Private mortgage insurance for UK homeowners

As you have no doubt realised, the cost of mortgage protection offered by the major lenders is very expensive and you can save money by taking out a private mortgage insurance policy thorough an Independent Broker

Goodmortgageprotection offers private mortgage insurance for you to take out protection should you be unable to meet your payments due to redundancy or unemployment. Not only can we protect your mortgage payments but we can also offer extended cover through either taking out a combined policy or taking out two private mortgage insurance policies.

Our redundancy insurance quotes are competitive as well. Unemployment only cover for mortgage protection starts is rated at £2.45% of the monthly benefit, Disability (accident and sickness) cover is also rated at £2.45% of the monthly benefit. If you select combined unemployment accident and sickness cover, however, the rate for our redundancy insurance policy is still only £3.95%

Your occupation

We realise that not everyone may be employed so whilst our online redundancy insurance quotes are available for people who are employed - they can be extended to cover people on annual contracts (if they have been renewed), the self employed and shareholding directors. We should point out that in these cases although the online redundancy quotes will be provided - the definition changes to 'cessation of trade' or bankruptcy.

Type of cover

You should consider making sure that your private mortgage insurance policy should be extended to include cover against accident and sickness (disability) as well. The reason for this is that to qualify for benefits you must be able to declare that you are able to work. If you are unable to work due to an accident, or disability, you would not qualify for Job-seekers allowance and if your policy was only redundancy insurance a benefit would not be paid. Furthermore any accident or sickness benefit that you may have in your current employment would also be terminated when you lost your job - so you should think carefully about the benefits you require from your private mortgage insurance policy.

List of our independent private mortgage insurance policies

Goodmortgageprotection - this site. Click here to obtain your private mortgage insurance quote
- Covers your mortgage payments and up to 25% more subject to a maximum limit of 65% of gross income or £1,500
- Rates for redundancy insurance: £2.45% e.g. £500 cover is £12.50 per month. - Combined cover is £3.95%
- Benefits paid on a 'back to day one basis'.
- 3 months free cover - if you are not taking out cover as a result of a new mortgage or as a replacement contract then this cover would be for disability only.
- If you take out this policy as a transfer or as a new mortgage / remortgage then redundancy insurance would begin immediately
Goodincomeprotection - our sister site for income protection insurance
- Covers benefits up to £1000 per month or 50% of gross income
- Initial exclusion period : 120 days
- Can be taken in conjunction with our Goodmortgageprotection insurance contract
- Rates are slightly higher - Unemployment only : £4.00% - but still a good online redundancy insurance policy
- IT workers will have to be referred on application
Cleva Protecta - another income protection and private mortgage insurance site
- Designed as a combined mortgage and income protection site
- Quotes available online for redundancy insurance, combined accident, sickness and unemployment
- Designed to cover up to twice your mortgage payments (up to £2000 in total)
- Different rates apply depending on the amount of mortgage protection and income protection.
- IT workers will be referred to underwriters on application
- Probably better to have accident sickness cover as well as your online redundancy insurance.

A note on sums insured

As these are private mortgage insurance products, the sums insured will not be varied unless you advise us. If advised in good time the underwriters will not impose any exclusions on any increased sum insured. However if you don't advise us, the sum insured may become too low (resulting in you not being fully covered in the event of a claim) or too high - resulting in you paying too much for cover you don't need. Is is your responsibility to ensure that the correct sum is covered on your private mortgage insurance policy.

Meaning of Terms

Benefit Period

This is the length of time (or the number of payments) during which the monthly benefit selected will be paid out. Our policy offers 12 months benefit period - which should be sufficient but if you contact us we may be able to find a policy that will cover you for up to 24 months benefits. Please call B. Portwood & Co Ltd on 01388 607105 and ask us about our private mortgage insurance policies.

'Back to day one'

Redundancy insurance policies do not normally pay benefits immediately - there is a period at the start of each and every claim during which payments are not made. It is only after you are unemployed for longer than this period that benefits will be paid. Some policies have an 'excess period' which means that you will not be paid for the first 30, 60, 90 or whatever days that you are out of work. Most of our policies, however are on a 'back to day one' basis that means that providing you are out of work for at least 30 days, you will qualify for every single day (during the benefit period) that you are unable to work. This is a major feature of our mortgage insurance policies.

Free Cover

Redundancy insurance policies are normally set up on a monthly basis - each month you pay a fixed amount, based on the sum insured - which relates to your mortgage payments. We appreciate that it can be a lot of trouble to switch policies so that we have arranged that, whether you are transferring policies, or just taking out a new policy, our private mortgage insurance policy at Goodmortgageprotection will provide you with 3 months free cover at the start.

Initial Exclusion Period

One reason why people take out private mortgage insurance is that they suspect that they may suffer unemployment or redundancy in the near future. Obviously insurers don't want to be in a position where excessive claims may occur so that they impose an initial exclusion period. If unemployment or redundancy is announced during this period then no benefit would be paid. If this exclusion was applied for transfer of policies then we would not really recommend such a transfer. However our online redundancy insurance product (Goodmortgageprotection) will allow transfer of cover from other policies without an initial exclusion period. Similarly there is no initial exclusion period if you take out your redundancy insurance quotes due to a new mortgage or re-mortgage.