£7bn home loan rip-off
THE GUARDIAN - 3RD JULY 2004
Homeowners who buy mortgage payment protection insurance are being ripped off to the tune of £7bn according to research this week.
More than 2million homeowners could save on their monthly bills if they switched away from expensive insurance sold by banks and building societies to policies from independent brokers.
The research follows an investigation earlier this year by Jobs & Money into the sale of payment protection insurance for mortgage, personal loans and credit cards. The probe found that Barclays was generating profits margins as high as 70% on the sale of payment protection insurance policies.
Research by insurance broker Burgesses reveals that homeowners could save over £7bn by shopping around.
The broker, which this month topped a Which? Mortgage payment protection insurance “Best Buy” survey offers a scheme that promises savings to homeowners of at least 33% on monthly premiums.
Its “morgagesafetynet” accident, sickness and unemployment package costs from £3.95 per £100 of monthly benefit compared with an average £5.78 from high street sources.
