Mortgage Protection

Taking on a mortgage is normally the biggest debt undertaken by most people. A mortgage is a loan given by a financial institution for which the security is normally the family home. Should the mortgage holder die, the debt still remains and becomes the responsibility of the estate inheritors. If the primary earner suffers a critical illness and therefore loses an income, this can also put the home at risk.

If the mortgage holder is unable to keep up repayments, the home can be sold by the financial institution to recover its loan, leaving the occupants homeless. And if the selling price is not sufficient to cover the entire debt, the balance of the debt remains.

It is therefore advisable to take out a protection insurance policy which will at least cover the outstanding mortgage in the event of death or critical illness. Many lenders make it compulsory to take out such insurance and most will offer this cover as part of the mortgage transaction. Policies sold by lenders tend to be quite expensive even for limited cover and sometimes require up-front payment of the premiums for the entire period of cover. Others add the cost of the cover to the amount borrowed, meaning the client is paying interest on this amount for the entire life of the mortgage.

There are a number of protection options our brokers can offer. There are many factors to take into account before choosing the mortgage protection product which is most suitable for your particular needs and we will need to put you directly in contact with a qualified and registered broker who has been trained to provide the best possible service.

Please fill in the form below and an expert broker will call you, without obligation, to discuss your mortgage protection options.