We've rebranded! Formerly known as Green Mortgages

We've rebranded! Formerly known as Green Mortgages

Find Your Deal
Home » Services » Protection Services » Mortgage Protection

Mortgage Protection

Welcome to our Mortgage Protection Hub! Here you can find out about mortgage protection, life insurance and everything in between. Use our handy quick links to read more, or get in touch for a free chat!
Talk to an expert
Compare 90+ lenders with no impact on your credit score
mortgage protection
  • 1,800+ 5 star reviews across Google & Trustpilot
  • 90+ lenders searched
  • FCA regulated
  • Free initial consultation
ON THIS PAGE
What is mortgage protection? Types of mortgage protection How much coverage do I need? Why mortgage protection is important Key considerations Mortgage protection FAQs

What is Mortgage Protection?

Mortgage protection encompasses various insurance policies that specifically aim to cover your mortgage repayments under circumstances where you might otherwise struggle to pay.

This can include situations such as death, critical illness, loss of income due to illness or injury, and involuntary unemployment. The primary goal of these policies is to ensure that your mortgage continues to be paid, thereby safeguarding your home from the risk of repossession and providing security for your family.
Talk to our experts →

Types of Mortgage Protection

Mortgage protection is an essential form of financial security for homeowners. It ensures that your mortgage repayments are covered in unforeseen circumstances, such as illness, injury, or death.

Life Insurance

This type of policy is designed to pay off your remaining mortgage balance if you die during the policy term. It provides the assurance that your family or dependants will not have to bear the financial burden of the mortgage in your absence. Depending on your age, you can get basic life insurance for as little as £4 a month.

Critical Illness Cover

If you are diagnosed with one of the specific critical illnesses covered by your policy, this cover can be used to pay off your mortgage or cover the monthly payments. It’s particularly useful in cases where illness impacts your ability to earn an income. This is usually a little more expensive than basic life insurance, however its importance cannot be ignored.

Income Protection

This cover provides you with a regular income if an illness or injury prevents you from working. It helps you keep up with your mortgage payments and other living expenses during your recovery period. Only around 6% of the UK have this insurance – however we believe it is an essential part of your financial health especially if you are a homeowner.

Family Income Benefit

Rather than a lump sum, this type of insurance provides a regular, tax-free income to your dependents in the event of your death during the policy term. This steady income stream can be used to cover ongoing living expenses, including mortgage payments, ensuring your family’s financial stability. For families, this added benefit gives you extra peace of mind and ensures they can live comfortably in your home, even if the mortgage is paid off.

How Much Coverage Do I Need?

Determining the amount of coverage you need depends on factors like the size of your mortgage, your household expenses, and your overall financial situation. A general rule is to have coverage that matches the outstanding balance of your mortgage, but it’s wise to consider additional coverage for living expenses or other debts.

Talk to our experts →

Why Mortgage Protection is Important

Mortgage protection is more than just another insurance policy; it’s a critical safeguard for one of life’s most significant investments – your home.

The primary importance of mortgage protection lies in its ability to provide financial security during unexpected life events. Whether it’s due to illness, injury, or death, mortgage protection ensures that your mortgage repayments are taken care of, alleviating financial burdens during challenging times.

Mortgage protection is not just about protecting a financial investment; it’s also about ensuring the well-being and stability of your family. In the event of your passing or inability to earn an income, this coverage ensures that your family can continue living in their home without the looming worry of mortgage repayments.

For many, a mortgage is their largest monthly expense. Mortgage protection helps maintain financial stability, preventing missed payments that can lead to debt accumulation or, in the worst-case scenario, the repossession of your home.

Different types of mortgage protection policies offer varying levels of coverage, from paying off the entire remaining mortgage to providing a monthly income to your family. This flexibility allows you to tailor the protection to your specific needs and circumstances, providing peace of mind that your home and family are secure.

The importance of mortgage protection cannot be overstated. It’s a key component of responsible homeownership, providing a safety net that ensures your home remains a secure place for your family, even in the face of life’s uncertainties. If you are considering mortgage protection, give us a call and we can help you to find a policy that best fits your needs and provides the right level of coverage.

Key Considerations for Mortgage Protection

When considering mortgage protection, it’s important to understand the key factors that can influence your choice of policy.

Assessing Your Financial Situation

Evaluating your financial status is the first and most crucial step in choosing mortgage protection. Look closely at your mortgage amount - is it a fixed-term or interest-only mortgage? How long do you have left on it? Factor in any additional debts, like personal loans or credit card balances, as these will also impact your family’s financial security.

