A standalone provider can save you money on mortgage protection
Mortgage protection can be a safety net to fall back onto if you should become unemployed, suffer an accident or fall sick and lose your income. You would protect an amount of your monthly mortgage repayment and claim this amount back, tax free each month for the term of the policy, if you became incapacitated or unemployed.
The sum of money could make a huge difference when it comes to the balance between losing your home to repossession and keeping it. Mortgage arrears are the worst nightmare of any homeowner who has to maintain repayments over many years because just a couple of months of missed payments and no hope of catching up on them could mean the lender will take you to court. If the judge were to agree with the mortgage lender you would be given an eviction date and have to leave your home so the lender could sell it to get back their money. With mortgage payment protection behind you at least you would have some money to go towards the repayments each month.
If you take your mortgage protection from ethical British Insurance there would be no excess to stand to as British Insurance pay back to the first day your unemployment or from you being incapacitated. You could claim benefit for day 30 and then receive a payment for 12 months which would provide you with plenty of time to search for work or concentrate on making a recovery. However if you looked with other specialists you might be able to take out cover that would last for 24 months but you would have to check out the small print in the policy to discover this. You also have to read the terms to check when you can make a claim as some providers will extend this to at least the 90th day of you being unemployed or incapacitated.
You can take mortgage protection alongside the borrowing with the lender but usually this will be the dearest way of covering your repayments. A standalone provider can save you money on mortgage payment protection and if you choose independent payment protection specialist British Insurance you can save up to 40%. With British Insurance you can take out just the amount of cover you need. You can insure against the possibility of accident, sickness and redundancy in one. However you can also choose just to insure against accident and sickness or just against unemployment only. The type of protection you choose will go towards determining how much you pay for the premiums as will age and the amount of your mortgage repayment you cover. As British Insurance offer premiums based on age this means they provide the younger home buyer with the chance to protect their payments, whereas before high priced protection was out of their reach.
