mortgageprotectioninsurance's Blog

This is an article by Sara Anne Burgess, a UK mortgage protection specialist:
For many years I have been a staunch campaigner against the major names in finance who, I believe, rip-off their customers by selling over priced, often unsuitable UK mortgage protection insurance and other similar ytpes of cover.

It is a disgrace that these companies line their pockets with in excess of £4bn in profits every year from this invaluable insurance – preying on a consumer’s financial vulnerability by selling them poor value cover at an over the top price.

But it doesn’t have to be this way. Payment protection insurance shouldn’t be expensive and of an inferior quality. Burgesses, for example, offer high quality, low cost protection insurance products to suit even the most modest of budgets and circumstances. Our products also feature additional benefits not always offered by those policies on the high street.

Another concern for me – and one which I regularly comment on in the media - is the lack of information readily available to people who are considering payment protection insurance.

Many believe it is compulsory at the time of taking out some form of borrowing such as loan, mortgage or credit card. Others are sold policies that they are not actually eligible to claim upon should they need to.

I believe that the consumer should have the resources needed to enable them to make a well-informed choice about payment protection insurance – and this is one of the aims of this blog.

Sadly, many people do not value the importance of payment protection insurance – or are put off by the horror stories they read in the press (Which is not surprising really, when you hear about the 4,000 cases of mis-sold payment protection insurance cases being investigated by the independent regulatory body, the Financial Services Authority in 2007).

However, when bought correctly, payment protection insurance can quite literally save you from financial distress if you were to lose your income.

Think about it - how would you cope if you became unable to work? How would you service your mortgage repayments or rent? How would you pay your day-to-day living expenses such as food and clothing?

The solution is payment protection - income, mortgage or loan payment protection insurance. Should you unexpectedly lose your income as a result of unforeseen redundancy; due to an ongoing illness; or accident, then the cover would pay you a tax free monthly income until you were back to work.

But it is not as simple as just going out and buying a policy along with your loan, mortgage or credit card. As with all purchases, you need to do your research first. If you don’t, you could end up paying much more than you have to for the insurance and run the risk of paying for something that is not worth the paper it is written is on.

I know about payment protection insurance – the whys, the wherefores and the what nots. I know it provides invaluable protection but have seen how, in the wrong hands, it can be a rip-off.

I believe that using one of British Insurance's UK mortgage protection insurance policies is the best way to keep a roof over your head.



 

If you want a lifeline to cling to in case you became redundant then give some consideration to taking out redundancy protection in the form of payment protection insurance. Depending on your circumstances you are able to take out protection for your mortgage, loan or income in general. All payment protection can be shopped around for and if you choose to take out a policy with ethical specialist British Insurance you are able to make some of the biggest savings.

Loan payment protection from British Insurance would save you up to 80% and mortgage payment protection would help you to make savings of as much as 40%. You can also make savings on income payment protection insurance and be provided with all the information needed to be sure of which policy would be the most suitable.
Loan payment protection would be there for you to provide you with a replacement income to pay your loan or credit card repayments. Mortgage protection would allow you the luxury of knowing that your mortgage repayments were safe each month. Income payment protection would safeguard your income in general and ensure you could maintain all existing outgoings.

All payment protection would begin after a certain length of time; usually this is between days 30 and 90. Your policy would then continue for either 12 months or 24 months again depending on the provider you choose to take out protection with. With ethical British Insurance this would be from the 30th day and continue paying out up to the 12 month. British Insurance would also backdate their redundancy protection benefit to the first day of your becoming unemployed.

Redundancy protection does come with some exclusions that do have to be checked against your circumstances. These should be made clear by the provider you choose to take your policy from, all ethical payment protection specialists will give you this information on their website and this allows you to make an informed decision regarding the policies suitability.
 

For total security that you would have the money needed to maintain your mortgage repayments you need to consider taking mortgage unemployment insurance. A policy can be taken with the borrowing but a far cheaper way to cover your repayments is by shopping around with payment protection specialists.

High street lenders tag cover onto the borrowing at high cost and also often very little information is given regarding the cover. You do have to be aware that there are exclusions in the policy that could stop you from making a claim. Providing you check these against your circumstances then you can be sure that mortgage unemployment insurance is suitable and it would be something that you could rely on.

