What is Mortgage Protection Insurance?

Mortgage protection insurance is an important part of your mortgage requirements. Your mortgage is one of the largest financial commitments you are likely to take.

Budgeting for your mortgage protection is an important part of the mortgage process, as these payments are often overlooked when calculating how much you can afford to borrow.

Many financial advisors talk of a fully protected mortgage. Detailed below are the main ways for you to consider to fully protect your new mortgage.

Fully Protected Mortgage

  • Death
  • Redundancy
  • Critical Illness
  • Long Term Sickness
  • Buildings Insurance

What to Consider before you Decide if you Should Have Mortgage Protection Insurance?

Mortgage Protection is not compulsory, the only thing that most lenders will insist on is buildings insurance. So as mortgage protection is not compulsory and no one plans to be ill or be made redundant, when taking out a mortgage, or simply reviewing your existing mortgage, you must ask your self these simple questions.

What if During the Mortgage Term you Die?

If you died prematurely how would this impact on your family’s ability to repay the mortgage and other bills? The majority of people in the UK do not have any life insurance. Yet premiums start from just £3.50pm. In 2023 Aviva paid out over £750 million in life insurance and terminal illness claims. (source Aviva May 2024)

What if During the Mortgage Term you are made Redundant or have a short term illness?

If you were made redundant or suffer an illness how would it affect your ability to pay the mortgage and bills? In 2023 there were over 250,000 redundancies in the UK, thats an increase of over 50% on 2022. (source ONS Jan 2023)

What if During the Mortgage Term you Suffer a Serious Illness?

If you or your partner suffered from a critical Illness how would this affect your ability to repay the mortgage and bills?

In 2023 Legal and General paid out over £250 Million in claims for critical illness insurance. (source L&G May 2024)

What if During the Mortgage Term you Have a Long Term Sickness?

If you were unable to work due to an accident or sickness how would this affect your ability to pay the mortgage and bills? Income protection does not need to be expensive with prices starting from just £4.00 pm

Typical Fully Protected Mortgage Plan

Mortgage protection, as mentioned above, is not compulsory so you could do nothing. However, the cost of doing nothing could quite simply be losing your home. The most common way to protect your mortgage is with the firm foundation of either:

  • mortgage term insurance with integrated critical illness for a repayment mortgage
  • level term insurance with integrated critical illness cover for an interest only mortgage.

This, at the very least, means your family have a roof over their heads should you or your partner die or sufferer a critical illness during the mortgage term.

This combined with:

  • mortgage payment Protection insurance or income protection to cover your wage if you are made redundant or are off work through ill heath.
  • buildings insurance, if a freehold property.

Taking these polices provides a level of cover that should cover you against the greatest risks to your mortgage and home. An income protection policy can be more beneficial for long term income protection, compared with a mortgage protection insurance that typically pays an income for between 12 and 24 months.

Mortgage Protection Insurance Advice

Do you want mortgage protection insurance advice? Simply complete our life insurance inquiry form and a financial advisor will contact you to discuss your protection needs.

Your home may be repossessed if you do not keep up repayments on your mortgage


Get Discounted Mortgage Life Insurance Premiums

On mortgage life insurance, critical illness insurance and Income Protection insurance Go Direct sacrifice a minimum 50% of the initial commission, that the provider would have paid to us, back into your policy reducing the cost of your monthly insurance premiums.

Mortgage Life Insurance Premium Guarantee

Go Direct guarantee that at the time of application you will not get cheaper like for like cover, as we sacrifice 50% of the initial commission the provider pays us, back into your insurance policy.

If you have obtained a genuine like for like quote that is cheaper than we have quoted then we will match it . Just send us a copy of the best life insurance quote you have obtained by e-mail  admin@godirect.co.uk  with your contact details and the details of the company providing the life insurance quote.

NOTE: This offer excludes nil commission firms and firms that are paid by fee's for arranging your life insurance policy, quote limit applies. We reserve the right to amend this offer at any time.

Mortgage Life Insurance Premium Guarantee