Mortgage Protection Insurance during pandemic

Mortgage Protection Insurance during pandemic

Mortgage protection insurance is an essential element for everyone who has a mortgage during the COVID- 19 pandemic. The main reason for this is the high level of uncertainty whole around the word with the risk of having wage-cuts, potential unemployment, critical illness, and reduction of income due to self-isolation. Therefore, having standard mortgage protection insurance and income protection insurance is the best way to ensure that you and your loved ones are safe.

Mortgage protection Insurance

Mortgage protection insurance can be defined as your cover against any potential mortgage miss payment. The reason for miss payment during the pandemic could be wage cuts or reduction of self-employed income. The best possible method of overcoming this scenario is planning your monthly budget well in advance and budget how much of disposable income you have for the monthly mortgage payment which is one of your largest direct debits. However, the risk is still inevitable and mortgage protection insurance would reduce your element of risk.

Increase the mortgage term while having insurance

If you are really struggling to manage your monthly payments, try increasing the mortgage term when you remortgage. This would help you reduce the monthly payment. Later, when you are comfortable with your financial status, you can bring down the term. However, this is not an ideal solution because it ends up you tie up into the mortgage for too long. This would only be a short term plan to overcome the risk of miss payments. A fin-tech mortgage broker could help you more with analyzing your capability of managing monthly payments.

Maintain a good credit score

If you can manage your monthly payments with the help of protection insurance, you can ensure that your credit score is not affected. This would definitely help you with your future credit assessments, Buy To Let property purchases, moving into a new home, etc. If you are closer to the end of your mortgage without having any miss payments and suddenly you make miss payments, there is a high chance of this affecting your credit score and future credit commitments. The best solution to avoid this, have mortgage protection insurance in place.

Do not miss Mortgage protection Insurance premium

Make sure that you maintain your monthly mortgage insurance premium if you already have a cover. Premium miss payments would result in such a waste of money and effort. This is the essential time you need mortgage protection due to the pandemic. The worst part is that lender repossessing your property as a result of mortgage miss payments. Therefore, the suggested insurance scheme overall is extremely important during this time and coming months to survive the financial crisis.

The ultimate objective of maintaining this insurance cover is to make sure that you, your loved ones, and your property are safe during the difficult times of this pandemic. For more information regarding mortgage and handling the mortgage during the pandemic, contacts us!

Mortgage protection Insurance
Keep you, your family and your home safe with mortgage protection insurance

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