This has meant that around 22.5 per cent of all mortgages in the UK are now protected by MPPI. This is an encouraging sign for those who have been involved in the sustainable home-ownership initiative during the last three years, which is hoping to increase this figure to over 50 per cent.
Peter Williams, the deputy director general of the CML, said: "The figures show that we are continuing to make welcome progress. But recent research by the CML shows that the overall safety net for home-buyers has been weakened by diminished state support for those in difficulty.
"If the initiative is to achieve the goal of making home-ownership truly sustainable, the Government needs to play a greater role in supporting home-buyers. We would like to examine with the Government ways of providing more protection for home-buyers against uninsurable risk."
Mary Francis, the director general of the ABI, said: "The increase is steady and encouraging. A house purchase is the single biggest investment most people are ever going to make and we are concerned that too few people are taking appropriate steps to protect the roof over their head.
"It is normal for people to consider protecting their loved ones and their homes if they die but less common that people consider the consequences of not being able to work. This is likely to be because there are still far too many people who mistakenly believe that the Government will step in and help pay the mortgage if the worst were to happen."
