Mortgage cover has always been hard to understand along with the rest of the family of payment protection policies and finding cheap mortgage cover can be even harder to find unless you know you have the option to shop around for the cover and buy it independently from the mortgage with a standalone payment protection provider.
However from March 2008 cheap mortgage cover will be easier to buy and understand when the Financial Services Authority introduces comparative tables. The comparative tables will allow consumers to determine which type of policy is suited to their needs and allows them to make a much more informed decision regarding the products. Consumers will first be asked questions regarding their circumstances and then from here will be presented that meets their needs, consumers can then compare and make a refined choice before buying, the tables will clearly state the exclusions in a policy along with the cost of the product which should make it a whole lot easier to understand.
Confusion and a lack of information regarding payment protection and mortgage protection was one of the main problems that led to the investigation into the sector when in 2005 the Citizens Advice made a super complaint to the Office of Fair Trading. From there the Financial Services Authority began an investigation and subsequently fined several high street names, with the latest being a mortgage firm, the sector was then referred to the Competition Commission and an in-depth review which will complete in February 2009 is currently underway.
Buying cheap mortgage cover can make the difference between losing your home due to repossession and keeping it, if the product is suitable for your needs; the cover would give you an income each month so that you could continue to repay your mortgage. The specialist will offer some of the cheapest cover available and can save you around hundreds on your policy when compared with high street lenders; a specialist who sells only quality products along with giving the essential advice needed to ensure a policy is suitable for your needs is essential. The majority of policies will begin to payout a tax free income once you have been out of work for 30 days or more and would then provide cover for up to 12 months. However some lenders won’t payout for anything up to the 90th day and can continue paying out for up to 24 months so it is essential that you let a specialist shop around for the best policy.
Always check the small print of any cheap mortgage cover that you are considering taking out because there are exclusions in all policies, some of the most common reasons why a policy wouldn’t be in your best interests include if you are only working part time, or of retirement age, self-employed or if you are suffering from a pre-existing illness at the time of taking out the policy. Exclusions can vary so read the small print and key facts when comparing policies and until the introduction of the comparative table begins in March stick with specialist providers for your cheap mortgage cover.