New cover includes unemployment protection and optional benefit increases for homeowners
General insurance provider Paymentshield has made a series of updates to its mortgage protection offering, including the return of unemployment cover to its core policy.
The product, which already included accident and sickness protection, now provides broader support for homeowners during periods of income loss.
The move comes as the company also shifts its mortgage and income protection policies to a new underwriting partner. Policies will now be backed by AmTrust Specialty Limited, part of global insurer AmTrust International, with claims administered by Uris Group.
The enhanced policy now covers monthly mortgage repayments and related insurance costs for up to 24 months if a customer cannot work due to accident, sickness, unemployment or carer responsibilities. Customers can also choose to boost their cover by up to 33% to help meet other monthly expenses, such as energy bills or credit card payments. The maximum payout is capped at £3,000 or 75% of gross monthly income.
According to April 2025 data from Finder, the average mortgage repayment in the UK is now £1,428 per month. This, combined with low levels of personal savings, has raised concerns about household financial resilience. One in six UK adults reportedly has no savings, and nearly 40% have £1,000 or less put aside. A quarter of adults have just £200 or less saved.
“We recognise the uncertainty that many households are facing due to ongoing economic headwinds,” said Louise Pengelly (pictured), director of proposition at Paymentshield. “Despite this, there are few providers out there actively offering these products to consumers.
“As experts with over 30 years’ experience in mortgage protection, we felt it was imperative to fill this gap, equip advisers with a greater suite of products to discuss with their clients, and deliver peace of mind to those who need it most.”
In addition to expanding the policy’s features, Paymentshield has streamlined the quoting process, aiming to help advisers deliver faster, simpler pricing options to clients.
The revamped product is now available to new customers, while existing policyholders have been moved to the new underwriting arrangement without any disruption to cover.
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