What is Mortgage Protection?

Mortgage protection is a dedicated type of life insurance. It helps secure ownership of your home, by clearing your outstanding mortgage if you die within a specified period of time. You can also choose to add serious illness cover to your policy which means you will be covered for specified illnesses. If you have a joint mortgage both people need mortgage protection insurance. Mortgage protection insurance can help alleviate any financial burden that may fall on a family member if you are no longer around.

The cover runs for the same amount of time as your mortgage. By law your lender must ensure you have this cover in place when you are taking out a mortgage. However, lenders may make exceptions to this rule if:

  • You are buying an investment property
  • You have a life insurance policy already
  • You are over 50 years old

Exemptions are made on a case-by-case basis and even if you fall within one of the above exemptions, the lender may make it a condition of the mortgage that you have mortgage protection in place before they approve your mortgage.

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Who is mortgage protection for?

Anyone taking out a mortgage is required by their lender to have mortgage protection in place. Many people take up a policy with their mortgage provider, but it’s always a good idea to shop around. We will always be able to offer you better value than your lender. Not only does this allow you to see the best premium available to you, but it ensures that you get the most suitable product for your needs.

How does mortgage protection work?

When you take out a mortgage, your provider will want to ensure that you have enough cover in place to guarantee you will be able to repay your loan. The cover will also protect your family in the event of your untimely death or diagnosis of a specified serious illness, leading to an inability to repay the mortgage. By paying a premium each month for a specified term, the policy will pay out a lump sum if the unexpected happens.

More on Mortgage Protection Insurance

Mortgage Protection Blog

In this blog we cover the different types of mortgage protection cover available, the different add-ons available and topping up your mortgage protection cover.

Income Protection Insurance

Although you are not required to insure your income, we think it’s very important to do so. Why not watch our Income Protection Insurance explainer video? It explains the importance of income protection.

Life Insurance Benefits

Insurer Healthcare Benefits

Most insurers will offer healthcare benefits with their mortgage/life insurance plans. Why not read our blog post to find out about the different benefits offered by each insurer?

What Does the Financial Planning Review Cover?

We review all your pensions and calculate what your retirement income will look like. Based on that analysis, we can recommend a course of action so you can maximise your benefits. Very few employees we talk to have entered full-time employment from day one and stayed with the same employer for their whole working life. Employees call us worried about old pensions, career breaks, job sharing, working abroad, etc. Things are never straightforward until we produce your free report. This is a fantastic no obligation review of your financial wellbeing.

We find that often employees do not fully understand all the fields on their payslip. This can lead to problems, such as not being on the right salary scale point for public sector employees, or not using all your tax breaks correctly.

Whether you need to protect you family’s future, mortgage or plan for inheritance taxes, it is key to have the right insurance policy for your needs. Furthermore, as part of the report, we will search the market for the best prices out there.

If you have more than 3-6 months pay in your bank account (your emergency fund), you are faced with questions how to use your money wisely. Should you increase your pension contributions, open a savings account for your children’s education, invest in bonds, etc.? The MadeSimple report makes these questions much easier to answer taking into account your tax position and financial objectives.

Step 1

You – Complete a short online application form

Step 2

We – Generate your personal report that outlines your current benefits.

Step 3

Together – We schedule a review online (we use Zoom, or a platform you may suggest) or over the phone to discuss what options are available to you.

After we complete the review, many employees are delighted to have their options regarding pension planning, salary protection, life protection, savings and investments explained to them so clearly. Not only that, but we can also set up policies for you all online in a very fast and efficient manner. 

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Mortgage Protection Insurance FAQs

No, you are free to seek advice and deal with whoever offers you the best value. We will always be able to offer you better value than your lender.

If you are able to pay off your mortgage early, then you generally have two options. You can cancel your mortgage protection cover and pay no more or keep the policy and continue paying until the original end date.

Mortgage protection insurance is just a special type of life insurance used by somebody who is taking out a mortgage to ensure if something happens to them their mortgage will be paid off.

Under the consumer credit act 1995, lenders are obliged to ensure that a life insurance policy is in place to cover the balance due on a mortgage in the event of the death of a borrower.