Moveable & the Financial Times Adviser
Moveable was recently featured in a great article from the Financial Times Adviser. In this piece, we take a close look at the stamp duty period which sparked such a surge in property transactions and resulted in an even starker lack of protection for mortgage holders. Read more on this piece here.
What is mortgage protection insurance?
Mortgage protection insurance is a policy that covers the cost of your monthly mortgage payments if you can’t work due to illness, a serious injury or redundancy.
How to claim?
To make a mortgage protection claim, you will need to be off work for a specific amount of time – known as the waiting or excess period – usually between 30 to 60 days (some range up to 180 days). Your insurance will pay you a set amount each month, and your policy may cover for your bills too, which would mean that the provider pays 125% of your mortgage costs.
However, beware of the exclusion period before thinking of making a claim. An exclusion period, or buffer period, is the time between your policy beginning and you being able to claim – usually between 30 to 60 days (although it can range up to 180 days). Furthermore, you’ll only receive payments for up to 12 months or two years, depending on the policy.
Why is mortgage protection important?
Mortgage protection insurance acts as a safety net to cover your monthly mortgage repayments if you can no longer afford them due to a range of financial circumstances. It can prevent you from having to default on your mortgage and avoid repossession of your home.
The missing protection conversation
The protection conversation was hard before the stamp duty surge and COVID-19, however the number of homeowners that are not adequately covered has increased sharply. This is further compounded by some regions of the UK suffering from a surge in pricing that outweighed the stamp duty saving. All in all, the last 18 months has meant more homeowners need to make sure they are protected.
Do I need mortgage protection insurance?
Although highly recommended, mortgage protection insurance isn’t compulsory. However, your mortgage is probably your biggest monthly outgoing and you should think very carefully about how you would keep up with your mortgage repayments if you would to be out of work for a while.
There are other types of insurance that cover more than just your mortgage and may provide better overall protection and value for you, depending on your circumstances. These are:
- Income protection
- Critical illness cover
- Life insurance
How do I choose mortgage protection insurance?
With Moveable, you are able to compare various offers on the best kind of protection for your mortgage repayments. Moveable has a wide panel of experts with access to a wider range of providers, making it easier to provide a cheaper, more comprehensive and tailored insurance solution.
Like many policies, your mortgage protection policy may not cover you for pre-existing conditions, especially if you have been unwell in the past 12 months. In this case, you may need a medical assessment stating any health problems, before getting your insurance cover.
How can we help?
Moveable helps Brits at every stage of the home moving process through a combination of innovative features that help make the journey as smooth as possible. We offer instant expert advice and easy-to-follow checklists with reminders that helps you keep track of your moving timeline.
To find out more, sign up to our platform here: https://app.moveable.uk/signup/