The four things you should know about mortgage cover
- 22ND JULY 2007
Before taking out mortgage cover to protect the individual homeowner’s investment, there are several things that every individual should know, and these are things that high street banks providers have been fined for withholding in the past.
The intricacies of mortgage cover are often withheld from policyholders, but a little education can really help to boost the waning confidence that homeowners’ have in the financial industry at the moment.
The first thing that they must know about mortgage cover is that a homeowner can only claim for a pre-defined period (normally between twelve – twenty four months’) if unemployed, sick or unable to work due to having had an accident on a continuous basis. Once that period is up then the mortgage cover is void.
Another piece of mortgage cover information is that an individual has to work over sixteen hours a week in order to be able to claim. Anybody working under sixteen hours a week is ineligible, and this applies on all policies regardless of provider.
Thirdly, mortgage cover is often added to the total cost of a mortgage by high street providers offering it in conjunction with the debt. By holding mortgage cover with another provider, like independent payment protection provider British Insurance, this pothole can actively be avoided. It will also cost an average homeowner a lot less in premiums.
Finally, mortgage cover should not be made purposely difficult to claim on. A number of high street providers may pack their terms and conditions full of exclusions. If the language is difficult to understand or glossed over by a sales representative then it would be worth looking elsewhere for suitable mortgage cover.
