Unemployment cover

This is designed to pay your monthly mortgage payments if you are made redundant through no fault of your own. It usually pays out for 1-2 years and can be set up either as a monthly premium or a lump sum premium which can then be added on to the mortgage. If it is added on to the mortgage balance then interest will be charged on the additional amount borrowed so it is not suitable for everyone.

It is important to be aware that the government will not consider a claim to assist with mortgage interest payments until 9 months after redundancy so you would need to have sufficient savings to cover at least 9 mortgage payments.

Unemployment cover can also include accident and sickness cover which is not based on occupation classes but it does restrict how long you would receive a monthly income for and how much cover you can take.

Some people consider this cover to be quite expensive but the main considerations should be your job security and how quickly you would find another job if you were made redundant. Would you be willing to take a lesser paid job or a different role in order to pay your mortgage?