How Much Mortgage Insurance Do You Need?

When it comes to protecting your mortgage, one of the most common questions we hear is:

“How much cover do I actually need?”

The answer depends on more than just your mortgage balance. It’s about protecting your home, your income, and your family’s lifestyle — not just clearing the debt.

Here’s a simple guide to help you understand how much mortgage insurance is right for you.

🏡 Step 1: Start with Your Mortgage Balance

This is your baseline. If you passed away unexpectedly, would your family be able to keep the home?

• For repayment mortgages, decreasing term cover is often used
• For interest‑only mortgages, level term cover is usually more appropriate

👉 If you’re unsure which type you have, we can check for you.

👨‍👩‍👧 Step 2: Consider Your Dependants

If you have children, a partner, or anyone who relies on your income, you’ll want to think beyond the mortgage.

Ask yourself:

• Would they need help covering bills, childcare, or school fees?
• Would they need time off work to adjust?
• Would they want to stay in the same home long‑term?

Adding family cover or income protection can make a huge difference.

💷 Step 3: Factor in Your Income

If your income stopped tomorrow, what would happen?

• Could your partner cover the mortgage alone?
• Would savings last more than a few months?
• Would you want to leave a financial cushion behind?

Many homeowners choose to cover 2–5 years of income, especially if they have young children or a single income household.

🧘 Step 4: Think About Lifestyle & Future Plans

Your cover should reflect the life you want your family to maintain — not just the bare minimum.

Consider:

• Funeral costs
• Time off work
• Relocation or downsizing
• Mental health support
• University fees or long‑term care

This is where family income benefit or critical illness cover can add real value.

🧮 A Quick Rule of Thumb

Here’s a simple starting point:

Every case is different — and we’ll tailor your cover to fit your life.

💬 Why Speak to a Broker?

At MDJ Mortgages, we don’t just sell policies — we help you build a protection plan that actually works.

We’ll:

• Review your mortgage and income
• Help you calculate the right level of cover
• Compare providers and premiums
• Explain everything clearly, with no jargon
• Make sure your family is protected — not just your loan

🔗 Ready to Review Your Cover?

Whether you’re buying, remortgaging, or just want peace of mind, we’ll help you work out exactly how much cover you need — and make sure it’s in place.

👉 Learn more or request a personalised quote:https://www.mdjmortgages.com/insurance/mortgage-insurance/

A quick conversation could give you — and your family — complete peace of mind.

Risk Warnings

Your home may be repossessed if you do not keep up repayments on your mortgage.

As with all insurance policies, conditions and exclusions will apply.