Shop around for your mortgage protection insurance cover and don’t get misled
- 23RD SEPTEMBER 2007
If you have been told that you have to take out your mortgage protection insurance cover alongside your mortgage then you have probably been misled the same as many others have. While the majority of policies that are bought are sold alongside the mortgage from the same lender this isn’t the only way to purchase the cover and it certainly isn’t the best.
In fact the majority of mortgage protection insurance cover policies that have been mis-sold have been bought from high street lenders alongside loans and mortgages and in fact many of the companies fined by the Financial Services Authority (FSA) for mis-selling in early 2007 were well known high street lenders.
The investigation by the FSA began back in 2005 after a super complaint by the Citizens Advice to the Office of Fair Trading (OFT). Following this, the sector was then referred by the OFT to the Competition Commission who are conducting an in-depth review into the sector and who is expected to present their findings in early 2009.
The wide spread mis-selling of payment protection, which mortgage protection insurance cover is one, included a lack of information given to the consumer at the time the policy was taken out which meant that some were ineligible to claim on their policy. The high premiums charged were also subject to scrutiny.
If you want the safety net that mortgage protection insurance cover can give then you should go to a standalone provider for the cover. One such ethical specialist is British Insurance, they are considered to be the good guys in the industry and always put the consumer’s best interests first head of making huge profits. Simon Burgess who is Managing Director of British Insurance speaks openly about how the high street lender rips off the consumer by charging extortionate premiums for an inferior product when compared to those that British Insurance sells.
If you don’t want to get misled when it comes to taking out your mortgage payment insurance cover then stick with the good guys in the sector and don’t get mis-led.
