Sick borrowers tied in to poor deals

New research by online protection website shows that mortgage borrowers with pre-existing medical conditions are often tied in to unsuitable and expensive mortgage and insurance deals.

These borrowers are trapped because their Mortgage Payment Protection Insurance policies are non-transferable between lenders and contain pre-existing medical exclusion clauses that exclude medical conditions that exist or have occurred within 12 months of the start date of their policy.

Goodinsurance spokeswoman Sara-Ann Rosamond says: “It&#39s outrageous that lenders&#39 policies are non-transferable between mortgage providers. I believe the only reason for this is to tie their most vulnerable borrowers into financial arrangements that often offer poor value for money.”

By contrast, all independent MPPI providers offer policies that are fully portable between lenders.