Mortgage insurance must meet the minimum standards set out by the Financial Services Authority
- 22ND DECEMBER 2007
Stemming from the investigation which began in 2005 after the Office of Fair Trading received a super complaint from the Citizens Advice and the Financial Services Authority (FSA) began investigating the payment protection insurance sector, mortgage insurance must now meet the minimum standards set out when it comes to selling.
Sloppy sales practices when selling payment protection products have caused a loss of faith in products, mortgage insurance included. This is leaving homeowners at risk of repossession if they should lose their income through becoming unemployed, suffering an illness or an accident.
If you were to become off work for any length of time you would still have to continue repaying your mortgage and any savings would soon be drained. Mortgage insurance could give you a tax free income with which to continue repaying it.
You do have to ensure that the product is suitable for your circumstances due to the exclusions, some of the common ones include being in part time employment, suffering an ongoing illness, being of retirement age or if you work for yourself. You do however have to check the small print because providers can add more.
Cover taken out with a standalone provider of payment protection such as the ethical British Insurance is always the best way to go when it comes to getting the cheapest quotes and the advice you need to ensure that a policy would be suited to your circumstances. It does not matter how cheap the policy is if your circumstances mean you would not be eligible to make a claim.
British Insurance not only help you to make savings of up to 40% on a mortgage insurance policy but they also offer all the information needed for you to determine if a policy would be suitable and you have to make sure you take in this information and understand it before buying.
