Customers often contact us wanting to know, <em>\u201cDoes mortgage protection cover redundancy?\u201d <\/em>The answer is yes, you can get protection to cover your mortgage in case of redundancy, though the policy will depend on what you want covered and your personal circumstances.\r\n\r\nMortgage payment protection insurance (MPPI) is commonly referred to as either mortgage cover for redundancy, mortgage redundancy insurance, or mortgage redundancy protection, and can help you with your monthly repayments if you lose your job, or in certain other circumstances where you\u2019re unable to work.\r\n\r\nIf you feel you may be at risk of facing <a href="https:\/\/www.onlinemortgageadvisor.co.uk\/mortgage-application\/redundancy-and-mortgage-applications\/">redundancy after the mortgage application<\/a>, or you want the peace of mind that your home is protected from unforeseen circumstances, taking out a mortgage redundancy protection insurance policy could be the way forward.\r\n\r\nIn this article we look at the following:\r\n<ul>\r\n \t<li><a href="#included">What\u2019s included in mortgage protection redundancy cover?<\/a>\r\n<ul>\r\n \t<li><a href="#voluntary">Is mortgage protection for voluntary redundancy covered?<\/a><\/li>\r\n<\/ul>\r\n<\/li>\r\n \t<li><a href="#cost">How much does redundancy mortgage protection cost?<\/a><\/li>\r\n \t<li><a href="#payout">What payout will I get from my mortgage redundancy insurance cover?<\/a>\r\n<ul>\r\n \t<li><a href="#when">When will my mortgage redundancy protection policy pay out?<\/a><\/li>\r\n<\/ul>\r\n<\/li>\r\n \t<li><a href="#which-providers">Which providers offer mortgage redundancy payment protection?<\/a><\/li>\r\n \t<li><a href="#expert">Speak to an expert about mortgage insurance against redundancy<\/a><\/li>\r\n<\/ul>\r\nFor more information on MPPI, call us on 0808 189 2301 or <a href="https:\/\/enquiries.onlinemortgageadvisor.co.uk\/match-me-with-a-specialist-broker">make an enquiry<\/a> and we\u2019ll pass your enquiry on to a specialist. In the meantime, take a read of this guide for all you need to know about mortgage payment protection redundancy cover.\r\n\r\n[feefo-banner]\r\n<h2 id="included">What\u2019s included in mortgage protection insurance redundancy cover?<\/h2>\r\nThere are several different types of MPPI available, so what is covered will depend on the product you choose. The types are \u201cunemployment only\u201d, \u201caccident and sickness only\u201d and \u201caccident, sickness and unemployment\u201d.\r\n\r\nAs the name suggests, \u201cunemployment only\u201d will just give you mortgage protection against redundancy. \u201cAccident and sickness\u201d will protect you against accidental injury or long-term illness which prevents you from working. \u201cAccident, sickness and unemployment\u201d will cover you for all three.\r\n\r\nSo, if you\u2019re just looking for mortgage protection for redundancy, opt for \u201cunemployment only\u201d.\r\n<h3 id="voluntary">Is mortgage protection for voluntary redundancy covered?<\/h3>\r\nWhile policies will vary by provider, many insurers will not pay out if you take voluntary redundancy. One of the reasons for this is that voluntary redundancy payouts tend to be considerably higher than involuntary redundancies.\r\n\r\nAlways check the terms and conditions before taking out mortgage insurance redundancy protection, to see in what circumstances you\u2019d qualify for a payout.\r\n<h2 id="cost">How much does mortgage protection with redundancy cover cost?<\/h2>\r\nThe price of your MPPI policy will vary depending on which type of cover you choose. \u201cAccident, sickness and unemployment\u201d is understandably more expensive than \u201caccident and injury only\u201d or \u201cunemployment only\u201d.\r\n\r\nThere are also other factors that will play a role, including your age and the cost of your mortgage repayments.\r\n\r\nTo find out how much you can expect mortgage protection insurance for redundancy to set you back a month, contact us. We\u2019ll then put in touch with an advisor who will generate accurate quotes tailored to your individual circumstances.\r\n<h2 id="payout">What payout can I expect from mortgage cover if I\u2019m made redundant?<\/h2>\r\nThe amount your insurer will pay will depend on the type of cover you\u2019ve selected. Most providers will allow you to claim up to 125% of your mortgage, as a contribution to associated costs such as energy bills and council tax.\r\n\r\nThere are caps in place. The majority of MPPI policies will not pay out any more than \u00a32,000 per month or around 65% of your monthly income\u2060, whichever is the cheapest.\r\n\r\nThe maximum time you can expect your payments to be covered is two years, although some only cover one year. If you\u2019re a sensible saver and have emergency funds available, redundancy protection for your mortgage may not be necessary.\r\n<h3 id="when">When will my mortgage redundancy protection policy payout?<\/h3>\r\nEach MPPI policy comes with an excess period, so you should also have the option to add \u201cback to day one cover\u201d.\r\n\r\nThe excess period is how long you have to wait before you receive your first payment. This typically ranges between 30 and 90 days. So, if you have a 30 day excess period, you can expect to start receiving your monthly payments 30 days after your claim is submitted.\r\n\r\n\u201cBack to day one\u201d policies backdate your payments from the day the cover started. So, a \u201cback to day one policy\u201d with a 60 day excess period means you would receive two monthly payments after this time.\r\n\r\nIt\u2019s usually a good idea to have a minimum of two months\u2019 worth of mortgage payments in savings to ensure you\u2019re covered for any downtime.\r\n<h2 id="which-providers">Which providers offer redundancy insurance mortgage protection?<\/h2>\r\nThere are a number of insurers who offer MPPI, ranging from high street banks and building societies to more niche independent providers.\r\n<h3>Mortgage redundancy cover Halifax<\/h3>\r\nFor example, both Halifax and Lloyds Bank offer mortgage redundancy cover but restrict this to cases of involuntary employment only.\r\n<h2 id="expert">Speak to an expert about mortgage protection insurance against redundancy<\/h2>\r\nIf you have any more questions surrounding redundancy cover on a mortgage or want advice as to whether it\u2019s a suitable product for you, don\u2019t hesitate to get in touch.\r\n\r\nWe work with a team of whole-of-market experts, some of whom have specialist knowledge in mortgage payment protection insurance products. They can give you advice bespoke to your needs, and seek out the best quotes and most suitable providers on the market.\r\n\r\n<a href="https:\/\/enquiries.onlinemortgageadvisor.co.uk\/match-me-with-a-specialist-broker">Submit an enquiry<\/a> or give us a call on 0808 189 2301. We don\u2019t charge a fee, and there\u2019s absolutely no obligation on your part.