Problem solved
SUNDAY HERALD MAGAZINE - 7TH MARCH 2004
Q: I’m hoping to move and buy a bigger apartment, and had carefully worked out what I could afford to spend, even allowing for interest rate rises. But now my financial adviser is saying I should take out mortgage payment protection insurance which he says will cost around £5 per £100 of my repayments. I don’t think I can afford this on top of all my other costs, and I don’t have it with my last mortgage, so is it really necessary?
A: If you can’t work for any reason – either through ill health or because you lose your job – mortgage payment protection insurance covers your mortgage repayments, so it’s a good safety net. But it is worth shopping around, since the high street banks and building societies charge a lot more than some of the specialist insurers. One of the best mortgage payment protection insurance deals on offer at the moment is from Burgesses. At £3.95 for each £100 of repayment covered, this flexible insurance has no initial exclusion period for new policyholders or those transferring from other insurers.