Ethical payment protection specialist British Insurance provides a quality policy that would begin paying out from the 30th day of unemployment or of you being unable to work. It would also save you as much as 40% and provide you with 12 monthly payments and also backdate to the first day of you being unemployed or of being incapacitated. Other providers might offer a policy that would begin to pay after the 90th day and some might payout for as long as 24 months.

You can choose the level of cover that is suitable for your circumstances. You can choose to cover unemployment only; you can also choose to cover against incapacity only. If you want you could also choose to take accident sickness and unemployment protection together. You age is also taken into account with ethical British Insurance and this means that even first time homebuyers can now afford to take out protection for their mortgage repayments.

Keeping up with your mortgage is essential as the outlook if you cannot is dire. The worst case scenario would see the lender taking you to court and you could have your home repossessed, if this happens then you will be evicted. With mortgage unemployment insurance in your corner to fall back on you would have the money and continue meeting the requirements of your mortgage commitment without worry. This would allow you to recover with peace of mind that you would not be at risk of losing your home. If you had been made redundant it would give you the time needed to search around for work that was suitable.
 

Would you take the first quote for life, car or home insurance that you found or would you shop around and get several before making your choice? When you want to protect your mortgage repayments against being unable to work or suffering unemployment you can also get the cheapest mortgage insurance quote if you shop around with independent providers.

A mortgage payment protection policy would allow you to safeguard your mortgage repayments by insuring up to a certain amount of the payment each month. You would then receive this income back tax-free and use it to continue meeting the repayments. You would not have the fear of the lender taking you to court to repossess if you got behind on your mortgage. If you get a quote for the policy from ethical payment protection provider British Insurance you would save as much as 40% on your protection.

Another bonus of taking out a plan with an ethical provider such as British Insurance is that you would be provided with all the information needed for you to be able to make a decision regarding the suitability of cover. There are certain exclusions that need checking against your circumstances and once you have you would then have a policy you could rely on. Some providers add in more exclusions than others so checking them against your circumstances is essential. You also have to check in the terms of the policy to see when the cover would start to protect you and for how long it would payout.

British Insurance mortgage insurance quote: Some providers such as ethical British Insurance would supply you with your income after just 30 days of unemployment or of incapacity. You are able to protect against the possibility of accident sickness and unemployment together, accident and sickness only or unemployment only. Once you had started to receive an income from the policy you would then continue to do so for as long as 12 months if you needed it for this long. By checking the terms and conditions of each quote you receive you might find some providers extend this to 24 monthly payouts and some providers might ask you to defer from claiming on the policy until the 90th day.

A cheap mortgage insurance quote can mean the difference between you losing your home and keeping it. It allows you the peace of mind that if the worst should happen and you did lose your income to redundancy you would be able to search around for work. It would also allow you to make a full recovery if you should suffer an accident or illness without having to worry about meeting the mortgage each month.
 

Anyone who wants peace of mind that their home would not be at risk if they lost their income should consider covering their repayments with mortgage insurance protection cover. Lenders will give homeowners a little leeway but without an income showing that you can maintain the repayments would be extremely hard. If you were to become ill or suffer an accident you would not know when you might be fit enough to return to work again. If you became unemployed as a result of redundancy it could take you several months to find work. During this time if you got into arrears you could find yourself in court and being evicted from your home.

Mortgage payment protection can be taken with a standalone specialist. British Insurance is an ethical payment protection provider who could save you as much as 40% on the premiums. They would also provide you with enough information for you to be able to decide if the protection would be suitable. Exclusions can always be found in cover and you have to check these if you are to ensure that a policy would be suitable mortgage protection insurance cover. You also need to check to see when the policy would begin to provide you with an income and for how long it would provide you with an income.

With British Insurance mortgage insurance protection cover you would be able to claim after 30 days of being unemployed or incapacitated on a continual basis. They would also payback to the first day of you losing your income to either incapacity or unemployment. All policies with all providers only payout for a certain length of time, with British Insurance this is for 12 months. If you check the terms offered by other providers this could extend to 24 months and some might ask you wait to claim until the 90th day.

