# Mortgage payment protection?



## rf860 (Jul 24, 2011)

I've recently bought my first house on my own which means I've now got a mortgage to pay. 

I went through a broker to get the mortgage which was fine but now I'm being told I need to buy mortgage payment protection? 

I've looked in the terms of my mortgage and it doesn't say I need to have this. 

When the mortgage advisor was doing quotes on it, the monthly cost was not insignificant, circa £24 per month. 

Is this something that is commonplace? The chances of me loosing my job or becoming ill long term are very slim, but I suppose you should never say never. 

Any advise appreciated.


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## S63 (Jan 5, 2007)

It's all about risk, some enjoy taking a risk, others don't and would rather have peace of mind, only you know what your feelings are towards this. You will of course be recommended to take out a policy for the obvious reasons.


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## Naddy37 (Oct 27, 2005)

rf860 said:


> The chances of me loosing my job or becoming ill long term are very slim, but I suppose you should never say never.
> 
> Any advise appreciated.


That's a pretty arrogant view TBH fella, you never know " what's around the corner"

I take it, as part of the deal in taking on a mortgage, you have life insurance to cover the full cost if the mortgage?


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## Andyg_TSi (Sep 6, 2013)

You don't need it. In the same boat as a single bloke with a mortgage & no dependents. 

All I have, is life insurance, which pays the mortgage off if I die.

Payment protection insurance isn't a necessity, but it might be seen by some as a good way of protecting yourself if your not in a secure career/job.

It's similar to accident/ill health protection which pays if you can't work.
But you have to read the terms and conditions of any policy as clauses could deem it worthless.

Question is do you get paid a wage or a salary....There is a difference.
Also, what terms is your companies sick pay arrangements.

The answer to those 2, would determine if it's useful to you or not.

Me, I earn a salary, which pays me the same if I work or not each month.
I also get 6 months at full pay if off sick before going on half pay, so any protection insurance your broker is saying you need isn't necessary in my personal circumstances.


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## Andyg_TSi (Sep 6, 2013)

With some of these policies, it's months before they even kick in and pay out, hence it being worthless to me, in my circumstances. 

As alluded to in the other posts. It's a question of risk & personal circumstances.


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## lofty (Jun 19, 2007)

I had mortgage protection many years ago, I was made redundant so claimed on the policy.The money I received from this policy was classed as income by social security so they reduced my dole by the amount I received from the policy, making me no better off, luckily I was only unemployed for about a month, I cancelled the policy soon after.This was 15 years ago so things may have changed but it would be worth checking.I don't think it is a requirement, it obviously wasn't in my case as I cancelled.


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## Andyg_TSi (Sep 6, 2013)

If you are self employed or just earn a wage...EG if you don't work you don't earn/off sick don't earn or off sick go on ssp then some form of protection is a good idea!!


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## Andyg_TSi (Sep 6, 2013)

I've even been told recently that I don't even need life insurance in my position.

If I had a wife and/or kids, then yes life insurance which pays the mortgage off is a necessity giving security for any remaining dependants.

Being unmarried & no kids, if anything happened to me & I died, the bank would just take the property back to sell to get its money back.
There is no one else to consider.


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## rf860 (Jul 24, 2011)

I am on salaried pay. 

The sick pay structure is tiered dependant on length of service. 

0-1 year - 2 weeks
1-5 years - 6 weeks
5-15 years - 12 weeks
15 years+ - 20 weeks

I would say these terms are pretty poor tbh. I was surprised as my employer really looks after their staff.


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## rf860 (Jul 24, 2011)

Andyg_TSi said:


> I've even been told recently that I don't even need life insurance in my position.
> 
> If I had a wife and/or kids, then yes life insurance which pays the mortgage off is a necessity giving security for any remaining dependants.
> 
> ...


Surely you'd want the money to benefit somebody in your family?


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## Andyg_TSi (Sep 6, 2013)

RF, 

How long do you have to be off work before the policy pays out?

You see, in my instance, if it was 6 months or less, I could have recovered and gone back to work....and I wouldn't have lost any pay......Which sort of makes any income protection worthless. 
I've done 20 years in my career so far though


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## Andyg_TSi (Sep 6, 2013)

rf860 said:


> Surely you'd want the money to benefit somebody in your family?


Yes I do, which is why I pay it 😊


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## rf860 (Jul 24, 2011)

Andyg_TSi said:


> RF,
> 
> How long do you have to be off work before the policy pays out?
> 
> ...


I set it at 6 months, I'd use savings to get buy until then.

I think if I were I'll for longer I'd sell up and move back in with my parents!


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## Andyg_TSi (Sep 6, 2013)

rf860 said:


> I set it at 6 months, I'd use savings to get buy until then.
> 
> I think if I were I'll for longer I'd sell up and move back in with my parents!


On the assumption that you've been in your job for 5 years, you've got 3 months on full pay before going on SSP.

It's got to be something pretty major to keep you of work for more than 3 months.......
Again, it's your attitude to the risk.


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## richjohnhughes (Sep 24, 2007)

rf860 said:


> I've recently bought my first house on my own which means I've now got a mortgage to pay.
> 
> I went through a broker to get the mortgage which was fine but now I'm *being told I need to buy mortgage payment protection*?
> 
> ...


You dont HAVE TO HAVE it. You have to decide if you want it or not.

You never know what is going to happen in the future...sometimes it is good to be protected.


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## rf860 (Jul 24, 2011)

Andyg_TSi said:


> On the assumption that you've been in your job for 5 years, you've got 3 months on full pay before going on SSP.
> 
> It's got to be something pretty major to keep you of work for more than 3 months.......
> Again, it's your attitude to the risk.


I've only worked there for 10 months.

I've never been ill, could count on one hand the times I've been to the doctor and my family have no history of ill health.

I think I'm prepared to take the risk tbh.


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## Andyg_TSi (Sep 6, 2013)

rf860 said:


> I've only worked there for 10 months.
> 
> I've never been ill, could count on one hand the times I've been to the doctor and my family have no history of ill health.
> 
> I think I'm prepared to take the risk tbh.


If you have the equivalent of 3 months salary in savings then I'd take the risk personally speaking.

That's what they say you should have in savings as contingency in case of emergencies.

Just take some professional advice before going one way or the other.


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## dcj (Apr 17, 2009)

I'm self employed and I've got income protection which covers me for 800per month and pays after 30 days.only costs £23 per month.I had mortgage protection through tsb and had been paying it quite a while when one of their advisors mistakenly said I wouldn't be covered for my mortgage if I was out of work. Currently going through a point claim.


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## rf860 (Jul 24, 2011)

dcj said:


> I'm self employed and I've got income protection which covers me for 800per month and pays after 30 days.only costs £23 per month.I had mortgage protection through tsb and had been paying it quite a while when one of their advisors mistakenly said I wouldn't be covered for my mortgage if I was out of work. Currently going through a point claim.


No offence but that seems like a terrible deal! £800 per month wouldn't cover most people's bills.

I was getting quoted circa £24 per month for full salary cover iirc.

Hopefully your claim will be successful!


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## dcj (Apr 17, 2009)

rf860 said:


> No offence but that seems like a terrible deal! £800 per month wouldn't cover most people's bills.
> 
> I was getting quoted circa £24 per month for full salary cover iirc.
> 
> Hopefully your claim will be successful!


It covers my outgoings and I didn't bother to check if it would cover anyone else's. :thumb:


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## polac5397 (Apr 16, 2014)

well worth having protection, I ve just had a serious illness and been off work for 8 months now. It kicked in after 30 days no questions asked and covered my mortgage (least I could keep a roof over my head). On the up side back to work and a new job next week


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