Chamber of Commerce advises Britons to insure their mortgage
Article source: www.mwgb.co.uk
A warning issued yesterday by The British Chambers of Commerce states that Britain is already facing a slump in the economy and that the unemployment figures will rise by a disturbing 350,000 next year. Though this information may need statistical confirmation the last two quarters are of this year are confirmation that we are in the midst of a recession.
Today’s public announcement by the Treasury that it is to commit £50 billion to buying shares in some of the troubled major banks and financial institutions coupled with fact that mortgage approvals that are at an all time low confirms qualms that we are facing tough times ahead.
Those who fear that their jobs may fall into the red following the current economic downturn could possibly find solace in Mortgage Payment Protection Insurance. The Mortgage Payment Protection Insurance (PPI) is surprisingly one of the most under bought and misinterpreted insurance products in the United Kingdom today, this dispite its great importance.
Quite a number of people have steered clear of the Mortgage Payment Protection Insurance having been scared off by the miss-selling scandals revolving around the Payment Protection Insurance. Although both insurance products share similarities, the Payment Protection Insurance is an entirely different insurance product altogether.
The Mortgage Payment Protection Insurance, also commonly known as the Accident Sickness and Unemployment cover, is designed to meet the monthly cost of the policyholder’s mortgage payments and other associated costs if they are unable to work. A substantial number of policies will pay for the first monthly payment thirty days after unemployment, accident or sickness starts and will keep on paying out each month for up to one year. For lots of people, the lack of effective state benefits simply suggests that having a suitable policy to protect your mortgage payments could be the one and only difference between losing a home and keeping it.
A number of mortgage lenders are still charging premiums in excess of £5 or £6 per £100 of monthly cover though many mortgage holders are able to buy policies direct from their mortgage lenders. As much as this is considered as a good value, there are cheaper options currently available.
Take for instance, The Mortgage Warehouse GB Limited which has joined up with payment protection expert, British Insurance. The duo are to release a special offer aimed at all those who would like to arrange such insurance before their job is in dire straights. The policy on offer is said to be one of the best in the market and was subsequently awarded a ‘What Mortgage Best Buy’ Award in both 2007 and 2008, and it has, on numerous occasions, topped the Moneyfacts and Defaqto best buy tables.
This popular policy is through The Mortgage Warehouse GB Limited and British Insurance’s partnership for as little as £3.95 per £100 of cover. This price is for applicants who buy online via the website www.mwgb.co.uk and on top of this the first three months cover is absolutely free.
Like any other insurance, there are some people who are not eligible, these are:
- 1. The self-employed
- 2. Those under notice of redundancy
- 3. Those under a consultation period with their current employer
- 4. Those who have recently started a new job
It is for this reason that anyone thinking of taking out such a policy should take a keen look at the small print. If you don’t fall in to any of the above categories then you are highly advised to rush and take out a policy before this amazing product disappears.
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