Abbey is offering people free mortgage payment protection cover for all new applications from today until the end of the year, with homeowners paying nothing for the first three months of cover.
Research from Abbey reveals that homeowners in the UK are leaving themselves vulnerable when it comes to mortgage payments.
Half of UK adults admit they could not maintain their current lifestyle beyond one or two months if their work circumstances were to change.
Yet only one in five have protected their mortgage payments in case of accident, sickness or unemployment.
Lloyd Wilson, head of Insurance Marketing, Abbey, says: “At a time when people may be thinking about their mortgage options because of the recent rate cuts, they should also give some thought to protecting themselves against any unforeseen changes in their lives.
“Abbey’s Paymentcare policy can give people the financial peace of mind that their home is safe.”
For new customers taking out both an Abbey mortgage and Paymentcare, the offer is better still. For them, cover starts from the time of exchange of contracts in England, or conclusion of missives in Scotland, whereas many other mortgage payment protection insurance policies only become effective on completion.
In addition, there will be no qualifying period at all for the policy’s unemployment cover – the normal 60-day period has been waived.
Abbey’s three months’ free cover offer may particularly appeal to existing mortgage-holders who have recently changed jobs and do not have the protection of a good redundancy package and people who do not have cover for their regular outgoings such as life assurance premiums, utility bills and even credit card payments.
Paymentcare, Abbey’s comprehensive MPPI policy, is available for accident, sickness or redundancy, and homeowners can choose any combination of cover that best suits their needs.
It is not just available to those in full employment, but also covers people on fixed-term contracts and the self-employed.
To qualify for the insurance people need to be between 18 to 65 years and have a mortgage, but not necessarily with Abbey.
There is no limit to the number of claims that can be made during the life of a Paymentcare policy, and payments are usually made monthly direct to the customer, putting them in control to meet their financial commitments.
Mortgage payment protection is increasingly important since 70% of people who unexpectedly lose their income do not qualify for any assistance from the State with their mortgage.
Even the minority who do qualify must wait nine months before they receive any help towards mortgage interest payments and their mortgage must have been taken out after October 1 1995.
Similarly, anyone with 8,000 of savings will not qualify, nor anyone working more than 24 hours a week.