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  • Writer's pictureMatthew Pigrome

Mortgage Redundancy Protection Insurance: What You Need to Know

Updated: Feb 16

Losing your job unexpectedly can be a stressful and challenging experience, especially if you have a mortgage to pay. To protect yourself from the risk of falling behind on your mortgage payments due to redundancy, you may want to consider mortgage redundancy protection insurance (MRPI).


MRPI is an insurance policy that pays out a monthly sum to cover your mortgage repayments if you lose your job due to involuntary redundancy. The policy typically covers your mortgage repayments for a set period, usually up to 12 months, giving you time to find a new job and get back on your feet.


Here are some important things you need to know about MRPI:


  1. What does it cover? MRPI typically covers your mortgage payments if you are made redundant involuntarily. The policy may also cover your mortgage payments if you are unable to work due to illness or injury. However, the specific terms and conditions of the policy can vary from provider to provider, so it’s important to check the policy details carefully before you take out a policy.

  2. Who is eligible for MRPI? MRPI is available to anyone who has a mortgage, regardless of their employment status or whether they are self-employed. However, some providers may have restrictions on the type of employment they will cover, such as those on temporary or zero-hours contracts.

  3. How much does it cost? The cost of MRPI can vary depending on the provider and the level of cover you require. Factors that can affect the cost of your policy include your age, health, and employment status. You may also be required to pay a monthly premium for the policy.

  4. How to choose a provider? When choosing a provider, it’s important to compare policies from different providers to find the right one for you. You should consider factors such as the level of cover provided, the cost of the policy, and the reputation of the provider. You should also check the terms and conditions of the policy carefully to make sure you understand what is covered and what is not.

  5. What are the alternatives to MRPI? If you are concerned about the risk of losing your job and being unable to pay your mortgage, there are other options available to you. For example, you could build up an emergency fund to cover your mortgage payments in the event of redundancy. Alternatively, you could consider income protection insurance, which provides a regular income if you are unable to work due to illness or injury.


In summary:

MRPI can provide valuable peace of mind if you are concerned about losing your job and being unable to pay your mortgage. However, it’s important to weigh up the cost of the policy against the level of cover provided, and to compare policies from different providers to find the right one for you.


As experts in mortgage advice, Mortgage321 can provide guidance on mortgage redundancy protection insurance to ensure that clients have comprehensive protection in place. Contact us today to find out more.

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