Free-4-All offers new and existing customers four months free cover at £3.95 for full ASU on a ‘back-to-day-one’ basis. Through the Paymentcare.co.uk transfer of cover option, borrowers can switch from another lender’s policy to the new deal without incurring the penalty of an exclusion period on unemployment.
Shane Craig, managing director at Paymentcare.co.uk, said: “The launch of Free-4-All demonstrates our continuing commitment to provide mortgage advisers with innovative online products designed to offer best value and help boost sluggish sales of MPPI.
“There has been so much bad press recently about loan PPI, and rightly so, but products priced at this low level with the added benefit of free incentives has got to be great news for borrowers and advisers alike.”
James Cotton, mortgage specialist at London and Country said: “On the face of it, it does seem like a good competitive deal. It’s good there are lots of providers that give incentives to the clients, like four-months free cover. It’s only a minority of deals that give MPPI a bad name, and this just goes to show that there are good deals out there that are competitively priced.”
However, David Quick, managing director of CETA, was not impressed. “It’s basically gone one better than quite a few other people by offering four instead of three-months free. But these cheap ‘one-size fits all’ policies aren’t flexible. Quite often someone like a civil servant gets six-months paid sick leave anyway, so having full ASU cover doesn’t make any sense. It would be okay for certain people, but one-size fits all doesn’t fix any of the problems with MPPI.”
