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.”