Interest rate rise sparks affordability scares
- 26TH MAY 2007
The interest rate rise this month has sparked further concerns over homeowners’ and the affordability of their mortgages as well as associated costs.
Simon Burgess from independent payment protection insurance (PPI) provider British Insurance says that many homeowners will now have difficulty in protecting the repayments on their homes due to being more cash-strapped then ever.
He says: “I am worried that the further interest rate rise means that homeowners simply cannot afford the price inflated premiums offered by the major lenders and high street banks on mortgage payment protection insurance”.
Mortgage payment protection insurance can literally keep the roof over your head and Simon adds that by not taking out this invaluable cover, homeowners will find themselves financially vulnerable should they become unable to work due to unemployment; accident; or long term sickness.
With people having very little money left after having paid for the mortgage, mortgage payment protection insurance is something that many homeowners chose to forgo.
A lot of this is because of the highly inflated premiums charged by the high street banks and lenders, says Simon, which automatically turns people off to buying the product.
He urges homeowners to look around for inexpensive mortgage payment protection insurance. Certainly, the cover offered by British Insurance, as an example, costs around 40% less than that offered by the banks and lenders.
“British Insurance is just one of the places where you can find a cost effective product without paying he ridiculous premiums charged by some companies and high street banks” Simon adds.
