Keep your mortgage paidif you lose your job

MPPI is a short-term insurance policy that covers your monthly mortgage repayments if you are unable to make them due to accident, sickness, or involuntary redundancy. It is different from life insurance or income protection — it specifically covers your mortgage payment for a limited period (typically 12–24 months) while you get back on your feet.

MPPI typically covers three risks: Accident (injury that stops you working), Sickness (illness that stops you working), and Unemployment (involuntary redundancy). You can often choose to cover one, two, or all three risks — known as ASU (Accident, Sickness and Unemployment) cover. The premium adjusts accordingly.

Most MPPI policies cover your mortgage payments for up to 12 or 24 months per claim. This is designed to bridge the gap while you find new employment or recover from illness, rather than provide indefinite cover. For longer-term illness protection, income protection insurance is more appropriate.

Most policies have a waiting period of 30, 60, or 90 days from the date you stop work before they begin paying out. A longer waiting period means lower premiums. If you have savings or an emergency fund that covers 1–2 months, a 60-day wait can significantly reduce your premium.

No. MPPI and PPI are different products. PPI was often attached to loans and credit cards without customers' knowledge and was widely mis-sold. MPPI is a standalone, correctly-sold product designed specifically to protect your mortgage payments. It is regulated by the FCA and, when properly arranged, provides genuine and valuable protection.

MPPI is particularly suitable for people who are employed (as it covers redundancy), have a repayment or interest-only mortgage, and do not have significant savings to fall back on. Self-employed people may find income protection insurance more appropriate, as MPPI unemployment cover typically excludes the self-employed.