View more on these topics

Only 11% see mortgage protection as a priority

Lack of awareness has been blamed for just 11% of borrowers in the UK considering mortgage payment protection insurance to be a priority.

Research commissioned by Bright Grey shows that mortgage protection is low down the list of people’s priorities, with contents insurance ranked as a more important concern. Only 23% of the home owners surveyed had any sort of mortgage protection.

Roger Edwards, product director at Bright Grey, says: “Less than a quarter of people protect their mortgage and over three times more people insure their home contents. This is a worry.

“Many people’s financial savvy seems to go out the window when deciding what insurance to buy. This highlights the need for consumers to seek advice when it comes to cover, to help them understand priorities.”

The PPI market has been hit by a number of scandals over the past year with record fines doled out to advisers for sales failings. But industry pundits say this is unlikely to have had an impact on MPPI sales.

Stephen Crosbie, proposition development manager at Aegon, says: “I don’t think MPPI was affected by the recent PPI scandals. Rather, people don’t realise they can get income protection. A burst pipe or a burglary is tangible to people but loss of earnings is just as common.

“Awareness is key to solving this problem. People need to realise what is most important to them. Unfortunately, MPPI is an afterthought in the lending process and protection is simply not being given the attention it deserves.”


Heading for the sun

Advantage is sending Julie Lowe, adviser at Partnership Mortgage Solutions, off to the luxurious Sandy Lane Spa Resort in Barbados after she was picked by Mortgage Strategy’s publisher Patrick Ponsford as the winner in a prize draw. Ponsford made the draw from thousands of entries at last week’s Mortgage Business Expo. The competition was organised […]

LSL floats on London Stock Exchange

LSL Property Services has debuted on the London Stock Exchange. In conditional dealing, the shares opened at 212p, valuing the company at £221m. Simon Embley, chief executive of LSL Property Services, says: “Becoming a listed company is an important milestone in the development of our group. The flotation will raise our corporate profile and will […]

IDDs and affordability is a worry, says FSA

The Financial Services Authority says it still has concerns about Initial Disclosure Documents, with one out of two containing five or more errors.Speaking at the Mortgage Business Expo, Clive Briault, managing director of retail markets at the FSA, says although the regulator has been encouraged by the fact that consumers find Key Facts Illustration and […]

IVA specialists are set to ride the debt spiral

Government figures reveal the shocking truth. Over 26,000 people became insolvent during the second quarter of 2006 – an increase of 66.3% over last year. Extrapolate these figures and insolvencies could exceed 100,000 this year and sail past 150,000 by the end of 2007.

Guide cover

Guide: Johnson Fleming produces auto-enrolment checklist

For a job as big as managing the auto-enrolment changes, it’s important to know what has been completed and what still lies in front of you to give you the reassurance that everything is in hand. Getting the planning and project management right at the outset can help you see the path ahead and ensure everyone knows their roles and responsibilities. To help with this, Johnson Fleming has produced a checklist outlining every step that needs to be taken when preparing for auto-enrolment.


News and expert analysis straight to your inbox

Sign up