Mortgage payment protection insurance gives no confidence
- 1ST MAY 2007
Mortgage lenders that offer mortgage payment protection insurance (MPPI) as part of their package have recently experienced a dramatic reduction in sales, according to industry insiders.
The policy is fundamentally designed to provide homeowners with a safety net should sickness, accident or unemployment render them unable to make repayments on their home in the future and thus effectively affords them peace of mind.
Consumer confidence in mortgage payment protection insurance has waned as a result of ongoing investigations into the selling practices employed by lenders to profit from payment protection insurance in general. Many consumers have filed complaints against companies for mis-selling them the policy and this has been communicated to the general public via the media.
Other factors have contributed to its declining popularity though. Mortgage payment protection insurance is often inordinately expensive and the first time buyers that have previously made up a high percentage of its beneficiaries have declined in number or else simply cannot afford it.
Most consumers are not aware that they can purchase standalone policies that can save them money and are sold ethically by establishing individual needs before offering a useful and valid policy that can indeed be claimed upon.
Independent payment protection provider British Insurance for example, can save a consumer up to 40% in premiums as well as offering the best possible policy for the individual to provide the same peace of mind.
