Mortgage payment protection insurance cover bearing the brunt of bad publicity
- 9TH NOVEMBER 2007
Payment protection insurance earned itself a bad name in 2005 when an investigation into the sector revealed that there had been wide spread mis-selling of the cover, however the majority of policies mis-sold were payment protection policies sold alongside such as loans or credit cards. It should also be borne in mind that mortgage payment protection insurance cover was not as heavily affected by the mis-selling scandal. However, when choosing payment protection insurance cover of any type, you should take care.
Fines were handed out to several high street names and then the sector was referred to the Competition Commission who is conducting an in–depth inquiry into the sector which will reach conclusion in February 2009. As a result of the investigation mortgage payment protection insurance cover is bearing the brunt of the bad publicity surrounding the sector and sales have dropped which is leaving many homeowners without cover and open to losing their homes.
There are exclusions in all policies, including mortgage payment protection insurance cover that could mean you would be ineligible to make a claim and some of the most common include if you are in part time work, self-employed, suffering an ongoing illness or if you are retired. Providing you ensure that mortgage payment protection insurance is suitable for your needs then it can give you an income once you have been out of work for a pre-defined period of time which can be between 31 and 90 days. Cover can they continue for between 12 and 24 months which gives you enough time to get back on your feet and back to work.
If you stick with a specialist provider in payment protection such as British Insurance then you are assured of getting the cover for the cheapest premiums possible whilst at the same time getting access to the vital information and key facts that are needed to ensure that a policy would be in your better interests.
Never be tempted to take mortgage payment protection insurance cover out alongside your mortgage as this is the most expensive way of taking out the cover and the high street lender gives very little information which means you cannot be sure of its suitability.