Additionally, consider your household’s monthly expenditures, including essentials and lifestyle costs. This comprehensive financial review helps in determining the appropriate level of coverage, ensuring it’s sufficient to cover the mortgage and provide financial stability in case of events like your untimely death, long-term illness, or disability.

Understanding Policy Terms

Each mortgage protection policy comes with its own set of terms and conditions, which can significantly impact its effectiveness in your financial plan. It’s essential to understand the duration of the policy – does it cover the entire mortgage term, or is it limited to a specific period? Scrutinise the premium costs: are they fixed, or do they vary over time?

Additionally, examine the scope of the policy’s coverage. Some policies may only pay out in the event of death, while others might include critical illness or disability cover, providing broader protection. Understanding these details ensures that the policy you choose aligns with your needs and expectations.

Reviewing Policy Flexibility

The ability to adjust your mortgage protection as your life changes is an important feature. Life is unpredictable – your income levels might change, or your family situation could evolve with events like marriage, the birth of children, or divorce.

A flexible policy allows for adjustments in coverage levels or premium payments to suit these changing circumstances. This could mean increasing coverage upon major life events or adjusting premium payments in line with income changes, ensuring that your mortgage protection remains relevant and adequate throughout different stages of life.

Impact on Future Financial Plans

Mortgage protection should complement and integrate into your overall financial strategy. How does it interact with your retirement planning? Will it affect your ability to save for the future or invest in other areas? If leaving an inheritance is important to you, consider how the policy payout might impact the estate value you plan to leave behind.

This holistic approach ensures that your choice of mortgage protection enhances rather than hinders your long-term financial goals, providing security not just for today but for your future as well.

Ask Proper Advice!

Given the complexity and long-term implications of mortgage protection, consulting with a mortgage advisor is highly recommended. Here at Proper Advice, we provide personalized advice based on your financial situation and future goals.

Ready to protect your mortgage?

Given the complexity and long-term implications of mortgage protection, consulting with a mortgage advisor is highly recommended. We provide personalsed advice based on your financial situation and future goals.
Talk to us

Why Use a Remortgage Broker? What Makes Us Different

We know there are plenty of brokers out there. Here's what makes us different:
Access to 90+ lenders
We're whole-of-market, which means we're not tied to a panel of five or six lenders. We search the full market, including specialist lenders and broker-exclusive deals, to find the best option for you.
Two points of contact
You'll be looked after by a dedicated adviser and a case manager. That means there's always someone who knows your case and can answer your questions.
We monitor your rate
During your application, we review your rate every week. If a better deal becomes available before you complete, we'll switch you to it. Not every broker does this, but we think it's the right thing to do.
star badge icon
1,800+ 5 star reviews
We don't say we're good - our clients do. With over 1,800 five-star reviews on Trustpilot and Google, our track record speaks for itself. We're rated "Excellent" on both platforms.

Mortgage Protection FAQs

Mortgage protection insurance is a type of policy designed to cover your mortgage payments in case of unforeseen events such as death, critical illness, or loss of income due to disability.

While life insurance provides a payout to your beneficiaries upon your death, mortgage protection specifically covers your mortgage repayments, ensuring that your family can keep the home.

Mortgage protection is not legally mandatory, but some lenders may require it as part of their lending criteria to ensure the loan is secure.

Yes, you can, but it may affect the terms and cost of your policy. Insurers will assess your medical history when determining coverage eligibility and premiums.

The right amount of coverage typically corresponds to the outstanding balance of your mortgage and considers your other financial obligations and family’s living costs. It’s advised to review your financial situation regularly to ensure adequate coverage.

Yes, you can usually cancel your mortgage protection policy. However, it’s important to understand the implications of not having protection in place, and the potential added cost of getting a new one if you are significantly older than when you first took the policy out.

For a decreasing term policy, changing interest rates can impact the alignment of your insurance with your mortgage balance. Regularly reviewing your policy in relation to your mortgage is recommended.

If you remortgage, you may need to adjust your mortgage protection to match the new mortgage terms, ensuring the coverage is still adequate for the outstanding loan amount.

The payout from a mortgage protection insurance policy usually goes directly towards paying off the mortgage and doesn’t typically have direct tax implications for beneficiaries. However, it’s important to consult with a financial advisor for specific tax-related advice.

1
2
3
4
5
What are you looking to do?*
Do you know when your current deal ends?
Do you already have an agreement in principle (AIP)?*