British Insurance attacks the top lenders after mortgage payment protection insurance sales stings
FINANCIAL ADVISER – 7TH JUNE 2007 - 7TH JUNE 2007
British Insurance has revealed that consumers could be paying more than £10,000 extra in premiums for mortgage protection policies.
Independent research was undertaken by the company posing as a 30-year-old couple with monthly mortgage payments of £700 over 25 years. The top 10 UK lenders were contacted and findings showed that on average consumers were paying out over £7119 more than they should.
Simon Burgess, managing director of British Insurance, said: "This is another example of blatant profiteering at the expense of the consumer. Lenders obviously see this as the 'green light' to follow price trends and inflate their mortgage payment protection insurance premiums accordingly.
"You would think that with the recent interest rate rises and first-time buyers struggling to get a foothold on the property ladder, lenders would be more sympathetic to the needs of their customers and help them protect their mortgage payments with affordable cover.
"I urge consumers to check their premiums. We all shop around for our home and motor cover, so why not our mortgage repayments?"
David Higgins, director of London-based Re-Financial Planning, said: "Any expensive protection insurance is sold by big lenders and they are not doing the best they can for clients, it is to increase their income."
