Good value Mortgage Protection Insurance

Andrew_G

Hi

I'm a first time home-buyer ready to move in within the next few weeks and I wondered whether any of you good people had any advice/recommendations on good value Mortgage Protection Insurance?

For my sins I'm a Civil Servant so although the salary's not great I don't think I need unemployment insurance - just something that will cover my loan repayments if (God-forbid) a serious illness was to kick in.

The best quote my Mortgage Advisor could find was £25 a month but as money is going at a premium come occupation does anyone have a personal recommendation that beats that please?

Again as a single person and to keep the costs down, at this stage I'm not too worried about paying off the balance of the mortgage to benefit a relative if there was a critical illness.

Thanks

Andrew_G

Taps Microphone to check it's still working

Really, has no one any recommendations?

New house is a Bangor address so in that sense it is Local MoneySaving though if the Mods. think this would sit better on the Mortgage Forum can you please move it?

Cheers

Caveman_4

Andrew_G. So what does 25 quid a month cover for you? Seriously read the small print as a lot of these deals will maybe cover 6 months or a years repayments at most.

If it were me, i'd stick the 25 quid a month into my savings account and build my own "payment protection" pot. I'm an optimist by nature so assume for the best anyway.

One thing i'd say is check out a few other places for a quote rather than your Mortgage Advisor. This info is readily available on the web. So a quick search highlights https://www.moneysupermarket.com. I whacked in the details for a 30 y.o wanting protection for 600 quid mortgage repayments in the event of accident or sickness. Quotes started at 6.90 for 12 months cover. Seems to me your MA chap maybe making an nice chunk of commission out of his suggested policy...tut tut:rolleyes:

arkonite_babe

Hi, Martin’s asked me to post this in these circumstances: I’ve asked Board Guides to move threads if they’ll receive a better response elsewhere (please see this rule) so this post/thread has been moved to another board, where it should get more replies. If you have any questions about this policy please email [EMAIL="abuse@moneysavingexpert.com"]!!!!!![/EMAIL].

will-in-estoril

Andrew_G wrote:

Hi

I'm a first time home-buyer ready to move in within the next few weeks and I wondered whether any of you good people had any advice/recommendations on good value Mortgage Protection Insurance?

For my sins I'm a Civil Servant so although the salary's not great I don't think I need unemployment insurance - just something that will cover my loan repayments if (God-forbid) a serious illness was to kick in.

The best quote my Mortgage Advisor could find was £25 a month but as money is going at a premium come occupation does anyone have a personal recommendation that beats that please?

Again as a single person and to keep the costs down, at this stage I'm not too worried about paying off the balance of the mortgage to benefit a relative if there was a critical illness.

Thanks

I'm a civil servant too, and opted not to have unemployment cover. I pay £5.25 per month with Pinnacle.

Remember, you'll get 6 months full pay and 6 months half pay, so you'll only really need cover from month 7.

LisaT186

Mortgage payment protection is usually based on a cost per £100 of cover or payout. It tends to run for 12 months to 24 months and most standard policies have and excess of 30 days. Cost varies greatly, but as has been pointed out you can reduce the cost if you don't want to be covered for unemployment and you can reduce it further if you don't need to be covered so quickly. As a civil servant I am assuiming you get a fairly good sick pay package such as 6 months full pay. It would be worth searching on the net for mortgage payment protection or perhaps visiting a financial advisor to talk about income protection. Income protection or permanent health insurance covers a set amount of salary (not mortgage related but income related) and pays out generally until the end of the term (usually retirement) or return to work. Although more expensive by tailoring the deferred or excess period to match that of your sick pay you can significantly reduce cost. Ie you could have a deferred period of 6 months it I am right in my assumptions of your sick pay benefits.

LisaT186

Sorry meant to add as a starting point for research on cost you could try moneysupermarket.com

MortgageMamma

I would not recommend shopping for MPPI or PHI on moneysupermarket unless you know what you are doing

many brokers will look at this free of charge for you. If it just mortgage protection you want the paymentshield policies are good value

Robert_Sterling

Good value Mortgage Protection Insurance

Almost an oxymoron.

LisaT186

MortgageMamma wrote:

I would not recommend shopping for MPPI or PHI on moneysupermarket unless you know what you are doing

many brokers will look at this free of charge for you. If it just mortgage protection you want the paymentshield policies are good value

I do actually agree with you mortgagemamma, but as a starting point of what sort of costs to expect its not a bad place to start and yes Paymentshield are good value! Having worked for a lender for the last 4 years, I was pleasantly shocked at the cover for the price when I moved to a brokers

dunstonh

Have you taken a look at Source for providing general insurance? I find most of my quotes coming out best on Source nowadays. I'm not as active as you guys on the GI front but I only found paymentshield come out cheaper once in the last year. My other adviser, who is far more active on that front with a big paymentshield book, is finding most of it coming out best on Source now.