Consumer confidence in mortgage payment protection insurance at an all time low
- 20TH JUNE 2007
Financial industry insiders have revealed that the recent bad press surrounding mortgage payment protect insurance (MPPI) has had disturbing consequences for the industry and consumers alike. Sales of the product are currently at an all time low after a dramatic reduction in the number of new policies currently being opted into.
Mortgage payment protection insurance has always been based on a logical and fundamentally good concept. If you are unable to work as a result of unemployment or ongoing health problems then you could claim up to twelve months’ of mortgage payments and related monthly bills paid for you so that your home is not repossessed. As a result, it affords you something money cannot buy – peace of mind.
However, ongoing Office of Fair Trading, Financial Services Authority and Competition Commission investigations into payment protection insurance as a whole has actually weakened consumer confidence and put people off taking the extremely useful policies out.
There are a multitude of other factors that have made consumers’ interest wan in mortgage payment protection too though. For example, the higher cost of living has often resulted in homeowners disregarding anything that they do not deem essential.
Mortgage payment protection is one of those things purely because it can be extraordinarily expensive.
There are cheaper options though. For example, independent payment protection provider British Insurance offers a standalone policy that is calculated on the amount you owe and is payable separately, typically saving a homeowner up to 40% on their premiums. This type of policy is well worth investigating because you get the same peace of mind at a lower price.
