Halve Your Mortgage Payment Protection Costs Article Discussion Area

leni

I'm totally at a loss with this and have been considering switching for the past 6 months!

We currently pay £47 a month through Halifax (our mortgage lender) and we took out the policy when we bought the house (so nieve)

anyway the £47 includes critical illness cover, life cover, sickness and redundency. I think it's a little steep and have had a quote for all the above with Norwich Union which comes out at 23.93 a month!

would you change? It's a big saving and the policy almost matches word for word the Halifax contract, actually it's better in some ways i.e. deferred for 1 month, Halifax is deferred for 6 months!

payless

It m,ay be worthwhile noting that a lot of these insurances ( MPPI is a form of general insurance) purchased via websites are sold on a non-advised basis ( see http://www.fsa.gov.uk/consumer/02_HOW/Advice/advice_without.html ) so no backup of advice from an adviser / no liability if you buy something that is not suitable or if something esle was more suitable , or if the terms/ exclusions don't meet your requirements .

NOTE : When speaking to an adviser in these matters its worth checking what experience and/or qualifications they have in this "general insurance market" ... as many IFAs and mortgage brokers are also regulated by the FSA to advice on "general insurance" but whilst they may have mortgage ( Cemap etc) and life/investment ( FPC1-3) qualifications , there are no compulsory qualifications for this "general insurance" elemenmt ( MPPI, ASU, home & car insurance) ..

so might be worth checking if your adviser has the current CII diplomas in the various GI areas ( or the old CII F04 .. sometimes known as FPC4 .. the general insurance add-on to the older FPC exams )

Fatmum

Following a thread on the benefits board, it came to my attention that if the policy pays out to you in the event of a claim it is considered an income and can affect any benefits you may get.

As I am with Norwich union who have told me they could not pay the mortgage company direct, does anyone know of companies who will pay directly into your mortgage.

Many thanks
Fatmum

MortgageMamma

Shouldnt really matter as if you are claiming benefits ANY income that you get for any purpose has to be declared to the DWP, Not suggesting you would do that by the way, just giving facts.

sarahjbird

Hi,

Does anyone know of any MPPI or Income Protection policies which don't require you to have been in work for 6 months before you can take out the policy? My partner and I have both recently graduated and started work and cannot find a policy to cover our mortgage payments. BestInsurance and Antinsurance as recommended in the article both have this requirement.

Thanks

Saver_Plus

I am currently looking for a new mortgage deal, but the deal i am interested in is subject to purchasing Payment Protection albeit not from the lender.

If my conditions are such that i feel i do not need this protection and it is not a legal requirement how do i convince the lender to sell me the mortgage without MPPI?

dunstonh

sarahjbird wrote:

Hi,

Does anyone know of any MPPI or Income Protection policies which don't require you to have been in work for 6 months before you can take out the policy? My partner and I have both recently graduated and started work and cannot find a policy to cover our mortgage payments. BestInsurance and Antinsurance as recommended in the article both have this requirement.

Thanks

Any of the ones available through brokers should be fine. The rule is 6 months after you take the policy out with most providers. Not you needing to be in work already for 6 months. Another exception that could apply is if you are still inside a probation period at the end of the first 6 months.

I am currently looking for a new mortgage deal, but the deal i am interested in is subject to purchasing Payment Protection albeit not from the lender.

Deals are not allowed to insist on any insurance being taken with the exception of buildings insurance.

If my conditions are such that i feel i do not need this protection and it is not a legal requirement how do i convince the lender to sell me the mortgage without MPPI?

Name the lender and product.

rossbenn

lowis wrote:

"In some instances it could be beneficial to take a 12 month mortgage payment protection policy and a 52 week deferred permanent health insurance policy to ensure continuity of income in the event of a serious long term illness such as cancer or stroke"

i am considering the above - taking out a 12 month ASU policy and taking out a deferred 52 weeks PHI. Is this definitely allowed - I wouldn't have any problems claiming on the 12 month policy and then the PHI one? It does seem to work out cheaper having both these policies rather than just a PHI deferred for 4 weeks...

Sounds good, the mortgage is paid for 12 months but what about all those other nasty brown envelopes that keep hitting the mat, who pays them?

The problem is that this is the time when people are vunerable and can mess up a perfectly good credit rating, then you have a problem. The Income protection should kick in when your employer stops paying you, that way you will not have a massive drop in income. Better to buy quality and pay the price.

Saver_Plus

dunstonh wrote:

Any of the ones available through brokers should be fine. The rule is 6 months after you take the policy out with most providers. Not you needing to be in work already for 6 months. Another exception that could apply is if you are still inside a probation period at the end of the first 6 months.



Deals are not allowed to insist on any insurance being taken with the exception of buildings insurance.



Name the lender and product.

The lender is Cheltenham & Gloucester Fixed for 5 years @ 5.09%. It is stated in the key facts and i assume most offers will say the same thing.

dunstonh

I'm not a mortgage broker so dont have access to mortgage sourcing software but I cannot find a 5.09% fixed rate on C&G's site. I cannot find any reference to requiring an MPPI on the C&G site either.

Can you provide some online link.