Mortgage payment cover can protect your home against repossession
- 25TH OCTOBER 2007
If you work full time and have a mortgage to repay each month then some consideration should be given to how you would continue to pay it if you should lose your income after coming out of work due to illness, suffering from an accident or if you were to become unemployed. If you got behind on your mortgage repayments then you risk losing your home due to repossession. However, you can protect against it with mortgage payment cover.
Mortgage payment cover can give you an income once you have been out of work for at least 31 days but some providers will not pay you until the 90th day of being out of work; however it would then continue to payout a tax free income for up to 12-24 months depending on the terms of the mortgage payment cover. You do have to make sure that a policy would be suitable for your needs as there are exclusions which can mean you wouldn’t be eligible to make a claim and some of the most typical are if you only work part time, if you are retired, self-employed or you have an illness which has bothered you during the last two years.
An ethical payment protection insurance specialist will ensure you realise the exclusions in a mortgage payment cover policy and how imperative it is that you check them before buying a policy. One such provider is British Insurance, headed by the outspoken Simon Burgess who speaks up for the consumer and who warns that the product needs to be more transparent, despite the changes that have already been made after the Financial Services Authorities investigation. He says: “Consumers are still confused when it comes to payment protection insurance policies and because of this, homeowners aren’t taking mortgage payment cover. This is leaving them open to losing the roof over their head if they haven’t got the money to repay their mortgage. “
