Mortgage Payment Protection Insurance
Cover for unemployment alone is often what increases the price of the policy substantially.
Not being covered by MPPI is perhaps understandable for households on tight incomes but if it can be afforded the additional peace of mind that can be provided in relative to the price should definitely make it a worthwhile consideration.
It is important to note that as of January 2010 many insurers put up premium rates due to the increased number of claims however the FSA (Financial Services Authority) kicked in to regulate this.
The big name lenders have never opted to be competitive in this field leaving much breathing space for smaller competitors.
You can be expected to pay up £7 for every £100 it will take to cover the monthly payment with these calibre of lenders while the smaller independent MPPI insurers have cover available from £1.04 for every £100.
In there unlikely ( but not impossible) event a smaller insurer may have to go bust and can not afford to pay out its coverage obligations , clients are fully protected and will be compensated in full by the FSCS (Financial Services Compensation Scheme).
All MMPI policies will pay out after a certain amount of time called the ’deferment’ period usually in 30-60 days after application but are backdated to the date they were first applied for to cover for any arrears.
