A comprehensive survey by Goodfellows of the UK’s
en largest mortgage lenders reveals that they are falling
over themselves to offer keenly priced mortgage deals,
but the same cannot be said about their mortgage payment
protection insurance, which is not only overpriced but
also provides inferior cover.
The survey found the average cost from lenders to be
£5.80 per £100 for the following core benefits:
- 60 day excess
- 12 months benefit
- No free cover
- No portability between lenders
- Unemployment only cover not available.
This is most unfavourable when compared to diamond-mortgage-insurance.co.uk
from Goodfellows, which is not only cheaper at £5.50
per £100 for full ASU cover or £3.45 per £100
for Unemployment only; but offers far superior benefits
and much better value for example, it contains the following:
- ‘Back-to-day-one’ cover
- 24 months benefit
- Six months free cover for new borrowers and three
months for existing ones.
- Full portability between lenders.
- Unemployment only cover or both combined.
Commenting upon the survey Simon Burgess Managing Director
of Goodfellows says, "Lenders are clearly profiteering
at the expense of their borrowers! We all obtain this cover
from the same source, the only difference is that Goodfellows
together with other brokers retain less commission and so
are able to purchase more benefits for their clients whilst
maintaining comparity of cost."
This view is shared by BIBA Chief Executive Mike Williams
who says, "Brokers provide policies that are better
in price and cover than lenders and are clearly putting
a fundamental element of best advice back into the sale
of MPPI."
Please note: This information is correct
at time of publishing (26/6/02).
