Protecting your mortgage

When taking out your new mortgage it is important that you consider other mortgage-related products such as life assurance, critical illness and income protection. The state will not assist you with paying your mortgage interest payments if you are out of work due to accident, sickness or unemployment during the first nine months, if you qualify at all (the benefit is means tested). It is therefore your responsibility to ensure that you have sufficient protection to enable you to maintain your mortgage payments should your circumstances change.

At Alexander Hall we not only advise you on the best mortgage options but also discuss with you any potential shortfalls you may have in your existing cover, in the event of loss of income due to accident and/or sickness, critical illness or death during the term of your new mortgage. We will provide you with a quotation and offer you advice to allow you to make an informed decision on the best way to protect your new mortgage.

The cost of life cover and other protection is often much cheaper than you may think. Try out our life insurance cost estimator or read on for an outline of what each key type of cover protects you against.

Types of protection cover

Life assurance

When taking out your new mortgage it is important that you consider other mortgage related products, such as life assurance, critical illness and income protection. The state will not assist you with paying your mortgage interest payments if you are out of work due to accident, sickness or unemployment during the first nine months. It is therefore your responsibility to ensure that you have sufficient protection to enable you to maintain your mortgage payments should your circumstances change.

Critical illness cover

An insurance policy that pays out a lump sum in the event of being diagnosed with one of a specified number of illnesses. This can be used to clear the outstanding mortgage debt and/or provide a lump sum to support yourself or any financial dependents.

Income protection

An insurance policy designed to provide an income in the event of absence from work due to accident or sickness. It will typically pay a percentage of your normal monthly income following an initial period. Benefit would normally be paid until the end of the policy term, retirement or death, but can also be arranged for a shorter period to reduce the premium.

Additional peace of mind

At Alexander Hall we recognise the importance of protecting your mortgage and have therefore developed some service improvements with our panel of insurers to ensure your chosen cover from the list above is put in place as soon as possible.

We have negotiated the highest levels of service available for our clients to ensure that your protection application is treated with the utmost priority.
Should there be any delays in processing your case, the insurers will do everything possible to increase the level of chasing with the goal of ensuring cover is in place by the time the mortgage completes. Such delays may include the late return of the medical questionnaire by your GP.
If for any reason the underwriting of your application is delayed, you may be able to benefit from free cover until your policy is approved by the insurer. The type and level of free cover will vary with your chosen insurer; however, this will be arranged by Alexander Hall as a standard part of our service.