Mortgage Payment Protection Plan
Unexpected financial challenges can arise at any time, making it difficult to keep up with mortgage repayments. A mortgage payment protection plan provides financial security by covering your mortgage payments if you’re unable to work due to illness, injury, or redundancy. This type of payment protection insurance (PPI) ensures that you don’t risk losing your home during difficult times.
What is Mortgage Payment Protection?
A mortgage payment protection plan is a form of payment protection insurance (PPI) designed to help homeowners keep up with their mortgage repayments if they are unable to work. It typically covers payments for a fixed period, usually up to 12 or 24 months, giving you time to recover financially without the stress of losing your home. There are different types of mortgage payment protection plans, including:
- Accident & Sickness Cover: Provides support if you’re unable to work due to illness or injury.
- Unemployment Cover: Covers mortgage repayments if you lose your job through redundancy.
- Combined Cover: A comprehensive option that includes both accident, sickness, and unemployment protection.
Policies can be tailored to your needs to ensure you have the right level of protection based on your financial circumstances.
Do I Need Payment Protection Insurance?
While a PPI is not mandatory, it can provide crucial support in case of unexpected financial difficulties. If you rely on a steady income to cover your mortgage, a mortgage payment protection plan can offer peace of mind by ensuring you don’t fall behind on repayments if you’re unable to work. Without an insurance plan in place, you may have to rely on savings, government support, or other means to cover your mortgage. However, many homeowners find that a mortgage payment protection plan offers a more reliable and structured solution, helping them maintain financial stability without depleting their savings.
This type of insurance is particularly beneficial for individuals who don’t have employer-provided sick pay or those in industries where redundancy is a potential risk. If losing your income would put your home at risk, PPI for mortgages is a worthwhile consideration.
How We Can Help
At Your Mortgage Shop, we understand the importance of securing your home against financial uncertainty. We work with trusted insurers to help you find a mortgage payment protection plan that suits your budget and personal circumstances. Our expert team will guide you through the options, ensuring you choose the right payment protection insurance (PPI) for your needs. Whether you’re self-employed, in full-time employment, or simply want extra financial security, we can help you find the best solution.
Get in touch with Your Mortgage Shop today.
Mortgage Payment Protection Plan FAQs
Payment protection insurance (PPI) for mortgages provides monthly payments for a set period, usually 12 to 24 months, if you are unable to work. This helps cover your mortgage repayments while you recover or secure new employment.
Both payment protection insurance and income protection provide financial support, but they differ in coverage. PPI covers specific payments, like your mortgage, for a limited time, whereas income protection replaces a portion of your salary and can last until retirement or return to work.
Yes, self-employed individuals can take out a Mortgage payment protection plan, though policies may have different eligibility criteria. Some insurers offer tailored coverage for self-employed workers, ensuring they receive financial support even without traditional employer benefits.
Contact Us
Mortgages
Would you like one of our independent advisors to call you back?
Mortgage Quote Calculator
Mortgage applications are subject to status. The rates detailed are for illustrative purposes only and may not be applicable for your circumstances. Our advisors will be able to discuss the full range of products on offer that suit your criteria.
Affordability Calculator
This illustration is not a quotation under the Consumer Credit Act. Any figures quoted are subject to validation of income, credit checks and a property valuation. View our latest mortgage rates on our home page to find a selection of mortgage products. Alternatively, let one of our mortgage experts handle it for you. They’ll find the right mortgage for you and manage the process from start to finish.