Survey: brokers offer best mortgage payment protection insurance deals
MORTGAGE STRATEGY - 30TH JULY 2003
Intermediaries are offering mortgage payment protection insurance at far more reasonable rates than lenders.
A survey by mortgage payment protection insurance provider DMS suggest that the average mortgage borrower can save over £2,300 during the lifetime of their mortgage if they switch their mortgage payment protection insurance away from their lender.
DMS compared the policies of top lenders and found the average mortgage payment protection insurance rate on a £75,000 mortgage to be £5.84 per £100 of monthly cover. Over 25 years this represents a cost of £8,392.
The average rate from the top mortgage payment protection insurance brokers (by sales volume) was £4.19 a total cost of £6,021 and a saving of £2,371.
DMS director Martin Law says: “These substantial savings clearly demonstrate the opportunity for brokers to put an element of best advice back into the sale of mortgage payment protection insurance – and claim their share of annual commissions exceeding £300m.”
Meanwhile, protection specialist Burgesses has launched ‘Loan Protection Plus’, a new mortgage payment protection insurance policy.
Managing director Simon Burgess says: “We have endeavoured to inject an element of best advice into the sale of mortgage payment protection insurance with this totally flexible product that has none of the pitfalls normally associated with this type of insurance.”
