What you need to know about mortgage payment protection insurance (MPPI)

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Mortgage payment protection insurance (MPPI) is designed to insure you against a missed payment or repossession.

It might seem like a good idea amongst homeowners, however many people are paying more than is necessary as their policy does not suit them.

The idea behind MPPI is that should you fall sick, have an accident or become unemployed, payments will be made on your mortgage.

So before you buy the mortgage insurance or if you have already taken it out, here's a few things you should know.

Firstly there is no legal requirement to have MPPI, although it might be sold this way. Watch out for sales tricks which try and hit your emotions , selling you 'peace of mind'

The MPPI policy which works best for you might not be the cheapest or the most established one on the market. You can tailor your policy to suit your precise needs.

Age, the possibility of future sickness or unemployment and your previous financial record are some of the key areas which will be assessed when applying for MPPI.

If you go to your own bank for advice they are most likely to try and sell you their expensive policy which might not be the best one suited to you.

Finally, it's not suitable for everybody. There maybe some circumstances where MPPI will not cover you, and you simple don't need it.

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