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Brokers forced to shop around for MPPI

Huge price differentials in the mortgage payment protection Insurance market are forcing brokers to examine their third party relationships to ensure they are getting the best value for their clients, says

Research reveals that specialist brokers selling policies for a 25-year old range in price from 7.25 per 100 of cover, down to 1.60 per 100 of cover.

This means that an individual looking to protect a monthly mortgage payment of 700 would pay anything from 50.25 down to 11.20 a month.
Over the course of a 25-year mortgage this equates to a difference of 11,715.

Simon Burgess, managing director at, says: There is no reason why more margin could not be taken out of many of the products in the market to provide better value for clients and help those that really need the insurance to afford it.

Burgess questions how intermediaries not sourcing the market to find what was best for their clients could stand up their actions in light of Financial Services Authority regulations.

He adds: There is a huge jump in the prices that are available although the products are broadly similar.

Intermediaries turning to the specialist providers still need to be aware that there are huge price differentials at work and make sure they provide good value to their clients.

The protection gap is widening and we need to do everything we can to help younger borrowers stay on the property ladder once they are there.


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