Mortgage Payment Protection Insurance

System

I'm currently in the process of organising my mortgage. My partner and I are considering Mortgage Payment Protection. Our building society advisor has told us that we have to take it out now, as this is something that can only be done when you first buy a house. Not something that can be taken out down the line.

We're first time buyers - is what she said true?

payless

Price and conditions are often harsher if not taking at same time as mtg.

Although doubt your BS have best rates

Hamster_3

Guys,

I need help - first time buyer and all that so this is a minefield. Myself and my partner and buying a house with montly mortgage repayments of £550. I want to take out MPP. Do we have to have 2 seperate policies and if so for how much each. I've read Martins' article and visited the sites he suggested but they only seem to quote for one person at a time.

Someone, please help

payless

whether you take it, what level and in whose name will depend on your personal circumstances

Many providers will provide cover ( subject to acceptance) in either sole, joint ( split either equally or based % of incomes, or do a double cover- full amount in both names , either as 1 policy or sometimes as 2.

Double cover usually costs double premium

Hamster_3

So if we take out seperate policies and the monthly mortgage repayments were £550, do we take out a policy to cover £275 each?

payless

Whilst different prividers have different conditions- so check them out)

If you want you may take upto £550 each ( some allow mortgage payment plus 25% or even plus 100% extra)
or even uneven amounts
( usually lowest paid person can't take more than higher paid - and of course both have to be eligible )

how much you take is down to your personal circumstances

The_Jazz_Punk

I've just applied for mortgage protection using Helpupay and found out that it is a site run by Pinnacle Insurance. This is the same company that has underwritten my current insurance, that I took out through Intelligent Finance. ???
From the web site they have quoted me about £12 less per month for the same level of cover. £33 down to £21 on a £550 mortgage. I have been able to increase my cover to 125% of my mortgage and still be £5 better off each month ;D
I have been made redundant twice in the last 3 years, the last time for over 6 months, :'( I didn't have any cover which cost me quite a lot of my savings. So I think this insurace is a good idea in the current economic climate.

feebasedadviser

i think the 'U' part of MPPI can be useful. not convinced with the AS element.

after all, you'll only be covered for a limited period of time (up to 24 months) and then if you're still off work you're on yr own.

IMO a more effective option is to go for income protection insurance (also referred to as PHI). this will cover your whole salary, not just a mortgage payment amount, so the payout COULD be higher, and it would pay you for a longer period, usually until age 50-65. you can then add a separate 'U' plan on top as they are unrelated in the event of a payout as they cover 2 diff situations.

you'll need to check whether or not you qualify for PHI (depends on yr occupation, health, age etc) and then do yr research as there are approx 50+ plans on the market.

EMcG

Coud anyone tell me when or if a 'pre-existing condition' is spent?

The wife and I currently have MPPI with HSBC for illness and unemployment (up to £600) priced at £35.64 a month. When my wife was ill and in hospital last year with depression this came in very handy as it paid out approx. £260 per month for the six months it was needed.

Now I am reviewing my finances and wondered if I could get this any cheaper. But will the fact that we have claimed on this policy mean that it will be impossible to get a better rate from anyone else? And how long has to elapse between episodes of illness for her depression to be deemed as having no bearing on the premium?

Thanks for any advice.

EMcG

Could anyone tell me when or if a 'pre-existing condition' is spent?

The wife and I currently have MPPI with HSBC for illness and unemployment (up to £600) priced at £35.64 a month. When my wife was ill and in hospital last year with depression this came in very handy as it paid out approx. £260 per month for the six months it was needed.

Now I am reviewing my finances and wondered if I could get this any cheaper. But will the fact that we have claimed on this policy mean that it will be impossible to get a better rate from anyone else? And how long has to elapse between episodes of illness for her depression to be deemed as having no bearing on the premium?

Thanks for any advice.