Mortgage insurance protection cover can be offered by the mortgage lender when taking on the loan. However high street lenders charge huge premiums and very often provide little information. In the past this led to individuals taking out policies that they could not possibly claim against. You will always be provided with information when you take out a policy with an ethical standalone specialist provider along with gaining the biggest savings.

 

Mortgage insurance cover can be taken out to provide you with an income each month so that you can keep on top of the repayments of your mortgage. A policy would provide for you if you suffer from illness or accident that left you unable to work. It would also be there for you if you should become a victim of unemployment. Unemployment could happen as a result of redundancy and this has to be given some thought as no ones job can be called safe. Failure to pay your mortgage each month could result in the lender taking you to court and this means that you could have to leave your home.

Mortgage insurance cover can be taken out for a premium each month based on the amount you wish to protect, your age and level of protection needed. While you can take out a policy that covers accident sickness and unemployment together, you can also tailor your policy. You can just choose to take out a policy to protect against the possibility that you might become unemployed or just take out protection for accident and illness only. Ethical British Insurance offer one of the cheapest mortgage payment protection policies. A quote from them could save you as much as 40% in comparison to the lenders on the high street.

Mortgage protection can be added onto the mortgage when taking it on, this is not the only way to buy cover despite what the lender might have you believe. Shopping around will always get you the cheapest premiums and quality cover. British Insurance offer age related cover which means that first time younger home buyers can make the biggest savings and afford to be able to keep on track with their mortgage outgoings each month.

Mortgage insurance cover from British Insurance starts to provide the policy holder with an income after the 30th day of unemployment or incapacity. The policy would then continue to payout for up to 12 months if it was needed before expiring. Some providers could give you 24 months protection and others could ask you wait for as long as 90 days before they would payout on the policy. You have to check this in the terms and conditions of any policy you are comparing along with the cost. You also have look carefully at the terms and conditions for the exclusions which are to be found in all payment protection policies. These vary again depending on the provider.

 

Mortgage cover UK can be bought for much cheaper premiums if you get a quote with a standalone provider. While you might think that taking out the policy would be easier and cheaper if you simply allow the mortgage lender to add it into the loan, it is certainly not the cheapest way to protect your borrowings.
In fact lenders on the high street often add in the protection over the entire loan and then you pay interest on top of this. This can boost up the cost of the borrowing considerably and goes towards the lender making £4 billion in profits on the protection each year. A standalone policy of the other hand can be taken out for a premium which is paid each month. The premium is based on the amount you wish to protect, level of the cover needed and some providers offer age based protection.

You would have to decide what level of protection you wanted for the repayments. You could take out a policy to protect against the possibility that you might lose your income to unemployment by such as redundancy. You can also choose to protect against accident and sickness only. Alternatively you could take out protection to safeguard against the possibility of accident sickness and unemployment together.

Mortgage cover UK specialist British Insurance offer an age based policy which means that young first time home buyers who stretch their outgoings to the limit can afford to protect their repayments. As much as 40% can be saved on premiums by taking a quote from British Insurance. You do have to read the terms of any policy you are considering taking on as different providers will give different starting and end dates. Some providers of mortgage cover UK would ask you are unemployed or unable to work for at least 30 continuous days. Others might ask a wait of 90 days before you are able to make a claim. Some such as ethical British Insurance would also backdate the cover to the first day of you falling ill, suffering an accident or when you became unemployed.

Mortgage cover UK should be at the top of the list of all insurance policies you are considering. After all it is no good taking out home insurance to protect the contents and shell of the home if you cannot maintain your mortgage and the lender takes you to court to repossess your home. A policy can ensure that you have a tax-free sum of money coming into the home to be used solely to pay your mortgage when it is due and this gives peace of mind and security for the policies term.

 

Mortgage cover in the UK can help you to maintain the repayments of your mortgage despite the bad publicity that has surrounded the protection. In 2005 the Financial Services Authority and the Office of Fair Trading began investigating the sector on the whole, which resulted in several major names on the high street receiving fines for mis-selling. However it is essential to remember that it is not the products fault but those who continue to sell with little experience. The majority of problems relate to the lack of information regarding the exclusions of mortgage cover in the UK.

