Why Should I have Mortgage Protection?

Many people buy Mortgage Payment Protection at the time they are sold their mortgage. It is an “add on” by the mortgage company that more often than not is poorly explained and highly priced. The purpose of this is to pay you a monthly benefit equivalent to your monthly mortgage payments in the event you lose your income through accident, sickness or unemployment. The Competition Commission, acting on a complaint by the Citizens Advice Bureau, are now looking to require banks and building societies to inform their customers they do have the option to buy their cover from an independent provider, or as they are sometimes called, “standalone providers”. This means that they are providing your payment protection independently from your mortgage.

If you are fit, in a good job and life is being kind to you, protecting your mortgage is possibly not something you would consider a priority. After all, losing your job is something that happens to “the other guy”. Unfortunately in these difficult financial times this is becoming less and less likely and there is a real possibility that it may happen to you.