Portman Building Society is guaranteeing existing premium rates for borrowers who take out mortgage payment protection insurance (MPPI) following a deal with Pinnacle Insurance.
With the number of job losses hitting Britain's labour market, premiums for this type of insurance cover will tend to rise as insurance companies have to deal with higher numbers of claims.
Consequently, some other lenders are raising premiums and some insurance providers – unwilling to stomach the risk of a downturn – are pulling out of the market entirely. Under the terms of its new deal with Pinnacle Insurance, Portman is guaranteeing prices for the next twelve months so that people taking out new mortgages can plan confidently for the near future.
Portman is also guaranteeing the current premium rate to its existing policyholders for the same period. The switch for these customers will be seamless, with terms and conditions virtually identical following the deal.
Matthew Wyles, Portman's group operations director, says: “We are proud to be in a position to guarantee existing premium rates in the current economic climate. The Society is firmly committed to ensuring its borrowers receive the very best MPPI protection and we believe Pinnacle are ideally placed to deliver it. Pinnacle's innovative use of the internet for claims handling will enhance our Mortgage Care claims service”.