Faith needs to be restored in mortgage payment protection insurance
- 6TH JUNE 2007
With the recent and ongoing investigations into the mortgage payment protection insurance (MPPI) sector consumers have for the most part lost faith in the product. This means that there are many homeowners leaving themselves financially vulnerable should disaster strike.
Mortgage payment protection is taken out to cover your mortgage repayments in case you should find yourself out of work due to accident, long term sickness or unforeseen unemployment. Without it, a homeowner could lose the roof over their head.
However it has come to light during the recent investigations by the Government body the Financial Services Authority that a huge number of the policies sold have been mis-sold, meaning that they cannot be claimed on should they need to be.
The biggest problem surrounding the policies is that they are hard for the average consumer to understand. Policies need to be more clearly defined and especially when it comes to the consumer being aware of what they are and are not entitled to claim for.
Along with this the cost of premiums when bought alongside the mortgage is normally extremely high as the banks and lenders want to make the most of it and rake in huge profits. However there are some “good guys” left in the sector and British Insurance headed by Simon Burgess is one of them. British Insurance is a specialist, standalone, company who believe in putting the consumer first before big profits, so if you can’t put your trust in the sector then at least put it in British Insurance.
