By taking out a mortgage you are making a financial commitment that you will need to keep paying regardless of your circumstances. If, for whatever reason, you are unable to work you will still need to make your repayments.
Should you find yourself out of work you can still claim some help such as jobseekers allowance but it’s unlikely this will cover your monthly outgoings including your mortgage and living costs.
If you are unable to work due to ill health or an accident, income protection will pay proportion of your income each month long-term, until you are able to return to work or until you reach a certain age and your pension kicks in, depending on your policy.
An income protection policy will usually pay out between 50% and 70%, of your income which should enable you to keep up your mortgage repayments and pay for other living costs. Given that you aren’t taxed on your income, it should replace most of your take home pay.
Mortgage protection can be costly, so an alternative option could be MPPI. This will cover your mortgage payments should you have an accident, become sick or unemployed. It will only pay out for a limited period of time – usually one or two years – but this is often enough time to get back on your feet. However, it’s worth noting that it’s not a long-term solution but it’s better than having no cover at all.
Gary Fowkes comes with over 12 years of mortgage advice and protection experience, meaning you will be in good hands throughout the entire process and get the tailored advice you need, when you need it, from an expert.
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