Mortgage Protection

Control the Future with Mortgage Protection Insurance

Our mortgage protection insurance policies protect your family when you die. Also known as decreasing term life insurance, this type of cover creates a safety net to pay off your mortgage and help your family remain stable after the loss of your salary.

What is Mortgage Protection insurance?

Mortgage life insurance pays out an amount of money that decreases each year during the term of the policy. The amount paid out by the policy should be roughly equal to the rest of your mortgage. Since the payout decreases over time, the premiums for decreasing term life insurance are lower than level term or whole life insurance.

Do You Need Mortgage Insurance?

Mortgage protection insurance is the most cost-effective way to protect your family’s home after you die. Since the average cost of mortgage protection insurance is about £5.50 per £100,000, most people need to spend just £10-£15 per month. This is a small amount to pay for the peace of mind that comes from securing a stable home for your loved ones.

Some lenders may require you to purchase mortgage payment protection insurance. This is especially common if the down payment on the mortgage represents less than 20% of the property’s value. If your lender requires mortgage protection insurance, shop around instead of accepting their policy. You can save money with mortgage insurance from a different insurer.

Did you know?

The average family owes...

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...£131,724 on their mortgage.

The amount owed will be required even when the person who took out the mortgage passes away.

There are 1.5 million fewer...

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Fewer people are carrying life insurance protection policies of any kind.

42% of people with a mortgage...

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When tragedy strikes, these families could be left in a vulnerable housing position.

99% of Covid-19 claims...

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...were paid by insurers.

The families of people who died of Covid-19 and had life insurance were compensated.

Should You Get Level Term Or Decreasing Term Life Insurance?

Level term life insurance is more flexible and pays money to a beneficiary of your choice, such as a spouse or partner. Mortgage protection policies cost less, but only cover a specific debt, and they pay the benefit to your lender. These two policies aren’t exclusive, though. You can choose both.

Which is the Best Insurance Policy?

Insurance policies help you control the future. The goal is to put measures in place now so the future of your family and loved ones is secure. With this in mind, here are three different scenarios for which you could use insurance.


Life insurance can pay out to protect your family if they depend on your income. A term life policy or whole life policy will pay a lump sum to your family. An alternative is to use an income protection policy, such as a Family Income Benefit. This will pay out over time instead of as a lump sum. These funds can cover mortgage costs.


Mortgage protection insurance, or decreasing term insurance, can secure your family’s home with a payout that will repay your mortgage. These policies are not suitable for an interest-only mortgage because you pay the mortgage interest but the balance owed doesn’t go down.


Income protection policies will help you in the event of an accident and sickness. Critical Illness cover is available for serious, life-threatening illnesses. An Income Protection policy will cover your family and your mortgage payments if you cannot work because of a less serious accident, sickness, and unemployment.

All three types of insurance are investments in your future. When you are covered by this umbrella of insurance, you and your family will be prepared for whatever comes in the future.

How Does Mortgage Protection Insurance Work?

Let’s talk about the details. How does a mortgage protection insurance policy work?

Your mortgage protection insurance policy has a few key parts that you should understand and design to give you the protection you want. We’ve explained the key parts of the policy for you.

One important difference between a decreasing term policy such as mortgage protection insurance is the beneficiary. Mortgage protection insurance pays the lender, not your family. This makes it less flexible than other life insurance policies. However, you could feel empowered knowing you’ve sorted the mortgage no matter what happens.

Policy Term

The length of the mortgage protection insurance policy should be at least as long as the number of years left on your mortgage.

Level of Cover

Your mortgage protection policy should cover the amount you owe on your mortgage at the beginning of the policy.

Decreasing Benefit

Mortgage protection insurance pays out a smaller amount each year. Compare this decrease to your mortgage repayments (amortisation schedule).

Extra Control for the Future with Critical Illness Cover

Mortgage protection insurance is part of a well-rounded approach to creating the future you want for your family. Combining a mortgage cover with critical illness cover will help you plan for whatever comes.

Stop Worrying. Take Control of the Future with Mortgage Protection Cover.

Life cover for your mortgage payments just makes sense. Rather than thinking of bad things that can happen or worrying about death, let’s think more positively. Right now, while you’re healthy and earning a good salary, you can make changes that will control the future.

Start your mortgage protection quote today.

How Much Does Mortgage Protection Insurance cost?

The industry average is about £5.53 per month to provide £200,000 of cover to a 30-year-old non-smoker for a term of 25 years. The cost for a 45-year-old smoker for the same cover is much greater: 

£33.57 per month. Age, health, and lifestyle are the three biggest factors affecting the cost of a policy.

How Does Age Affect the Cost of a Mortgage Protection Policy?

Age is the biggest factor in the cost of a policy because you get closer to your life expectancy with every passing year. Thus, you become more expensive to insure every year. Here are some average figures from across the insurance industry:

  • Premiums increase by 5-8% every year in your 40s.
  • Costs rise by 9-12% each year over the age of 50.

How Much Does Smoking Affect the Cost of a Mortgage Protection Policy?

Smoking causes your costs to increase by at least 78%. Some estimates put this figure as high as 223%. This means a policy that would cost £7.99 for a non-smoker costs £14.19 for a smoker, at a minimum.

Factors that could affect the cost

What About Pre-Existing Health Problems?

Many insurance customers worry about qualifying for insurance. Term life policies and whole of life policies may require a medical exam. Most mortgage protection policies do not require a medical exam. Failure to disclose known health issues could invalidate the policy, however.

Mental Health Issues

Mental health is crucial for our well-being. However, mental health issues do not have to be disclosed to an insurer. Most insurers have a policy exception that will not pay out in the event of suicide. So if you’re struggling with your mental health, then please get help. Contact the Samaritans for advice if you’re thinking of suicide or an organisation such as Mind if you need help to get out of a slump.

Cancelling or Changing Your Insurance Policy

You can cancel or amend your insurance policies after they begin. Accident and sickness may make payments difficult. A positive change, such as a new child or a larger mortgage, may require an upgrade. Most insurers will offer advice on how to get affordable insurance and they can show you options for choosing the right policy for your future.

What About the Coronavirus Outbreak?

Can You Get an Insurance Policy with Covid-19?

Yes. Most insurers will cover people if they have no coronavirus symptoms or contact with people who have tested positive for the virus. If you have had the virus, but have recovered and have no symptoms, then you should also be able to arrange insurance cover.

Is There a Waiting Period?

Most decreasing term policies don’t have a waiting period, and many don’t require a medical exam. If you have been diagnosed with Covid-19, the insurer may request a waiting period before providing insurance.

The Benefits of Mortgage Protection Cover

In a nutshell, the premiums are cheaper than Level Term insurance. Because your mortgage declines over time, as do your mortgage insurance premiums. It’s a cheaper option than taking out Level Term Life Insurance to satisfy loan criteria set by banks and financial institutions as part of your mortgage application requirements. Your premiums also won’t increase over time.

Plenty of people use mortgage protection life insurance even if they don’t have a mortgage, so that there is a level of financial aid for families if they pass away during the policy term – it pays out less than a Level Term, but it’s cheaper.

Would you like Mortgage
Protection Insurance?

We’re here to help with this. Use the quote comparison service on our site to find a Decreasing Term policy that is right for you. Then our diligent insurance brokers will give you a ring to discuss your options, and get you set up and covered same day (in most instances) to give you quick and easy peace of mind.

Alternatively, you can call us directly. We will provide you all the facts to any of the questions you have, go through the quotes with you, and get you the best insurance cover for your budget.

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