How much does mortgage redundancy cover cost?

MPPI typically costs £20-£50 per month depending on your mortgage payment amount, age, and occupation. Income protection varies more widely based on coverage level and term.

Is mortgage payment protection worth it?

If you're in an industry prone to redundancy or have limited savings, it provides valuable peace of mind. However, it's not suitable for everyone — self-employed workers, for example, aren't covered for redundancy.

How long does redundancy cover pay out?

Typically 12-24 months per claim, after a waiting period of 30-90 days. This is designed to bridge the gap while you find new employment.

Can I get mortgage cover if I'm already at risk of redundancy?

No, if you're aware of potential redundancy at the time of taking out cover, any subsequent claim would likely be excluded. Cover needs to be arranged before any redundancy risk is known.

Mortgage Redundancy Cover

Mortgage payment protection insurance can cover your payments if you're made redundant. We explain your options and find the right cover for your situation.

Protecting Your Mortgage Against Redundancy

Losing your job is one of the biggest financial fears for homeowners. Mortgage payment protection insurance (MPPI) can cover your monthly mortgage payments for a set period if you're made redundant, typically 12-24 months. It's different from income protection insurance, which covers a portion of your salary. We'll help you understand which type of cover best suits your needs.

Clear comparison of MPPI vs income protection
Cover tailored to your mortgage payment amount
Accident, sickness, and unemployment cover available
Help understanding policy exclusions and waiting periods
100% fee-free insurance advice

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

Mortgage Payment Protection Insurance (MPPI)

MPPI specifically covers your monthly mortgage payment if you can't work due to redundancy, accident, or sickness. It typically pays out for 12-24 months per claim, with a waiting period of 30-90 days. It's designed as short-term cover to bridge a gap while you find new employment.

Income Protection Insurance

Income protection covers a percentage of your salary (usually 50-70%) if you can't work due to illness or injury. Unlike MPPI, it typically doesn't cover redundancy, but it can pay out until retirement age. It's broader protection but doesn't specifically target mortgage payments.

What's Not Covered

Most policies exclude pre-existing conditions, voluntary redundancy, and self-employment (for redundancy cover). There's usually a qualifying period (3-6 months of employment) before redundancy cover kicks in. Reading the policy terms carefully is essential, and we'll explain exactly what you're buying.

Alternative Protection Options

Beyond insurance, consider building an emergency fund (3-6 months of mortgage payments), overpaying your mortgage to build a buffer, and understanding your lender's forbearance policies. Some lenders offer payment holidays in genuine cases of financial difficulty.