Is insuring a mortgage really the best policy?

[Legal Beagles]

House owners can buy protection against Bank of England rate rises, but should check their deal will pay up when it matters, writes Lisa Bachelor

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[argentarius]

Re: Is insuring a mortgage really the best policy?

It's very poor value.

On the example given, you would need base rates (and your mortgage rate) to increase by more than 1.68% on average over the next two years, to benefit from buying the insurance (against a rise of over 1%) rather than not doing so.

There can be very few people who think that rates are going to be that high on average over the period in question.