Mortgage payment protection
This content applies to England only.
Housing laws vary between England and Scotland. Get advice relating to Scotland
Do you have an insurance policy that would keep up your repayments for a time if you are unable to work because of illness, accident or being made redundant? This type of insurance is called mortgage payment protection. Some people get this insurance when they first take out their mortgage and then forget that it exists, as it may be included in your monthly mortgage payments.
Mortgage payment protection insurance covers your repayments for a limited time. It is different from a mortgage indemnity guarantee which is an insurance policy paid for by the borrower, taken out solely for the benefit of the lender – check any policies you have carefully, to find out exactly what they cover:
- How soon after you have stopped work will the policy pay out? Many policies do not pay out for the first few months.
- How long will the policy pay out for? There is often a limit of one or two years.
- Are you covered if you fall behind on your repayments because of sickness, injury or similar? This is usually the case.
- Would you be able to claim if you accept voluntary redundancy? In many cases you would not, and if you have to make a homelessness application later on, you could be considered intentionally homeless.
If you need help use our directory to find face-to-face housing advice services in your area.
