Mortgage payment protection insurance covers your monthly mortgage payment if accident, sickness or involuntary unemployment stops you working. It is short-term cover — typically 12 to 24 months — that bridges the gap while you recover or find new employment. Misunderstood by many and mis-sold by some, good MPPI is a genuinely useful product when it is the right fit. We explain the options honestly and help you decide.
Mortgage payment protection insurance is straightforward in purpose but requires careful scrutiny of the policy terms. Understanding the exclusions is as important as understanding what is included. Here are the four key aspects to review.
MPPI has a controversial history — widespread mis-selling of payment protection insurance on loans and credit cards in the 2000s resulted in billions in compensation and lasting reputational damage to payment protection products generally. Mortgage-specific MPPI sold by independent mortgage brokers through the open market is a different product, subject to different FCA conduct rules, and can be entirely suitable depending on your circumstances.
MPPI is well suited to clients who have a mortgage and want specific cover for compulsory redundancy. It is also useful as a short-term bridge for those who already hold long-term income protection but want to ensure their mortgage is covered during the excess period of their income protection policy. For example, a client with a 26-week income protection deferral may use MPPI to cover mortgage payments during those 26 weeks.
MPPI is less well suited to the self-employed (who typically cannot claim the unemployment element), to clients with significant pre-existing health conditions (which may be excluded), and to anyone whose primary concern is long-term illness rather than a temporary setback. In those cases, income protection provides more comprehensive and durable protection.
MPPI is a short-term product and should be understood in that context. Here are the key parameters when comparing policies.
We do not sell PPI. Mortgage payment protection insurance sourced from the open market through an independent broker is not PPI. We are transparent about the product's limitations and only recommend it where it meets a genuine need for that client.
Many clients ask whether they need MPPI, income protection, or both. This table sets out the key differences between the two products to help you understand which is appropriate for your circumstances.
| Feature | MPPI | Income Protection |
|---|---|---|
| What it pays | Monthly mortgage payment amount | 50–70% of total earnings |
| How long it pays | Typically 12–24 months | Until recovery / retirement |
| Covers unemployment | Yes (compulsory redundancy) | No |
| Covers illness & injury | Yes | Yes |
| Suitable for self-employed | Partial (illness only) | Yes — specialist calculation |
| Pre-existing conditions | Usually excluded | Assessed individually |
| Typical monthly cost | Lower — short-term product | Higher — comprehensive, long-term |
Our role is to help you understand what you need — and to recommend MPPI only where it genuinely fits your circumstances. If income protection is the better solution, we will tell you.
We begin by reviewing your monthly mortgage payment, your employment type, and any existing protection cover you hold. For employed clients, we establish sick pay entitlement and length of service. For self-employed clients, we note that the unemployment element of MPPI will not apply and may recommend income protection instead. We also review whether you have existing income protection cover with a long deferred period that creates a gap which MPPI could bridge.
We compare MPPI and income protection side by side based on your specific situation. If you are employed, want redundancy cover, and have no existing protection in place, MPPI may be the right starting point. If your primary concern is long-term illness, income protection is more appropriate. If you want comprehensive protection, a combination of both products may be optimal. We present the options clearly with costs and benefits for each, and you decide what is right for you.
We search across the full range of MPPI providers, comparing policy terms, exclusions, claim excess periods, initial exclusion periods for unemployment, and premium costs. Not all MPPI policies are equal — the definition of incapacity, the length of the initial exclusion period, and whether the policy back-dates payments during the excess period all affect real-world value. We identify the policy that gives you the best terms at the most competitive price.
Inaccurate disclosure is one of the most common reasons insurance claims are declined. We guide you through the medical questionnaire clearly, explaining what must be disclosed and why. For pre-existing conditions that may be excluded, we explain the exclusion in plain language so you understand precisely what the policy will and will not cover before you take it out. There are no surprises at claim stage if we have done our job correctly at application stage.
If your mortgage payment changes — through a remortgage, a product transfer, or moving home — your MPPI benefit level should be reviewed. Most policies allow you to adjust the benefit amount to match your new mortgage payment. We proactively contact clients when we are aware of mortgage changes to ensure their MPPI remains correctly calibrated. We also review whether income protection should be introduced alongside or instead of MPPI as your financial situation evolves.
The most important questions clients in London and Essex ask us about mortgage payment protection insurance, answered clearly and without jargon.
Mortgage payment protection insurance (MPPI) covers your monthly mortgage payment if you are unable to work due to accident, sickness or involuntary unemployment. The accident and sickness element pays out if illness or injury prevents you from working — typically after a waiting period of 30 to 90 days. The unemployment element covers compulsory redundancy — you cannot claim if you resigned voluntarily, were dismissed for misconduct, or took voluntary redundancy. Most policies pay for 12 or 24 months per claim. This is a short-term safety net, not a long-term income replacement solution.
Both MPPI and income protection replace money if you cannot work, but they differ in three important ways. First, scope: MPPI is designed to cover your mortgage payment specifically; income protection replaces a proportion of your total income. Second, duration: MPPI typically pays for 12 or 24 months; income protection can pay until you recover, until retirement, or for the full policy term. Third, cover: income protection covers accident and sickness only; MPPI can also cover unemployment. MPPI is a useful short-term buffer. For comprehensive long-term protection, income protection is the stronger solution. Many clients hold both.
MPPI policies have two types of waiting period. The initial exclusion period — typically 90 to 180 days after the policy starts — during which no claims can be made for unemployment (to prevent people taking out cover after they know redundancy is coming). The claim excess period — typically 30 to 90 days after you become unable to work — before payments begin. During this excess period you must fund your mortgage from savings or other sources. Some policies offer a back-dating feature that pays a lump sum covering the excess period once the claim is approved. We explain these terms clearly before you commit to any policy.
Yes. MPPI policies typically exclude pre-existing medical conditions from the accident and sickness element — if you have a back problem and leave work due to back pain, the claim may be declined. The unemployment element excludes voluntary resignation, dismissal for misconduct, voluntary redundancy, and — critically — redundancy that was foreseeable at the time you took out the policy. Some policies also exclude self-employed individuals from the unemployment element entirely, or apply different definitions of incapacity. We read the exclusions carefully before recommending any MPPI policy to a client.
MPPI has a complicated history — mis-selling of payment protection insurance (PPI) on loans and credit cards in the 2000s damaged the reputation of all protection products. Mortgage-specific MPPI sold through mortgage brokers rather than lenders is a different product and operates under different FCA regulations. Genuinely suitable MPPI, sourced from the open market rather than from a lender, can represent good value as a short-term safety net — particularly for clients without substantial employer sick pay. We compare the whole market and only recommend MPPI where it meets a genuine need. We never sell PPI.
Self-employed individuals can take out the accident and sickness element of MPPI but typically cannot access the unemployment element. This is because the unemployment trigger requires compulsory redundancy from an employer — a circumstance that does not apply to self-employment. For the self-employed, income protection is usually the more suitable primary protection product, as it can cover illness and injury comprehensively and some policies allow benefit calculation based on trading income or directors' salary and dividends. We advise self-employed clients across London and Essex on the most appropriate protection structure for their specific income type.
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Whether you need MPPI, income protection, or a combination of both, we will search the whole market and recommend the protection that is genuinely right for your situation. Free consultation, no obligation.