View more on these topics

Survey says PPI probe has hit confidence in MPPI

Paymentshield says consumers are shying away from mortgage payment protection insurance as a result of the bad press surrounding the recent PPI investigation by the Financial Services Authority.

A survey by Paymentshield polled more than 1,500 consumers and some 250 brokers on the impact of the regulator’s PPI investigation and how it has affected their concerns and perceptions.

It found that 47% of all home owners are aware of the recent investigation and the criticism of the product. More worryingly, nearly nine out of 10 of those polled believe the criticism applies to all PPI products, including MPPI.

The research also reveals that intermediaries and consumers feel brokers are the best source to turn to for impartial advice on MPPI, with one in three consumers saying they would consult their mortgage advisers. While 24% would turn to their bank or building society, another 21% would ask friends.

Simon Burgess, managing director of MPPI provider Britishinsurance.com, dismisses the research as nonsense and says consumers are simply starting to shop around.

He says: “Providers such as ourselves and moneysupermarket.com are seeing record levels of MPPI business. Consumers have not stopped buying MPPI but are starting to shop around to get the best deals and explore fresh channels such as the internet.”

But Chris Traynor, sales and marketing dire-ctor at Paymentshield, says: “There are serious misconceptions among consumers about the value of MPPI, and people are still confusing it with PPI.

“We believe MPPI is an appropriate product for at least one in three consumers but coverage is falling woefully short, leaving many people potentially unable to meet their mortgage repayments in the event of unemployment or illness.

“It’s vital that consumers receive proper financial advice when taking out these products and mortgage intermediaries are best placed to provide this.”

Recommended

Interbay underwriter first to pass CeCM exam

InterBay Fundings underwriting manager Tim Shutler has become the first in the industry to take and pass the CeCM exams. The Certificate of Commercial Mortgage exams were launched in May 2006 by the Institute of Financial Services as an additional qualification to the CeMAP exam. Shutler joined the InterBay team on February 13 from TML. […]

Dashboard links up to Claritys web system

Claritys market leading web based mortgage intermediary system will be available to all Dashboard Software and Dashboard Lite users.Clarity provides a range of tenant referencing products and rent guarantee insurance policies. As a launch special offer, Clarity is offering a six month rent guarantee policy combined with an advanced tenant reference for 99.95, which normally […]

Resignations rock valuations sector

The automated valuations market was in a spin last week after two senior members of staff at UKValuations defected to Hometrack. Chief executive officer Graeme Winser and sales director Guy Weightman resigned from the subsidiary of US lending giant Countrywide Financial Corporation to join Hometrack as director of new market strategies and sales director respectively. […]

Brokers frown on Two Shags’ sporting life

A whopping 68% of Mortgage Strategy Online readers last week voted that the deputy prime minister John Prescott has crossed the political line with the revelation that he likes croquet. However, it seems Two Shags is down but not out – albeit minus his super-department, the Office of the Deputy Prime Minister. And Home Information […]

How to use wills to protect your clients’ wishes

March was Free Wills Month! Free Wills Month brings together a group of well-respected charities to offer members of the public aged 55 and over the opportunity to have their simple wills written or updated free of charge by using participating solicitors in selected locations around England and Wales. Research by the Law Society* highlighted that only 64 […]

Newsletter

News and expert analysis straight to your inbox

Sign up