Mortgage payment protection insurance is a policy that will cover some or all of the cost of your mortgage repayments in the event that you are unable to work because of accident or sickness. There are different levels of cover, and repayments are usually covered for a period of twelve months.

Generally payment protection offers very poor value for money and is best avoided. Opting to take this insurance will not affect your chances of getting credit (by law).

Whilst Mortgage Payment Protection Insurance is the formal name given to this type of policy, it is also sold under a host of other names such as: Accident, Sickness and Unemployment Insurance, Accident Sickness and Redundancy Insurance, Premium Protection Insurance, Income Protection Insurance, Mortgage Payment Protection, Mortgage Payment Insurance and Loan Protection Insurance.

Will taking out Mortgage Payment Protection insurance improve my chances of being accepted?

In short, no. Whether or not you take out insurance won’t influence a lender's decision, as it is a completely separate consideration.

Thinking that taking out a payment protection insurance policy would positively influence a lending decision was just one of the reasons quoted in the huge PPI mis-selling scandal of recent years.

Bear in mind though, that any late payments that come about through having to utilise the insurance will show on your Credit Report and could harm your chances of being accepted in the future.

How can I check that I don’t have any late payment markers?

You can check your own Credit Report quickly and easily online at any time. checkmyfile makes it even easier by bringing together full data from the three main Credit Reference Agencies so that you can check everything in one place at the same time.

You can try us free for 30 days, then £14.99 a month which you can cancel easily online at any time.