Monday, December 5, 2011

Mortgage Insurance Protects Your Home

Mortgage insurance can be taken out for a premium each month which you can find cheaply if you look with specialist providers. This is one of the best ways to protect your monthly mortgage repayment each month and so protect the roof over your head against repossession. While the majority of lenders are willing to give you some lee-way with your mortgage repayments, of course this is only for the short term. If you cannot show your lender that you can catch up with missed repayments while also being able to carry on paying your mortgage then repossession could be imminent.

If your lender takes you to court to seek repossession then it can be as little as 28 days before you would have to find alternative accommodation and leave your home. You would have to remember that during this time you could be also recovering from illness or an accident or you might be looking for work. Can you imagine the stress that would be added onto this and at a time when you need to be thinking of yourself? As if you hadn't suffered enough, the stigma of being associated with being repossessed would follow you and affect your credit rating for the future. Now considering paying a small monthly premium suddenly does not seem so unaffordable, does it?

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The majority of mortgage insurance policies would begin to provide benefit after 30 days; however some providers ask you are out of work for 90 days at least. Providers can give you benefit for 12 months or some policies will provide for 24 months so also check the terms and conditions before buying. Some will also backdate the cover to the first day of unemployment or incapacity.

The cost of the premium for a policy varies so it is worth shopping around for the cheapest. While you can take out mortgage payment protection insurance when taking on the mortgage, this can be the costliest choice for covering your mortgage repayments. Do not be forced into believing that you have to take cover this way. Some lenders have, in the past, made consumers believe that mortgage protection does have to be taken this way and that the borrowing depends on it. This is nothing short of blackmail and is just a way of grabbing money from the consumer. Of course you can be forgiven for thinking you would get the cheapest premium this way, especially if you got your mortgage for an excellent rate of interest. However standalone specialist providers in the majority of instances will provide a lower cost quote.

Another big plus for choosing to take cover with a specialist is that they will back up their mortgage insurance with advice and information. A lack of information is what led to the majority of problems within the sector and is what gave payment protection overall a bad name. Ethical providers will ensure that the key facts are given before the consumer buys. Protecting the roof over your head with cover from an independent provider can give you the peace of mind you need when suffering from illness or accident. You can concentrate on recovering and getting back to work or if you are a victim of unemployment then it would give you time to look round for another job.

Mortgage Insurance Protects Your Home

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