Is Mortgage Payment Protection Insurance the same as PPI?

, by Matt Stevens

It is more than likely that at some point during your lifetime, there will be an unforeseen event which could lead you to struggle in repaying loans or even your mortgage. Payment Protection Insurance guarantees that these expenditures continue to be paid so both you and your lender are protected until things go back to normal.

With this in mind, you are looking at Payment Protection, but you are a bit confused about the terminology or which type you actually need? Don’t worry as our handy guide is here to help you understand the differences and similarities between the different types of protection available, more specifically PPI and MPPI .

What is PPI?

What actually is PPI? PPI stands for Payment Protection Insurance. It provides financial protection for monthly debt repayments such as credit cards and loans in the event you are unable to work. It covers issues such as illnesses and unemployment, which may prevent you from repaying your debt.

PPI is usually sold alongside products such as loans or credit cards. It usually covers payments for a finite period. Often around 12 months which may be sold as short-term insurance. It can be paid on a monthly basis or paid in full, which is known as a ‘Single Premium Policy’.

Payment Protection Insurance is an umbrella term for many types of repayment insurance.

What is Mortgage Payment Protection Insurance?

Mortgage Payment Protection Insurance or MPPI ensures your mortgage is paid in the event of illness or unemployment. It comes under the umbrella of PPI but it is classed as a separate product.

Take a look at our guide on Mortgage Payment Protection Insurance for a more in-depth explanation.

Are they the same?

MPPI is a form of payment protection insurance. However, PPI and MPPI are not the same.

One of the main differences between Mortgage Payment Protection Insurance and PPI is that PPI is paid directly to whomever you have borrowed from, whereas MPPI is paid directly to you, the policyholder.

MPPI and PPI are similar in that they only cover one form of income. However, with PPI this can be credit card or loan repayment whereas MPPI is specific to mortgage repayment.

MPPI: Is it Safe?

MPPI is completely safe and something highly recommended to protect you and your family in cases when you are unable to keep up with payments. Both PPI and MPPI have had restrictions placed on them to ensure that the mis-selling scandal is not repeated. This monitoring allows you to be confident in purchasing payment protection insurance.

Check out our mortgage payment protection insurance quote generator in order to get your quick personalised quote!

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Company Information

The Mortgage Genie Limited is Registered in England and Wales with Company Number 9803176. The Mortgage Genie Limited is an Appointed Representative of PRIMIS Mortgage Network, a trading name of First Complete Ltd. First Complete Ltd is authorised and regulated by the Financial Conduct Authority. Most Buy-to-Let Mortgages are not regulated by the Financial Conduct Authority. The guidance contained within this website is subject to the UK regulatory regime and is therefore primarily targeted at consumers based in the UK.


Depending on the complexity of your mortgage there may be a fee for our mortgage advice and arrangement service, which will be discussed and agreed before you make a mortgage application. A typical fee is £293 and will never be more than 1% of the mortgage amount.