MPPI’s bad reputation

Let’s be honest, mortgage payment protection insurance (MPPI) has got a bad reputation. Many consumers now view it with the same disdain as they would for the warranty insurance that is so often sold alongside electrical goods.

However, MPPI can mean the difference between losing and keeping a roof over your head should you become unable to meet your monthly mortgage payments due to redundancy, accident or prolonged sickness. Yet this all seems to be forgotten and the MPPI market cannot shake off its bad reputation. Why?

First of all, many consumers view the product with suspicion as the debate on whether or not MPPI should be included in the The Office of Fair Trading's proposed referral to the Competition Commission. Would you seriously buy a product that was going under scrutiny by a Government body?

Secondly, probably the biggest turn off of MPPI is the pricing. Sold alongside mortgages, lenders charge inflated prices for poor value products. They know that the consumer will either buy their product, or not at all, so can charge extortionate prices for their MPPI.

Finally, many brokers have simply not explained just how important the product is, they just aren’t putting their hearts in to it, selling it as an afterthought to the mortgage. Consumers don’t always really understand how it works or sheer laziness mean that they don’t actually bother to shop around and look for a better deal.

And the fact is, there are better deals out there offering low prices for high quality products. BritishInsurance.com are one such company offering ethically priced policies. Simon Burgess, MD from BritishInsurance.com says:

“Even those homeowners on an extremely tight budget should have access to this type of protection and it angers me to see that consumers are ultimately suffering now because of what greedy lenders are currently doing and have done in the past regarding pricing.

“Consumers need to realise the benefits of the cover and see that there are companies out there who can provide this invaluable protection at a fraction of the cost of High Street lender. Consumers need to have their confidence restored in the MPPI market.”

BritishInsurance.com offers MPPI (full disability and unemployment cover) at £3.95 per month for £100 worth of cover.