Mortgage Protection

[Ichy]

Why is it impossible for people who deal with money to give a straight forward answer?

Anyway, is mortgage protection insurance worth having? I have been employed for all but one year during the last 27 years and see no reason why that would change. Payment protection insurance would cost around £40 a month with a 60 day excess meaning I can't claim for the first 2 months. The only thing I would need insuring against would be redundancy since I already have 2 year sick pay in my contract. Is it worth continuing to pay or is there a better option?

[FreshAL]

[Hetzer]

For whatever reason you needed to claim on it for, the small-print would have an exclusion.
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"There's the horizon! Ride hard, ride fast and cut down all who stand in your way!"

[D O G]

No, what's the point? As Hetz said, it's likely that it's gonna be hard to make a claim. Plus, it takes a while before a mortgage company to actually go for repossession - so you could always go into arrears if you lose your job and can't pay until you get another one without actually being kicked out.

If you get to the point of repossession, then you can always just give it up and move out and rent. Things by then would be properly shit, so one more thing would hardly be the end.

I don't see the point myself - the banks will be making a fuckload of cash out of that premium, anything that the banks make a fuckload of money on is not good for you.

[Ichy]

Hetz, your the third person to say this. I'm completely naive so any proof would be good.

Thanks Al. I think you've pretty much answered it for me. Mortgage is for roughly 45% of the (latest) house value. Kids gone, wifey works and I own several tents

[FreshAL]

[Ichy]

Thanks again. Ultimate laziness is the only excuse. I hadn't even noticed I'd been paying it for 7 years

[D O G]

[t121anf]

no, why just cover your mortgage what use is a roof if you have no heating, electric, food etc.

get income protection, i cover 75% of mine for as little as £5 a month

[DanceLikeAMon...]

It may not be the same on all policies, but when I bought my first house a few years ago, it only covered you for 12 months (so I didn't take it).

If you stick what you'd pay for the mortgage protection charges into a bank instead, it only takes a few year years until you have a little nest egg that'll cover you for quite a few months if you do lose your job - and if you don't lose your job then the cash is all yours (plus interest).

[DanceLikeAMon...]

[t121anf]

it is correct, only covers unemployment not sickness as i have that through work.

i think its actually about £7, maybe the wifes is £5, neither of is are on minimum wage, far from it.

iirc the payment is only for 6months, more than enough to get a job

[colin1]

Mortgage protection is a money making scam that helps banks etc make money when they dont make much on a mortgage.

Its so much of a scam that recently some government body ruled that loads of people had been mis-sold them and are due compensation.

The other thing is, from my knowledge, you have a good secure job, and skills that would get you a job of similar status elsewhere, so even if mortgage protection was keenly priced and good value (which it isnt) it wouldnt be worth having for you.

If you are worried about the vauge possibility of having a gap in employment one day, just regularly set aside some rainy day money.

For people who live hand to mouth in unsecure jobs, it may be worth it.
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[Itchy]

[Hetzer]

[iooi]

[D O G]

[Tarmacsurfer]

[WildGoose]