Exclusions are to be found in all payment protection policies and how many are in the policy will depend on the provider. Some providers will add in many while others just the most common. They have to be checked against your circumstances if you are to be sure that you would be able to put in a claim on the policy.

You also have to check for when your policy would start to payout and for how long. Different providers state different times. This is usually between days 30 and 90 of being continually unable to work or of being unemployed. The policy would then pay benefit each month for between 12 months and 24 months before it would expire. The cost of the protection will depend on how much of the repayment you are covering, your age and level of protection. Age based protection from a specialist payment protection provider such as British Insurance would allow savings of as much as 40% and means even younger homebuyers can afford to protect their home.

Mortgage cover in the UK can be taken out to protect your mortgage repayments against accident sickness and unemployment. Accident and sickness only or unemployment only based on your situation. Mortgage cover in the UK is a necessity for those who have a mortgage to repay for many years. Redundancies happen and so do accidents and illness and despite this you have to be able to carry on paying your mortgage repayments. If you cannot keep up with your repayments then you risking the lender taking repossession of your home. Even just one missed payment will see the lender sending out a letter asking you to get in touch with them. You would have to show that you are able to catch up while at the same time keeping up with the repayments. If you cannot and continue to be unable to pay then repossession will be imminent.
 

To compare mortgage cover in the UK is a must and you also have to be aware of your options for taking out what could be valuable protection. To begin with you do not have to take what is offered when taking on a mortgage. Standalone providers such as British Insurance will offer the cheapest monthly premiums and also the advice essential to determining if a policy is suitable.

Mortgage protection with them can be taken out to cover against the possibility that you could suffer an accident or illness or become unemployed while repaying your mortgage. However you might not want to cover for all three eventualities. British Insurance offer protection that can be taken just for unemployment by such as being made redundant. They also offer you the chance just to safeguard against becoming incapacitated and being unable to work. If you compare mortgage cover in the UK, such as this, you will see that all companies do not do the same.

The level of cover will determine how much a policy costs along with how old you are and the amount you wish to protect.
Age based policies mean that even the younger generation who take on massive borrowings to buy their home can now afford to protect that borrowing. Sometimes first time home buyers stretch their budget to the absolute maximum and adding on another outgoing is impossible. However every homeowner needs to have a back up plan to fall back on. Relying on savings or the States help could mean you are risking losing your home. Savings might not last for many months and State benefits would only go towards so much of the interest part of the mortgage.

The primary thing you should think about when you compare mortgage cover in the UK, is that you would be able to meet your repayments each month for the mortgage. This would allow you to concentrate on making a full recovery instead of having to rush back to work when you were still unfit. In the case of unemployment it would give you plenty of time to search for work. Policies pay out after so many days of unemployment or incapacity and with British Insurance this would be from the 30th day and up to 12 months. Other providers could put in their terms that you cannot claim until the 90th day and others may extend the payout for 24 months. In order to get the best deal you therefore need to compare premiums, exclusions and when and for how long the policy would last before expiring.

 

If you want to ensure that you would have the money needed to be able to maintain the repayments of your mortgage if you became unemployed or suffered an accident or illness, then you need to consider taking out mortgage payment protection insurance. What many people don't realise is that mortgage payment protection insurance can initially be added on to the mortgage loan, which in the majority of circumstances is the most expensive option. Taking out your own protection insurance is usually the best option: you can, in most circumstances, get it cheaper with a stand-alone specialist.

Independant providers who offer payment protection can help you to make savings of as much as 40% if you get a quote from a mortgage payment protection insurance specialist such as British Insurance. They will also ensure they have supplied information that you need to know straight away whether or not you would benefit from a policy. There are exclusions you have to consider and these need checking against your circumstances. Some providers will add in quite a few exclusions while others just the more common ones. The exclusions can be found in the terms and conditions of the policy and this is also where you will find when and for how long payment protection pays out.

British Insurance asks that you wait for 30 days and then they begin to provide you with an income which is tax-free. Some providers also ask that you defer from claiming on the cover until as much as the 90th day.

Mortgage payment protection insurance can ease the situation of unemployment or incapacity greatly. However, you can choose the level of protection with British Insurance, you can insure against unemployment and incapacity together. You might need to insure against incapacity only or unemployment only. The level of protection you take out and your age go towards setting how much you payout each month in premiums.
 

