Mortgage payment protection insurance?
Discussion
Hi All,
Bit of background. I have had a mortgage now for 4.5 years and at the time I took out a mortgage payment protection insurance policy. Quite sensible as it was my first mortgage and was nice to have security. Was around £40 a month to cover mortgage and some bills.
Fast forward to now, I am taking out a new mortgage on a bigger place. And have opted not to take the insurance this time around (through the provider or a third party). Quote was around £110 a month.
Question is: Is it worth having?
I guess your going to ask me about job security, well I work in IT and have a reasonably secure position (as secure as it can be these days). I guess its just a saftey blanket, but at £110 a month it seems a very expensive one.
Any thoughts / advice?
Bit of background. I have had a mortgage now for 4.5 years and at the time I took out a mortgage payment protection insurance policy. Quite sensible as it was my first mortgage and was nice to have security. Was around £40 a month to cover mortgage and some bills.
Fast forward to now, I am taking out a new mortgage on a bigger place. And have opted not to take the insurance this time around (through the provider or a third party). Quote was around £110 a month.
Question is: Is it worth having?
I guess your going to ask me about job security, well I work in IT and have a reasonably secure position (as secure as it can be these days). I guess its just a saftey blanket, but at £110 a month it seems a very expensive one.
Any thoughts / advice?
Interesting thanks both.
In answer to having 3 - 6 months money in the bank. No, i dont. Mainly as all my savings went into the house deposit!
Policy was with nationwide.
I guess it would take me a year to build up that kind of savings again. So with that in mind, take it out for a year while I save?
In answer to having 3 - 6 months money in the bank. No, i dont. Mainly as all my savings went into the house deposit!
Policy was with nationwide.
I guess it would take me a year to build up that kind of savings again. So with that in mind, take it out for a year while I save?
KenBlocksPants said:
Interesting thanks both.
In answer to having 3 - 6 months money in the bank. No, i dont. Mainly as all my savings went into the house deposit!
Policy was with nationwide.
I guess it would take me a year to build up that kind of savings again. So with that in mind, take it out for a year while I save?
If you look at the conditions it will probably answer your question for you. These policies normally don't pay out for the first three months of unemployment and then only for 9 months. For many people this means even in quite a short time they pay in more than they can ever claim back.In answer to having 3 - 6 months money in the bank. No, i dont. Mainly as all my savings went into the house deposit!
Policy was with nationwide.
I guess it would take me a year to build up that kind of savings again. So with that in mind, take it out for a year while I save?
otherman said:
KenBlocksPants said:
Interesting thanks both.
In answer to having 3 - 6 months money in the bank. No, i dont. Mainly as all my savings went into the house deposit!
Policy was with nationwide.
I guess it would take me a year to build up that kind of savings again. So with that in mind, take it out for a year while I save?
If you look at the conditions it will probably answer your question for you. These policies normally don't pay out for the first three months of unemployment and then only for 9 months. For many people this means even in quite a short time they pay in more than they can ever claim back.In answer to having 3 - 6 months money in the bank. No, i dont. Mainly as all my savings went into the house deposit!
Policy was with nationwide.
I guess it would take me a year to build up that kind of savings again. So with that in mind, take it out for a year while I save?
Ive just done a search on money super market and I can get similar* cover for around £20 a month which is much more reasonable. Although they all seem to be provided by web only companies ive never heard of.
Still just as undecided
- Not fully read the terms yet
Im generally a 'reaosnable risk' kinda guy.
Dont mind taking a punt when i see some return. But usually hedge my bets.
Im edging towards it being a waste of money to be honest. I also think that should I loose my job i'm pretty employable so would pick something up almost certainly within their 30 day waiting period.
Hmm
thanks all
Dont mind taking a punt when i see some return. But usually hedge my bets.
Im edging towards it being a waste of money to be honest. I also think that should I loose my job i'm pretty employable so would pick something up almost certainly within their 30 day waiting period.
Hmm
thanks all
Timmy35 said:
rich1231 said:
What is your risk attitude to life?
Only you know the answer to this.
I see it as waste of money.
It is a waste of money. It's also a source of large amounts of very easy profit for mortgage lenders and brokers. Only you know the answer to this.
I see it as waste of money.
Some peiple like their blankets though.
anonymous said:
[redacted]
None of them wll do that.anonymous said:
[redacted]
Agreed,.anonymous said:
[redacted]
Depends on the cover. Some are simply for a given amount fo money and not linked to the mortgage at all. Others have a clause that the expense has to be proven, but will allow for all of a mortgage payment. I don't know the NW product so can't comment.anonymous said:
[redacted]
Again depends on the policy. Back to day one cover is available. anonymous said:
[redacted]
Not a bad idea.I had it, and it was loaded in my favour as at the time we took it out I was an IT contractor with the higher earnings - it paid something like £400 pm for OH and £1K for me with a monthly cost of £82.
We've claimed twice - once for 4 months when he had heart attack 4 years ago, and it's just finishing having paid me for a year with cancer. I had about 9 months full pay from employer and am now on half pay (I turned permie after Y2K!) so for us it's paid out not badly. I accept our circumstances may be unusual, 2 'not nice' illnesses involving extensive time off, but it's been worth it for us.
We've claimed twice - once for 4 months when he had heart attack 4 years ago, and it's just finishing having paid me for a year with cancer. I had about 9 months full pay from employer and am now on half pay (I turned permie after Y2K!) so for us it's paid out not badly. I accept our circumstances may be unusual, 2 'not nice' illnesses involving extensive time off, but it's been worth it for us.
Gassing Station | Finance | Top of Page | What's New | My Stuff