Burgesses highlights mortgage payment protection insurance savings
MORTGAGE STRATEGY - 21ST FEBRUARY 2005
Research by Burgesses, provider of mortgage payment protection insurance to the British Brokers Association, reveals that home owners could save a total of over £7 billion on mortgage payment protection insurance.
The firm claims some two million home owners could save a total of over £7 billion by switching their mortgage payment protection insurance form traditional mortgage lenders to the new mortgage payment protection insurance policy called British Mortgage Protection from Burgesses.
For the remaining eight million home owners, Burgesses say the policy could help keep the roof over their heads as the fear of impending redundancy becomes grim reality for an increasing number in the workforce.
The scheme guarantees savings to home owners of at least 33% on monthly premiums but also offers range of benefits.
The back to day one cover after a waiting period of just 30 days means that, unlike most policies, British Mortgage Protection will pay out claims back to the say the claim became valid after just 30 days.
Instead of the conventional 120-day exclusion period, there is only a 60-day exclusion period for new or remortgage borrowers.
The client is able to choose the amount of cover they need as well as its type and level. The policyholder will pay £20 to receive a monthly benefit of £500 against the risks of unemployment and disability.
Simon Burgess, managing director of Burgesses, says: “People borrowing for mortgages should not feel obliged to take out their lender’s mortgage payment protection insurance.”
Last week, the Liberal Democrats launched an action plan to tackle problems with mortgage payment protection insurance. Vincent Cable MP, Liberal Democrat shadow chancellor, urged the Financial Services Authority to take action on the issue of mortgage payment protection insurance.
He says: “The Financial Services Authority and the competition authorities should investigate the malfunctioning of the market for mortgage payment protection insurance and there should be greater transparency.”
