Mortgage protection insurance - unemployment cover not being offered

Dingles73

We are in the process of remortgaging with our current provider.
We are currently on a rate that tracks the BoE interest rate - up to 2% higher if it chooses - so are locking into a different 5 year deal.
Our current mortgage has always offered a payment holiday of up to a year, and as we have sickness and life cover through work, we havent got mortgage protection cover.

The new mortgage deal doesn't offer a mortgage payment holiday.
I went to but mortgage protection insurance cover for sickness, accident and unemployment and, after trying a few sites, found that nobody is offering unemployment cover due to the pandemic, so we dont know what to do.

This seems to have not been reported anywhere either!

[Deleted User]

No one has offered unemployment cover since lockdown 1 and everyone started losing jobs. 
Insurance companies price on risk and its too risky for them to offer at any price at the moment 

Dingles73

Thanks.

This leaves us in a pickle, as if we stay on our current deal, it leaves us open to any potential high interest rates, but covers us if we are made redundant.

[Deleted User]

What lender offers a payment holiday of up to a year?

Will they carry this on if you move to a new fixed rate but stay with them? 

Dingles73

On our current deal with Nationwide (a longstanding tracker) we can have up to a year, overpay as much as we want, and leave without early redemption. However, as it's a tracker, currently 2.14% we are concerned if rates rise, this leaves us vulnerable.
The five year deal is alos with Nationwide, but with none of those features, but a rate locked in at 1.29%.

ritz55

What about fixing at 1.29% and then the savings you make in paying interest put to one side in a saving account for a rainy day? 

Dingles73

Yes, I think we are going to have to do this as I can't risk being open to any interest rate hikes.