Mortgage Insurance
Illness, redundancy and death cannot normally be predicted. However, when it strikes we can normally predict the outcome - difficulty with meeting credit commitments, poor credit rating and maybe the house is sold or repossessed. Insurance policies alleviate the problems associated with reduced or lost income. They are not all obligatory but Money Only recommends anybody that has a mortgage should have some form of insurance. Different types of cover incluse:
- Death or critical illness cover - pays a lumps sum on death or serious illness. Enables a debt to be repaid.
- Income Protection - pays a tax free income until you make a recovery or the policy expires. Enables you to meet your credit commitments and other costs of living (e.g. pension contributions, so that if illness is long term you can still look forward to a decent pension)
- Redundancy Cover - provides an income for 12 months. Gives you a chance to find another job or make changes to lifestyle before you run into difficulties paying your mortgage
- Buildings Insurance - This is compulsory for all mortgages but, with most lenders, you should be able to shop around for the best deal. Make sure you have adequate cover - if your house was totally destroyed the remaining value of the land may not be sufficient to repay the mortgage.
We will compare mortgage insurance across many providers and offer provide you with all the information for comparison, check back soon for updates.
