Cheap mortgage insurance can be found with a specialist provider
- 24TH OCTOBER 2007
Protecting your mortgage against coming out of work due to suffering from an accident, sickness or through unemployment of no fault of your own is a great idea if a policy would be suitable for your needs and if you want cheap mortgage insurance then you have to shop around and take the cover from a specialist in payment protection.
Cheap mortgage insurance (also known as ASU insurance as it covers you for accident, sickness and unemployment) can be taken out to safeguard your monthly mortgage repayments and this can give great peace of mind that you wouldn’t be left struggling where to find the money and would assure that you wouldn’t be at risk of repossession.
The cheap mortgage insurance policy would give a tax free income which would begin after you had been out of work for the pre-determined length of time which can be anything between 31and 90 days. Once the policy had begun to pay it would continue to do so for up to 12 months and with some providers for up to 24 months, depending on the terms and conditions of the cheap mortgage insurance cover.
Simon Burgess of British Insurance – a standalone provider of cheap mortgage insurance – says that it is essential that you check the key facts of any policy along with the exclusions because they could mean you wouldn’t be eligible to claim. He warns the consumer that the product does contain exclusions: “Some of the most common include if you are of retirement age, only work part time or if you have suffered from an illness within the last 2 years.” There are others and this is why British Insurance gives you access to the small print and the exclusions so you can decide if a policy is suitable for your circumstances.
It was the lack of knowledge regarding a policy that led to the mis-selling of payment protection policies in 2005 when the Office of Fair Trading received a super complaint from the Citizens Adviceand the Financial Services Authority began an investigation into the sector which ended in several high street names receiving fines before the referral of the sector to the Competition Commission. They are currently conducting an in-depth inquiry into the sector which will reach completion in February 2009.
“Therefore” says Simon “always be fully informed before buying your cheap mortgage insurance”.
