Mortgage payment protection has a better track record than payment protection
- 21ST DECEMBER 2007
In 2005 the Financial Services Authority (FSA) began an investigation into the payment protection sector. Subsequently, several well known high street names were handed out fines for their sloppy sales practices. As a result and the ongoing investigation faith in the product has dropped. Bad press has highlighted the many problems associated with the sector and this has affected the sales of mortgage payment protection leaving many homeowners vulnerable as they have no cover. While the payment protection sector has had problems and continues to do so mortgage payment protection does have a better track record than payment protection.
The negative press does not distinguish between the individual payment protection products and so unfairly having an affect on all of them. Mortgage payment protection, as with the rest of the payment protection products can work the way it was designed to, providing care is taken when buying the cover.
A specialist independent provider such as British Insurance will give you all the information you need to determine if a mortgage payment protection policy is suitable. There are exclusions in a policy which could mean it would not be in your best interests, common reasons include being in part time employment, suffering an illness which is ongoing or if you are retired. There can be others so it is essential to read the small print of a policy before taking it out.
Along with offering advice regarding the cover British Insurance can save you money. A quality mortgage payment protection policy from them would start to give you a tax free income from day 31 of being out of work due to accident, unemployment or sickness and continues for up to 12 months. Other providers could ask that you are off work for at least 90 days so always check the terms and conditions of a policy.
Mortgage payment protection insurance can be a valuable product providing it is suitable for your circumstances as it can make the difference between you struggling to find the money each month to continue repaying your mortgage or even having your home repossessed and being free from financial stress.
