The Government's announcement that it would like to see a substantial increase in the penetration of...
The Government's announcement that it would like to see a substantial increase in the penetration of mortgage payment protection insurance (MPPI) coupled with the new CML/ABI baseline standards for cover, has triggered activity among lenders offering this type of product. Several have revamped their policies, enhancing benefits and lowering costs
Alliance & Leicester has relaunched its Mortgage PaymentCover scheme to the mortgage market, charging a £50 fee for each policy placed on risk in conjunction with an A&L mortgage
Its policy pays out after a deferral period of 30 days and can be used to cover household related monthly outgoings as well as the mortgage commitment. It costs £5.20 per month, per £100 of cover including insurance premium tax (IPT
Nationwide has revised its product by including, among other benefits, cover for pre-existing conditions after the first 12 months and by raising the age limit from 59 to 64
Benefit will also be calculated on a daily rather than monthly basis so that unemployed people who start another job mid-month will not be penalised. Also included is a free job search service for the unemployed
Premiums start at £2.58 per £100 of cover for accident and sickness, or £4.99 if unemployment cover is included. The plan offers a choice of cover for 12 or 24 months
Legal & General has cut the cost of its Mortgage Payment Protection insurance by up to 16%. To protect a monthly mortgage outgoing of £300 will now cost £15.75 per month. The plan covers mortgage payments for up to 12 months
Enhancements to the scheme include removal of the maximum benefit restriction, an increase in the excess period from 30 to 60 days and the widening of eligibility for contract workers and the self-employed
L&G also offers a long-term mortgage protection policy, Mortgage Payment Insurance, which covers mortgage repayments for the entire mortgage term
Mortgage wholesaler, The Mortgage Operation is offering a package which includes six months' free MPPI. Freestart provides free initial cover with a follow on rate of 4.95%. Brokers will receive a commission of 22.5% of the first six months' premiums if MPPI is continued after the free period. The package also includes an optional four months' free buildings and contents insurance
