Homeowners urged to take out mortgage insurance
Homeowners should consider Mortgage Payment Protection Insurance (MPPI) to cover in case of loss of income, according to protection specialist Lifesearch.
MPPI covers critical illness and loss of income, which could be of particular interest to self employed high-earning professionals or those with an inherent job security risk.
According to reports in the Telegraph, a man in his thirties has a one-in-five chance of illness or injury resulting in a substantial amount of time spent off work before retirement age.
With rising mortgage payments due to high interest rates already cutting into many homeowners savings recently, MPPI could be essential to ensuring mortgage repayments are met.
However, Kevin Carr from independent protection specialists Lifesearch told the newspaper that “MPPI is often better than nothing”, but more expensive income protection can often be more suitable.
He warned: “MPPI is typically only likely to pay out for one year, whereas income protection will pay out until you retire.”
According to financial advisory website MoneySavingExpert.com, MPPI costs around £300 a year for most people.
