Mortgage payment protection insurance (MPPI) could mean the difference between you losing the roof over your head and unfortunately many homeowners think that the State would be able to step in and help. While you are able to get help from the State, the financial assistance that you may be entitled to is often very little and cannot be relied upon. Providing a policy would be suitable for your needs then it can make a huge difference and be a valuable safety net on which to fall.
UK mortgage payment protection insurance is offered when you take out the mortgage and while you might think this is the easiest way to take the cover it is not the cheapest by any means. In fact the Competition Commission has recently announced that they are doing everything in their power to take a look at the high street lenders books. It is thought that the high street lenders are making up to 80% profits on selling mortgage and loan payment protection. If you want to make huge savings on mortgage cover then you have to take out the cover with an independent specialist provider.
Independent specialist providers offer cheaper premiums along with making sure that they give you the key facts needed so you are able to determine the policies suitability. Common exclusions in all policies include being of retirement age, if you only work part time, are self-employed or suffer from an ongoing illness at the time of taking out the cover. Exclusions can be added by the provider so you will have to read the small print defined in the terms and conditions before buying.
A quality UK mortgage payment protection insurance policy could begin to give you a tax free income once you had been out of work for between 31 and 90 days and continue for 12 to 24 months depending on providers. Again you have to read the terms and conditions to determine when cover would begin and end and when comparing premiums you should also compare key facts as they can differ. One of the biggest benefits besides saving you money is the experience that a standalone provider can give; a lack of experience is what led to the majority of mis-selling and problems for the payment protection sector.
Although there are many problems including a lack of information and high street lenders charging huge premiums this could soon change with the comparison tables being introduced in March 2008. The tables should help consumers to decide if UK mortgage payment protection insurance is suitable and will highlight the exclusions and tell the consumer how much the cover would cost.
Simon Burgess is Managing Director of the award-winning British Insurance, a specialist provider of uk mortgage payment protection insurance, loan protection insurance and income protection insurance.
