Mortgage payment protection insurance (MPPI) is a form of income protection that provides cover for your mortgage payments in case you’re made involuntarily redundant or find yourself unable to work due to accident or illness.
MPPI can cover your monthly repayments in full so long as they don’t exceed 65% of your gross annual salary and is available for both repayment (capital and interest) mortgages and interest-only mortgages.
Most plans that cover your mortgage will pay out for up to 12 months or until you return to work – whichever is sooner.
If you’d struggle to keep up your monthly mortgage payments when you’re unable to work, MPPI could be for you. If you’re self-employed and therefore wouldn’t receive any sick pay or a redundancy package, it could be worth considering MPPI.
Alternatively, you may wish to explore income protection, critical illness cover or mortgage life insurance as a more cost-effective choice.
We make it really easy for you to compare your cover options
Choose cover for your mortgage to protect your payments. You can also choose to cover your income, loan or credit card repayments. Or you can choose ‘other’ to pick an amount
It could be for a set amount of years, until you reach a certain age or until your mortgage end date
Tell us a little bit about yourself so we can get it sorted for you
You can decide what level of cover you require, when it comes to MPPI.
There are three options:
Choose the cover that you think best suits your situation. For example, if you know you’d get a good redundancy pay out, you might not need to take out unemployment cover.
Check whether your health insurance would cover your mortgage if you had a long-term illness too – you don’t want to be paying for the same thing twice.
There are so many different options available, it’s important to find the right choice for you at a price that suits your budget
Is it still working for you or are you in a position where you could lower your level of cover or stop it altogether?
Decide whether you need the highest level of cover or whether there are other options, like savings, to tide you over
If you extend the deferred period, you may see it reflected positively in your premiums
Life insurance is designed to look after your loved ones when you die. The pay out can help your family to cover mortgage payments, funeral costs and other expenses.
Mortgage protection, however, will cover your mortgage payments if you can’t work – this could be because you’ve had an accident, developed a long-term illness or you’ve been made redundant. MPPI will sometimes also cover your bills and council tax.
The cost will be tailored to your situation and will depend on things like your age, the cost of your mortgage repayments and how much cover you want to take out.
No. Both will cover a particular debt, but mortgage protection will go directly to you whereas PPI goes straight to whoever you borrowed the money from.
It might – check the terms and conditions of your policy to be sure.