Insurance

Mortgage payment protection insurance (MPPI)

What is it?

Policies are available to protect most forms of personal credit, including mortgages, personal loans and credit card repayments if you're off work for a long time because of an accident or sickness. Many people will add unemployment cover to this to ensure that their repayments are covered in the event of redundancy. It is also known as Accident, Sickness and Unemployment (ASU) insurance.

Who can have it?

Our requirements are that you are aged 18 to 65 and that you are employed for at least 16 hours a week or on a long term contract or have been self-employed for a period of time.

Why do you need it?

Unemployment in the UK lasts an average of 36 weeks (DSS Analytical Services 2000). Trying to cover your mortgage repayments and associated costs without an income during this anxious time can be very challenging. It could exhaust all of your savings or even lead to your home being repossessed. The MPPI policies we can arrange for you offer either a 12 or 24 month benefit payment period, giving you the breathing space you'll need to concentrate on finding a new job.

And if you're unable to work because of an accident or sickness, you can focus on your recovery in the knowledge that your mortgage repayments are being met during this time.

What will the state provide?

Although some help is available from the State, it may not apply to you. Even if it does, it may not be enough to prevent you falling behind with your mortgage payments.

For example

• you will not qualify if you have a joint mortgage and only one of you loses your income - even if your partner works as little as 16 hours a week
• you will not qualify if you have savings of more than £8,000
• you will usually only start to receive help nine months after you become unemployed (earlier assistance may be available if you took out the mortgage before 02/10/95)
• you will only receive help to cover the payment of interest - capital repayments, investment premiums and insurance premiums are not included
• you will usually only receive help on the first £100,000 of your mortgage (mortgages taken out before 02/10/95 may qualify for more assistance).

What do we offer?

• Cover at a very competitive price
• Up to £2,500 per month cover for employed, self-employed or contract workers (subject to specified criteria)
• A choice of 12 or 24 months maximum benefit payment period
• A flexible waiting period so you that on application you can choose how long you want to wait before the benefits begin to be paid