Becoming a homeowner for the first time is an exciting yet difficult process. With the soaring property prices in the UK, many first-time buyers face challenges in saving up for a deposit. In this article, we will look at mortgage insurance and what are the advantages for first time property buyers in the UK.
Mortgage insurance is cover that will help you as a borrower to fall back on in the event of you default on mortgage payments. As a first time buyer, you would be very eager to purchase your first property. This enthusiasm is great and you will want to keep that feeling of accomplishment going on, probably through the years.
However, unexpected situations arise all the time. A sudden illness, an accident, a massive financial loss, or any other situation that causes you to lose the ability to pay back the loan, can bring you virtually ‘to your knees’. With a mortgage in place, in the event of such a disaster, it will act as your safety net providing you with the much needed funding. It’s your first time purchasing a property after all, and understanding the advantages of having mortgage insurance will save you a lot of trouble.
When it comes to mortgage payment protection, there are many firms in London and the UK that offer great options of MPPIs to the first time buyer. While the choice is yours, you might want to refer your choices to a mortgage and protection expert and get their advice as to which scheme will work for you better before deciding on one.
Mortgage Payment Protection Insurance for accident and sickness will provide you with insurance cover if you are sick with a long term illness or cannot work due to a debilitating accident rendering you physically disabled.
Mortgage insurance is often mistaken for life insurance or income protection insurance, leading to a degree of confusion. It is therefore important to differentiate between these types of coverages. You may want to do a bit of research on the topic, but if you have little or no time for researching, speak to the professionals at BVS Mortgage and Financial Services, they will gladly guide you and help you out.
Life insurance provides financial protection to beneficiaries in case of the policyholder’s death, while mortgage insurance specifically covers your mortgage repayments in the event that an accident or illness leaves you unable to make them yourself. By understanding these differences, first-time buyers can make informed decisions about the type of insurance that best suits their needs and circumstances.
Mortgage insurance can provide valuable peace of mind after you have purchased your first home. Choosing the right type of mortgage payment protection insurance (MPPI) for your new home is critical. Life insurance and income protection do exist, but as we’ve seen today, many do not understand the difference between these types of insurance policies. It takes time, effort and good observation skills to correctly identify the cover that suits your budget as well as your property.
|YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.
Approved by the Openwork Partnership on 15 September 2023