We hate to speak in absolutes, but if you’re really trying to get your dream mortgage, you need to make sure that you’re avoiding payment protection insurance as much as possible. Now, you might have already read the scandal involving PPI and what a terrible deal it is for consumers across the board…yet you don’t expect it to show up in your mortgage.
But it’s true — they can sneak it in there and it can really add thousands of pounds to your mortgage…without you even realizing it. The claims against PPI are growing, but mortgage lenders are still packing it in there. They try to sell it to you as being something that’s for your own good. If you were to get sick, they would step up and take care of your payments. But is that really the case? The truth is that this insurance doesn’t really protect anyone. Just when you think that you were being safely protected, you’ll find that you really weren’t getting any type of protection at all. This is something that can really be stressful, but it doesn’t have to be that way at all. You just need to make sure that you’re thinking about the bigger picture at all times. That’s the best way to really keep your mind focused on the prize of owning your own home.
You need to also think about the fact that there are other covers available for projecting you in the event of illness. Critical illness insurance is actually what you want more than payment protection insurance. The truth is that if you aren’t thinking about the future, then you could fall into a trap where you just aren’t able to cover your bills. However, payment protection insurance has so many exclusions that it doesn’t serve you anyway. You just end up spinning your wheels. It’s not something that we can recommend to you at all.
You have to think about the best path possible of yourself and your family. If you got sick, do you have a policy in place? If you’re going to think about something as serious as a mortgage, then you definitely need to think about this as well. That’s just the way it has to be, from top to bottom.