MyFinances.co.uk
News feeds Free newsletter

All the latest personal finance news - helping you make the most of your money

Mortgage glossary

Mortgage insurance

There are a series of insurance products that go with mortgages.

Lenders generally require buildings insurance to be in place for anyone taking out a mortgage, and mortgage brokers will also advise borrowers look at life insurance, critical illness cover, and even mortgage payment protection insurance.

Mortgage payment protection insurance covers monthly mortgage payments for a set period if the borrower becomes unemployed or prevented from working because of sickness or disability.

However, mortgage payment protection insurance is expensive, and many people advise borrowers to take out a standalone illness or income protection plan from a separate provider.

Additionally, mortgage payment protection insurance can be quite limited in what it pays out on.

Critical illness and life insurance policies are often more effective if people are prevented from paying mortgages for extended period.


Recommended ... 

Related articles 

  • Mortgage rejection becomes more common

    3.4m facing mortgage rejection

    As many as 3.4 million UK borrowers have been turned down at least once for a mortgage or loan in the past 18 months, GE Money Home Lending research reveals. More...

Disclaimer:
myfinances.co.uk is not authorised to give advice under the Financial Services and Markets Act 2000.

Terms:
By using this site, you are deemed to have accepted our terms of use.

About Us | Advertise | Contact Us | Privacy
© 2004 - 2008 www.myfinances.co.uk

myfinances poll 

myfinances.co.uk is running a poll to get your thoughts on stamp duty and its possible suspension to boost the property market.