TOO LATE TO PROTECT YOUR MORTGAGE REPAYMENT?
The loss of your job means the loss of your income. If you lose your income, without savings, the first casualty will be your mortgage…
The daily headlines confirm how difficult things are, unprecedented job losses, small business closing daily, whole industries struggling and there seems to be no suggestion this situation will end anytime soon…
For those without any form of insurance there is still time to rectify the situation to give you the peace of mind of ensuring that should the very worst happen you could have the monthly repayments for your mortgage paid in full for up to 12 months whilst you looked for work.
It is no secret that mortgage companies and banks are being less than tolerant, in spite of government assurances, and home repossessions continue to rise. This is the one monthly payment there is very little flexibility on, the mortgage repayments must be paid or your could forfeit your home.
So long as you carefully read the Terms and Conditions of the policy to ensure it is right for you it can make the difference between keeping or losing your home. A few pounds a month now can save thousands invested over previous years.
It has never been more important to act quickly because the most important aspect about of this type of policy is that you must not be aware that you are to be made unemployed. Some policies say this means your company must not have made any mention of company redundancies, other policies state you must be personally told, so if you are in any doubt check with the provider to ensure you are covered.
If you are eligible to apply, check also you are eligible to claim. To minimise their risk underwriters use an “exclusion period”, this is the length of time you must wait from the start date of the policy before you can claim for unemployment. However within that time you must not be aware of any impending unemployment and, depending on your provider, this will mean either within the company or you being personally told
Exclusion periods have gradually been extended as the crisis has escalated. Last year a 90 day exclusion period was average, now these have been extended up to 180 days so it is important to be aware of this and find a provider with the shortest possible exclusion period.
If you are currently safe in your job now is the best time to purchase Mortgage Payment Protection, do not leave it until you fear redundancy or it may already be too late.
