How do I protect my mortgage?

Do you have a mortgage?

Is it protected so that you or your family do not lose your home if you are diagnosed with a terminal illness or when you die?

So many people in the UK, have mortgages with no protection in place. If you are one of these people; have you thought about what would happen to you and your family, if you died and the family were left homeless? If you have a joint mortgage, could your partner keep up the payments if you were to die first?

Case Study – Sasha and Brian:

Sasha and Brian had 2 children under the age of 10. They recently purchased their family home, which they had saved so long for. Both worked hard to pay the mortgage and bills, Sasha was as a receptionist and Brian, a car salesman. On both salaries, they lived comfortably but with no savings as the mortgage payments and bills were high.

At the time of taking out their mortgage, the couple were advised to take out some protection for their mortgage; which would mean that in event of either of them dying, they would not lose the home they worked so hard for. However, the couple discussed this and both believed that as they were fit and healthy, it would never happen to them, so why add that extra expense.

Less than two years later Sasha was diagnosed with terminal cancer at the age of 31 and died a few months after diagnosis. It was left, for a grieving Brian, to continue to pay the bills and look after their two children. One salary alone, was not enough to keep up with the mortgage payments and eventually the home was repossessed, leaving Brian and his two children homeless at a very dark time in their lives.

If Sasha and Brian had taken out the protection when advised, the policy would have paid off their mortgage and the situation where Brian lost the family home, would have been avoided.

Many fit and healthy people believe that nothing will happen to them.

However sadly, people lose their lives at all ages and sometimes without warning. So, you could find yourself in a mountain of unexpected debt as well grieving for a loved one.

Unfortunately, the fact is that everyone will die. The question is when you die, what do you want to leave behind for your loved ones?

To discuss your protection needs, contact one of our advisers today.

Published October 2020.

As a mortgage is secured against your home, it could be repossessed if you do not keep up the mortgage repayments.

It is important to take professional advice before making any decision relating to your personal finances. Information within this article is based on our current understanding and can be subject to change without notice and the accuracy and completeness of the information cannot be guaranteed. It does not provide individual tailored advice and is for information purposes only.