What happens to your mortgage if you cannot work?
Illness or injury can stop you working, and the mortgage still has to be paid. How income protection works, what sick pay covers, and the questions to ask.
Illness or injury can stop you working, and the mortgage still has to be paid. How income protection works, what sick pay covers, and the questions to ask.
Protecting a mortgage usually starts with life cover. Being unable to work for months because of illness or injury is also a risk during a mortgage term, and the payments do not stop while you recover.
For the self-employed, company directors and anyone whose employer pays only statutory sick pay, the gap can open quickly.
No. Short-term policies usually pay for a limited period; income protection can pay for much longer.
Many policies do, but terms vary, so check the policy wording.
It can matter more, because there is no employer sick pay behind you.
Many mortgage brokers advise on protection directly. Ask yours to look at what your household would do if the main earner could not work, and whether the mortgage would still be paid.
This article explains how things work. It does not take your circumstances into account. Your mortgage broker can introduce you to a regulated financial planner at Equity & General where the question needs one.
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