Mortgage payment protection insurance advisable after interest rate rises
- 19TH JULY 2007
Mortgage payment protection insurance (MPPI) is one form of insurance that homeowners often forget or dismiss out of hand because they see it as non-essential. The general attitude is that mortgage payment protection insurance is designed to make money for high street providers rather than providing a service for the homeowner. This could not be further from the truth.
Mortgage payment protection insurance could possibly serve a vital function for many homeowners out there. Most individuals hope that they are never struck down with a long-term illness or are made redundant but it does happen and families that experience it are often left out in the cold if they are unable to pay their bills.
The need for mortgage payment protection insurance has become ever more apparent with the latest rise in interest rates. After rising to 5.5% in May 2007, they now stand at their highest for six years after rising again just two months later. This will have a great impact on savings, but will put mortgage repayments beyond those who are already barely existing whilst trying to pay off their debts.
Independent payment protection provider British Insurance can answer consumer pleas for help by providing mortgage payment protection insurance that is up to 40% lower in premiums than high street providers. The monthly rate is also easier to afford because the premiums are based on the level of debt rather than being added to an existing mortgage and thus can also attract interest. All in all, this represents a great deal for the consumer.
Figures taken from Sunday Mail, 8th July 2007
