UK Credit Crunch and Mortgage Payment Protection Insurance
Paul Rhodes
At least 1 in 5 borrowers are concerned about meeting their mortgage payments in 2008 according to the Financial Services Authority and according to research by the Chartered Insitiute of Personnel and Development, say the Bank of Scotland, 38% of UK employers expect to make redundancies this year, so that obtaining the right mortgage payment protection insurance is now vital.
This combined with the current economic climate where the Bank of England Base rate is going down but some mortgage lenders are putting their rates up, is making many of us feel uneasy about our ongoing mortgage commitments.
Mortgage Payment Protection Insurance can protect us in the event of Unemployment, accident or sickness and is a very valuable asset in these uncertain economic times.
Finding the right Mortgage Protection however is a little more difficult. Many of the mortgage lenders are happy to offer you cover, but often at very high premiums which reflect the high commission rates they enjoy as a result of us taking their policy.
There are however a number of specialist providers on the market, which provide good quality cover at considerably more affordable prices, most of which you can sign up for online. For example, Payment Cover offer a comprehensive Mortgage Payment Protection Insurance policy for as little as 2.75 per 100 per month covered. This is one of the most inexpensive products on the market and not only do they cover mortgage repayments, but allow additional expenses such as monthly gas, electricity, life insurance, home insurance and water charges to be covered as well.
There are obviously a number of exclusions to taking a policy, but they are all very well documented within the sign up process.
It has never been so important to consider accident, sickness and redundancy insurance as part of your household expenses. Who knows how many of us will still be in employment this time next year
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