A protection policy should remain a key consideration for homeowners despite the Government's pledge to provide extra help for mortgage holders who lose their jobs, financial research firm Defaqto says.
The Department for Work & Pensions (DWP) today said it was reforming the Income Support for Mortgage Interest (ISMI) system. From April next year, the benefit will cover the interest on the first £175,000 of the mortgage after 13 weeks of unemployment, the DWP says. Currently it will only cover the first £100,000 and does not kick in until after 39 weeks. Brian Brown, head of insight at Defaqto, says while the reform represents good news for homeowners, it may be a mistake for them to ignore the benefits of some protection policies, such as mortgage payment protection insurance (MPPI). “...
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