Looking At Your Mortgage Insurance Options

Looking At Your Mortgage Insurance Options 1

Looking At Your Mortgage Insurance Options
Mortgage insurance is​ most definitely recommended for experienced homeowners and those looking to​ get on​ the​ property ladder for the​ first time alike because of​ what every individual policy offers .​
Mortgage insurance can protect your repayments,​ usually for up to​ a​ year,​ if​ you​ were to​ ever lose your job via redundancy or​ contract a​ long-term illness that will prevent you​ from working for a​ time .​
Any individual has three options when it​ comes to​ mortgage insurance – the​ standalone policy,​ the​ add on​ policy and the​ high street provider policy .​
All three have integral differences that begin with the​ nature of​ the​ mortgage insurance on​ offer .​
A specialist insurance company,​ rather than those that count lending amongst their business,​ will offer a​ standalone mortgage insurance policy designed to​ protect consumers .​
There are a​ select few of​ these around at​ the​ moment purely and simply because the​ high street banks and lenders actively dominate the​ payment protection industry .​
As a​ result of​ this though,​ standalone mortgage insurance providers tend to​ offer a​ product with a​ cheaper monthly premium.
The majority of​ individuals that take out mortgage insurance get the​ add on​ .​
This is​ simply mortgage insurance that is​ added onto your mortgage by the​ same high street bank or​ lender you​ have your mortgage with .​
It is​ often quoted in​ with the​ cost of​ your mortgage and added onto the​ monthly payment .​
It may also add interest onto it​ as​ a​ result .​
It may be convenient because you​ do not have to​ find a​ separate provider,​ but you​ may find yourself unable to​ cancel it​ if​ need be and in​ most cases,​ you​ will be paying well over the​ odds for it.
The mortgage insurance offered by high street providers is​ usually the​ same as​ the​ add on​ policy,​ but is​ detached from the​ mortgage because you​ would hold it​ elsewhere .​
As a​ result,​ it​ is​ up to​ the​ provider to​ decide on​ the​ terms .​
They may expect an​ annual premium or​ monthly one for the​ mortgage insurance but would ultimately provide very similar cover.

Looking At Your Mortgage Insurance Options

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