BMS counts benefits of MPPI

Birmingham Midshires Solutions is urging consumers to take mortgage payment protection insurance to safeguard against accident, sickness or unemployment.

Figures from the CML show that only 31% of Britons have insured their mortgage payments against the worst happening.

The BMS campaign involves flagging up the benefits of MPPI. These include protected mortgage payments if borrowers lose their job, or are too ill to work. It gives mortgage cover for up to 12 months.

Policies generally cost between £4 to £6 for every £100 of your monthly mortgage. Some lenders will offer free protection for the first six months of the cover.

The maximum borrowers can insure is quite often 65% of monthly income, or £1,500, whichever is the lower figure.

To get MPPI, borrowers usually have to provide proof of regular employment for six months. There is normally an excess period of 30 to 60 days when no payment is made. However, some insurers will backdate the claim once they have started regular payments.

Steve Sandiford, head of products at BMS, says: “A mortgage is the largest commitment that most of us have to meet each month. It is dangerous to adopt the attitude that &#39it won&#39t happen to me&#39 and we want to make sure homeowners know how MPPI could shield them from the unexpected.”