Payment-Protection Insurance(PPI)

Payment-Protection Insurance (PPI) is a form of insurance cover designed to protect homeowners in the UK against the cost of making mortgage payments in the event of a change in their circumstances, such as unemployment or a decrease in income. It is intended to cover mortgage payments for a specified period of time – usually up to 12 months – and is typically taken out alongside a residential mortgage in the UK. PPI can also be referred to as mortgage payment protection insurance (MPPI). The scope of PPI is to provide protection for the homeowner’s mortgage payments for a specified time period, usually up to 12 months, in the event of an unexpected change in circumstances such as involuntary unemployment, illness, or disability. PPI can help homeowners in the UK to maintain their mortgage payments and prevent them from defaulting, which can have serious consequences for their credit rating and financial security.