted because of the investigation, clearly more needs to be done.
Since the investigation - which was mainly aimed at loan payment protection insurance - faith in all policies including mortgage protection has dwindled slightly which has resulted in less people buying mortgage payment protection insurance and leaving themselves wide open to having their homes repossessed if they come out of work due to accident, sickness or unemployment.
Simon hopes that the cover will be explained properly and that consumers realise that loan payment protection and mortgage payment protection are two different things. Mortgage insurance can save the roof over your head and you can get a cheap mortgage insurance quote for this invaluable protection that will work. However, you have to understand the product and British Insurance can help you do to this.
