Mortgage cover is not compulsory
- 23RD DECEMBER 2007
While mortgage cover is not compulsory it can help to save the roof over your head if you should be unfortunate enough to come out of work after suffering from an illness, accident or unemployment brought about by no fault of your own.
If you were to lose your income for any length of time it could leave a strain on your finances and the State cannot be relied upon to give you the money needed to continue repaying your mortgage. Even if you had them, any savings would soon dwindle down. However providing you had checked to ensure mortgage cover would be suitable for your needs it can give you an income once you have been off work for a certain period of time.
The time you have to wait is set out in the terms and conditions of the policy, with specialist payment protection provider British Insurance this is from the 31st day and a tax free income would be yours each month for up to 12 months. Some providers do extend this to 24 months but may ask that you are out of work for anything up to 90 days before payout commences.
It is important to remember that the mortgage cover is not compulsory and does not have to be taken out at the time of taking out the mortgage with the high street lender. In fact taking out the cover independently is the cheapest way to buy the cover.
British Insurance are one of the most ethical providers who not only offer mortgage cover that saves you up to 40% on the premiums but they also give you all the information needed so you can make sure a policy is suitable due to the exclusions.
Common exclusions in all mortgage cover include being self-employed, suffering a pre-existing condition, being of retirement age or if you are only working part time. However you do have to watch out for others based on the provider so always read the small print of the policy.
