Mortgage borrowers are still being ripped off by over-the-odds insurance policy charges, despite rising sales of mortgage payment protection insurance.
Data released by the Council of Mortgage Lenders last week shows nearly 700,000 borrowers have signed up for MPPI since the CML/ABI sustainable home-ownership initiative began in 1999.
Nearly 428,000 policies were sold or provided free in the first half of 2002, with 36% of mortgages advanced including either free or paid-for MPPI cover. However, insurance brokers say prohibitive costs of lenders' policies are slowing take up.
Research undertaken by Rhino Insurance reveals the average mortgage borrower could save over £219 in the first year alone by switching to cover from an independent provider.
Rhino Insurance director Andrew Areoff says: “Lenders are profiteering at the expense of their borrowers.”
Meanwhile, the CML is urging homeowners to check that they are benefiting from their full tax-credit entitlements. Only half of those eligible are claiming their entitlements Peter Williams, deputy director general of the CML, says: “Half of the poor are homeowners, and they should not be missing out on this important supplement to their income.”