Compare mortgage payment protection insurance

No. There’ll be an exclusion period before which you can't claim on your insurance. These periods are longer with mortgage insurance that covers you for unemployment – this is to stop people taking out insurance when they know they're going to be made redundant.
 
Plus, there’ll be an agreed waiting period, between the time you became unable to work and the time your pay-outs start. This is sometimes called a deferred period, and will usually last between one and six months. You might want to choose a deferred period based on when your sick pay from your employer ends.
 
You can choose cover that will pay back the payments you made during the deferred period. This is called 'back to day one' cover, but it is expensive.

Not necessarily. If you know you’re likely to get a large redundancy pay-out, or if your employer’s sick pay is very generous, you may not need it. You might also be covered under your health insurance policy, if you have one, so check first.  
 
You also may not need mortgage cover if you’re eligible for government benefits that will help you pay your mortgage – but be aware that these Support for Mortgage Interest (SMI) benefits only pay the interest on your mortgage and, depending on your circumstances, there can be a delay of 39 weeks before the first payment is made. They’re also a loan that you’ll need to pay back when you sell your home.

Mortgage protection insurance is a type of income protection that will cover your mortgage payments if you're out of work due to accident, sickness or unemployment. Life insurance will pay out when you die or if you've been diagnosed with a critical illness that's included in your policy.

Mortgage protection and payment protection are both types of insurance that cover a single specific debt, but that’s where the similarities end.
 
Mortgage protection insurance is specific to your mortgage and pay-outs will be paid directly to you. PPI covers unsecured finance and pay-outs are paid to the lender, rather than you.

If you’re a smoker or vaper, you will be targeted with higher premiums. This is because you’re deemed a higher risk – ie, more likely to fall ill and make a claim.

Yes – and because you don’t have the same rights in terms of sick pay as PAYE employees, it may be more important that you have the right cover in place. Income protection would help you keep up with your mortgage, monthly bills and other outgoings. Long-term cover is also available.
 
Find out why self-employed income protection matters.

Income protection will usually cover 50-60% of your income, so you can still pay for rent or mortgage payments, your bills and employees’ salaries. The pay-out is just to ensure you keep your home and don’t have to worry about utilities or bankruptcy, so additional costs will need to be self-funded by savings. 

Yes. Our friendly advisers at Assured Futures are just at the end of the phone. Call Freephone 0808 141 1332.