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Dodgy MPPI deals pushed on the high street too

From David Rogers

I was delighted to see much of last week&#39s Mortgage Strategy devoted to single premium MPPI. It is not only unscrupulous brokers that promote this money-spinner though. High street banks and finance houses are also guilty of pushing the product in support of personal loans, without regard to the borrower&#39s employment position, health or employment package.

I have worked for one such bank and briefly for a brokerage where the sale of these products was targeted and in the case of brokers formed part of the remuneration package. To lend an applicant money to buy an overpriced and often inappropriate policy is shameful. My refusal to promote such policies led to my departure from that brokerage as I felt it was operating against the spirit of the Mortgage Code.

I recommend MPPI where necessary but cannot think of a compelling reason (other than personal greed) for suggesting the single-premium option.

PS: I read with interest Ms Colyer-Worsell&#39s letter. Let&#39s establish some ground rules. Firstly, most brokers are heterosexual males quite happy to look at pictures of women in bras.

Secondly, Mortgage Strategy is a serious journal with a lighter side. Perhaps The Mole should be culled and Have you Got The Bottle scrapped to be replaced by articles designed not to offend vegetarians and tee-totallers. Lighten up love and put the kettle on whilst you&#39re about it!

David Rogers

Intermortgage

Exmouth

By email

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