Can I have two mortgage protection insurance plans?

I am about to buy a new home and want to take out mortgage payment protection but I ideally want to cover much more than my mortgage so all my other costs are covered too.

Most plans seem to allow cover up to 125% of the total monthly mortgage repayment but I want to cover more like 150-200%, is it possible to take out two mortgage protection plans?

Question asked by Niall Jones
Compare Top 10 UK
 Protection
Insurers
 
Takes approx. 60 seconds
Type of Policy
Level of Cover
per
month
Date of Birth
Loading your options...
Thank you for using our Quote Tool
If you need some help, just call us!
T: 02084327333
Our in-house Experts are here to provide Whole of Market Advice!
Our Experts can answer all your questions
Our Experts can send you more appropriate options based on your personal circumstances

Very important if you are either Self-Employed or a Company Director.

Our online quote tool is good but our Experts are better

Oue Experts have access to far more insurers and can often find a better deal offline.

Saves you time, let our Experts do what they are best at

Answered by Andrew Jenkinson

Care really needs to be taken when setting up an amount of cover above 125 per cent of your monthly mortgage repayment. Although it is possible to insure over the 125 per cent mark it is not usually recommended to do this with two mortgage protection policies.

What is the maximum mortgage protection?

It needs to be remembered that mortgage payment protection plans are designed specifically to cover your mortgage, with a small amount of extra protection. If you took out two mortgage plans covering 125% of your monthly repayment each it is likely that only one plan would payout at claim stage, even if taken out from two different insurers.

In other words, you can take out as many mortgage insurance plans as you like provided that the total amount of cover does not go above 125 per cent of the monthly mortgage repayment (this figure does vary slightly from insurer to insurer). It is also usually necessary that the total amount of cover taken out does not go above 65 per cent of your gross (pre-tax) personal earnings.

How much mortgage protection can I have?

However, it is usually possible to take out one mortgage payment protection plan covering 125 per cent of your mortgage payment AND a general payment protection plan covering the remainder. In other words, some payment protection plans are specifically for ‘mortgage protection’ and others are for ‘income protection’, and one plan shouldn’t influence the other unless you cover over 65% of your gross income.

Naturally, you could cover the full amount with a general income/payment protection plan and just have one plan rather than two (discarding the mortgage protection policy altogether) but the monthly premiums are usually lower with mortgage specific payment protection plans as the risk profile is lower for the insurer, hence making it cheaper to take out two plans.

 

maximum mortgage insurance
 
125% mortgage protection
 
mppi
 
This information does not constitute financial or other professional advice. You should consult your professional adviser or contact us directly on 02084327333 should you require financial advice. It is important to ensure any insurance policy you take out is suitable for your needs.
Compare Top 10 UK Insurers
  Takes approx. 60 seconds
 - 
Need help? 
Call us on 

Frequently Asked Mortgage Protection Insurance Questions

 
I’m researching payment protection to cover my mortgage and all the plans seem to have an excess period,...
 
I want to take out mortgage life cover but wanted to know how long should I set the term of the cover,...
 
I’ve just taken out a mortgage and think I could do with some insurance to pay the rest of the...
 
I am looking at life insurance to cover my mortgage but there are so many different types, which one...
Need Help? Live chat now and get an instant answer from our Experts...

Neil
Pensions

Victoria
Insurance
Our Latest Reviews
Mark France
02/01/2018

Josh at Drewberry was extremely helpful and friendly in answering my many questions about the policy before I went ahead.

Mark Walters
06/01/2019

Drewberry was the only website I could find that would give me an indicative Relevant Life cover quote. Victoria at Drewberry was very helpful throughout the whole application process.

Paula Cummings
24/12/2018

They gave me good advice and weren’t pushy! I felt that I was getting what I asked for and I’m happy with the final product that I bought.

We are rated 4.9/5 based on 1966 independent client reviews.
To read more of our independent client reviews click here →
REVIEWS
EXCELLENT
4.92 / 5 Average
1916 Reviews
Verified Buyer
Overall Rating
The whole process was a pleasure. Drewberry we're easy to deal with, polite, knowledgeable and helpful
Verified Buyer
Overall Rating
Very good, clear service would recommend to friends and family
Anon
Overall Rating
Sam Carr provided an efficient and professional service.
Verified Buyer
Overall Rating
Sam Carr provided a professional but enthusiastic service and helped make the whole process very straight forward. Goodness knows I have been through enough application forms recently. My insurance product was never going to be easy to find and I had been rejected on a number of other occasions through others ironically due to well managed common health conditions. I identified Drewberry in a last and disappointing trawl on th web to find someone that actually wanted to take on a difficult case like me. Some brokers wouldn't even consider me. When we applied for my first choice product Sam wasn't at all deterred by the long wait for my GP report or the final rejection that came back from the insurer, sadly I have become used to it. Within a day he had lined up the second choice and to my surprise he had hit the nail on the head and introduced me to the correct insurer and terms for my needs whilst nogotiating an excellent premium. I am extremely satisfied with what Sam has achieved for me and I would have no hesitation in recommending either him or Drewberry to friends, family and and business contacts. In the future, Drewberry will be my first point of contact. Many thanks!
Kym
Overall Rating
Tailored to my need and the staff gave very good service