Mortgage Cover

Don’t buy more cover than you need. Most policies let you buy blocks each worth £100 a month. If your monthly mortgage payment is £800, for example, you could decide to buy eight £100 blocks of cover so all your outgoings will be secured after a claim. If you want to make sure you can also pay some other household bills you could apply for more blocks of cover as well. But even with a best-buy insurer the cover isn’t necessarily cheap – a decent cost will be around £5 a month for every £100 you want paid out after a claim. So protecting £800 of mortgage will cost £40 a month. Experts say many people take out plans that will protect, say, half their mortgage outgoings and plan to rely on savings or other income for the remainder.