about mortgage repayments

Mortgage protection insurance is dependant on the type of mortgage you have purchased. There are two types of mortgage, repayment mortgage or an interest only mortgage.

Mortgage payment cover is also known as mortgage payment protection insurance and is used if you have a repayment mortgage or an interest only mortgage.

With a repayment mortgage, the outstanding value of your mortgage decreases each month as you steadily pay off your mortgage. Therefore, each year you need less insurance to cover the repayment of your mortgage. Generally referred to as decreasing term insurance- this is the cheapest available form of mortgage payment cover.

With an interest only mortgage the outstanding value of your mortgage remains constant as each month you are only paying off the value of the interest on the money you have borrowed. Therefore, the value of your insurance cover similarly needs to be constant to always equal the value of your outstanding mortgage. For a mortgage such as this, you will need level term insurance.

Whilst, it is not uncommon that building societies and mortgage companies recommend, that mortgage protection insurance be taken out, it is often the case that the mortgage policy you receive is the not necessarily the most competitively priced.

Purchasing mortgage insurance has never been easier, and with great offers currently available with many leading UK insurance companies, don't miss out on this opportunity to save money but not cut the level of cover.