The product offers premiums for a 25 year old at £1.60 or 27.63% of the average price charged by the top 10 lenders and is 20.13% less than the most expensive. The new policy is even 32.65% of the cost of the cheapest lender Bradford and Bingley. According to Andrew Hagger of Moneyfacts.co.uk “People need to be made aware that there are alternative providers of MPPI offering superior levels of cover but at a much reduced cost, which can result in thousands of pounds being saved over the term of a mortgage.”
Key features of the policy include:
Premiums from only 0.95 per £100 of monthly benefit
Tax-free claims benefits are payable from day one – instead of being subject to the usual 60 day excess period
Fully portable between lenders – enabling those with pre-existing medical conditions to change to a cheaper mortgage deal if they wish
Unemployment only or disability only cover both or combined
Simon Burgess, Managing Director of British Insurance said, “Our research shows that consumers insuring an average monthly mortgage payment of £600 could save on average £7,547 over the lifetime of a 25 year mortgage or £10,980 when compared to the most expensive lenders, even the cheapest lender’s policies results in consumers over-spending by £5,940.”
