UK mortgage insurance is also known as mortgage payment protection insurance (MPPI) and it can protect your home from repossession by providing you with the money to continue meeting your mortgage repayments if you should find yourself out of work after being unfortunate enough to have an accident, suffer from an illness or through such as redundancy.
If you were to come out of work then you would still have to continue paying your mortgage repayments otherwise you risk getting behind on the repayments and ultimately face having the roof over your head repossessed. While the majority of home owners believe that the State would step in and help, sometimes the money you are entitled to receive is very little and that is why UK mortgage insurance is such a valuable product.
Providing that UK mortgage insurance would be suitable for your circumstances then it would give you financial security and peace of mind.
The policy would begin to payout once you had been out of work continually for the defined amount of time and this can vary between providers. Some policies will begin to payout once you have been out of work for 31days while others it can be for up to 90 days. The majority of policies are backdated to the first day of you coming out of work so you don’t lose out. The income would then continue to be paid for up to 12 months and with some providers for up to 24 months which is usually more than enough time for you to get back on your feet again and back to work.
You do have to be aware that there are exclusions in all UK mortgage insurance policies and these can stop the cover from being suitable for your circumstances. Usual reasons include only being in part time work, being of retirement age, or are suffering from an illness at the time of taking out the policy.
These are just some of the most common to all UK mortgage insurance policies and it is essential that you read the exclusions and key features before buying. Get your quotes from a standalone provider for the cheapest premiums and the advice that you need to ensure the suitability of the UK mortgage insurance cover.