A new survey from the Council of Mortgage Lenders (CML) and the Association of British Insurers (ABI) has found that the number of policies being sold has gone up since they launched new standards for MPPI in 1999, and 21 per cent of mortgage holders now have MPPI.
However, this increase now appears to be levelling off, which is causing concern as the economy begins to cool down.
Michael Coogan, director general of the CML, said: “With an economic slowdown under way, borrowers need to think seriously about recession-proofing their mortgage. Private insurance has a part to play in this. At the same time, sustainable home ownership is about more than just insurance; the economic environment, lending and arrears policies, and consumer behaviour all have a part to play. We also look to Government to introduce improvements to the benefits available to borrowers in most financial difficulty.”
Mary Francis, ABI Director General, agreed. “The current uncertain economic climate makes it all the more important that borrowers have financial protection against any unexpected loss of income. All borrowers should consider carefully the value of mortgage payment protection insurance in helping to safeguard mortgage payments.”
