Ombudsman offers clarity on mortgage protection cover

Protection advisers had become increasingly concerned by FOS rulings where level term assurance (LTA) had been recommended to cover a repayment mortgage or decreasing loan. A spokesman for the FOS said: "While decreasing cover is usually the appropriate cover for repayment mortgages, there can be circumstances where the sale of level term assurance is appropriate - and there should be some evidence the consumer had a defined need for the extra cover and was able to make an informed decision." iPipeline product strategy director Paul Yates commented: "It is fast and easy to show consum...