Mortgage Protection Insurance

Cost-effective cover designed to pay off your mortgage if the worst happens — so your family can stay in their home.

Mortgage protection insurance is specifically designed to pay off your outstanding mortgage if you die during the policy term. The cover amount decreases over time, broadly in line with your reducing mortgage balance, which makes it one of the most affordable forms of life insurance available.

For most homeowners, the mortgage is the single largest financial commitment. Mortgage protection ensures that if the worst were to happen, your family could stay in their home without the burden of monthly repayments. It's a cost-effective way to ring-fence your home against the unexpected, with premiums typically lower than level term cover for the same initial sum assured.

Our advisers will help you match the right policy to your mortgage type, term, and outstanding balance. Whether you're buying your first home or remortgaging, we'll find cover that fits — and our advice is always free with no obligation.

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What Is Mortgage Protection?

A mortgage protection plan is life insurance designed to cover your outstanding mortgage in the event of your death. Unlike level term assurance where the payout stays the same, mortgage protection uses a decreasing sum assured — the cover amount reduces over time, broadly in line with your mortgage balance as you make repayments.

Because the sum assured decreases over the term, insurance companies can offer mortgage protection at a lower cost compared to level term cover. This makes it a cost-effective solution specifically designed for repayment mortgages, where the amount you owe reduces steadily over the years.

Who Is Mortgage Protection For?

Mortgage protection is designed for homeowners who want to ensure their mortgage is paid off if they die during the term. It's particularly suitable if you:

Have a repayment mortgage and want cover that matches the decreasing balance
Want to ensure your family can stay in the home without worrying about mortgage payments
Are looking for an affordable form of life cover that serves a specific purpose
Are buying a new home and need cover to satisfy your mortgage lender's requirements

Key Benefits

Lower cost — decreasing cover is typically cheaper than level term cover for the same initial sum
Matches your mortgage — the cover decreases alongside your outstanding balance
Protects your family's home — ensures the mortgage can be paid off in full
Fixed premiums — your monthly payments are locked in for the term of the plan
Can add critical illness — optional critical illness cover can be included alongside the life cover

Things to Consider

What's the difference between mortgage protection and level term?

With mortgage protection, the sum assured decreases over time to match your reducing mortgage balance. With level term, the payout stays the same throughout the policy. Mortgage protection is usually cheaper because the insurer's liability reduces each year. If you have an interest-only mortgage, level term cover may be more suitable as the balance doesn't decrease. Learn more about level term cover.

Do I need mortgage protection if I have other life insurance?

It depends on how much cover you already have. If your existing life insurance would be enough to pay off your mortgage and still leave money for your family, additional mortgage protection may not be necessary. However, many people prefer to have a dedicated policy for the mortgage so that other cover remains available for their family's living costs. Our advisers can help you assess your overall protection needs.

Can I use mortgage protection for an interest-only mortgage?

Mortgage protection (decreasing term) is designed for repayment mortgages where the balance reduces over time. If you have an interest-only mortgage, the balance stays the same throughout the term, so level term cover is usually the more appropriate choice. Speak to an adviser and we'll help you find the right type of cover for your mortgage.

What happens if I remortgage or move home?

Your mortgage protection policy isn't tied to a specific property — it's a life insurance policy that pays out on death. If you remortgage or move home, the policy continues as normal. However, if your new mortgage is larger or for a longer term, you may need to review your cover to ensure it's still sufficient. Our advisers can help you reassess your needs.