Introduction

Many people use a mortgage as a sensible form of borrowing. Initially to purchase a home but later on they may extend and increase the mortgage so that they can gain access to capital at a lower interest rate then they would receive if they took out a normal loan. That capital could be used for anything from extending a business to extending the house or extending your life style.

By there very nature mortgages are usually much larger than loans and can represent a very large financial commitment. For first time buyers mortgage repayments can be the most expensive regular monthly outgoing. The amount borrowed could represent a large part of the value of your property and in most cases if you were forced to repay the mortgage within a few months and were unable to get another mortgage to replace it, then selling your home might be the only viable option to repay the mortgage.

It is therefore no wonder that for most of us our mortgage is a very important financial commitment that we want to meet. But what would happen if we lost our jobs or our income through either involuntary unemployment, sickness or accident. We may feel we are in a sound job now but firms do restructure and many people who felt they were secure have found out to their peril that was not the case. Equally some of those in sound employment have unfortunately suffered serious accidents or illnesses which have resulted in long unpaid periods off work or even loss employment.

So how many people really want to risk not being able to keep up with meeting their monthly mortgage payments due to causes beyond their control. Do you want to take a risk that a single stroke of misfortune could result in your home being repossessed? As a result many homeowners purchase an insurance product known as mortgage payment protection insurance. In simple terms this policy provides a monthly benefit which is payable after you have been unable to work for in excess of 30 consecutive days due to accident, sickness or involuntary unemployment. You select the benefit level when you take out the policy and the benefit can be paid for up to a maximum benefit period of twelve months.

Whilst Mortgage Payment Protection Insurance can provide a valuable level of peace of mind for those with a mortgage for those for whom money is tight even this type of insurance can prove beyond their means. This means that those with less in the way of surplus funds can find that they are most at risk. Mortgage Payment Protection Insurance even purchased from the most competitive providers on the internet can cost in the region of £4 per £100 pound of monthly benefit selected. So a monthly benefit selected of £500 per month would cost you a premium of £20 per month. Still a reasonable price but a price that could still be outside of some peoples’ pocket. If you chose to purchase this product from a provider who was not competitive then you could easily pay 30% or 50% more or perhaps even higher.

Now there is good news because there is an age rated mortgage payment protection insurance policy that has just come out in the market place provided by British Insurance Limited. This product could save the younger policyholder substantial amounts off there monthly premium. Making a valuable product even cheaper.

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