A total of over £7 billion could be saved by some two million UK homeowners by switching their mortgage protection insurance (MPPI) from traditional mortgage lenders to the new MPPI policy called mortgagesafetynet from Goodfellows. For the remaining eight million homeowners, this new policy could help keep the roof over their head as the fear of impending redundancies becomes reality for an increasing number of the country’s workforce.
The new scheme not only guarantees savings to homeowners of at least 33% on monthly premiums, but also offers a wide range of benefits, which conventional mortgage lenders, such as high street banks and building societies, cannot rival.
The full mortgagesafetynet Accident, Sickness and Unemployment (ASU) package costs as little as £3.95 per £100 of monthly benefit (which came top in a recent consumers association survey ) compared with an average £5.78 from high street sources.
One of the major features of the product is the three months’ free cover to all policy holders whether protecting a new mortgage or remortgage, or even an existing mortgage, no matter what type.
The ‘back-to-day-one’ cover after a waiting period of just 30 days means that, unlike most policies, mortgagesafetynet will pay out claims back to the day the policy became valid after just 30 days. Such a feature is normally only found in policies that are far more expensive.
Instead of the conventional 60-120 days exclusion period, there is no exclusion period for new or remortgage borrowers or those homeowners who are transferring from existing, more expensive, policies.
In addition, the wide acceptance criteria means that mortgagesafetynet, which is fully compliant with the ABI/CML baseline standard, is available to both new and existing mortgage borrowers aged between 18 and 65. The non-discriminatory approach of Goodfellows ensures that there are no restrictions of occupation, employment status – including self-employed and contract workers - or people who work either on a full or part-time basis, provided they have worked for a minimum of 16 hours per week over the past six months. Neither are applicants discriminated against on the grounds of gender and sexuality.
The client is able to choose the amount of cover he or she needs, as well as the type and level of cover. It means that a policyholder will pay only £19.75 per month, from month four onwards, to receive a monthly benefit of £500 against the risks of both unemployment and disability. This compares with an average £29.00 per month from the traditional mortgage lenders - a saving of 32%.
Commenting about the policy, Goodfellows' Managing Director, Simon Burgess says, "Mortgage borrowers should not feel obliged to take out their lender’s mortgage protection cover. By spending just a little time shopping around for the best deal from a reputable provider, borrowers can make significant savings."
For more information, visit www.mortgagesafetynet.co.uk or call 0870 240 3946.
