Mortgage Protection

Mortgage Protection

What is mortgage protection cover ?

A mortgage protection policy is designed to pay off your mortgage if you or a partner were to die or if you were to include serious illness cover, on the diagnosis of having suffered a covered illness during the term of your loan. Generally, a mortgage protection policy is a minimum requirement for any lending institution before you draw down your loan. A typical mortgage protection policy has the following features:

  • The premium is fixed for the duration of the policy.
  • Your lender will take an assignment of the life insurance policy. (This means that the benefits of the policy will go to the lender to pay off the outstanding mortgage, any surplus will pass to your estate.)
  • The cover under a mortgage protection policy is designed to reduce down each year as you repay your loan.
  • The premium is calculated by reference to age, mortgage amount, term and your medical history.
  • Mortgage protection policies are only appropriate where you are repaying interest and capital each year, and are not suitable for interest only policies.
  • If you include serious illness cover your mortgage will be repaid in the event of you having suffered from one of the covered illnesses.

Some mortgage protection policies offer additional benefits which allow you to top up the cover in the event of a change in circumstances, or extend the term, but this is not typical on all policies (please ask for details).
The cost of mortgage protection cover have come down over the past number of years.
In fact We have assisted many clients obtain much lower premiums than they are currently paying, even if the policies were taken out some years ago. Also in many cases we have found that clients who purchased mortgage protection cover with the bank directly when they took out the loan are paying over the odds for the cover, as most banks can only sell a product from the one provider.

How much does it cost?

Why not log into our quotation page and see if we can provide you with a quotation that can save you money, also as most loans are over long periods of time any reduction in premium can result in significant savings over the long term. Our mortgage protection quote calculator searches the market for the best rate available.

Do I have to keep my existing policy that is currently covering my loan ?

The answer is no, you are free to replace your mortgage protection cover at any time, and your bank can not compel you to take out the cover with them.