If you are a first time buyer and have just finished buying your very first house or even if you are looking into the possibility for the coming years, you should look at a good many issues before you actually decide upon a mortgage and all of the related products. Of course, you do not have to have all of those products with the one provider. Instead, you can go to whichever company you would like, providing that you are completely happy with your decision and your deal. Before making a decision on products like mortgage cover though, you should obtain a mortgage insurance quote.

You can get a mortgage insurance quote from any provider. This includes high street banks and lenders and specialist independent providers as well. You may be tempted to take out the cover with a high street bank or lender because you will obviously have your mortgage with them and it may make your life easier to keep everything under the one roof. However, as a first time buyer, you will need to save all of the money you can to be able to cope with the new responsibilities and bills that come with owning your first home. Specialist companies can often save you an awful lot of money because their premiums can be as much as 50% less in terms of overall cost than that offered b y a high street bank.

The mortgage insurance quote is often pretty straightforward to work out. Any good company will of course check out your eligibility before approving any application. The quote offered by the bank or lender will often not reflect that because they are often simply quick quotes that are given to consumers to give them an idea of how much they should expect to pay. However, many independent companies do allow you to obtain quick quotes that do give an accurate monthly premium. This can be less misleading for you and give you the chance to sort out your finances in advance.

Moving into your own home for the first time can be extremely difficult so it is definitely worth planning ahead and the mortgage insurance quote can help you to do that, regardless of who you decide to take the cover out with. It is definitely worth investing in if you feel it is right for you.
 

If you want to take out protection to guard against the fact that you could be made redundant and lose your income, then there are ways of doing so. There are a suite of redundancy insurance plans that for a monthly premium can providing they have been purchased correctly, provide you with a monthly income which is tax free.

Payment protection insurance (PPI) plans pay out once you were out of work for 30 days or more and as is the case with the some providers, be backdated to the day you came out of work. A good policy would continue to provide you with an income for up to 12 months and there are policies offered by some providers will pay out for up to 24 months. The cover, if bought from the wrong course, can be an expensive addition to an already over stretched budget. This means that in order to get the lowest quotes for the redundancy insurance plans you have to shop around for the cover.

These payment protection insurance plans come in different forms and one form is income protection insurance; this means that if you were to lose your income through becoming unemployed (ie being made redundant), then the policy would replace your income up to a fixed amount every month. This money could then be used to pay your essential outgoings each month until you got back on your feet. Along with being made redundant you can also take additional cover to protect against loss of income through accident and sickness; or for accident, sickness and unemployment.

The insurance can also be taken out to protect your monthly mortgage repayments. As your mortgage is one of the biggest monthly outgoings a good policy when bought correctly could mean the difference between you losing the roof over your head and keeping it.

You can also take out redundancy insurance cover to safeguard any loan and credit card repayments and policies taken out to insure against this are called payment protection insurance. Mortgage and payment protection are usually offered at the time that you take your mortgage or loan but this is the most expensive way to purchase your policy. Very little information is often given regarding the product when purchased from the high street lender and this has meant that policies have been sold in the past regardless of the persons needs. The high cost of having peace of mind that a policy can bring has also been one of the product’s main downfalls, but this too can be avoided by shopping around for the cover and going with an independent provider.

While redundancy insurance plans can give peace of mind, it isn’t a suitable product for everyone, there are exclusions within policies that could mean you would be ineligible to claim should the time come and for this reason it is essential that you understand there are limitations with the products. Protection insurance plans can work to your advantage and peace of mind can be bought cheaply, but you have to shop around for the cheapest quotes and understand the pros and cons of a policy and this you can do by going to an independent provider for the cover.
 

A mortgage payment plan could mean the difference between you struggling to find the money each month or having peace of mind of a replacement income. Providing cover is suited to your individual circumstances it could allow you to meet your monthly mortgage repayments if you should find yourself unable to work due to an accident, sickness or through unexpected redundancy.

Exclusions however dictate whether a policy would be suitable for your needs. Universal ones include being in part time work, suffering an ongoing illness, being of retirement age or if you are in self-employment. The terms and conditions can also reveal extra exclusions added by providers so making sure you read them is critical.

