MPPI not a priority for homeowners

According to recent research* in the UK only 11% of people consider mortgage protection a priority. I wonder whether this is due to the bad press it has received, the high pricing from greedy lenders or people simply not being as financially savvy as they should be.

In fact, the research revealed that more people spend their money on home contents insurance and travel insurance as they do on MPPI.

And credit card, central heating breakdown cover and mortgage payment protection insurance were ranked of the same level of importance, with an average of 21% of homeowners actually taking this cover out.

It is quite frightening that people rank home contents and travel insurance above importance to MPPI cover. While they are important insurances, surely MPPI is a necessity?

Hopefully with consumer bodies such as the Financial Services Authority (FSA) and the Office of Fair Trading (OFT) finally tackling the previous problems associated with the protection market as well as huge Press interest, MPPI and its benefits will come out stronger and homeowners will start to see its benefits again.

It is a sad fact that many homeowners are unaware that should they not be able to meet their mortgage repayments due to redundancy, accident or sickness, the State is unlikely to help them out. Even if it can, they may not be eligible to claim State Benefits for nine months.

Plus when or if they do become eligible to claim, the amount of around £70 a week for unemployment benefit will hardly make a dent in mortgage repayments.

I am against the hard sell for MPPI from lenders who try and force their customers in to taking their over-priced products. But I am for people being savvy when it comes to their finances.

MPPI doesn’t have to be expensive. Companies like independent provider BritishInsurance.com, who are one of the cheapest in the marketplace, offer low cost, comprehensive MPPI cover with no strings attached.