We will all experience some tragedy or difficulty in our lifetime, either financial (perhaps the loss of one’s job or the loss of money due to legal action or an unforeseen calamity), physical or mental health or even, eventually, one’s death. After all, there are only two things certain in life, so they say; death and taxes. But perhaps there are three things - death, taxes - and the subsequent need to keep up your mortgage repayments!
Failure to keep up repayments on your mortgage is likely to result, eventually, in the repossession of your home. It is, therefore, of critical importance that you make provision for your mortgage repayment in all circumstances.
If you have dependents it becomes more important to protect your home in the event that you are no longer able to keep up mortgage repayments because you are unable to work - or you are no longer here! This is where mortgage protection can help.
There are a variety of different types of protection available to you and if you have a mortgage it’s worth considering which type best suits you and your family.
In brief, there are products available to pay your estate (or a selected third party) a fixed sum on death. This might be for the amount of the mortgage or a larger or smaller sum. In many cases a lender will require a borrower to take out a life Insurance or Assurance Policy when entering into a mortgage agreement.
In addition, you are able to insure for the consequences of poor health. The types of critical illness insurance vary and revolve around either a fixed lump sum or a periodic payment.
The lump sum is usually calculated so as to be able to repay the outstanding loan and help the family to live after the insured risk has taken place (i.e. a serious heart condition or cancer). If you are ill or diagnosed with one of several chronic and debilitating or even fatal illnesses the policy will make a payment. The terms vary, but the advantage to this type of cover is that a lump sum or monthly payment is made whether you die or not - thus covering the period of illness and protecting your home and family during what is already a terribly painful time for all concerned.
You can also insure against the loss of your job - a risk that is now significantly higher than it might have been 40 or more years ago. It’s worth noting though that this type of insurance usually pays out only after an initial period of time has elapsed (perhaps 6 or 12 months) and so you must be confident that you can cover repayments in the interim.
For more details on the types of risk you can insure against and what best suits your particular circumstance and needs, take a look at our Insurance Products or contact us on 01628 507477.
Related articles:
Download our Free First Time Buyers Guide
Recent posts
Research from buy-to-let lender, Landbay, shows that UK landlords are looking at raising rents ahead of the Renters' Rights Bill which is due to come into force this year.
Data shows landlords could miss out on green mortgages due to expired energy performance certificates.
Buying a house is a big deal, and where you are planning to buy will make a difference financially. In this short blog, we look at the most affordable and most expensive areas and how much you need to be earning to buy in there.
Pros and Cons of Equity Release
23 days ago
Equity release is a type of mortgage that allows homeowners 55 and over to access money from their property's equity without having to leave their home. This is done by securing a loan against the house which is usually repaid by selling the property when the borrower passes away or has to move into long-term care.
Your House Viewing Checklist
24 days ago
It’s important to ask questions about the property you are interested in before taking that step to make an offer. A little probing can make all the difference between buying your dream house or something that requires a lot of work.
Half of over 60s predicted to benefit from accessing housing wealth through Equity Release
27 days ago
There are millions of homeowners over the age of 60 who are likely to release money from their homes to pay for their lifestyle during retirement giving those who are 'asset rich but cash poor' a way to live out their retirement the way they wish.
The average age of a first-time buyer in the UK is two years older than 10 years ago. This is understandable with managing the cost-of-living and challenges within the economy such as high interest rates making it difficult to get onto the property ladder.
Delayed Start Mortgage from Skipton
7 May 2025
Skipton Building Society launches ‘Delayed Start’ mortgage meaning first time buyers won’t be required to make repayments for the first three months.
According to a survey by Skipton, first time buyers who bought their home in the last five years found that in the first three months of living there, they were spending upwards of £30,000.
More information
Trusted by
