Bigger mortgage repayments means many can ill afford MPPI

The Bank of England Base rate has risen yet again meaning homeowners are left with even less in their pockets after they have paid their mortgage. And that, says Simon Burgess from specialist PPI providers BritishInsurance.com, means that many will not be able to afford to protect their mortgage repayments with MPPI.

He comments: “Many people have been willing to sacrifice mortgage payment protection insurance when interest rates rise. However, this is the time when they need it most because they are faced with higher mortgage costs to protect and increased fears of recession and unemployment.”

So what can homeowners do to ensure that they can meet their mortgage repayments if they cannot work due to redundancy, sickness or accident? MPPI can still be an inexpensive solution.

If homeowners can shop around for their MPPI rather than go to the big lenders who are basically ripping-off their customers, they will be able to find low cost protection.

Certainly, in recent months, MPPI’s high profile in the press means that consumers can now make an educated decision when choosing their cover and, rather than take out an expensive policy from their lender, they can go to an independent provider for a standalone policy.

This can save them literally thousands of pounds in premiums over the term of the mortgage period.

Burgess summarises: “If the industry can put an end to profiteering and focus on providing consumers with transparent and high quality cover at realistic prices I see no reason why further interest rate rises should hinder demand. Indeed, sales of MPPI rise as consumer attention focuses on the outstanding value available at a time when the need to protect mortgage outgoings is increasing.”