Mortgage insurance cover UK policies still under review

With the mortgage and payment protection insurance sector still currently under review it is now more essential than ever that you be aware that you can shop around for the your mortgage insurance cover UK policies and get cheapest premiums along with the best advice possible.

After it was found that payment protection insurance policies, including mortgage insurance cover UK policies, were being mis-sold, the Citizens Advice made a super complaint to the Office of Fair Trading (OFT). Following this many big high street names were fined by the Financial Services Authority. The sector was then referred onto the Competition Commission who conducts in-depth inquiries into the regulation of major regulated industries. The review is set to conclude by February 2009 by which time it is hoped that fairer treatment will be ensured for the thousands who wish to protect their mortgages with a mortgage insurance cover UK policy.

Mortgage insurance cover in the UK is taken out to protect against becoming out of work due to redundancy, sickness or accident, and so losing your income. As your mortgage repayments are the biggest outlay, and of course are essential to keeping the roof over your head, you should do all you can to protect them. Mortgage cover UK policies can, when purchased correctly, give you a tax free monthly income to cover your mortgage repayments and typically would start after you have been out of work for around 30 days. The cover would continue for up to 12 months which is usually ample time for you to get back on your feet again although some providers will pay out for up to 24 months.

Quotes for mortgage protection will vary from provider to provider and of course will depend on how much you want to be insured for and how old you are at the time of applying for the cover. It will also depend on whether you want the cover to protect against just unemployment through involuntary redundancy or to protect against coming out of work through accident or sickness. Or, if you wish, you can take protection to cover against accident, sickness and unemployment. Mortgage insurance policies are also called mortgage payment protection insurance or ASU insurance.

Many people who have a mortgage wrongly assume that the State would step in and give a helping hand if you lost your income. While in some cases you can get help, the financial assistance you get is very little even if you qualify. Unfortunately this means that you stand a real risk of losing your home if, through no fault of your own, you cannot afford to keep up your mortgage repayments. This is where a good mortgage payment protection policy can come into its own providing of course that you understand the exclusions and have made sure a policy is right for your circumstances.

The best way to ensure that you get all the information needed to make a decision about a mortgage insurance cover UK policy’s suitability is to go to a standalone provider for the policy. A specialist provider will always ensure that they give not only the best information but will often provide the best quality product along with offering the cheapest premiums for mortgage insurance in the UK.