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Why mortgage-holders need protection

What would happen if, for some unforeseen reason, you were unable to work and couldn’t cover the mortgage repayments? 



Taking out a mortgage loan is one of the largest financial commitments most people make in the UK. As such, we always recommend that our customers take out protection cover, such as life insurance, critical illness cover or income protection.


Although it is not compulsory to take out this kind of cover, we strongly advise that you should consider it if you’re taking out a mortgage. Your mortgage lender will expect you to make your monthly mortgage payments whatever the circumstances, even if they are unforeseen!


These ‘unforeseen’ circumstances, such as sickness and accidents, can actually be quite common when you look at the statistics. Cancer, heart attack and strokes have an average age on claim of 47 years old.


Cancer claims in the UK account for 66% of the total critical illness claims. In fact, according to the charity Cancer Research, someone in the UK is diagnosed with cancer every two minutes. We also make our customers aware there are 200 types of cancer with four types (breast, prostate, lung and bowel) accounting for 53% of the total diagnoses.


Something is better than nothing


It is a somber thought, but how would you make your mortgage payment if your employer stopped paying you? Or how would your loved ones continue to make the mortgage payments if you passed away?


I always find it fascinating that people are in the habit of insuring their pet, their car or their mobile phones but do not ever think about insuring their ability to provide for themselves and their families in a time of need. Most customers are surprised at how cheap even a little bit of cover can be, even it’s just a small lump sum or a small regular monthly pay out. Customers like this often say, “something is better than nothing.”


Taking no chances


At the other end of the spectrum we at Mortgage Tree have customers who take out much larger policies, ensuring they cover the whole mortgage balance and even an amount beyond this to make sure they leave nothing to chance.


Whatever you choose to do, you should be in the habit of budgeting for protection cover when purchasing a home or remortgaging. Speaking to advisers like Mortgage Tree means you can discuss your options in an easy and friendly way and work out what you need alongside how much you can afford.


The basic types of cover (life insurance, income protection and critical illness cover) are explained on a dedicated page on the Mortgage Tree website. 


Posted on March 25, 2019 by Kate Saines www.whatmortgage.co.uk


#mortgageprotection #mortagebroker #mortgageadvise #mortgageadvisor

Here's what our clients say...

“Mortgage Tree showed me how to improve my credit rating as I had a few issues with my credit previously. As a result of their excellent advice I have now secured a mortgage at a great interest rate. They also helped me sort out life & critical illness cover which offers great protection for myself and my family. Mortgage Tree offers a fantastic service and I recommend them wholeheartedly.”

Charlotte - Leeds

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Mortgage Tree - Mortgage Advisors York - Services & Standards

Mortgage Tree offers a nationwide mortgage broking service from our base near York, North Yorkshire. We specialise in mortgages and insurance. Whether you are a first time buyer or you are a buy to let investor with multiple properties, Mortgage Tree will ensure that you get the best products available.

We are a Whole Of Market broker which means that we will choose the best, most suitable mortgage for you from the hundreds available on the UK mortgage market. Our network also gets special discounted deals from lenders available only to our network.

We also provide insurance cover that will give you & your loved ones a blanket of protection that is so vital. We will endeavour to give you the best service that we can at all times.

Mortgage Tree is an appointed representative of Julian Harris Mortgages ltd which is authorised and regulated by the Financial Conduct Authority. Our FCA no. 304155

The Financial Ombudsman Service (FOS) is an agency for arbitrating on unresolved complaints between regulated firms and their clients. Full details of the FOS can be found on its website at www.financial-ombudsman.org.uk

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE. BUY TO LET (PURE) AND COMMERCIAL MORTGAGES ARE NOT REGULATED BY THE FCA.

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