Mortgage Payment Protection
Do you have Mortgage Payment Protection (MPP) in place? If so, do you have the correct level of cover? It is possible that your policy may not meet your requirements. Unfortunately not all brokers prioritise their clients needs and requirements, but concentrate primarily on their own financial gain. The mis-selling of MPP is a problem acknowledged by the Financial Service Authority (FSA) and Financial Ombudsman Service (FOS). If you have a ‘lump sum policy’ you may well be entitled to compensation, such policies have now been outlawed.
MPP is meant to cover your mortgage payments should you be made redundant, or perhaps lose your job through ill health for example. It is designed to safeguard your most important material position – your home. If you were to find yourself without employment and an income, the government can not assist you – they will not make contributions towards your mortgage, your home could be repossessed. It is worth noting that you should check the specific terms and conditions or such policies in great detail to ascertain exactly what you can, and can’t claim for – all policies are different.
Your MPP policy may well refer to ‘The Benefit Period’, this is the amount of time covered by the policy – how long they will pay out for. Normally such policies will cover 12-24 months, although they can be much longer upon request. The longer the period of cover, the greater the premium you will pay. Normally an ‘Exclusion Period’ is built in, this is the amount of time that must elapse before you are entitled to receive payments from your insurer, typically you would be looking at circa 30-90 days on average. Such policies often leave you, the customer with shortfalls.
If you feel you have been mis-sold Mortgage Payment Protection, Payment Protection Insurance or Mis-Sold a Mortgage please contact Cloud 9 Claims.
