Mortgage Protection

"THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE."

You have probably seen this statement on mortgage advertising, but have you ever stopped to think about what it means?

If you fall behind with your mortgage repayments and cannot catch up again, you could eventually lose your home. But you can take steps to protect yourself against this risk by taking out Payment Protection Insurance.

Your mortgage is probably the largest financial undertaking you will ever commit yourself to, alongside which you will have regular monthly commitments for insurance, council tax, water, electricity and gas charges and maybe even a car or bank loan etc. During the period of your mortgage and other financial commitments your personal circumstances may change many times, likewise so could economic circumstances outside your control. A comprehensive “Payment Protection Plan” will give you confidence and peace of mind in the knowledge that this commitment will be met, should you be unable to attend work due to sickness or if you should become unemployed. This type of cover provides payments until you are able to return to work, up to a maximum of twelve months per claim.

Nowadays many borrowers regard this type of protection, recommended by the mortgage and loan industry regulators and endorsed by the Government as a must buy peace of mind purchase. Not surprising, for the reasons already stated, we also strongly recommend our customers seriously consider taking out this type of cover. For a relatively nominal monthly outgoing, isn´t it certainly worth putting this type of protection in place?

We offer a very comprehensive scheme that in fact exceeds the minimum requirements of the regulators. It can be either taken up as a stand-alone monthly contract or prepaid for a specified period and added to the mortgage, thereby guaranteeing the premiums and the level of cover throughout the prepaid period.

Key Benefits Of Cover:-

• Cover for a range of regular monthly commitments.
  In addition to protecting your mortgage payments, you can also opt to include other regular monthly commitments such as insurance, loans, credit cards, utilities and council tax etc. up to a maximum of £1,500 per month or 75% of your gross income.
• Back to day one cover
  The monthly benefit is paid after 30 days absence from work as a result of a qualifying condition. However payment is then backdated to the first day of absence.
• Not tied to a specific lender or mortgage
• Available to everyone under normal retirement age.
• Available to new and existing mortgage borrowers and tenants.
• Peace of mind knowing your Home and Family are protected if the worst should happen.

Why not talk to one of our underwriters about these schemes when you request a mortgage quotation?

Important facts worth considering before you opt to discount this type of cover: -

• 90 families a day (32,770 in total) had their homes repossessed in 1997, many as a direct result of financial problems, brought about by unemployment.
• 850,000 people lost their job in 1998 and half were out of work for over 6 months.
• Currently nearly 9 out of 10 people claiming invalidity benefit do not return to work for over 6 months.
• You are not eligible of income support if your partner works for more than 16 hours.
• On mortgages arranged after October 1995 you may only be eligible for government support on mortgage interest after 40 weeks.
• No help is given for mortgage interest on the proportion of the loan above £100,000.