Ethical British Insurance offers mortgage payment protection insurance which would start after you had been unfit for or unable to work for 30 days. You would start to receive a tax free income that would then continue for as long as 12 months. Some providers lengthen this for up to 24 months but might state that you have to be incapable of working for anything up to 90 days before you claim.

Protecting your mortgage repayments is only common sense but you have to be aware of your options for buying it. A mortgage protection plan can be taken out with the loan at the time of borrowing but you also have the option of choosing to buy it independently. If you do choose to shop around for your policy then you can save money on the premiums along with getting the advice that a specialist can offer. Mis-selling has occurred with mortgage protection and the latest firm to receive a fine was a mortgage firm, which makes taking a policy risky unless you know the terms and conditions along with the facts regarding a plan.

 

Any individual who takes out a mortgage will probably be offered protection in case they should become out of work through accident, illness or unemployment. At the very least the lender will mention the fact that cover could be a financial lifeline. However buying a policy alongside the mortgage at the time of borrowing is not the only option when it comes to taking a mortgage protection policy. You can, if you choose, take it out independently. By choosing this option the mortgage protection insurance quote can undoubtedly work out cheaper.

When considering mortgage payment protection insurance always get several quotes because a mortgage protection insurance quote can vary considerably. British Insurance offer a quote for the premiums which can save you up to 40% compared with those offered by the high street banks and lenders and along with this they give you the information needed for you to be sure that you would be eligible to claim if you buy.
The exclusions can fluctuate depending on the provider but there are some that exist on a regular basis in all. Being retired, suffering a pre-existing medical condition, working only part time or if you are self-employed are the main ones. That is why you should always read the key facts of any insurance protection you are considering.

Mortgage cover from ethical specialist British Insurance would give you an income with which to finance the repayments of your mortgage from the 31st day of being continually unable to work. It would then benefit you for as long as 12 months giving you enough time to get back to work.

The terms and conditions are just as important to compare when looking for quality cover and a cheap mortgage protection insurance quote. British Insurance provides all the information needed to buy a quality policy, ensuring that the individual will know that it is suitable for their circumstances.
 

Providing that you understand mortgage cover, a policy could help you to keep the roof over your head if you should find yourself unemployed through being made redundant, off work suffering an accident, or through prolonged sickness.

Mortgage cover - or accident, sickness and unemployment insurance (ASU) or mortgage payment protection insurance (MPPI) - as it is also called is one of a family of protection policies that can pay out a tax free sum of money which provides you with an income to ensure that you could continue to pay your mortgage.

Sadly the state gives very little help at times such as this even if you qualify for help, meaning that if you don’t want to risk having your home repossessed because you cannot afford your mortgage repayments, then mortgage cover should be considered.

Subject to you meeting the requirements set out in a policy, mortgage cover will provide you with a monthly income for up to 12 months - and in some cases for up to 24 months depending on the provider. It is imperative that when considering taking out a policy you ensure that you would be able to claim as there are exclusions within all policies. If you only work part time; are self-employed; or are retired, then a policy wouldn’t be in your best interests.

It is important that you shop around for your mortgage cover - the premiums for the cover vary considerably depending on where you look for the insurance. A standalone provider will give you a much lower quote for your premiums than a high street lender will along with providing a product of much better quality. High street lenders often give very little information regarding the policy’s key facts and exclusions which led to an investigation into the sector after a super complaint by the Citizens Advice.

In early 2005 the complaint was made to the Office of Fair Trading (OFT) and as a result of an investigation by the Financial Services Authority, several companies were handed fines for mis-selling of the payment protection cover. When it comes to mortgage cover then the high street lender doesn’t always give the information needed for the consumer to make a decision. In some cases the cover is pushed onto the consumer alongside the mortgage with the lender making the homeowner believe they have to take the cover.

Mortgage cover can be a valuable safety net but it doesn’t have to be bought alongside the mortgage. It can be bought independently from a standalone provider of your choice and this is the cheapest way to purchase the cover along with ensuring you buy a quality product. An ethical provider will always outline the exclusions within their products and will provide you with the information you need to make an informed decision regarding the policies suitability to your needs. By going with a standalone provider and getting several quotes you are able to make huge savings while getting the peace of mind that mortgage cover can bring.