View more on these topics

Assurant warns of MPPI overpayment

Clients with mortgage payment protection insurance may be overpaying as a result of the low interest rate environment, warns Assurant Solutions Intermediary.

The general insurance provider says that clients could make a saving by changing their monthly premiums to reflect lower mortgage payments.

Kevin Paterson, sales and marketing director at Assurant Solutions Intermediary, says clients on trackers deals have seen their mortgage payment go down by “literally hundreds of pounds in some instances.”

He says: “As MPPI premiums are quoted based on every £100 of cover required, this could mean that some clients are paying over the odds.”

The company says that clients could make save at least 35% on their original MPPI premiums by updating their policies.

Based on a premium covering a £175,000 repayment mortgage with comprehensive Accident, Sickness and Unemployment insurance and calculated at a 3% interest rate, customers could see their monthly premium fall from £61 to £39.40.

Paterson adds: “Right now, everyone is looking closely at their household budgets and many could well be tempted to cancel some of their insurance covers to cut costs.

“Brokers could help clients keep their safety net while saving them money at the same time.”

Recommended

Looking forward to recovery

We have seen a sea change in the performance of the household sector in relation to debt and borrowing in the past 18 months.

Mortgage Intelligence offers 48 hour proc fee

Mortgage Intelligence is offering 48 hour procuration fees for Abbey’s latest exclusive 3.59% two- year fixed broker rate to all directly authorised members.

Towards a brighter future

Equity release is one of the few financial markets that is growing in the UK, but it is a sign of the times that this is probably because it is one of the few areas in which there is still an opportunity for advisers and lenders to make their mark.

How to cut mortgage fraud risk

Recent figures from Financial Fraud Action UK revealed a financial scam was committed, on average, every 15 seconds during the first six months of 2016, says Roy Armitage, head of credit at Lendinvest. That represents a 53 per cent rise year-on-year, with these scams coming in all shapes and sizes. Furthermore, a staggering 56 per cent of […]

Newsletter

News and expert analysis straight to your inbox

Sign up