Cheap mortgage payment protection insurance needs shopping around for
- 1ST NOVEMBER 2007
Mortgage payment protection insurance (MPPI) had been surrounded by many problems in the past since the investigation began into the sector in 2005. One of the many problems surrounding the sector was the high premiums that were been charged for the valuable cover particularly when taken out alongside the mortgage with the high street lender. However cheap mortgage payment protection does exist if you shop around for it with a standalone provider and one of the best is British Insurance.
Simon Burgess, Managing Director of British Insurance along with many other experts in the payment protection insurance field are still concerned over whether firms in the payment protection sector are learning their lesson despite the intervention by the Financial Services Authority and the current ongoing review by the Competition Commission.
It seems that many, despite being given warnings that they must make the product easier to understand for the consumer at the time of selling the product, aren’t doing so and are leaving the consumer confused which at times has led to mis-selling of the protection.
Many consumers don’t realise how much they will be paying out for the total cost of the cover over the lifetime of their mortgage or realise that there are exclusions existing in all policies that could mean the product isn’t suitable for their circumstances.
Cheap mortgage payment protection insurance can be a great safety net on which to fall but only if you have ensured that the product is suitable for your circumstances and that you can make a claim against it. Providing it is, then a policy protects your monthly mortgage repayments each month if you should find yourself out of work due to suffering from an accident, an illness or if you should be made unemployed through no fault of your own for example by redundancy.
The money is tax free and ensures that you are able to keep up with the mortgage repayments and so aren’t at risk of getting behind and into arrears with the mortgage which could lead to you losing your home.
The majority of policies and the one that British Insurance provides will start to pay out from the 31st day of being out of work but some provider’s will not pay out for anything up to the 90th day. Once the cover has started then it can give you the money each month for between 12 and 24 months depending on the provider, which gives you peace of mind and security. You do however have to check the exclusions in a policy as there are reasons why you cannot claim and the most popular of these include if you are only in part time work, are suffering from a pre-existing medical condition, and are self-employed or if you are retired.
It is also essential that you do read the small print and key facts of any policy you are considering taking out, it is essential also to shop around for cheap mortgage payment protection, British Insurance can help you to make savings of up to 40% on your cheap mortgage payment protection insurance and along with this ensure that you are given the advice you need to determine if a policy is suited to your circumstances.
