Cheap mortgage protection insurance can save the roof over your head
- 3RD NOVEMBER 2007
Providing that you are aware of the exclusions that exist in all mortgage payment protection insurance (MPPI) policies, cheap mortgage protection insurance can provide you with an income if you should find yourself unemployed by such as redundancy, if you are sick or if you should have an accident which causes you to be off work.
Cheap mortgage protection insurance can begin to provide you with a tax free income that pays enough to keep meeting your monthly mortgage repayments and related outgoings such as insurance once you have been out of work for a set period of time. The time you have to be out of work varies with providers, for example standalone specialist in payment protection British Insurance will begin to payout once you have been out of work for 30 days or more and would continue to give security for up to 12 months. However some providers won’t pay out until you have been out of work for anything up to 90 days and can continue payout for up to 24 months.
An ethical provider will make sure that you have access to the essential information and key facts of a policy which allows you to make an informed decision regarding the suitability of a policy before you buy. Cheap mortgage insurance can sometimes be confusing and this has led to the product being mis-sold, something which the Financial Services Authority highlighted after a super complaint to the Office of Fair Trading by the Citizens Advice in 2005.
The Financial Services Authority outlined the changes that needed to be made when selling the product and while some firms have taken heed many are still falling short, in fact in recent months it was announced that payment protection complaints have more than doubled over the last few months despite the investigation by the FSA and ongoing review by the Competition Commission.
Fines have been handed out to several firms who were found to be mis-selling payment protection of which mortgage payment protection is just one. The majority failed to give the consumer the information needed at the time of taking out the cover and failing to make the consumer aware that they had the right to shop around for the cover with a standalone specialist provider. With the bulk of mortgage payment protection insurance being sold alongside mortgages and the product making billions in profit for the high street lender every year who charges way over the odds for the cover, consumers should get quotes from specialist providers.
British Insurance for example can save you up to 40% on cheap mortgage protection insurance while providing you with a quality product and all the information you need to ensure that a policy is suitable for your needs. There are exclusions in all policies with the most common being if you are self-employed, retired, only work part time or suffer from a pre-existing medical condition at the time of taking out the policy. Of course there can be more and it is essential that you do read the small print of a policy before signing on the bottom line, cheap mortgage protection insurance can be a safety net on which to fall but only if the product is suitable for your needs.
