Halve Your Mortgage Payment Protection Costs Article Discussion Area

Saver_Plus

dunstonh wrote:

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.

The quote was made by London & Country.
The rate can also be found on the money supermarket.com website after inputing mortgage requirements. There is no reference to the MPPI on this website but it did appear on the key facts lierature received from L&C.

dunstonh

C&G have always marketed that they do not insist upon insurance cover and for the last few years you couldnt force insurance on an indiviual as part of a mortgage deal.

You should post this in the mortgage section asking if this deal is available without insurances being insisted from L&C. The mortgage brokers in there will be able to check it for you.

kosial

leni wrote:

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!

Firstly, welcome all, as I am new to the forum. What a great place it is! It's a shame that I didn't find you earlier.

Now, I really need your help or advice. I am currently paying around 82 pounds for the insurances(so almost twice as much as quoted:eek:) .Having read most of the articles here and through the forum I am still confused, please help me.

1) I pay 24 pounds for Self Assurance Term Policy with Scottish Provident,
2) My wife pays 23 for the same
3) we pay together 35 pounds for Life and Critical Illness Cover plus Payment Cover for Sickness with Bright Grey.

I would like to reduce the payments, obviously, as I believe I don't need as much cover, please advice what to do, or where to look (read) for more info.

Thanks!

takethe5th

rossbenn wrote:

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.

I wish i had read this advice a few years ago.My husband was made redundant and we thought we would be covered by our Halifax 'total 'mortgage protection.But it only covered the one we took out about 15 years ago but i suppose it's better than nothing we get £350 to cover a £675 mortgage and also have to keep up the payments on the policy too...I can tell you i am scared of the brown envelopes.We have learnt our lesson but why don't the lenders suggest you upgrade your protection when you re -mortgage

suranjith

Hi all,
I am new to this forum and very confused...
Currently paying £800/ month for the mortgage and the protection plan costs nearly £100.
This seems excessive, and I am surprised that banks can legally charge way above standard rates !!!.
Would it be a good idea to change the insurance (and mortgage) ?. Would be very grateful for any advice
Best regards,
Suranjith

roswell

Im confused as to the real usefull ness of these policys ? presonally I dont have any protection insurance instead i over payed my mortgage in the first year with 2 years payments to give me some space, my belief is that the property has the mortgage secured against it ... in this case surely any proctection you have is from your own bank .... so you pay your bank for the mortgage and pay them to stop them taking your house away ? and all the time they have the asset secured and any equity ....

Im sure my views are wrong but it just doesnt make sence to me. I have heard of belt and braces but surely this is to much. It may be usefull in the first few years but after that your insuring a decreasing debt and incresing asset (hopefully) .. why ? Now income proctection I can understand depending on lifestyle / responcibilities. But really do we need all this protection on a single asset?

bapp

When changing job, is the income protection insurance still valid or should u cancel and take it up after 6 months?

Thanks
Bapp

mchu6am4

bapp wrote: »

When changing job, is the income protection insurance still valid or should u cancel and take it up after 6 months?

Thanks
Bapp

you need to check with your insurers but generally its still valid so long as you have no more than 2 weeks break between changing jobs.

dunstonh

bapp wrote: »

When changing job, is the income protection insurance still valid or should u cancel and take it up after 6 months?

Thanks
Bapp

Depends on whether you have income protection (permanent health insurance) or accident, sickness an unemployment.

It also depends on the provider. With these policies, premium is not the only difference.

foreverfriend

Hi all
When i took my Mortgage out in 2002 with the Halifax, we got their Building & contents insurance, which is included with our Mortgage. i am paying £261.84 a year.
Also we were told we had to have Total Mortgage Protection Plan which covers Mortgage Repayments, Life Cover and Critical Illness. i am paying £125.00 a Mth.
Am i paying too much, as they are due for renewal soon.

thanks ff