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Lutine launches online mortgage protection product

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Lutine Assurance has launched a new online mortgage payment protection insurance proposition for new mortgages, existing mortgages and re-mortgages.
 
Lutine Assurance Mortgage Payment Protection Insurance provides cover against accident, sickness and unemployment with options for standalone accident and sickness or unemployment only cover.
 
Business development manager Marc Osman says the product has been launched at a time when the MPPI market is in a state of stagnation in terms of market penetration. “It offers highly competitive premiums of £3.95 per £100 of monthly benefit .”
 
Lutine managing director Jon Clarke adds: “It is also important to remember that with reduced levels of government support available to mortgagors it is now very important that this cover is carefully considered. The emphasis is now firmly on individuals to take more responsibility for their financial wellbeing.”
 
With over 70,000 repossessions in the UK housing market expected in 2008, Mortgage Payment Protection must be an important consideration for anyone with a mortgage.
 
Facts About State Benefits For Home Owners:
  • You may only be eligible to claim Income Support Mortgage Interest if you are claiming one of the following:
    • Income support
    • Income based jobseeker's allowance
    • Pension credit (appropriate minimum guarantee)
  • If you have new housing costs (post-October 1995) you will receive no help with mortgage payments for 9 months (39 weeks).
  • If you and your partner have capital over £6,000 then your entitlement to Income Support Mortgage Interest will be reduced. If it is over £16,000 then you will not be eligible.
  • If you have a partner, the capital held by both of you will be added together and treated in the same way as the capital held by a single person.
  • The first £6,000 of capital is ignored. If capital is over £6,000 and up to £16,000, Income Support will be reduced by £1 for each £250 or part of £250, over £6,000.
  • Personal possessions, for example, a car, furniture and fittings in your house, and family belongings, are generally ignored in the calculation of capital. This will not always be the case. For example, if you have capital of more than £6,000 and you buy something specifically to reduce that amount.
  • You can only claim help with the interest on loans of up to £100,000. You will have to pay the interest on any excess yourself.
  • If your housing costs are regarded as excessive you could be asked to move into cheaper or smaller accommodation.
  • When you apply for Income Support Mortgage Interest, the interest payments you will receive are calculated by the Department for Work and Pensions (DWP) with reference to the Bank of England base rate. The DWP's rate may not be the same as the interest rate you are paying. If you are paying a higher rate of interest, you will have to make up the difference yourself.
 
The product is only available from financial intermediaries.
 
Income protection: News update: January 2008
 
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