Buying low cost mortgage payment protection
- 17TH MAY 2007
The staggering figures of the number of people who find themselves unable to cover the repayments of their mortgage are rising, which means millions are risking losing the roof over their head. Certainly, the recent hike in mortgage interest rates means that homeowners are tightening their belts more now than ever.
The number of people who find themselves out of work for one reason or another is on the rise too, which is a frightening thought in today’s debt-heavy society.
And while no one can predict the future, there is something homeowners can do to give them a little security - mortgage payment protection insurance (MPPI). This is a private insurance that can be taken out to safeguard your monthly mortgage repayments should you find yourself out of work due to accident, prolonged sickness or unforeseen unemployment.
Despite the premiums you may se advertised in high street banks and by lenders, Mortgage payment protection insurance doesn’t have to cost an arm and leg, not if you shop around for the best deal. Unfortunately, many consumers are unaware that hen taking out a mortgage, they do not have to purchase their lender’s product. It is not compulsory, despite what may be implied.
You can save up to 40% on your premiums simply by going with an independent provider such as the ethical British Insurance. Simon Burgess from the company warns the consumer to be aware of the banks when it comes to taking out mortgage payment protection saying that “the banks are notorious for their grossly over priced premiums and mis-selling policies which people cannot claim on” and urges homeowners to shop around for their protection.
