How you can save money on MPPI

Homeowners often end up paying very high mortgage payment protection insurance (MPPI) premiums due to the fact that they do not shop for it independently. Lenders sell borrowers MPPI at the same time as they take out their mortgage loan – which works out costly for the consumer.

Consumers are not aware of the real scenario, that they are almost ‘trapped’ by the lender in to buying the lender’s own, expensive MPPI policies.

MPPI is a private insurance that can mean the difference between keeping and losing your home. Should you not be able to meet your monthly mortgage repayments because you have become unable to work due to redundancy, long term sickness or accident, the policy kicks in for up to twelve months to meet your mortgage expenses.

However, while it is an invaluable product, greedy lenders are literally ripping-off their customers with expensive premiums for not always suitable cover. Consumer and industry watchdogs the Citizen’s Advice Bureau (CAB), the Office of Fair Trading (OFT) and the Financial Services Authority (FSA) have been looking at the PPI sector as whole. Their findings come up the same time and time again – over-inflated product pricing and mis-sold policies.

With around 94% of all PPI policies being sold by High Street lenders, sadly they have a stranglehold on the market and most consumers are unaware of the fact they can shop around for a standalone policy and get a better deal.

Currently, just 6% of policies sold are from standalone providers like the ethical BritishInsurance.com
who offer low-cost payment protection solutions, up to 40% cheaper than the lenders.

So, do yourself a favour and take a look at just how much you should be paying for MPPI – you could save yourself hundreds of pounds even in just a year