Minimum standards for Mortgage Payment Protection Insurance have been drawn up by lenders, insurers and the government to counter the criticisms made of lenders, as mentioned on the home page. In July 1999, the Council of Mortgage Lenders and ABI launched a new baseline specification for Mortgage Payment Protection Insurance that established new improved standards. All new Mortgage Payment Protection Insurance policies sold after July 1999 meet or exceed these standards which have been boosted by moves towards even greater transparency. 

The government's guidance to home-owners is clear. "If you have a mortgage, or are about to take one out, you should think seriously about how you would meet your mortgage repayments if you lost your income, say through unemployment or ill health."

This is particularly true in an era of rising interest rates and with personal debt rocketing through the trillion pound mark. Householders are more vulnerable than ever to sudden falls in income.

There are very few eligibility requirements for mortgage protection. Typical requirements are that the policyholder be aged 18 to 65 and they are employed for at least 16 hours a week, or on a long term contract, or have been self-employed for a period of time.

It is important that all this is explained when selling this cover, as well as making clear other key points like: non qualification on a joint mortgage and only one party loses their income; that the policy fails to pay out where there is savings of more than £8,000 and only payment of interest is covered.