Currently the payment protection sector is monopolised by those lenders who attach policies onto their cheap loans and this brings in around £4 billion each year in profits. In some cases lenders are known to add in protection and then add interest in on top of the whole thing which boosts up the cost of the loan considerably. Standalone providers on the other hand will base mortgage cover in the UK premiums on age, how much cover and the level of protection needed and by choosing to take out your cover this way you can save as much as 40% on the premiums.



Your mortgage protection policy would be there for you to rely on if you were to suffer from an illness or an accident that meant you were unable to work. It would also protect you against unemployment by such as redundancy that is if you take cover out for accident, sickness and unemployment together. You might just choose to protect against the possibility of unemployment only or incapacity only.

You do have to check any policy you are considering taking out as the cost is not the only thing that will vary. Exclusions also vary and these are what need to be checked in order for you to determine if cover is suited to your circumstances. The amount of them will vary with ethical providers adding in the least. These will be made quite clear on the provider's website.

When and for how long your policy would provide you with a tax-free income also varies. You can find a policy that pays once you have reached the 30th continuous day of unemployment or of being incapacitated. However some providers could ask that you wait up to the 90th day before you put in your claim. You might get 12 months protection with a payment each month with one provider, or you could be offered a payment each month for 24 months with another provider. Some providers will also offer benefit back to the first day of the policy holder becoming unemployed or incapacitated.

Mortgage cover in the UK does have to be given some serious thought to because if you get behind on your mortgage repayments you are risking losing your home. The lender will ask you to get in touch with them when you first miss a payment. This will be to see why you have missed a payment and to find out when you are able to catch up. If you cannot show that you can continue to pay your mortgage and at the same time repay the arrears, then the lender could choose to take repossession of your home. They are certain to do so if you continue to miss mortgage repayments.