Mortgage protection commonly asked questions and answers.

Mortgage Protection Questions and Answers

Why do I need a separate Mortgage Protection policy?

You don't need to take out a separate Mortgage Protection policy if you don't want to. In fact, you can include Mortgage Protection as part of other plans and policies, such as Life Insurance and Redundancy Cover. However, if you want your family to be able to remain in the family home if they want to, or your partner isn't in a position to maintain the mortgage repayments himself or herself, some form of Mortgage Protection is important.

Can I take out a joint Mortgage Protection policy with my partner?

Yes, you can take out Mortgage Protection as a couple and the mortgage will be repaid in the event of either your death or your partners, whichever happens first.

Can I have Mortgage Protection with an interest-only mortgage or repayment mortgage?

Yes, Mortgage Protection can be taken for either type of mortgage. However, the way it works will vary according to which mortgage you have. If you have a repayment mortgage and you're paying off interest followed by the capital, the Mortgage Protection will reflect this, providing cover that slowly reduces to reflect your decreasing liability. With an interest only mortgage on the other hand, the capital remains untouched or unchanged, so the level of cover required will need to stay the same throughout the length of the policy. Because the premiums on a Mortgage Protection policy for a repayment mortgage will therefore decrease over time, it is the cheaper option.

How much does Mortgage Protection cost?

Your premium will depend, naturally, on several factors: the size of your mortgage and the length of time still to go until it is repaid, your state of health and whether you're a man or a woman. The minimum premium for Mortgage Protection is around £5 per month.