Mortgage Payment Protection Question

nicenswift

I have always had Paymentcare from Abbey for my Abbey Mortagage, but recently I got a letter saying they are putting up my monthly payments by £10 a month which got me thinking am I being ripped off.

The Paymentcare is £51.20 a month to cover my Monthly mortgage payment of £659 with Accident, Sickness and Unemplayment for 12 months with a 28 day excess period.

Am i crazy in thinking that because my mortgage is Abbey that this is the best policy and can be trusted more to pay out if ever needed.

Any advice greatly received with thanks

AKS

TEDDYRUKSPIN

Before you start to jump the boat, every company has increased their accident, sickness, unemployment (ASU) cover. Some have even increased it four times over the year. Ridiculous but soooooo many people are claiming.

Before you even start to look at options you must also be greatly aware that when you start a new policy you will have a waiting period (one or two companies don't have this).

Now, are you being ripped off? No. Some will say yes but some no.

Obviously if you want to find cheaper elsewhere use an IFA.

opinions4u

nicenswift wrote: »

I have always had Paymentcare from Abbey for my Abbey Mortagage, but recently I got a letter saying they are putting up my monthly payments by £10 a month which got me thinking am I being ripped off.

I assume you recognise that the risk of providing this sort of cover has increased a bit. Not too surprising to see the premium rise.

The Paymentcare is £51.20 a month to cover my Monthly mortgage payment of £659 with Accident, Sickness and Unemplayment for 12 months with a 28 day excess period.

Seems typical for a lender provided policy.

Am i crazy in thinking that because my mortgage is Abbey that this is the best policy and can be trusted more to pay out if ever needed.

I would never take lender provided anything unless I felt it gave fair value for money. Your problem is changing providers gives you a new qualification period and a different set of terms and conditions.

You can get cheaper if you shop around. Try http://www.moneysupermarket.com/payment-protection/ but you really want to compare small print closely before switching. No point saving £30 a month and being £659 a month out of pocket when they don't pay out.