Insuring your monthly mortgage payments against unfortunate events such as redundancies and sickness is important, regardless of the nature of your job/business. Read on to know more about how our Mortgage Protection Insurance services can help you safeguard your interests.
Mortgage Payment Protection Insurance Available For:
- Redundancy/layoff/unemployment events
- A combination of all these
The UK property market is among the most vibrant in the world. The growth of this market, despite the decade-long lull, has been promising, meaning that homeowners have kept on investing. What this also means is that UK property owners have the luxury of mortgaging/remortgaging their assets. As of 2019, there are over 11 million active mortgages in the UK, with an average value of over £125,000 per mortgage. This is a staggering number – one that tells us that most UK homeowners have to set aside a significant amount of their monthly income towards mortgage payments.
Mortgage payment protection insurance is a product designed to safeguard this outgoing stream against unfortunate events that will make it difficult for you to make monthly payments. Mortgage protection insurance is fairly cheap, and given the wide cover it can give you, it can very well be viewed as a must-have for every mortgage holder.
What Is Mortgage Protection Insurance?
Mortgage protection insurance, in the simplest of terms, is a safety net for you in circumstances that leave you unable to make monthly mortgage payments.
As we mentioned earlier, a significant percentage of UK adults have active mortgages. Thanks to the size of such mortgages, these mortgage takers have to earmark hundreds of pounds each month to make mortgage payments (on average, this amount lies in the £400-£1,000 range).
This works out well as long as one has a steady, reliable source of income. When they don’t, things take a turn for the worse. Late/missed mortgage payments can leave long-lasting dents on your credit history, and unpaid mortgages can eventually lead to repossessions.
MPPIs aim to help you thwart such threats by helping pay the monthly mortgage instalments while you re-establish your primary source of income.
What Cases Does Mortgage Protection Insurance Cover?
The very first thing you need to learn about MPPI is that it covers only specific scenarios, and shouldn’t be relied on too heavily. This, as you will learn, is also reflected in the small monthly premium such insurance packages feature.
There are two major cases that most mortgage protection insurance products cover:
1. Unemployment/Loss Of Primary Source Of Income
Being made redundant can have a host of negative impacts on your finances, even when you have adequate savings. It’s never a good idea to stay unprepared for the worst, and that’s where such mortgage payment protection insurance products come in handy.
By paying a small monthly premium, you can create a cover against unfortunate redundancy/loss of primary source of income events.
Not all jobs come with accident/sickness benefits. Even the ones that do are rarely adequate to replace your salary, especially considering the high medical bills that accrue during such periods. Being rendered unable to work for a few months, in such cases, can deplete your savings and leave you unable to pay your mortgage instalments.
Accident/sickness mortgage insurance can help you safeguard your budget while you recover and get back to work.
At Commercial Finance Network, we help you get customised MPPIs that can cover unemployment, accident and sickness events as per your choice.
How Much Does Mortgage Protection Insurance Cost?
MPPIs are just a touch more expensive than similar products like income protection plans.
The monthly premium rarely exceeds the £75 mark.
How Much Can You Expect Mortgage Payment Protection Insurance To Pay Out?
The pay out completely depends upon the plan you choose and the amount you choose to insure.
Most takers choose to insure the whole mortgage amount. In some cases, you may also be allowed to extend the cover for an amount larger than your mortgage. This increases the monthly premium, while giving you additional cover to pay other bills.
Most mortgage protection plans kick in after the passage of a certain time period after you make the claim – typically one month. It’s important to note that MPPIs cover you over a limited time period (usually 1-2 years, depending upon the insurance provider).
Mortgage Protection Insurance vs Payment Protection Insurance (MPPI vs PPI)
MPPIs and PPIs are similar products with one key difference.
Payment protection insurance can be used to cover all debts, and the insurance provider takes it upon themselves to pay your creditor directly. On the other hand, MPPIs only cover mortgages, and the money is paid out to you.
If you already have an income protection plan in place, you can extend its robustness by buying mortgage protection insurance. Remember – An income protection plan is supposed to insure your income, while a mortgage protection insurance is supposed to insure your repayments.
Why Commercial Finance Network?
Commercial Finance Network, over the years, has come to be regarded as one of the leading whole of market finance product brokers in the UK. Along with a comprehensive range of commercial finance products, we also provide ancillary services like Mortgage Payment Protection Insurance.
“We don’t just broker mortgages for you – we make sure that you stay ahead of the curve when it comes to paying them back. A balanced, affordable and customised MPPI is much more than a luxury – it’s a necessity.”
Here’s why our MPPI services stand out:
- We have 10+ years’ worth of industry experience.
- We are truly independent and whole-of-market broker.
- Our insurance partners include some of the most reliable and reputed names in the UK.
- We work with our panel of insurance providers to customise every insurance quote to fit your exact needs.
- Our insurance partners are renowned for swift, hassle-free claims.
- All our customers can track the status of their application live, using our industry-leading “WiiN” customer portal 24x7x365.
How To Apply For Mortgage Payment Protection Insurance?
It’s a straightforward process:
Complete this form by giving us your contact details. You can also call us on 03303 112 646 to speak to our Mortgage Insurance Specialists. Once we receive your details, we will present you with quotes from our insurance partners (the entire process concludes within a working day).
Once approved, your MPPI will activate as per the terms of agreement.
Don’t Stretch Your Finances Too Thin – Get The Cheapest Mortgage Protection Insurance Quotes Today!
You can’t really help unfortunate situations, but a well-curated MPPI can certainly ease the stress on your finances.
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Commercial Finance Network has probably the easiest to understand case tracking portal – WiiN, that I’ve ever used. The turnaround times are very quick and end to end transparency excellent.
Never got turned down so far
I have applied for various loan products at CFN over the past 18 months. Never got turned down. Their nationwide team of Advisors are really among the best I’ve come across in my career.
Best customer service I’ve come across
Brokers don’t really care for you once they’ve got your lead but CFN was different. They kept in touch with us and the customer service was among the best I’ve experienced. Competitive offers from multiple lenders gave us the liberty to choose.
Everything went to the plan. Thanks.