The average cost of MPPI now stands at £4.95 per £100 of mortgage payments. The research also showed that 60 per cent of homebuyers have some form of general insurance cover for their mortgage, however partial, with many lacking a clear understanding of their exposure to risk.
The CML’s deputy director-general, Peter Williams, was upbeat about the figures. He said: “The new figures are encouraging and show that the industry’s initiative to make home ownership more sustainable is continuing to make progress.”
However he cautioned: “The research also shows that we need to pursue a wider range of objectives, a simpler system of support, better knowledge among customers about their exposure to risk, better protection during the nine-month qualifying period for state support and incentives for borrowers to protect themselves through a combination of insurance, savings and overpayments on flexible mortgages.”
